§ Mr. Skeetasked the Secretary of State for Energy what is the relative cost of producing 1 million tonnes of coal in the United Kingdom deep mines and the cost of importing the same quantity on the international market.
§ Mr. Giles ShawThe average cost of producing 1 million tonnes of coal from United Kingdom deep mines in 1982–83 was £40.9 million and in 1983–84 was £46.3 million, excluding interest and social costs. However, the average cost of producing 1 million tonnes of coal from the 20 highest cost pits in 1982–83 was £89 million.
In Australia the average operating cost of producing 1 million tonnes of deepmined coal is £16 million to £19 million and in the United States of America between £23 million and £27 million.
In May the average price of imported coal delivered to Europe was $40 to $42 per tonne. At the then prevailing exchange rate, and taking account of average delivery costs to United Kingdom ports, this is equivalent to a price of £36 million for 1 million tonnes.