COAL COMFORT; Eastern Wins Deal

By KING, David

Fonterra has confirmed plans to dump Solid Energy and source coal for its Clandeboye plant from Australia’s Eastern Corporation from 2008.

The two-year deal will jeopardise the future of state-owned Solid Energy’s Ohai mine, which employs 58 staff. Solid Energy is downsizing operations at Ohai from August, and will review the long- term future of the open-cast mine.

Mike O’Brien, chief executive of Eastern, said the contract was the first big win in New Zealand for his company, and it provided a good foothold in the market.

Eastern bought the Takitimu mine at Ohai for $2 million in 2006.

O’Brien said there were likely to be more jobs added at the mine as Eastern increased production at the open-cast mine.

“Ultimately, we will have to take on more staff and ramp up production, but bear in mind the contract doesn’t kick in until towards the end of next year.”

From September 2008, Eastern Coal Supplies will supply about 130,000 tonnes of coal each year to Fonterra Clandeboye from its Takitimu mine.

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