Coal and Allied lacing problems with costs

Press, Volume CXV, Issue 34021, 10 December 1975, Page 29

Coal and Allied lacing problems with costs

(A'eiD Zealand Press Association—Copyright) SYDNEY. The long-term prospects for Coal and Allied Industries. Ltd, are bright, but there are “some storm-clouds gathering on the horizon,” the chairman (Mr W. Howard-Smith), said at the annual meeting.

The improvement in profitability shown by the 1975 result had continued into the current period, and the profit for the first five months of the present financial year is ahead of that for the corresponding period of last year, he said. “A hardening in the coal market is becoming evident, and buyers are reluctant to have cost increases automatically passed on to them.” he said. Enquiries have been re-

ceived for the supply of steaming-coal to Europe, and elsewhere, but prices indicated by buyers are below “our costs at point of shipment and it is obvious that high cost Australian underground coal mining .has virtually priced itself out of such markets at the present time,” he added. On November 6 the company detected underground heating at Aberdare North colliery, and the company had to withdraw all employees, and seal the mine at the surface. A similar incident oc-

curred at this mine nine years ago. The mine has reserves for about four years working, and it should be possible to reopen the mine within six months. But the mining problems at Aberdare east are causing the company serious concern, Mr Howard-Smith said. Tenders have been called I for the building of a new 3000 tonne deadweight bulk carrier to augment the company’s present vessel on the run between Newcastle, Catherine Hill Bay, and Sydney.