Loss recorded by State mines

Press, 30 August 1980, Page 3

Loss recorded by State mines

NZPA Wellington State coalmines suffered a set-back last year, recording a $200,000 loss. The previous year mines made a $4 million profit. - The annual report of the Ministry qf Energy notes that coal production was less last year than in previous years '‘mainly because less coal was used for thermal electric stations.” Production of State coal was down 12.32 per cent to 1,107,503 tonnes because of reduced sales to Meremere power station, domestic, hospitals and general industries. Mine profits were down more than $4 million on the previous year, while administration costs, hireage fees and rents almost doubled. However, the Ministry of Energy sees the downturn as a short-term problem, and gays the drop in sales to electric power stations should be reversed. “It is expected that this

will change over the next few years as natural gas is diverted to methanol and synthetic gasoline production,” the report says. Exports of West Coast coal could provide a big industry boost.

“Because of the special properties of this coking coal, its value on the overseas market is considerably higher than the local market-price,” says the report. “These exports, which are expected to be in the order of 250,000 tonnes a year, could make a substantial contribution. to overseas earnings.” !