CRP Might Reapply for Marine Consent

Chatham Rock Phosphate (CRP) has said it is considering reapplying for a marine consent to mine phosphate nodules on the Chatham Rise seabed.

The company said it has not committed to reapplying at this stage as it needs to have confidence the process and the law is workable and the decision makers are technically competent.

However, CRP stated that they have no intentions of giving up.

This project is too important for New Zealand, as well as our shareholders who have already invested $33 million in this project.

As well as failing to take account of the economic benefits, the decision makers more importantly failed to consider the critical environmental benefits this project brings to New Zealand.

“While the EPA decision has decimated CRP’s share price, we believe it will recover. When we established CRP in its present form five years ago, it had a market value of NZD 2 million, and a granted exploration licence.

“The market value of the company early last week was NZD 40 million, now it is now back to NZD 2 million again. However CRP now has an extended management group that is the envy of other players in the marine mining sector and a recognised place in the phosphate industry. Accordingly we are in a very strong position and much better equipped to build on that NZD 2 million platform than we were five years ago.

“Assuming we decide to undertake another application we will need to clarify, for a new decision-maker, the confused thinking of this DMC on issues they identified as having too much uncertainty. The information is there and there was an appropriate answer provided to every question – the DMC simply didn’t appear to understand it or otherwise believed it was less risky to decline consent.

“CRP deserved a better and more balanced consideration of its application, and a DMC which appropriately put the issues of risk and uncertainty into their proper context. That didn’t happen,” said managing director Chris Castle.