Takitimu Coal Ltd

• Eastern’s second coal mining operation in New Zealand
• Sub bituminous coal with large potential market

In September 2006, Eastern acquired a second New Zealand coal mine in the far south (Southland) of the South Island. Takitimu takes its name from the nearby Takitimu Mountains.

The operations are located in three separate areas within the Ohai / Nightcaps region where open cut and underground coal mining has been conducted for more than 50 years. The area has been identified as containing one of only two large known deposits of sub-bituminous coal in the Southland district.

The Takitimu coal is used predominantly as a thermal coal for domestic and industrial use throughout the South Island.

The company has secured Prospecting Permits over an extensive area prospective for sub-bituminous coal in the surrounding area and encompassing the Ohai and Takitimu mines. In September 2008, Eastern commenced the supply of up to 130,000 tonnes per annum to Fonterra's Clandeboye milk processing plant. The company has since secured contracts to supply other dairy processing plants in the area including New Zealand Dairies’ plant at Studholme.

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