Report on coking coal encouraging

Press, Volume CXII, Issue 33034, 29 September 1972, Page 2

Report on coking coal encouraging

(N.Z.P.A. Staff Correspondent)

TOKYO, September 28.

Initial Japanese tests of coal deposits at Mount Davey, near Greymouth, have shown the coal is of high quality for coking and is ideally suited to Japan’s steel industry, according to informed sources in Tokyo.

The results of the tests—the first stage of a potential major coalmining development on the West Coast—-will be sent to the New Zealand Government next month. The tests, taken on samples from two seams found in three successful drillings at Mount Davey between last November and June, showed

the coal was equal to the best Japan now imported from the United States, the sources said.

Eight more drillings will have to be made before it is known whether the deposits are large enough to warrant commercial development. This could take two years. The Japanese are looking for minimum reserves of between 5,000,000 and 7,500,000 tons, which could be worked at the rate of 500,000 to 600,000 tons a year. There are hopes that the deposits will total 20m tons.

But the sources emphasised that even if commercial deposits were proved, there were still many problems to be solved before development could start. The most important of these are improving the railway to Lyttelton and the expansion of loading facilities there for bulk carriers.

It is believed that the Japanese interests want to open talks with the New Zealand Government, port, and railway authorities, before the end of the year.

A team of Japanese, including a geologist, a mining engineer, and a mechanical engineer, is expected to visit New Zealand by November to begin the discussions and to complete plans for the next test drilling programme.

The sources said a major factor in deciding whether the development would go ahead was that the field was thought to be small by world standards.