Interest in Coast coal

Press, Volume CXII, Issue 33094, 8 December 1972, Page 1

Interest in Coast coal

(By

KEN COATES)

Japanese interest in West Coast coal is still keen. Ataka and Company, which has already spent hundreds of thousands of dollars on exploratory drilling in the Mount Davey area, plans a second-stage programme next month. The Marubeni Corporation says it is still interested in buying Buller coal.

“We have been encouraged by the results of initial tests which showed the coal is of high quality, suitable for I steel-making,” said the New Zealand representative of Ataka (Mr K. Shiba) yesterday.

The second stage of drilling would begin late in January’, and would last for about four months, depending on weather. Mr Shiba said that this stage was still a feasibility study. The Japanese are looking for minimum reserves of between 5m and 7im tons which could be worked at the rate of Jm to 600,000 [tons a year.

“Depending on the results | of our drilling, we will then [consider the final stage of intensive exploration, or we must give up,” Mr Shiba said. TOP-LEVEL DECISION This decision would not be made until all data, samples,

and information from the four months of second-stage drilling were analysed in Japan. If it went ahead, the Mount Davey operation would involve huge expenditure on underground mechanised equipment. This and the transport of the coal from the area would involve the biggest operation of its type in New Zealand. The Stockton field in the Buller also has big reserves of high-grade coal. The manager in New Zealand of the Marubeni company (Mr Y. Nunotani) said yesterday that his company, which represents six steel mills owned by the major steel-manufac-turing companies, is still keen to buy New Zealand coking coal. Selling of West Coast coal for export involves a toplevel Government decision. In view of the change of Gov-

ernment, and the Labour Party’s stated concern for people in areas lacking development, a decision on West Coast coal use will be high on the new Government’s agenda. The final word from the previous Minister of Mines, Mr Gandar, was that until he was completely satisfied that this resource would not be needed by New Zealand’s future chemical or metallurgical industries, he would not be prepared to export it in a raw state to Japan. PRESSURE POSSIBLE

through the Southern Alps to Lyttelton. It would, however, "justify railway and other maintenance. Construction of a coalfired power generation station in Buller is another proposal likely to be considered by the Government. Another possibility, should the Mount Davey scheme go ahead, is that the Mines Department and the Japanese would sign a joint agreement to recover the coal. Whatever the Government’s decision on exporting West Coast coal to Japan, the outcome will be of vital concern to the Lyttelton Harbour Board.

With the development of ilmenite sand deposits a long way off, and a beech' forest chip industry unlikely before 1978, pressure may be applied to the Government for exporting coal from Buller. But this would not involve a large labour force — it would be a highly mechanised operation, coal being railed

The board questions both the economics of a scheme to barge Buller coal to.Whangarei and the willingness of the Japanese to use bulk carriers of the type envisaged, when steel companies’ buying agents have their own ships.