Cost of 7-day week weighed

Press, 27 April 1984, Page 18

Cost of 7-day week weighed

PA Wellington Working a seven-day week at the proposed Ohinewai opencast coal mine would cut costs, but the social implications require assessment, consultants have told the Ministry of Energy. A supplementary report by Rheinbraun Worley Longworth Consultants, a West German, New Zealand

and Australian joint venture, says that a seven-day system would be about 5 per cent cheaper than working the mine five days a week. That would drop the cost of the coal from $68.43 a tonne to $64.78, said the report. The Minister of Energy, Mr Birch, said the report “looks at further options."

The report notea tnat the “common practice” for mines of similar size to Ohinewai was for six and seven-day rosters, and gave as examples Australian mines at Hunter valley and Bowen Basin. Rheinbraun in Germany works an over-all six-day roster system “with the flexibility of being able to continue coal production

also on Sunday.” The report added that “The social costs of implementing six and seven-day roster systems require assessment.” A faster production rate reduced capital costs, improved the use of capital equipment, and accelerated the rate equipment was paid for, it said. It also said that by reducing construction standards, savings in civil costs of up to $2O million could be possible. Costs could drop by $2 a tonne. Mr Birch said the report looked at options concerning the size and output of the mine, which would supply coal to the expanded New Zealand Steel mill at Glenbrook. Alternative dumping strategies were examined but did not provide any significant benefits, he sail.