Business Development | Eastern Resources Group Galilee Energy Galilee Energy Limited is an emerging energy company with coal seam gas interests in Australia and coal mines in New Zealand. Formerly known as Eastern Corporation Limited (Eastern), the company changed its name to Galilee Energy Limited (Galilee) in June 2010 following a buy-out by Eastern of the minority shares it did not already hold in its 68 percent owned subsidiary, Galilee Energy
Limited. In September, the company’s wholly owned subsidiary, Eastern Coal (NZ) Limited also changed its name to Eastern Resources Group Limited. Galilee Energy provides investors with good value entry into coal seam gas and as the company moves towards certification of gas reserves, its projects in central Queensland present opportunities in the rapidly emerging CSG industry in this area.
Through Eastern Resources, Galilee Energy is an established producer of coal in New Zealand with growing and diversifying operations. Supplying domestic industrial customers in the South Island, Eastern Resources is also involved in exploration for both coking and thermal coal.
Eastern Resources Group Through Eastern Resources, Galilee Energy operates several successful coal operations in New Zealand. As an established and recognised coal producer in New Zealand, Eastern Resources is developing a substantial coal business with
the application of skills and expertise committed by a small but efficient team of 24 staff. Defined by its safety culture and commitment to meeting community expectations in environmentally sensitive regions, Eastern Resources has proven operational capabilities that respect New Zealand’s organic and legislative environments. There is a long tradition of mining in New Zealand and the geology of the country is well known. Its extensive coal resources, the professionalism of the industry and the efficient government regulation that encourages exploration and development, provides a strong professional platform for coal mining. These factors present significant opportunities for Eastern Resources and there are few barriers to overcome in order to participate in the New Zealand market. The company can easily find existing mines and potential projects that are manageable in scale, which allows for immediate or early cash flow to be achieved. The growing demand for coal domestically and internationally provides commercial conditions for expansion.
Cascade Coal An open cut coal mine location in the historic Buller coalfields region near Westport on the West Coast, the Cascade coal mine produces a commercially attractive coal which is low in ash and sulphur with a high calorific value. Cascade coal is in high demand within the domestic industrial markets in New Zealand. The mine plan for Cascade addresses five primary areas. The Mill Creek block was the first to be mined and has now been terraced and hydroseeded as part of the rehabilitation process. The Fire Pit block has also been mined out and the void is now being backfilled prior to shaping and hydroseeding. With current operational efforts concentrated in the Gravel Pit Block, stripping in this area is now complete and coal mining is continuing while overburden removal has commenced in the Durkins block. This will be completed in five push back stages before coal recovery commences in this area. The Adams block will be the final target for the recovery of coal. Consideration may be given to accessing coal through means of underground mining. The staged realignment of the main access has also been an integral part of the mining operation and will enable entry to the various blocks in line with the mine planning. While outside contractors have recently been engaged to assist with additional site works for the road realignment, Cascade is run as an owner/operator mine. Production is targeted to 40,000–45,000 tonnes per annum for the next three years. The largest customer is local cement plant, Holcim which takes approximately 40,000 tonnes per annum secured under a take or pay agreement. The remaining coal is sold locally or transported to industrial users in the Canterbury and Otago regions with some tonnage blended with coal from the company’s Takitimu mine in Southland and distributed through Eastern Resources Supplies in Timaru.
FERGUSON FIREWOOD LTD ALL BULK & GENERAL CARTAGE Proud to support
Eastern Coal Holdings and wish
them all the best for the future. Ferguson Firewood Ltd 36 Johnson Street, Milton 9220 Ferg cell - 027 227 2324 Home - 03 417 7016 | Fax - 03 417 7017 Email ferg-nic@xtra.co.nz
38 | October/November 2010 www.canterburytoday.co.nz
PROUD TO SUPPLY TRANSPORT SERVICES TO EASTERN COAL Adderley Street, Westport Phone 03 789 7609 Fax 03 789 6425 Email mark@jbt.co.nz For bulk cartage Westcoast, ChCh, Timaru, Nelson