Lignite 'gold' for Southland's economic development

Federated Farmers is joining the overwhelming local support for Solid Energy/Ravensdown’s, proposed lignite to fertiliser plant in Southland.

“It comes as no surprise that only nine percent of the respondents disagreed with mining lignite,” says Rod Pemberton, Federated Farmers Southland provincial president.

“It really shows that Southlanders view lignite as a resource that can be used for good, especially since we have 650-years of proven reserves available for this proposed project alone

“Urea is of great importance to the agriculture industry, being a nitrogen-rich fertiliser. New Zealand currently produces urea from natural gas or imports it from overseas. A coal-to-fertiliser plant in Southland using Southland’s lignite, would enable New Zealand to become virtually self-sufficient.

“Solid Energy and Ravensdown are proposing modern technologies that will minimise impact upon the environment. I think it’s encouraging that this survey has been done as it shows Southlanders are attune to the opportunities lignite offers.

“I think the project definition is now putting some solid figures around the project as last year, it was thought the value could be much higher. That said, $377 million to as high as $599 million per annum, depending on a realistic USD price and volume of urea, is a major new industry.

“The project is also an example where New Zealand companies can leverage off agriculture into completely new areas. Taking a low value mineral occurring in vast quantities and transforming that into a high value product.

“It may not be black or yellow gold but its gold nonetheless for Southland’s long-term economic development,” Mr Pemberton concluded.