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Overview
Industry snapshot
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Production:
5.77 million tonnes Value:
$678M
Export value:
NZ$350M Resources:
15 billon tonnes Share of primary energy supply:
13%
Production
New Zealand coal production in 2006 was 5.77 million tonnes. Almost all production is of bituminous and sub-bituminous coals, in approximately equal quantities.
Four underground and 22 opencast mines were operating in 2006. Production is centred on the Waikato (2.29 million tonnes), the West Coast (2.99 million tonnes), and Otago/Southland (0.47 million tonnes). Over 60% of national production was from two large opencast operations, at Rotowaro and Stockton, and a further 16% from New Zealand’s two largest underground mines, Huntly East in the Waikato and Spring Creek at Greymouth.
Domestic Markets
Coal supplies approximately 13% of New Zealand's primary energy supply or about 97 PJ/year. The biggest domestic user is the 1000MW Huntly power station (about 2.5 Mt/year, providing about 12% of New Zealand’s electricity generation), followed by the Glenbrook steel mill (800,000 t/year). Coal is also used extensively in the dairy (300,000 t/year), cement (170,000 t/year), meat processing (120,000 t/year), timber and health industries. Over 70% of New Zealand’s coal production for domestic use is from the Waikato, underlining the regional interdependence of coal supply, industry and electricity supply. About 1 million tonnes of thermal coal is imported to the North Island each year, indicating a substantial domestic production shortfall.
Exports
Premium New Zealand bituminous coals are valued internationally for their low ash and sulphur contents, and other characteristics such as high swelling, fluidity and reactivity, which allow them to be blended with other coals for use in the steel industry. Exports of bituminous coal, produced entirely from the West Coast, reached 2.61 million tonnes in 2006. New Zealand coal is exported mainly to India and Japan, with smaller quantities going to Chile, South Africa, Brazil, China, USA and Australia. Most exports are of coking coal, with smaller amounts of thermal and specialist coals. The Pike River mine is being developed for coking coal exports, with first production expected in 2008.
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