Solid Energy New Zealand Limited (Solid Energy') is a state-owned coal mining company, producing 4.0 Mtpa from a number of opencast and underground mines in the Huntly, West Coast and Southland regions in New Zealand. The company currently exports 2.1 Mtpa of coking coal. Exports are expected to grow strongly over the next five year as the company expands production into new semi-soft and thermal coal reserves. Domestic coal demand is also expected to grow strongly, particularly in the North Island, as the Maui gas field reserves diminish, and thermal coal becomes more important for electricity generation and meeting the energy needs of forest processing and other industries. Solid Energy is expanding and developing its risk management practices across all areas of the business: strategic planning - extensive use of scenario analysis and probabilistic modelling over a 20 year period; investment decisions - development and application of a rigorous six stage Project Assessment Guideline' process for all new mine developments; geological and geotechnical risk assessment techniques - use of best practice techniques including seismic surveys; financial risk management - a dynamic approach to hedging based on effects based analysis of Cash Flow at Risk analysis against preset risk tolerances; risk financing - the use of a captive insurance subsidiary, and the experiences of a small coal company seeking to obtain insurance cover on a hard' international insurance market; and integrated risk management - the challenges of trying to implement a broad integrated risk management approach across the company, that supports implementation of strategic objectives as well as meeting compliance or legislative based' risk management requirements.