Greens deliberately misunderstand coal

It is disappointing to see the Green Party continuing to demonise coal and deliberately misunderstanding its role in ensuring the lights stay on, there is food on the table, and steel to build with, says Straterra chief executive Josie Vidal.

"The Crown Minerals (Prohibition on Coal Mining) Amendment Bill of Green MP Hon Julie Anne Genter, which has been drawn from the members’ bill ballot, is nonsense," Vidal says. "Very few member’s bills make it into law.

"New Zealand is reliant on coal for the foreseeable future and we can mine it in a sustainable way, taking into account very many environmental considerations, as we do in New Zealand.

"Renewable energy relies on the sun shining, the wind blowing and the rain falling. When that doesn’t happen, coal is there as a backup to ensure the lights stay on and businesses can keep running.

"There is a risk to energy security without coal and this was realised in winter last year. Due to supply constraints, extremely high electricity prices saw manufacturing plants close, both temporarily and permanently, and put pressure on ordinary New Zealanders who are already struggling with the cost of living. We have been assured this won’t happen again and energy companies have been stockpiling coal for this winter.

"Domestically, coal is used in steel making; cement and lime manufacture; food processing including milk powder and other dairy products; heating commercial hothouses; processing timber, wool and leather; and heating commercial and public facilities including schools, universities and hospitals. If coal producers are forced to close down before users have access to affordable, accessible, and reliable alternatives, then the economy is put at risk.

"An estimated 2.5 million tonnes of coal are mined annually in New Zealand for both domestic use and for export, all from open cast mines. We export primarily to Japan, South Korea, China, and India, but also Canada, Saudi Arabia and Australia, and export markets are strong.

"New Zealand coal has highly sought-after properties, such as low sulphur and ash content, and superior swelling properties for use in blast furnaces. This coal is exported to steel makers in Japan, India, Korea, and Australia. At this stage, coal remains essential to steel production. That is why it has been declared a critical mineral.

"The reality is the world still needs coal and is still using coal. It is up to the market to determine how long coal is used for," Vidal says.

Straterra is the industry association representing New Zealand’s minerals and mining sector.