Coal price rise of 25 per cent sought

Press, 14 April 1979, Page 3

Coal price rise of 25 per cent sought

West Coast reporters

pie Private Coalmine Own. ers’ Federation wants an immediate increase in the price of coal of at least 25 per cent. The president of the federation (Mr M. J. Walker, of Hamilton) said after the federation’s conference at Greymouth on Thursday that it had been decided to send a telegram to the Minister of Energy (Mr Birch) repeating earlier submissions for an increase, combined with the removal of the energy resources levy from open-cast coal, "to restore coalmining economics to an acceptable level." The conference also decided that approaches should be made to reorganise the Coal Research Association and the Coal Promotion Council to ensure that the neds of the industry were served more adequately. “The federation will seek to preserve private firms’ share of the industry when any new coal developments are considered," said Mr Walker.

Mr Birch assured a public meeting at Westport on Wednesday evening that the Government would not allow Buller _ State mines to run down if the Portland cement works switched to Huntly coal.

In fact, the Buller mines had a good future because the Government was investigating the export of highgrade West Coast coal, Mr Birch said.

Justifying coal exports, he said that at present consumption rates New Zealand had enough coal for 1500 years, and more reserves were being proved every day.

A total of 800 M tonnes had been proved five years ago, but now the figure was 3300 M tonnes.

Oil-rich nations exported their reserves, so New Zealand should export its coal. Mr Birch said that he favoured modest exports of Buller coal — a million tonnes

over seven to eight years. The exports would be additional to any Mount Davy deal with the Japanese. However, some groups in New Zealand opposed the export of non-renewable resources, and the Government would need the full support and backing of the West Coast people, he said. Because of its high swelling characteristics, Buller coal was suitable only for such specialist uses as cement making, and even then high transport costs limited its attractiveness in other parts of New Zealand.

Mr Birch said that if Buller State mines lost the contract to supply the Portland cement works with more than 100,000 tonnes, efforts would be made to protect the mining industry; this could best be done through overseas sales.

“An export industry would not jeopardise our own longterm use for coal and, indeed would help rejuvenate the industry, particularly on the West Coast,” he said. “A limited amount of Buller coal, say IM tonnes, should be exported for specialised use, probably for mixing with other coals in steel production. In this way the full value of the coal properties would be used and a market price achieved accordingly. “Newspaper articles have suggested that the Portland cement works may draw coal from a North Island source. Shipping costs of about $3O a tonne have forced the company to examine this, but if

the shipping costs do make the use of Buller coal uneconomic more coal would be available for export. “The Government has confidence in the coal industry in Buller,” Mr Birch said. “I inspected the new coal handling facilities at Waimangaroa and Ngakawau, which will probably cost about S3M. The replacement of these facilities is a big step in modernising coalmining.” The Minister of Regional Development (Mr Cooper) who also spoke at Westport on Wednesday evening, said that there was nothing to stop coalmine owners selling their product overseas. Mr Cooper said, that he would be surprised if officials now discouraged the private export of coal. Many other new industries could be started on the West Coast. It was up to the people to make the most of their opportunities, he said, citing rabbit, goat, deer, and opossum farming. The people of the West Coast would not survive unless thev promoted and developed their resources with vigour. Mr Cooper said that for that reason he did not support the move to lock up West Coast resources in reserves. “There are plenty of native forests to go round,” he said. “Should we lock up huge areas of the West Coast just so that outsiders can visit them for a few days each year?” Referring to opposition to the Heaphy road, Mr Cooper said: “Roads lead people to places of beauty.”