Chatham Rock launches court action over mining application costs

Chatham Rock Phosphate [NZAX: CRP], which was turned down for a consent for seabed mining, has rejected the size of the Environmental Protection Authority's (EPA) bill over the marine consent hearing, and plans to file a judicial review of the agency's costs.

The EPA is seeking summary judgment against Chatham Rock for about $800,000 of unpaid costs, which the would-be miner plans to oppose, it says.

Chatham Rock has paid $1.86 million of the $2.66 million invoiced by the EPA, and will probably go to the courts to review the environmental agency's invoice.

"Our detailed forensic examination of their invoices has revealed, inter alia, that we have been charged for costs unrelated to our application, overcharged in respect of numerous matters, and invoiced for costs where no satisfactory information justifying them has been made available," managing director Chris Castle says.

"We have strong grounds for a judicial review of all of the EPA's invoiced costs on the basis the charges are unreasonable and unlawful, and in light of the EPA's ill-advised actions it appears necessary for this to be laid bare."

Chatham Rock planned to mine phosphate nodules in the seabed off the Chatham Rise, 400 kilometres east of Christchurch, but failed to win over an expert decision-making committee appointed by the EPA, having spent $30 million on the proposal.

It was the second seabed mining application to be rejected since the Exclusive Economic Zone Act put in place a new consenting regime in 2013. TransTasman Resources' bid to mine ironsands from the seafloor in the southern Taranaki Bight was also turned down.

The company says it's also considering whether to pursue damages against the EPA over the release of a staff report during the consent process last year, which it says "seriously damaged the company's market value, derailed a London AIM market listing and an associated capital raising."

Chatham Rock has changed its plans, and is pursuing a reverse listing through Antipodes Gold to list on the Toronto Stock Exchange, where it will rename itself Antipodes Phosphate and raise equity to acquire new projects.

The NZAX-listed shares last traded at 0.7c, valuing the company at $2.9 million.

(BusinessDesk)