p

,e 12, The Guardian

Thur.. June i 1958

osco Holds Trump Cards

ln Boosting Coal Sales"

By GERALD FREEMAN Canadian Press Staff Writer MONTREAL (CP) —- The Do-

minion Steel and Coal Corpora- tion holds a pair of trump cards as it bids to have Nova Scotia coal burned in Ontario’s steam- raising plants.

Ontario is considered the only major market still open for Nova Scotia coal. Substantial orders oould restore the industry to ec- onomic health, but American coal provides severe competition.

However subventions——the fed- eral government’s share of the cost of shipping coal from Nova Scotia to other parts of Canada —were increased for the Ontario market in March.

This change in the complex subventions structure is already credi-ted with increasing Dosco’s sales to Ontario by 300,000 tons. American coal is worth $8.50 a ton in the Toronto area, Nova Scotia coal $10. A"

Dosco’s second trump is the St. Lawrence seaway, promising eas- ier deliveries to all Ontario mar- klets when it opens next year.

‘ MAY BOOST SALES

The two points have spurred Dosco’s sel‘-ling campaign in On- tario, and-negotiations are re- ported to have started between Dosco and Ontario Hydro, a ma- jor buyer. These and other talks could lead to sales of up to 1,- 500,000 tons a year‘, enough to put the industry on firm ground.

Ontario Hydro ordered less coal from‘ American producers this year, despite a demand for electricity rising at the rate of 10 per cent 11 year. Financial writ- ers have suggested some Nova Scotia coal may be ordered this year, with heavier orders start- ing in 1959.

There are indications the deal between Dosco and Ontario Hy- dro is favored by the three Con- servative governments involved- the federal government, Ontario and Nova Scotia.

Meanwhile the Dominion Coal Company Limited, a Dosco sub- sidiary, is seeking a federal loan to help it maintain production un- til it receives payment for its de- liveries. It has lordems covering

its 1,400,000—ton stockpile at Syd- ney, N.S., but deliveries will not be complete before fall.

NEED NEW MARKET

C. W. Appleton, vice-president in charge of coal sales of the Do- minion Coal Company, a Dosco division, says the theoretical standard of production that Nova Scotia’s mines must reach to be economic is between 6,000,000 and 7,000,000 tons a year.

“In order to get up to that fig- ure, there has to be found a new market for l_,000,000 to 1,500,000 more tons a year,” he said in an interview.

The company faced a tough sales and marketing problem. “But we feel we'll work out of it,” he said. “We have great hopes for Ontario.”

On the other hand, “we’ve pretty well exhausted Quebec markets as far as our type of coal is concerned.”

The present assault on the On-

rio market was part of a cam- paign that began following the Second World War. Nova Scotia began selling coal to Ontario in 1930, but t-he sales to Ontario and Quebec almost disappeared dur- ing the Second World War.

WENT TO SHIPS .

Sales fell off to a bare 200,000 tons a year as coal from Nova Scotia pi-ts was used to bunker Atlantic convoys and for in- creased steel production in C-ape Breton blast furnaces.

“Miners are the first to go to war," said Mr. A.ppleton—-produc- tion fell.

Following the war, markets in Quebec and Ontario snapped back to 1,500,000 tons a year, and_were nurtured to the present peak of 2,500,000 tons a year.

The Dominion Coal Company has advertised that Nova Scotia Dominion coal now is available across Ontario. It mcommends its “high grade bituminous cok- in;g‘coal for all general steam- rallslng purposes.”

The Nova Scotia coal industry --—operated by Dosco through «sub- sidiaries — employs about 8,000 miners and is worth an esti- mated $60,000,000 a year. But the

switch from coal to oil by rail- ‘ I

has created difficulties mechaniz-

MINES CLOSED

Dosco has in the past been forced to close mines and lay off miners.

Domestic markets have been maintained in Nova Scotia and Newfoundland, bu-t elsewhere the coal isused almost exclusively for generating steam.

Mr. Appleton says coal markets generally have deterioted during

coal mined in Nova Scotia is partly to blame. It contains 2% .to three per cent sulphur, and therefore is passed up by Euro- pean steel producers, heavy coal consumers. The sulphur content makes it more costly in steel pro- duction, and causes blowholes in the steel. ‘

Some American coal containing one per cent sulphur is sold in Europe.

There are also few prospects for chemical uses of the coal, Mr. Appleton said. And no tech- nological uses have been found- work at McGill University on an efficient coal - burning engine, partly financed by Dosco, has bogged down.

Mr. Appleton said Dosco is talk- ing every possible -step to find new markets for Nova Scotia coal.

WINNIE’S OAPTOR DIES

SPRINGS, South Africa (Reu- ters)-—-Johan Phillip Launslpach, a member of the Boer force that captured Sir Winston Churchill during the Boer War in 1900-01, died here at the age of 87, it was announced Tuesday.

APPROVE SUSPENSION

HAVANA (AP)—-Cuba? sen-ate has approved suspension of civil liberties for another 45 days to give President Fulgenlcio Batista I free hand to deal with Fidel Oast/ro’s stulblborn refbel forces.

Only scattered relbel activity has been reported since Batista beat bank Castro’s threat of total war

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