Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


CANA Cheering: Southland Coal Will Be Left in The Hole


Coal Action Network Cheering At News That Southland Coal Will Be Left In The Hole

For immediate release

22 February 2013—The Coal Action Network Aotearoa is celebrating the end of the nonsensical lignite project plans in Southland, after Solid Energy Chairman Mark Ford confirmed on national radio this morning that the company will drop the project.

When asked on radio about the lignite projects, Mr Ford said: “I think that is part of the non-core assets that we will be exiting from.”

“This was a ridiculous project from the outset: dirty, low-grade coal being turned into a product nobody wanted, digging up prime Southland farmland for coal that would simply end up in the sky, adding to the looming climate crisis,” said Kristin Gillies, CANA spokesperson.

“The people of Southland, just as the people of the West Coast and Huntly, have been sold broken promises by an industry that will do nothing for our economic future. Coal is a sunset industry and we need to wake up to this reality.”

Co-spokesperson for Coal Action Murihiku, Dave Kennedy, said there would be a huge sigh of relief from the growing local opposition to the project, which had so far only produced six local jobs, and would be taking the region in the wrong direction.

“Southland has so much to offer a green future for New Zealand, and we’re very happy that the coal here will be left where it belongs – in the hole, and the fertile soil can continue to be productive for generations to come.”

It is also highly doubtful that the briquetting plant in Mataura will be able to be sold: it has suffered a number of problems, has yet to be commissioned, and there is no market for the briquettes.

CANA also pointed out today that it was wrong for people to put Solid Energy’s financial woes down to its investments in renewable projects.

Renewable investments were tiny compared to the other things that lost Solid money. P45 of the 2012 annual report discusses "impairments" (the reduction in capital value of parts of the business - similar to a write down?)

- Biodiesel resulted in an impairment of $9m;
- Natures Flame $24.5m, Switch $1.6m.
- total renewable impairment $36m.

Meanwhile:
- Spring Creek resulted in an impairment of $64.3m,
- Huntly coal seam gas $18.5m,
- Huntly East $33.5m,
- they wasted $29m on the Southland lignite briquetting plant that may never work and may never have markets, though this is not marked as impaired in the accounts.

Even without the lignite projects (and the Annual Report notes impairment and loss from the whole Iignite project) total coal impairment is ~$116m, 3.5 x that of the renewable losses.
“To blame renewable energy for Solid’s woes simply doesn’t stand up,” said Gillies.
Solid bought 49% of the shares in Spring Creek as recently as Feb 2012, closed it temporarily to upgrade the mine, then closed it permanently later in the year. They spent a capital outlay of $64m - and they never got any coal out of it.

The failure of the renewable energy plants can be laid at the door of the govt. The investments were made under the Labour govt when there was a biofuel obligation coming on all motor fuel sales; this was then replaced by National's subsidy, then that was cancelled.

Coal and gas would have been more expensive under the 2008 ETS and there would have been a better market for pellets. The company also made the mistake of going for the export market for pellets when they could have developed a good market in NZ.

CANA on Twitter
We are on Twitter, and we encourage you to follow us there and retweet our tweets (thanks to everyone who has been doing so!): https://twitter.com/#!/coalaction

CANA on Facebook
Join our main facebook group
Already a member? Please advertise it on your newsfeed and invite friends to join – and if you're not, go there and sign up!
"Like" our Leave the Lignite, Save the Soil page
Say No To Fracking in NZ Facebook group:

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Tokenism Of New Zealand's Role Against Islamic State

To date, the Opposition has continued to occupy itself with the marginalia of the issue. E.g. whether Key did or didn’t know whether Barack Obama would be present at the US briefing last week on IS, or whether New Zealand’s military involvement is or isn’t already a fait accompli.

It might be better to tackle the issue, head on. Our contribution against IS will be to send SAS forces to train the Iraqis? That’s like offering trainers to General Custer just as the 7th cavalry reached the Little Big Horn.
More>>

 

Parliament Today:

Scoop Business: Shell And Todd Caught Drilling Without Approval

Multi-national oil company Shell’s New Zealand arm and local energy giant Todd Energy have breached the new law governing New Zealand’s Exclusive Economic Zone, the Environmental Protection Authority says in an Oct. 10 document released by the Green Party. More>>

ALSO:

Labour: Tea Breaks 'Gone By Lunch Time'

“How cynical that on the eve of Labour weekend, the National government is pushing through legislation that takes away the statutory right to tea and meal breaks along with collective bargaining protections, and makes vulnerable workers jobs even less secure." More>>

ALSO:

Gordon Campbell: On Pharmac, Gough Whitlam And Sleater-Kinney

We’re not at the outset of these negotiations. The outset was six years ago, and negotiators were hoping to have some sort of ‘framework’ deal finished in time for the APEC meeting in a few weeks’ time. These ‘extreme’ positions are what we’ve reached near the intended end of the negotiations… More>>

ALSO:

PM Of Many Hats: Questions, No Answers On Whale Oil

Dr RUSSEL NORMAN (Co-Leader – Green) to the Prime Minister: How many times since November 2008 has he spoken with blogger Cameron Slater on the phone and how many times, if any, has he texted him?
Rt Hon JOHN KEY (Prime Minister): None in my capacity as Prime Minister. More>>

ALSO:

Aussie Investigation Dropped: Call On Minister McCully To Pursue The Case Of Balibo Five

West Papua Action is deeply concerned at the lack of any clear outcome from the Australian Federal Police inquiry into the 1975 deaths of the ‘Balibo Five’ including NZ journalist Gary Cunningham. More>>

ALSO:

'Feed The Kids' Bill: Metiria Turei To Lead Fight On Feeding Hungry Children

Green Party Co-leader Metiria Turei is urging all political parties to support the Feed the Kids Bill which she inherited today from Mana leader Hone Harawira. More>>

ALSO:

Parliament Today: State Opening Of Parliament

The House sat at 10.30am on Tuesday before MPs were summoned to hear the Speech from the Throne in the Legislative Council Chamber. More>>

ALSO:

Tertiary Education: Students Doing It Tough As Fees Rise Again

The Government is making it increasingly difficult for Kiwis to gain tertiary education as fees continue to rise and access to student support becomes even more restricted, Labour’s Tertiary Education spokesperson Chris Hipkins says. More>>

ALSO:

Housing, Iraq: PM Press Conference – 20 October 2014

Prime Minister John Key met with press today to discuss:
• Housing prices and redevelopment in Auckland
• Discussions with Tony Abbott on the governmental response to ISIS, and New Zealand’s election to the UN Security Council More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news