18 Jun 2010

PM agrees Solid Energy needs more capital

8:13 pm on 18 June 2010

Prime Minister John Key says he agrees with Solid Energy's chairman that the state-owned mining company will need more capital at some point in future.

John Palmer has said Solid Energy needs up to $10 billion in capital in order to expand, to help achieve its commercial potential.

Mr Key says Mr Palmer informed both himself and his deputy Bill English that he intended to make the comments.

Mr Key reiterates that National is yet to determine its policy on the sale of state assets, ahead of the next election.

But he says he agrees with Mr Palmer's assertion that Solid Energy is a growth company and is going to need a capital injection.