SAFE COAL SUPPLY

Sun (Auckland), Volume IV, Issue 1036, 29 July 1930, Page 10

SAFE COAL SUPPLY

AGREEMENT FOR KING’S

WHARF FUEL POWER BOARD SATISFIED With the reaching of an agreement with Glen Afton Collieries, Ltd., the Auckland ElectricPower Board has overcome its anxiety regarding supply and suitability of coal for the steam plant at King’s Wharf power station. At a meeting of the board yesterday afternoon, the terms of the agreement were reported and the chairman, Mr. W. J. Holdsworth, pointed out that the board was no longer in the difficult position obtaining at King’s Wharf, in regard to coal supplies, since the failure of Arapuni. A motion was passed for the execution of the contract by the chairman, Mr. T. Bloodworth and Mr. fc>. Irwin Crookes, members of the special committee set up to investigate the position. The committee sat for a week and several consultations were held with Mr. W. Goodfellow and Mr C. M. Richwhite, directors of the Glen Afton collieries, and the legal advisers of both parties. Last week, an agreement was signed between the Government and the com pany, by which the Government will lease to the company for 40 years the MacDonald State mine at Glen Afton. one of the conditions being that the board should receive adequate supplies of coal. 3,000 TONS WEEKLY

Under the agreement with the board, the representatives of the company have consented to a minimum supply of 3,000 tons weekly, and the boavd has the right to obtain further supplies from any other source. At the end of three year-, the board will have the right to request a reduction in price. In the event of no agreement being reached concerning the price to be charged for the further term of three years, the contract is to be absolutely determined. The board has agreed to an upset price of 8s a ton for slack and 15s 6d a ton for crushed coal. Mr. Holdsworth assured tho board that the interests of the concern and its consumers had been fully pro tected. The board was certain of supplies for some time to come at a reasonable price and in a condition suitable for the purposes of the board. Other classes of coal had damaged the plant at King’s Wharf badly and the conditions under which the board would now receive supplies could not be improved upon at "he moment. The board had at no previous stage used such quantities of coal. The load of power was 29,000 kilowatts and the consumption of coal 3,400 tons a week. The general manager, Mr. R. H. Bartley, instanced the need for a detailed report of the expenses Incurred by the board to maintain its output of power since Arapuni failed. The Government had undertaken that the cost of power to the board would not be more than that to other' supply authorities. The board had been re quired to meet a 1930 demand under 1925 conditions, before Horahora was operated. The special committee was congratulated on its work, and an invitation to inspect the Glen Afton mine on August 6 was accepted. The company is to submit a schedule of users of slack coal. In addition to slack coal above 200 tons resulting from Government contracts, the board will have the right over slack coal after meeting the inquiries of the cor; sumers mentioned m„the schedule.