Eastern posts $2m profit
Buller coalminer, Eastern Corporation, has posted a $A1.79 million ($NZ2.06m) profit in the 12 months to the end of June, after recording a $A12 million loss last year.
The result comes on the back of a cold South Island winter, which lifted the company’s domestic coal sales from its Cascade mine, near Denniston. The Queensland-based miner bought Cascade for $3.5 million from local mining company Cascade Mining Limited in June last year. The profit was achieved on revenue of $A4.69m – almost entirely from Cascade sales – compared to last year’s $93,447.
Chairman Gordon Smith said Eastern had modified mine operations and systems at Cascade throughout the year to improve performance. Mr Smith said a new crushing and screening plant was installed to allow for greater operating efficiencies. The company hoped to soon increase the mine’s annual production of 40,000 tonnes towards 100,000 tonnes, he said.
Eastern believes there is about 1.5m tonnes of coal left at Cascade.
Meanwhile, Mr Smith said Eastern was expected to complete its $NZ2.4m takeover of the Straith mine, in Southland, early next month.
The Straith mine, with an estimated coal reserve of 2.8m tonnes, would enable the company to better service Southland customers. Eastern had also applied for prospecting permits over an “extensive area” surrounding Straith and encompassing the nearby Ohai and Takitimu mines, he said.
Coal from both Eastern’s mines will be trucked to the company’s newly purchased handling and distribution facility at Timaru. Some coal could be exported from Timaru, although Eastern has said its “full focus” is currently on the domestic market.
Business development and corporate relations manager Sam Aarons told The News recently that the company had looked at exporting Cascade coal from Westport. But that would probably be too expensive because Solid Energy (SE) controlled the coal loading facility at the Westport port, she said.
SE communications director Vicki Blyth said at the time that SE was happy to make the Westport loadout facility available to other companies. “But obviously it has to be as a commercial venture,” Ms Blyth said.
by Jamie Shaw
Source: Westport News 29 September 2006.