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Eastern wins coal contract for second Canterbury dairy plant
10 March 2008 - Queensland-based coal company Eastern Corporation Ltd’s Takitimu mine in the Ohai area of Southland has won a contract to supply coal to a new independent dairy plant in South Canterbury.
Eastern says in its December 2007 quarter report that Takitimu is to supply approximately 20,000 tonnes of coal a year to the recently completed New Zealand Dairies plant at Studholme, South Canterbury.
The Eastern mine last year won a 130,000 tonne a year coal supply contract to supply the large Fonterra-owned Clandeboye dairy manufacturing plant, also in South Canterbury.
In the latest report Eastern says several other contracts are currently under negotiation, resulting in further changes being made to the design of the new processing plant for the Takitimu mine to allow for increased capacity.
In the Takitimu mine block 2, overburden removal is on schedule to expose the increased volumes of coal needed to begin the Fonterra contract in the final quarter of 2008.
Eastern’s Exploration Permit 40-591 at Whareatea West on the Buller coalfield, further exploration drilling and coal quality testing is to be carried out during 2008 to further determine the resource.
The next stages of exploration at Whareatea West will be conducted with a joint venture partner. Discussions are now underway with several parties.
Mining is also being carried out at the Cascade open cut coal mine approximately 5 km from Whareatea West.