The Press MONDAY, AUGUST 29, 1966. Coal Export Proposal

Press, Volume CVI, Issue 31150, 29 August 1966, Page 10

The Press MONDAY, AUGUST 29, 1966. Coal Export Proposal

The Government has been prudent in deciding.against selling a large amount of low-sulphur bituminous coking coal to a Japanese combine. Especially in prevailing circumstances, the Government must be reluctant to turn down an opportunity to earn considerable overseas funds. But short-term gain should not prejudice long-term development; and this is New Zealand’s case against a Japanese approach which, on the face of it, had many attractions, including the building of a jetty on the West Coast near Greymouth where colliers up to 35,000 tons could be loaded. The Japanese proposition would have involved taking out, in a relatively short time, a minimum of five million tons of coal of a special type at a price which would leave little margin over costs of production. It is true that there is no present demand in New Zealand for the coking coal produced in the Buller field, but it is by no means a dog-in-the-manger attitude that counsels against the Japanese scheme. The Minister of Mines (Mr Shand) has explained that sales of the magnitude envisaged would have denuded the Westport district of coking coal. The only other suitable deposit is the Paparoa seam in the Mount Davy block near Grey mouth: but this is expensive to mine and could not be produced at a cost attractive to the Japanese concern. The development in the future of heavy industries in New Zealand might depend upon ample supplies of good coking coal. Some authorities believe that the future of the coal industry may depend upon developments that can only be guessed at now; the marvels that industrial chemistry has achieved in relatively few years must encourage these hopes. One indication that coal might be entering a new era of profitable exploitation is the recent purchase by a Texas oil company of one of the biggest American coal concerns. It is suggested that the company may make petrol from coal by a process that would heavily reduce conventional costs. The coal research organisation that the Government has set up will watch such overseas developments as this. New Zealand should not abandon hope of reestablishing the profitability of one of its great natural resources.