Solid Energy is to make an announcement on Tuesday about the future of its lignite briquette plant in Southland.
The company started construction of the $25 million plant in Mataura 2011 and had planned to expand it into a $2 billion diesel and urea facility.
Discussions have been underway between Solid Energy and GTL Energy of Australia, which plans to run the plant when it is fully commissioned.
The plant currently employs about 10 people and is currently in the product testing phase.
Solid Energy owes more than $389 million.