Straterra quoted in the news media

13 December 2011, NZ Herald

PHIL HEATLEY: Minister of Energy and Resources

Straterra chief executive Chris Baker said Heatley was associate spokesman for energy when National was in opposition and had a good understanding of the issues.

Heatley is ranked 16th in cabinet.

"In an ideal world, someone higher ranked would be better but let's not be churlish. There's a lot of positives."

Mineral Industries Association chief Doug Gordon said Heatley's appointment was welcome but the Government should be wary of bowing to any pressure to increase mining royalties and tax regimes.

"They need to be really careful. They could kill the goose before it has laid its golden egg."

 

30 November 2011, NZ Herald

Greens rise forces rethink from oil, resources sector

The resources and oil sector says the rise of the Greens is forcing a change in its approach.

While the return of a National-led Government meant initiatives under way would continue, the success of the Green Party at the election was a "major" consideration.

"It's a signal that environmental issues are gaining in importance among some sectors of public opinion and in New Zealand generally. That's something we in the resource sector are taking account of and will be working more on across a broad front," said Bernie Napp, a senior policy analyst at resources umbrella group Straterra.

Several law changes affecting the sector were looming including Resource Management Act reform shortening the approval period for medium-scale projects, offshore drilling rules and a review of the Crown Minerals Act.

"It's business as usual, which is positive from our point of view. If you look at their post-election action plan anything there that relates to the resource sector is consistent with what the Government's been wanting to do over the past three years," said Napp.

The Government wants to pass legislation to manage the environmental effects of activities in New Zealand's exclusive economic zone and extended continental shelf.

The Crown Minerals Act review will result in a discussion document for consultation before the end of the year, with revised laws next year. Changes to streamline permitting and reduce the administration burden are looming.

John Pfahlert executive officer of the Petroleum Exploration and Production Association, said the industry did not not expect significant change.

"Even if there's a coalition with the Maori Party - with their views on offshore drilling - I don't think that will make much of a change to the way in which National approaches the issue."

Pfahlert also said the industry needed to be mindful to the growing support for the green cause.

 

02 september 2011, Otago Daily Times

Coal fuels opposing views

Coal mining may become a political issue as opponents criticise Solid Energy and Bathurst Resources developments.

Between mining premium grade hard-coking coal for export through to conversion of lignite into briquettes, diesel and fertiliser, opposition by environmental groups and the Green Party is intensifying as resource consents are sought.

At the other end of the spectrum, industry-driven lobby group Straterra and Solid Energy remain bullish about developments and the potential for economic benefit, and Federated Farmers endorsed the Government's just-released energy strategy; which includes coal to fertiliser conversion.

Council consents granted last week to Bathurst to mine 200ha near Westport for two million tonnes of coking coal per year may yet be appealed by the West Coast Environment Network, and have been criticised by the Coal Action Network Aotearoa and interest groups.

West Coast Environment Network spokeswoman Karen Mayhew said the escarpment area of the Denniston plateau which Bathurst planned to mine "was a beautiful, biodiversity-rich and naturally resilient ecosystem". The lobby group was yet to decide whether to appeal the consents.

"The proposed damage to ecosystems and permanent loss of this stunning landscape, all on public conservation land, cannot be compensated for," she said in a statement.

She said the commissioners considering the consent applications were "troubled by the large-scale and long-term destruction envisaged" and the lack of mitigation options.

"Their decision has clearly been compromised by the Department of Conservation withholding from the hearing the detailed scientific evidence that it has gathered on the impacts of the proposed mine," Ms Mayhew claimed.

Coal Action Network Aotearoa, which submitted against Bathurst's application, wants to gain public momentum on its "Keep the Coal in the Hole", saying "climate change should be at the forefront of all discussions around coal mining".

"Burning coal is the dirtiest fossil-fuel activity on the planet and there are huge reserves of coal left worldwide.

"If we allow them to be burnt, we have no chance of avoiding a climate catastrophe," spokeswoman Frances Mountier said in a statement.

The first step was to stop new or expanded coal mines, which includes Bathurst's Denniston open-cast mine.

At the recent New Zealand branch conference of the Australian Institute of Mining and Metallurgy in Queenstown, chief executive Chris Baker of Straterra spoke on "exposing the anti-resource campaign", highlighting the industry had to meet environmental groups.

"The No 1 issue the industry faces is opposition based on ideology and misinformation," where opposition groups looked for issues to "hang their hats to gain a profile for their opposition".

