N.Z. business promised profit opportunity

Press, 13 April 1984, Page 29

N.Z. business promised profit opportunity

PA Hamilton New Zealand business would get the maximum possible opportunity to profit from the Waikato coal mining expansion plans, according to the Minister of National Development, Mr Birch. However, he warned that New Zealand involvement must not be allowed to cause delays, technical problems or increased costs. The projects, including proposed work on the Maramarua and Mokau coalfields, would cost about $750 million, Mr Birch told about 250 business people at a seminar in Hamilton.

At least 40 per cent of that money would be spent in New Zealand, he said. Mr Birch and Mines Division officials and consultants outlined the mining plans and ways in which New Zealand business people could get involved.

He said that Australia had an established mining equipment supply fraternity and under the Closer Economic Relations agreement could compete equally with New Zealand organisations. “The chief opportunity for New Zealand manufacturers is with small equipment and consumables, items which are used in the day-to-day working of the mines,” Mr Birch said.

Initially, State Coal Mines was using local expertise in geological and environmental assessment to assist it in improving its knowledge of each coal reserve market for development. Later, New Zealand fabricators would have the opportunity to help establish the necessary surface facilities at each of the projects.

There would also be extensive earthmoving and construction activities which would be of interest

to New Zealand contractors. However, Mr Birch said that overseas advice was critical in areas of assessing the mining potential of each mine development and the technology best used.

“Given the technological nature of mining today it is understandable that nearly 90 per cent of the money spent overseas will be to purchase plant and eouipment to work the mines?’ he said.

New Zealand content could be increased by local companies approaching overseas manufacturers supplying mining equipment to New Zealand ana convincing them of the local ability to manufacture part of the equipment in New Zealand. Joint ventures could also allow local manufacturing under a licensing arrangement, said Mr Birch.