Second coal port project forges ahead

By CHRIS DANIELS

Plans for New Zealand's second export coal port at Marlborough's Shakespeare Bay are proceeding quickly, following Government approval for a new coal mine near Greymouth.

Pike River Coal Company hopes to begin exporting coal from its mine near Greymouth through a new facility run by the Port of Marlborough. Coal would be mined, trucked to Greymouth, then barged up to Shakespeare Bay, near Picton.

Coal transport ships would load up at the deepwater Shakespeare Bay before taking the coal to the world's steel mills.

While the most difficult and time-consuming parts of the resource consent process are over, there is still an appeal before the Environment Court relating to water discharge from the mine.

Pike River management is confident that the appeal will be settled before it goes to court.

Port of Marlborough chief executive Sean Bolt said that it had not yet been decided how big a coal facility would be built.

The price could range between $14 million and $30 million.

This money could be raised through raising debt or through equity, said Bolt.

Port of Tauranga was one possible equity partner. Its contract with Marlborough allowed it equity participation in development plans.

A viable alternative to the Port of Lyttelton for exporting coal will also be welcomed by state-owned coal company Solid Energy.

Solid Energy wants to double coal exports, but is constrained by the rail link across the South Island.