India could provide market for coal

Press, 22 April 1986, Page 26

India could provide market for coal

NZPA, By DAVID PORTER, staff correspondent New Delhi Officials will explore the possibility of meeting a potential coal export market worth $l5 million in India after talks in New Delhi with the Prime Minister, Rajiv Gandhi, said the Minister of Overseas Trade, Mr Moore. “When he comes to New Zealand he will get a programme that shows what New Zealand could offer.” India had been unaware of New Zealand’s coal reserve, said Mr Moore. India imported about two million tonnes for its steel industry, he was told by the Energy Minister, Vasant Sathe, who also had some responsibilities for steel. “I am advised we have the capacity to export an

extra 300,000 tonnes of coking coal worth $l5 million and that our ash content is very low, about 1 per cent, compared with 20 per cent for local coal.” The main source of present imports was Australia, said Mr Moore. The Australian coal’s energy content of 1000 British thermal units per tonne was much lower than New Zealand’s 9000 b.t.u. per tonne. That factor could enable New Zealand to compete on price, in spite of a disadvantage over freight costs. Mr Moore said he would talk to State Coal officials on his return, to find out what investment would be required to meet India’s demand and whether the coal would be competitive.