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

 


Seabed ironsands miner to appeal resource consent knockback

Seabed ironsands miner to appeal resource consent knockback

By Pattrick Smellie

July 1 (BusinessDesk) - TransTasman Resources, the company seeking to mine ironsands off the ocean floor in the Exclusive Economic Zone, will appeal the rejection of its marine consent application by the decision-making committee appointed by the Environmental Protection Authority.

TTR is the first company to seek a marine consent under new legislation governing economic activity in New Zealand's vast EEZ, which extends from the 12 mile nautical limit out to 200 kilometres from the coastline and had applied under the new, six-month process to dredge up to 50 million tonnes annually of sand rich in titano-magnetite, a type of iron ore, for export to Asian steel mills.

The EPA-appointed committee rejected the application late last month, saying the environmental effects were not well enough understood, stakeholder consultation had been inadequate, and questioning the commercial viability of the project, which TTR has spent six years and $70 million investigating ahead of an investment of more than $500 million, should it have got the go-ahead.

"We have made a decision to appeal," TTR chief executive Tim Crossley told BusinessDesk. "We do think there are strong grounds. The basis of an appeal can only be on points of law, but we think there are strong grounds on certain points."

Crossley declined to elaborate on the issues the appeal would focus on, but the TTR board continued to believe it was "a great project for New Zealand, albeit it's a costly road forward" on what he said was a "very uncertain period."

"The outcome of an appeal could fall a number of ways. It could set aside the current decision and you go to a rehearing, which could be completely new, or a partial hearing," he said.

Crossley said he was focusing now on who the company both needed and could afford to fund while the appeal process occurred.

Talks with a major investor, which had been ready to invest in the event of a successful consent application, were also continuing.

"We were in advanced negotiations with a potential strategic investor, which would been conditional on a successful EPA decision. The decision no doubt has dented confidence not just in our project but in any project, and it has dented confidence if you are an existing investor to see your way through an appeal and whatever else might be in front of you."

"That being said, the investors we have are supportive enough to believe there's enough merit to go for an appeal."

TTR has backing from a range of local, Australian and American investors.

While reluctant to pass comment on the new EPA process for EEZ marine applications, Crossley said the company's biggest surprise had been the "binary" nature of the process. In Australia, his experience had been that consent applications were a forum for negotiating mutually acceptable outcomes that allowed a project to proceed while meeting environmental concerns "as opposed to an on-off switch."

Having been granted a mining permit, TTR had assumed the process would be "giving effect to that while protecting the environment."

Watching the process carefully is Chatham Rock Phosphate, whose application for an EEZ marine consent to mine phosphate nodules on the Chatham Rise, some 400 kilometres east of Christchurch, is currently lodged with the EPA and open for public submissions.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news