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Eastern produces $1.2 m of coal in first quarter
28 May 2008, Source: Eastern Corporation and Lindsay Clark - Queensland-based coal company Eastern Corporation Ltd has increased coal sales to $1,225,000 in the first quarter of 2008 from its two South Island production mines.
Eastern’s new Takitimu coal mine in the Ohai-Nightcaps area in western Southland has extracted 9,426 tonnes of sub-bituminous coal in the quarter as it prepares to raise the mine’s production to 130,000 tonnes a year to supply coal to Fonterra’s processing plant at Clandeboye in South Canterbury from September 2008.
The Takitimu mine is currently supplying coal to a range of local industrial applications.
Coal winning in Takitimu’s block 1 extended beyond the end of March with better than expected recoveries from the upper Morley 3 seam. In block 2 overburden removal remains on target at 75,000 cubic metres per month to expose the next 50,000 tonnes of coal in readiness for the Fonterra supply.
The major Takitimu mine excavation work for the new product coal stockpile and load out area has now finished. Earthworks have also been completed for the haul road to the new rail load out. The weighbridge upgrade and office extension is also nearing completion.
After the end of March a contract was signed with rail operator Toll NZ to rail coal contracted to Clandeboye near Timaru.
Production at Eastern’s Cascade coal mine in the Buller coalfield, 25 km north-east of Westport, was 9,847 tonnes in the first quarter.
Eastern says it plans to carry out further exploration with a joint venture partner at its Whareatea West exploration permit 40,591, close to the Cascade mine.
Eastern also plans to carry exploration at its two western Southland sub-bituminous prospecting permits at Orepuki PP 39319 and Ohai PP 39321 once its Takitimu mine development phase is complete.