Prospect for coal exports — Minister

Press, 11 April 1979, Page 3

Prospect for coal exports — Minister

Greymouth reporter . “I can see no reason why a modest coal export industry should not be established in New Zealand provided satisfactory markets and prices can be negotiated,” said the Minister of Energy (Mr Birch) in Greymouth last evening. He was addressing the conference of the Private Coal Mine Proprietors’ Federation. “An export industry would not in any way jeopardise our long-term use for coal and indeed would help to rejuvenate the total industry, particularly on the West Coast,” he said. “Such a move.would stimulate a more efficient use of coal supplies and would provide opportunities to extend the experience and the expertise for coalmining that has developed in this country.” Mr Birch said that a map of the world would show that, like oil, coal tended to be available only to a few favoured nations. New Zealand was one of these. During the last three years New Zealand had

spent SSM in coal exploration. Recoverable coal reserves were now known to be 3300 M tonnes, compared with the estimate- of 800 M tonnes five years ago. “At the present rate of use of just over 2M tonnes a year, that will involve some 1500 years of coal consumption,” said Mr Birch. “With very substantial resources in other energy forms such as hydro-elec-tricity, geothermal steam, natural gas, and the potential for an energy farming industry, our large coal deposits raise the question of trade. “The basis of successful trade is the exchange of resources. Indeed, we have a responsibility to share a valuable energy resource with countries that have a deficit,” Mr Birch said. There was a need for comprehensive energy planning. “I intend to involve both the private and State sectors in the collation of annual information of production and forecast for use, so that an energy plan can be tabled each year in Parliament,” said Mr Brich. “Annual energy planning will play an important part .. . By the

end of this year I intend . =. to publish a document outlining energy strategy forl the years ahead.” Mr Birch said that coal was the main part of New Zealand’s known indigenous energy resources (about 70 per cent) and as such it must play an important part in the total energy plan. “I am concerned that coal retains its market share to ensure that the industry is maintained for long-term growth. To this end the energy price relativities will provide a price margin that allows coal to compete with other fuels in the energy market,” he said. Sooner or later the 2500 M tonnes of recoverable lignite in Eastern Southland would play an important role in energy supply, most probably as a source of liquid fuels. “There is sufficient lignite in these deposits to supply New Zealand’s present annual consumption of liquid fuels for something like 100 years,” Mr Birch said. To get the best from the deposits it was important that they be developed in an orderly manner as part of a total plan.