Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Rejection for ocean floor ironsands mining bid

Rejection for ocean floor ironsands mining bid

By Pattrick Smellie

June 18 (BusinessDesk) - Investment in resource extraction from New Zealand's vast Exclusive Economic Zone has taken a major knock today, with a decision-making committee of the Environmental Protection Authority rejecting an application from TransTasman Resources to mine ironsands off the seabed some 22 to 36 kilometres off the coast of Patea.

TTR issued a statement disclosing the rejection ahead of detail from the EPA, saying it was "extremely disappointed with the decision."

The company spent some $60 million over seven years developing the project, which it believed could be achieved in an environmentally sustainable way and create additional exports of around $150 million a year from the export of around five million tonnes annually of titano-magnetite iron ore to Asian steelmills, using a suction dredging process that would have returned 90 percent of the sands to the ocean floor.

"We have put a significant amount of time and effort into developing this project including consulting with iwi and local communities and undertaking detailed scientific research to assess environmental impacts of the project,” said TTR’s chief executive, Tim Crossley. “Our objective has been to develop an iron sands extraction project which achieves substantial economic development while protecting the environment.

“We will be carefully analysing the decision over the next few days and will take our time to consider what this means for the South Taranaki Bight project and for the company."

TTR has 15 days to lodge an appeal, but the next step in the company's plans was to raise as much as US$550 million in new debt and equity to fund the project, and had been working to a tight mid-year timetable to achieve that goal.

“The bottom line is our New Zealand staff and consultants now have a very uncertain future and the local community will not benefit from hundreds of new jobs and an estimated $240 million dollars increase in GDP, annually," said Crossley.

The result is a victory for Kiwis Against Seabed Mining (KASM), which mobilised large numbers of opposing submissions to the project ahead of hearings that lasted two months between March and May.

However, it is a blow to the government's desire to see mineral extraction projects become a larger part of the New Zealand economy and follows a major legislative and regulation-making programme to create a regime to manage the environmental impacts of activity in the EEZ under a fast-track regime administered by the EPA.

The second application under the new regime, from Chatham Rock Phosphate, which plans to mine phosphate nodules on the Chatham Rise some 450 kilometres east of Christchurch, is currently open for public submissions.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Drones: First Certificate Issued Under New UAV Rules

Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say the first certified flight of an unmanned helicopter under new aviation rules is a great example of how they can enable commercial use. More>>

ALSO:

GE Swedes And Cow Deaths: Plant Analysis Backs Up Earlier Advice

The industry body is recommending that farmers do not feed Herbicide Tolerant (HT) swedes to cows in spring when the animals are in late pregnancy or early lactation. DairyNZ is also advising caution if farmers are considering other leafy varieties. More>>

ALSO:

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news