Ohai coal on sale again
Friday, 2 September 2011
Ohai coal will be on sale again from Monday, Solid Energy says.
It announced in June it had found a new 50,000-tonne deposit of usable coal in its defunct Ohai mine.
Coal from Ohai was popular with consumers and is known for its low sulphur content and fierce burning heat.
In 2004, Solid Energy said it would phase out selling Ohai coal for domestic use by 2006 because of the impact it had on air pollution levels.
Amid public outcry and controversy over its motives, the deadline was moved to 2012.
However, in 2009, Solid Energy lost its contract to supply coal to Fonterra's Clandeboye dairy factory.
With the mine no longer commercially viable, it was closed.
Company spokeswoman Vicki Blyth said yesterday the decision to sell again was in line with Government air quality policy.
Last month, Environment Minister Nick Smith revised the target, giving moderately polluted areas such as Invercargill until 2016 to reach the standard.
The public criticism in 2004 forced the company to put off the end of Ohai coal, Ms Blyth said.
'We did take on board the uproar in Southland as coal is good high-energy fuel … we recognised that we couldn't take this moral stance to the detriment of people keeping warm.'
To confuse the economic situation of the Ohai mine with Solid Energy's policy on air quality would be a mistake, she said.
Southland mines manager Antony Stodart said the company always planned to sell coal up to the air quality deadline.
In the 1980s, the mine employed some 300 people, but now it was down to eight, Mr Stodart said.
The mine gates will open for cash sales from 8am on Monday. Three Invercargill outlets will also sell the coal. Sales from the gate will be limited to 10 bags per car or a maximum of two tonnes of bulk pea or chip grade. It will be sold for domestic use only.
Ohai Community Development Board member John Hogg said there would be big demand for the coal.
'Put it this way – the township and a lot of elderly people will be absolutely rapt.'