Fonterra: Contract For Clandeboye Coal Supply

27 March 2007

Fonterra And Eastern Sign Contract For Clandeboye Coal Supply

Fonterra and Eastern Coal Supplies today confirmed the signing of a two-year contract for the supply of coal to the dairy cooperative's Clandeboye manufacturing site near Timaru.

Fonterra's Clandeboye Hub Operations Manager Alan Bennett says, "The agreement follows an extensive Request for Proposal process involving a number of energy companies.

"From September 2008, Eastern Coal Supplies will supply approximately 130,000 tonnes of coal each year to Fonterra Clandeboye from its Takitimu mine, near Ohai."

Eastern Coal Supplies, a wholly owned subsidiary of Queensland-based Eastern Corporation, has been a New Zealand coal producer since June 2005 when the company acquired the Cascade open cut coal mine near Westport. In September 2006 Eastern acquired the Takitimu mine in the Ohai/Nightcaps area in the far south of the South Island.

Eastern's General Manager New Zealand, Campbell Smith, says the contract with Fonterra will underpin the production of the company's Takitimu mine.

"Eastern is pleased to be associated with one of New Zealand's premier companies and we recognise this agreement as a significant step in our New Zealand coal strategy," he says.

ENDS

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