Latest / Best of Business / Richard Tacon: BT Mining chief executive on the company's new deal with Genesis Energy

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Richard Tacon: BT Mining chief executive on the company's new deal with Genesis Energy · Best of Business

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  Speaker 2: More coal on the way for Huntley powers Station, but
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  Speaker 2: not of the Indonesian variety. Genesis Energy is locked in
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  Speaker 2: a deal to purchase two hundred and forty thousand tons
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  Speaker 2: of local coal to keep the lights on there. The
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  Speaker 2: move designed to show up energy security, cutting reliance on
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  Speaker 2: overseas imports of Richard take On is the BT Mining
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  Speaker 2: CEO with us and on the phone, Richard, good evening, Okay,
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  Speaker 2: Ryan will be there. Nice to have you with me.
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  Speaker 2: First of all, this deal, how significant is it?
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  Speaker 3: Oh, this is fantastic. We've got Hartley coal going into
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  Speaker 3: the Hartley power station. It's been probably a decade since
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  Speaker 3: there's been a like a long term supply like this.
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  Speaker 3: So we've got a haunting and twenty thousand tons a
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  Speaker 3: year for the next two years. That'll displace about half
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  Speaker 3: of what they're importing now on a normal year. Obviously
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  Speaker 3: you know in certain years of US dry orbit. Yeah,
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  Speaker 3: it's significant for us and the significant for the Huntley district.
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  Speaker 2: How why did we need to go to Indonesia in
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  Speaker 2: the first place.
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  Speaker 3: Look, it's got to do with the downsizing the mines
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  Speaker 3: over the last couple of decades, and you know, the
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  Speaker 3: coal then really ended up in the Making Steel New
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  Speaker 3: Zealand Steel Plant public Glenbrook. There was no excess coal.
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  Speaker 3: And also you know, for the for Genesis, they didn't
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  Speaker 3: really know how much coal they were going to burn,
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  Speaker 3: so it's hard for them to enter into a long
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  Speaker 3: term supply contract that US as a producer needs, whereas
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  Speaker 3: they can go and get coal from Indonesia and a
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  Speaker 3: boat load, you know, with a with a manch.
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  Speaker 2: Notice, so where are you getting this coal from?
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  Speaker 3: This is coming from the road to Warra mine just
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  Speaker 3: in Huntley itself, just out of Huntley. So it's look,
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  Speaker 3: it's part of a long term infrastructure that was set
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  Speaker 3: up as part of the power station. Originally there's an
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  Speaker 3: internal hall road. It then goes onto a convey which
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  Speaker 3: feeds directly into the power station.
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  Speaker 2: And what were you going to do with this coal
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  Speaker 2: had it not gone to Huntley? Do you know what?
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  Speaker 3: You know what I mean? Yep, yep, No, Look what
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  Speaker 3: eventually got sold to New Zealand Steel. You know, if
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  Speaker 3: that plant continues using coal in the same way they have,
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  Speaker 3: but you know, there's a lot of coal left in
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  Speaker 3: the Hutley area. We've got a plan for an extension
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  Speaker 3: that's actually listed in fast Track and we would get
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  Speaker 3: a customer for that coal. So we see this as
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  Speaker 3: being a really good supply for the next two years,
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  Speaker 3: but also it may lead to other coal supply being
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  Speaker 3: able to be brought on.
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  Speaker 2: And is the with the fast track situation? Is there
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  Speaker 2: any indication of for you guys know whether you are
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  Speaker 2: approved where you're along with that process. We're hearing a
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  Speaker 2: lot about sort of delays ironically on the fast track.
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  Speaker 3: Look, we haven't got an application and yet we've got
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  Speaker 3: two projects listed. We've got the Dennison Buller project down
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  Speaker 3: on the West coast and we've got the Rhodawara extension
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  Speaker 3: project up in the hut So we're working on applications
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  Speaker 3: for both of those that we haven't presented them to
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  Speaker 3: the EPA yet.
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  Speaker 2: All right, fair enough, what about the two year contract
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  Speaker 2: term for this Huntly power station? Is there not much
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  Speaker 2: more than that to go around or what's with the term?
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  Speaker 3: It really just takes us through. That's some exious coal
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  Speaker 3: that we believe, well, we know we've got in this block.
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  Speaker 3: We're mining now there maybe a little bit more to
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  Speaker 3: go past that, but we wanted to be able to
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  Speaker 3: be sure we can supply it, so that's why we've
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  Speaker 3: both parties are very happy with the two year deal.
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  Speaker 2: All right, interesting stuff, Richard, appreciate your time, Thanks so
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  Speaker 2: much for it. To take on the taken, I should say,
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  Speaker 2: who's the BT Mining chief executive of it?
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