Solid Energy hopes to get back in profit by exploiting more land to mine for coal, Radio New Zealand reports.
The Green Party opposes the plan but the financially troubled State coal company has the support of the Government and the Labour Party.
After losing money and going deeply into debt, Solid Energy survived only after the Government put together a bail-out package supported by its banks.
In its strategic issues letter for 2014, obtained by Radio New Zealand under the Official Information Act, Solid Energy said it wants to increase its coal production.
Greens energy spokesperson Gareth Hughes said that is the wrong approach. But Labour's State-owned Enterprises spokesperson Clayton Cosgrove said it makes perfect sense.
SOE Minister Tony Ryall said it's important the company plans ahead, but in the short-term it faces a continued problem of very low international prices for coal.