Bathurst Resources Ltd is confident of obtaining an access arrangement with the Department of Conservation (DOC) and resource consents from two councils for its coal mine project north of Westport.Company representatives were in Wellington this week talki
Bathurst Resources Ltd is confident of obtaining an access arrangement with the Department of Conservation (DOC) and resource consents from two councils for its coal mine project north of Westport.
Company representatives were in Wellington this week talking to officials and the company announced an offtake agreement with Stemcor Australia Pty, which provided it with a $US50 million ($NZ67 million) finance facility.
The company is seeking to develop an opencast mine on Crown-owned land on the Denniston Plateau.
Solid Energy once had permits to mine the land, which is administered by DOC but is not a national park. An application for an access arrangement was lodged in December 2008 and is currently being processed.
Chief executive Hamish Bohannan told NZPA that DOC had come back with 14 questions.
"We are providing them with information and at this stage there are no major issues we can't resolve," he said.
He hopes to be "through and out the other side" of the mine consent process by early next year.
A total of 96 submission have been made to the West Coast Regional Council and Buller District Councils on the company's application for 24 resource consents, of which 48 were in favour, six were neutral and 42 were against.
The team in Wellington is emphasising the contribution the mine will make to the West Coast and New Zealand economies.
The company wants to start mining in the last quarter of next year and by its second year aims to employ 165 people, rising to 300 by the fourth year.
At a production rate of two million tonnes a year the mine will create $600m of annual revenue, which could double in five years.
The "spend" in Westport is estimated at $155m in the first year, rising to $300m if production rises to four million tonnes. Royalties and resource levies would be $5m to $10m and company tax $100m to $200m.
The company has expressed sympathy to Pike River Coal Ltd for the loss of 29 staff at its underground mine but is emphasising the difference to its project.
"We are doing opencast. It is a mining face that moves forward and you rehabilitate as you go," Mr Bohannan said.
Bathurst purchased the project from L&M Coal. Company presentations show that $US5m was paid in June, $US35m was due in November, $US40m is due when production starts and $US40m is due after a million tonnes is produced.
The Royal Forest and Bird Protection Society opposes the mine, arguing it will increase greenhouse gas emissions and that a rare ecosystem will be lost. It also expressed concern about the impact on water bodies and native species, including the great spotted kiwi.
Solid Energy did not oppose the project but wants mitigation activities to be consistent with those applying to Solid Energy and wants its prior rights to water takes and diversions for the Cypress mine, which is a proposed extension of the Stockton mine, to be recognised.
