Coal export doubts

Press, 14 July 1980, Page 1

Coal export doubts

The export and misuse of specialised coals may deprive New Zealand of new coal-based industries, according to geologists. The Geological Society is concerned that the Buller coal which is being sold to Japan has not been adequately evaluated for potential .use in New Zealand.

Any new coal-based industries in New Zealand might be small by international standards, but they could be of great national importance, especially in replacing imported coal or oil-based products, said the convener of the society's coal sub-committee (Dr D. W. Lewis). Dr Lewis said that it was wrong to think that New Zealand had coal reserves that would meet all its needs for centuries. Some reserves were useful for only specific purposes, and bigger production rates depleted the reserves more quickly. ■'The rapid exhaustion of small reserves of special coal cannot be in our long-term interest,” he said.

“Our oxer-all reserves appear large in comparison with our present usage, but many of these reserves are not economically recoverable at present. The reserve figures commonly do not specify the quantities of particular coal varieties useful for particular purposes.” There were drawbacks to the sale of Buller coals to Japan, such as the sale price of $5B a tonne, compared with prices of more than $BO a tonne paid by New Zealand consumers. However, it could be argued that New Zealand had made the best deal possible in competition with overseas suppliers. Dr Lewis said.