Bathurst Resources says customers want long-term assurances of supply.
Photo: Supplied / Bathurst Resources Ltd
The country’s biggest coal miner Bathurst Resources is seeing another 20 years of development work.
It will use the fast track approvals process for two new projects near existing sites to supply local and export markets.
Bathurst Resources chief executive Richard Tacon said 90 percent of its sales were for coking coal used in steel making, with some coal supplied to the domestic market for industrial heating.
Pre-feasibility work was taking place at the Buller Plateau on the South Island’s West Coast to produce coal for overseas export used in steel making.
Another project in the early stages is the Rotowaro Extension near Huntly to mine coal for domestic use.
Tacon said its customers wanted long-term assurances of supply.
“We’re quite buoyant. We’ve got a supportive government at home and prices that allow us to be able to raise capital and to get into these new areas,” he said.
“For our local communities, for iwi and for our customers, if we can line up 15-20 years of further work that’s a lot more surety for them around making other economic decisions.”
Tacon said recent electricity and gas price spikes were having positive spinoffs for the company, and they were working to secure a contract to supply Genesis Energy.
The company said export markets in India, South Korea, Japan and China for coal used in steel making remained strong.
It also has an interest in two Canadian coking coal exploration projects.