asked the Minister for Energy if he has examined the feasibility of a project to re-open Rossmore mine, County Carlow; if he will indicate the level of investment needed at start-up; the likely extraction costs; the landed price of a comparable product imported into the country; and if he has decided on the proposal by the ITGWU that it be included as a joint venture project under the Programme for National Recovery.
Ceisteanna—Questions. Oral Answers. - Rossmore Mine.
12.
The Geological Survey of my Department, which closely monitored operations at the Rossmore underground mine for some years prior to its closure in December 1986, carried out an assessment in early 1987 of prospects for resumption of operations there on a viable basis. It was concluded that operating costs would significantly exceed mine revenues even if production was substantially increased with a view to obtaining benefits from economies of scale and that it was most unlikely therefore that further significant coal tonnages could be extracted on an economic basis. The cost/revenue relationship would have deteriorated further since then.
A proposal has been put to me in broad outline by the ITGWU for substantial assistance to be provided by the State for the resumption of operations at the Rossmore underground mine, and I expect to meet the various parties interested in this matter in the near future. I would point out, however, that even if it could be shown that additional coal could be extracted on an economic basis, any proposals for State financial support would be more appropriate for consideration by State agencies with a direct function in relation to the funding of industrial development rather than by my Department who have no such funds at their disposal.
The landed price of imported anthracite averaged £72 per tonne throughout 1987, according to the latest statistics available from the Central Statistics Office.
What does the Minister reckon the cost of extraction would be in this mine? Will he confirm that the setup cost of the project is of the order of £0.7 million?
I am not in a position to go into the figures for the set up cost. A figure of £0.7 million of State funds has been mentioned but that is a matter for discussion with the union involved. This mine has already secured considerable State aid in the past. It received £152,000 from the IDA and £205,000 from Fóir Teoranta. In addition, £600,000 in PRSI and PAYE payments were withheld from the Revenue Commissioners which led to the Revenue putting the company into liquidation. As far as the cost for extraction is concerned, a figure of £90 per tonne has been mentioned.