This thesis presents an engineering geological and geotechnical investigation of the proposed Terrace Opencast Coalmine highwall in the Reddale Valley, Reefton. The proposed pit will target the 4-11m thick No. 4 Seam coal, which exists on the Valley floor beneath outwash gravels and Brunner Coal Measures (BCM) overburden dipping at 15-30° to the northwest. Rock coatings are providing friable sandstone units with protection from weathering in existing cut faces and may contribute to short term pit wall stability. The BCM core was divided into four geotechnical units for rock material testing purposes: unit 1 siltstone, unit 2 carbonaceous mudstone, unit 3 interbedded sandstone and carbonaceous mudstone and unit 4 loose sandstone. The average results for units 1-3 gave classifications within the medium to high porosity (9-13%) and dry density (2250-2470kg/m³) ranges, and medium to medium high slake-durability Id2 values (72-94% retained). Unit 4 (loose sandstone) recorded very low dry density (1694 kg/m³) and slake-durability Id2 (9%) average values. Strength testing confirmed that the units can be classed as weak rocks, with average UCS values of 12.8-13.7MPa for units 1-3, and for all four units Is(50) from point load testing of 0.26-0.62MPa with low cohesion values (0-6.2MPa) from triaxial testing. Friction angles from triaxial tests gave high values of 32-45°, while direct shear tests established 15° internal friction for bedding planes in carbonaceous mudstone and 37° for a high angle defect in interbedded sandstone/carbonaceous mudstone. The average Young's modulus values ranged from 0.82 to 10GPa, and Poisson's ratio between 0.39 and 0.50. Eight scanline defect surveys established that the major discontinuities in existing cut faces consist of high angle tension joints, shallow dipping bedding, and faults related to regional uplift. The defect orientations from the scanlines located in the southwest were significantly different from those in the northeast, and may be due to the faults that cross the Valley. In general the majority of defects displayed low persistence (less than 3m), were clean and tight, and had low joint roughness coefficients (JRC less than 6). Joint wall compressive strengths gave an average of 32MPa, but were affected by case-hardening on weathered faces. The results from the 8 drill holes analysed show that 37% of core was within the excellent rock quality designation class (RQD = 90-100%), while 29% was in the very poor quality rock (RQD = 0-25%). A semi-confined aquifer in the outwash gravels that will drain into the proposed pit was found to have a transmissivity of 58m²/day and hydraulic conductivity of 3.1 x 10⁻⁵ m/s. Kinematic feasibility assessment determined an optimum highwall orientation of 65° dip to 120° (dip direction), which is within at least 20° of the coal seam strike. The likelihood of planar, wedge or toppling failure depends on whether the structural conditions are similar to those encountered in the southwest or northeast scanlines, as well as the persistence of the defects present. The occurrence of small scale (less than 1m offset) 'step-up' normal faults, and the three larger faults that cross the valley, all of which are related to regional uplift, will also affect which failure mode will be kinematically feasible. Other crucial slope stability considerations include groundwater inflow from the saturated overburden and bedding parallel failures on the footwall dip slope of the pit. An investigation into case hardening on existing cut faces identified three interconnected rock coatings: iron films, lithobiontic (biological) and clay-dominated crusts. Jarosite was found at sites with abundant pyrite and the oxidation of iron may have been aided by microbial activity. A green algae inhabiting pore spaces approximately 1mm below the surface was noted beneath an iron film and it is suggested to be similar to that found in arid environments. Although lithobiontic and clay-dominated crusts did not provide the weathered surface with any additional strength, they were observed to form relatively quickly (from months to less than 5 years) and will aid short term stability by providing the batters with protection from weathering processes. This project concluded that the overburden material in the proposed highwall can be expected to behave like weak rock and in some cases (such as the loose sandstone) can be expected to have soil characteristics. Highwall stability is more likely to be affected by substantial inflows of groundwater than highly persistent joint sets. Establishment of the highwalls in their final position in the early mining stages will enable development of rock coatings that are expected to aid short and long term stability.