While the contentious issue of "fracking" (high pressure water and chemicals injected to split rocks underground to release oil and gas) and deep-sea oil drilling were both "of legitimate concern", he claimed information being spread by some groups was often "unverifiable or unfounded" and skewed public perceptions.

Companies including Newmont Waihi, Oceana Gold and Solid Energy were "breaking new ground" in managing environmental impacts, mine rehabilitation, forging alliances with the Department of Conservation and using biodiversity offsets, such as predator control or threatened species programmes.

 

27 July 2011, Taranaki Daily News

Anti-frackers 'need to get real'

New Zealand's energy industry has gone on the warpath, accusing those against fracking of misleading the public.

The controversial procedure has come under the spotlight in Taranaki this year, with opponents raising concerns of damage to drinking water and air quality, and of cover-ups by the companies involved.

There is increasing concern about fracking overseas and it is banned in some countries.

Industry heavyweights said that in New Zealand, opposition to fracking appeared to be part of a campaign against all fossil fuel development.

But those opponents need to get real, a statement jointly released by Petroleum Exploration and Production Association, natural resource lobby organisation Straterra, and coal producer Solid Energy said.

The world is highly dependent on energy, and for the foreseeable future fossil fuels will be a large part of the energy mix.

"It would be unthinkable for New Zealand to do without oil and gas, or coal," the statement says.

Fracking, or hydraulic fracturing, is a procedure mainly carried out in natural gas wells and coal-seam gas bearing seams to make the gas flow more freely.

A mixture of water, sand and chemical agents is pumped deep underground under great pressure to create fissures in the rock formations.

The New Zealand resource sector says fracking in this country is done properly and carefully.

"We have strict laws and the industry goes to every effort to ensure that is the case," it says.

The statement points out that fracking has been in existence for more than 50 years around the world and the processes, materials and chemicals used have evolved and advanced over time.

In New Zealand there have been fewer than 20 fracking operations, and no environmental issues have arisen from any of them.

"Fracking is not done within or anywhere near the water table," the statement says.

"Gas reservoirs typically lie well in excess of 1000 metres beneath the water table.

"Coal seam gas (CSG) reservoirs are shallower, but are still typically hundreds of metres below the water table."

In the New Zealand gas industry, fracking typically targets areas between 3000 metres and 4000 metres below the surface.

The shallowest operation for gas has been at 1400 metres deep in South Taranaki, where the water table was 300 metres deep.

And for coal seam gas trials carried out in Waikato in 2007, the fracking was done at 380 metres and the water table was 60 metres deep.

The statement says fracturing of rock occurs only at the desired depth, because the fracking fluid is contained by the well's steel casing until the target depth is reached.

While much of the protest in New Zealand has centred on the composition of the additives in the fracking fluid, they must all be named, explained and approved by the Environmental Risk Management Authority. In the concentrations used, the chemicals are non-toxic and many are biodegradable.

"That's not an invitation to drink this, any more than one would drink dishwater," the statement adds. It says the New Zealand public is right to hold the gas and CSG industries to account, to ensure that fracking is done appropriately.

"To reinforce this, the New Zealand resource sector states that we have nothing to hide, and everything to gain from open dialogue with all interested parties on fracking, and on our activities generally," the statement says, calling for "a two-way conversation held in an atmosphere of mutual respect."  

SEEPING FROM THE FRACKS

Fracking fluid is typically 98 per cent water and sand, with the remaining 2 per cent various chemical additives.

The main chemicals for a fracking operation are:

Friction reducer – for ease of pumping. Natural gel – to hold the sand in suspension.

Gel management system – to stabilise the gel until the sand is moved into fissures, and later weaken the gel to allow it to come back to the surface.

Clay stabiliser – to prevent clay in the reservoir rock from expanding on contact with water and clogging the reservoir.

Bactericide – to prevent bacterial action underground interfering with the gel management system.

The NZ resource sector says these chemicals are similar to many found in other commercial uses or in the household.

For example, the natural gel is guar gum which is also used in ice cream manufacture, the gel breaker is similar to chemicals used in household detergents, and the bactericide is similar to those in household sprays and hand-wash soaps.

 

24 June 2011, Gisborne Herald

Facts on fears of fraccing

An industry group representing the resource sector says the public is right to hold the gas industry to account about fracture stimulation or fraccing of gas-bearing rock and coal seams.

Straterra, a network representing 84 percent of New Zealand’s mineral production, says drilling opponents have legitimate concerns that deserve to be answered with informed and accurate information.

