Cold winter lifts coal sales

Buller coal-miner, Eastern Corporation says a cold South Island winter has increased its domestic coal sales and contributed to an anticipated $2 million end-of-year profit.

Brisbane-based Eastern, which owns the Cascade mine near Denniston, has released its fourth-quarter report to the end of June which says it’s on track to announce a pre-tax $2 million end-of-year profit when its final accounts are lodged at the end of September.

Chairman Gordon Smith said ‘the Cascade mine continued to perform to expectations with management looking to improve efficiency and optimise off-take arrangements’.

Mr Smith said a new crushing and screening plant was being installed to increase operating efficiency, while export opportunities were being re-evaluated in light of increasing domestic demand.

‘Sales in the domestic market have increased and have been underpinned by the extreme climatic conditions experienced in the South Island during the winter months’, he said.

Eastern is also exploring at Whareatea West, near Cascade, and at Ohai in Southland.

Mr Smith said a 10-hole exploration drilling programme was now underway to determine the quality and extent of coal there.

He said preliminary results had been encouraging but it would be months before a full analysis was completed and a decision was made on whether to develop the area into a mine.

Mr Smith said increased cash flow generated by Eastern’s New Zealand projects would allow the company to focus on developing its Broughton coal mine (Queensland) and to review acquisition opportunities.

Source: Westport News, 25/08/06