Mining paper no surprise

Press, 23 October 1984, Page 14

Mining paper no surprise

PA Hamilton Waikato Federated Fanners are not surprised by the Ministry of Energy’s announcement that the Ohinewai coalmining proposal is uneconomic. In a briefing paper, the Ministry said the viability of the project depended on finding solutions to environmental, water containment, and overburden problems. On present estimates the project was not viable. Waikato Federated Fanners’ president, Mr David Peart, said the announcement was “what we have expected about this particular project for some time.” “The Government will have seriously to consider whether to spend the taxmoney on an unpro-

fitable venture.” He said the Government would have to consider ways of fulfilling its contract to supply coal to New Zealand Steel. He said these could include looking at alternative mines. A Waikato Watchdog spokesman, Mr Brian Dixon, said his group had been warning the Ministry of these dangers for several years. He said the $350 million expected to be needed to finance the project would reap a better return if put into job-creation schemes in Waikato. “The danger is that they might decide that the economic considerations do i not matter and sell the coal to New Zealand Steel at a loss,”. Hr Dixon said.