Japanese seek 15-year Coast coal export deal

Press, Volume CXIV, Issue 33625, 29 August 1974, Page 1

Japanese seek 15-year Coast coal export deal

Millions of tons of West Coast coal—a 15-year supply—are wanted by Japanese industry, and all that remains before the contracts are signed is Government approval.

The Mount Davey coal would be taken by rail to Lyttelton at the rate of between 1450 and 2000 tons a day for 15 years and shipped to Japan. About 200 miners would be kept in full-time work.

The coal is a very high grade, low-ash, low-sulphur, coking coal. The member of Parliament for Westland (Mr P. Blanchfield) confirmed yesterday that the Government had a request to allow the mining and export of the coal. Behind the venture is a consortium of companies: the Japanese firm, Ataka, holding 50 per cent of the shares, and the rest going to N.Z. Forest Products, Ltd (40 per cent) and C. and A. Odlin, Ltd, (10 per cent). A firm contract for 500,000 tons of coal for 15 years has been offered. It will come from 7000 acres of “difficult country” around Mount Davey and Paparoa, and some Stockton coal might be included in the deal. It is not known what the export price is likely to be, or whether the Government is likely to be prepared to sell. A similar deal — for a million tons a year — was being discussed behind closed doors about three years ago, but was quietly shelved after the 1972 General Election.

Equipment If the Government does approve, the first shipment could leave in less than two years and a, half depending on the time the mining starts and the equipment is ready. A great increase in the number of railway waggons available and the’ provision of a berth, stockpiling area, and loading system at Lyttelton would be necessary for the project. The Lyttelton Harbour Board has already been working on the problem, and has reserved a berth on the inside of the Cashin Quay breakwater for coal shipments. A stockpiling area is available near the woodchip stockpile (also destined for Japan), and a conveyor system has already been considered, “unofficially.” The woodchip conveyorloader could not be used continuously, but might well be

used for the first trial shipment of 5000 tons or so. If the coal deal goes through, however, woodchip and coal vessels will probably clash at loading times and, as one source said, “Coal dust in woodchips makes a very black paper.” Waggons The board could probably provide the berth for coal shipments — the area is set aside, but a wharf will have to be built — within the two years it would take to build up the necessary number of railway waggons and open the mines. The railway waggons are likely to provide the greatest problem because several times this winter the normal production of West Coast coal has had to be stockpiled on the Coast waiting waggons to move it to Christchurch. Before the Government will make its decision, re-

ports will have to be taken from several departments. Among the portfolios involved are Mines, Railways,

Overseas Trade, Environment, Trade and Industry, Energy Resources, and the Treasury.