Future of coal exports brighter

Press, 22 October 1987, Page 1

Future of coal exports brighter

By

YVONNE MULDER

The future of coal exports through the Port of Lyttelton looks much brighter after yesterday’s announcement of a multimillion dollar deal by the Coal Corporation. A Japanese chemical comK, Mitsubishi Chemical Indushad contracted to take coal from the Stockton mine on the West Coast, said Coalcorp's general manager, Mr Ron Janes. He declined to give details, but It Is believed the contract involves the export of between 200,000 and 250,000 tonnes a year for at least three years. Mr Jones said the contract was important to the newly formed Coalcorp because it provided a firm base for the export trade to consolidate and grow. The contract was the result of tough negotiations conducted against a background of a depressed world coal market, he said. There are no guarantees that the coal will travel via the West Coast railway line and the Port of Lyttelton but Harbour Board officials are hopeful they will export the coal, Coalcorp last July halted shipments of coal to Lyttelton for 10 days, saying high transport costs were contributlni to the lack of export orders. Slurry pipelines and cool shipment by barge were suggested as cheaper forms of transport.