COMMENT FROM THE CAPITAL GOVERNMENT PLANS TO MAKE MORE USE OF COAL STOCKS

Press, Volume CXV, Issue 33777, 25 February 1975, Page 16

COMMENT FROM THE CAPITAL GOVERNMENT PLANS TO MAKE MORE USE OF COAL STOCKS

(By

CEDRIC MENTIPLAY)

WELLINGTON, February 24.—This will be a coal-burning year as far as New Zealand is concerned. The energy' crisis, risen costs of petroleum products, and the uneasy future prospects relating to oil and petrol, hate concentrated attention on the more efficient use of the energy source we have.

The Minister of Mines (Mr Colman) is optimistic on the amount of coal available, and on the capacity of local industry’ to deliver modern, efficient domestic and industrial coal-using plant, which will produce energy without an accompanying pall of smog.

A new coal-using programme will be announced later this year. In the meantime the Government is doing its best to encourage industrial firms to switch to (coal. At the same time the building industry, including I the home-builder, will be (helped to fit coal-burning [space heaters and other (equipment. Much of what the Government intends to do is based on the recommendations made in the White Paper presented to Parliament last year. In this the Commissioner of Energy Resources (Mr R. J. Hogg)' oulined the problems, and sketched a practical plan of development for our energy resources. The White Paper also cautioned against a tooready decision to sell coal overseas — a point which is deeply concerning the Government at present. Mr Colman believes that some incentives may be necessary to encourage firms and people to turn again to coal. It now appears, he told me, that much of the publicity directed over the last decade to the increased use of the heavy-oil component of petroleum has been nullified by modern developments, and that coal has been given an undeserved blacklisting.

“The White Paper suggests the need for incentives,” Mr Colman told me. “The price incentive is very important for industry. If it is found necessary to give some financial inducements to industry to equip for coal-burning, then the Government will do that. The inducement could take the form of taxation advantages for those prepared to adapt to indigenous fuels.”

Mr Colman is well aware that the publicity given to atmospheric pollution has tended to work against the domestic use of coal. “Coal is made the the villain of the piece,” he told me. “This is totallv unfair. The motor-

car is by far the greatest polluter, and oil-fired plants are next. Coal smoke is more visible, so it gets most of the blame.” He believes that coal pollution in Christchurch can be completely overcome witn the use of modem coalburning appliances, particularly domestic ones. "EfIficient burners virtually eliminate atmospheric pollution,” Mr Colman said. “It is admitted that some of these can be expensive to install. We are working on a policy of helping people if they want to put modern appliances into their homes. “Personal loans are already available. A suggestion is that when people apply for loans from the Housing Corporation the installation cost should be incorporated in the loan. It is proposed that all or pan of the cost of installing a modern coal-burning appliance should be added to the mortgage. Ideas like these would help the builder to find in favour of modern coal-burners.” Other points in the developmental programme include the adoption of modern marketing techniques, pressing on with a five-year plan to prove the extent of our coal resources, and the use of aj high degree of mecha-i nisation in our coalmines. Legislation to allow greater use of coal is not considered necessary this session. There is a likelihood, however, of an amendment to the Coal Mines Act to give Government agencies power to prospect for and mine al! New Zealand coal. Pulverised coal Mines Department officers! and fuel technologists of the' Coal Research are working with industry in displaying the most modern coal-use I methods. These include various means of using pulverised coal as a bulk feed, almost in the fashion of oilfuel. Modern pulverised coalburning equipment is verv efficient. A unit being tested at the coal research laboratories at Gracefield works so smoothly that the layman would imagine it was burning oil. The coal powder is fed to the burners in the same way, without clogging, mess or surplus fumes. The twin difficulties are those of supply and cost. I When the oil crisis devel-| oped, there was an almost instantaneous run on all available modem coal-fired plant. This was a world trend.

Though the position has eased, the problem is still there. Reconversion to coal inevitably means the spending of some overseas funds, but, the Government is prepared to do its share in this, if the end result is to cut down the usage of overseas fuels. Coal-burning equipment does tend to be more I expensive than equivalent oil-burning plant but the margin is narrowing. The important thing is to establish the extent of New Zealand’s coal reserve. “We know we have a lot of coal,” Mr Colman told me. “Some has been measured, some indicated, and the presence of some inferred. One distinguished source claims that at present usage rates we have enough for 800 years. But then, if Gov-

lemment plans are realised, ■we shall be using much more. . .” Major developments inIvolve proving the existence of coal supply. This is why so much work has been done in the Huntly area, where the big power station is planned. Coal tests in the Waikato have been spectacularly successful, because coal reserves of $500,000,000 have been proven, over and above the needs of the station. One estimate is that the coalfield runs all the way from Huntly to the Bombay Hills south of Auckland. . Mr Colman is not prepared to accept this as more I than an estimate. “The only I way to prove it is to keep putting test bores down,” he said. “So we have expanded our test drilling programme.” New techniques Most of the optimism which is booming in the coal industry stems from new methods of mechanisation being tried out in the mines. This started with use in a mine near Huntlv. and was a tremendous success. Producton costs were lowered, accident rates cut. and miners were offered a ; successful incentive rate, i The mechanisation of the Southland field (Ohai) has followed. An Austrian unit is employed, and further mine development is intended. Most recent development has been on the West Coast, and has included the use of water power in the Strongman mine. A point realised by the authorities is that the big mining work force no longer exists on the West Coast. As imines have closed down, jmen have gone to other (work. So the use of mechanisation is needed to get the ■ work done at all. A continuing problem with the Government is whether our coal should be exported or saved against our own future use. This specific problem is still with the Cabinet.

The Mount Davy coal reserves are. one aspect of the problem. The Japanese group which wants to take out this high-grade smelting coal has made proposals which Mr Colman considers “technically perfect”. He I told me: “We have to worryout whether we can afford Ito let it go, or keep it for lour own steel 'idustry. I do ;believe that if we decide to sell, the Japanese will give us a good price.” So it looks as if the Government will eventually sell. This is indicated by Fijian experience. The Government shipped Buller coal to Suva recently to help the Fijian cement industry. This indicates that the White Paper recommendations will not shut out an alternative. The Fiji trade could take out 25,000 tons of Buller coal a year.

Mr Colman had a parting word of advice to householders, and particularly those in Christchurch. “Get your coal orders in early this year. The supply situation is better than it lias been, but there can be no guarantee of what will happen later. The pressure on coal supply is becoming heavier all the time, as more people and firms convert to coal. This will be a big year for coal consumption.”