Straterra senior policy analyst, Bernie Napp says fraccing is used to extract coal seam gas (CSG) here in New Zealand and occasionally in natural gas wells onshore or near shore.

Fraccing is not generally used in oil extraction because there is little effect on the rate of flow, oil being much thicker and less able to flow than gas.

Mr Napp says the technique is used only if it is seen as economically viable.

He points out that fraccing is not done within or near the water table.

Gas reservoirs lie well in excess of 1000m or 1km beneath the water table while CSG reservoirs are shallower, but are still hundreds of metres below the water table, he says.

In the NZ gas industry, fraccing targets rock between 3000m and 4000m below the surface. Straterra data shows the shallowest operation for gas was at 1400m depth on land in South Taranaki where the water table was 300m deep.

In 2007, CSG trials in the Waikato were fracced 380m, and the water table was 60m deep.

The gas industry believes that much of the opposition to fraccing is part of a campaign against all fossil fuel development.

Mr Napp says, while the industry agrees the ideal is to move away from fossil fuels “for the foreseeable future they will continue to be, a large part of the mix”.

Chemical additives:

The key input to fraccing is the fraccing fluid — typically 98 percent water and sand and two percent additives.

In some cases, a form of petroleum, called condensate, is used instead of water.

The additives are required to be named, explained, and approved by the Environmental Protection Authority (EPA).

The main chemicals for a fraccing operation are a friction reducer, a natural gel, a gel management system, a clay stabiliser and a bactericide.

Most of the chemicals are biodegradable and no more toxic than dishwater.

Additives used in modern fraccing no longer include BTEX, an acronym for benzene, toluene, ethylbenzene, and xylenes — compounds which have harmful effects on the human central nervous system.

Regulation:

All aspects of fraccing are subject to Resource Management Act consents on land and offshore out to the 22km limit.

Environmental legislation is being planned for the Exclusive Economic Zone (EEZ) to cover the gap out to the 370km limit.

Fraccing is unlikely to be carried out within the EEZ because the costs of transporting materials increase with distance from land.

Other matters are covered in legislation such as the Health and Safety in Employment Act 2002 and the Hazardous Substances and New Organisms Act 1996.

 

Gaslands documentary:

The practices used for disposal of recovered fraccing fluids in Gaslands are not legal in New Zealand.

To date in New Zealand there has never been an explosion in a gas field.

There has never been water contamination in New Zealand as a result of fraccing, or an oil and gas operation.

The industry concedes that such contamination could result if the steel casing ruptured during fraccing at the depth of a groundwater aquifer, and if fraccing safety systems failed to shut down.

In that event, high pressure in the well would force fraccing fluid into the aquifer.

Straterra points out that it is not impossible for such a chain of events to occur but it is extremely unlikely.

A large tsunami or earthquake could affect a land or offshore well regardless of whether fraccing was being done.

Earthquakes are not caused by drilling but by huge natural forces operating on the Earth’s crust.

 

 

The Merits of Mining debate

A debate was held in Dunedin on the 25th May on the merits of mining with Straterra's CEO Chris Baker heading the "pro" team... more

17 June 2011, Gisborne Herald, Chimene Tipoki

Common ground at gas and oil forum

DAYLE Takitimu’s firebrand speech hit the mark at last night’s forum on oil and gas extraction, with Gisborne Chamber of Commerce president Fraser Brown commending the Te Whanau a Apanui spokeswoman on an inspiring defence of her iwi, moana and whenua.

All seven panellists also gave the thumbs-up to the goal of a transition away from oil.

The concession came at the end of what MC Richard Brooking called “well-conducted and constructive discussion” attended by more than 200 people.

Industry advocates, iwi and environmentalists were likewise united in believing a comprehensive oceans policy was the way forward, with those from both sides of the drilling debate prepared to pool expertise to develop guidelines and protections for deepwater.

Here the common ground ended, as the audience heard arguments for and against oil and gas drilling by three industry speakers and four opponents.

Kevin Rolens, from NZ Petroleum and Minerals (former Crown Minerals), said the sight of “nodding donkeys”, or oil pumping units, was a part of the landscape in Oklahoma where he grew up.

The government representative explained his job was to promote NZ as a destination for global oil explorers.

He believes the mining industry can work to resolve all issues around mining and satisfy rigid environmental criteria.

Mr Rolens admitted to being extremely embarrassed by Economic Development Minister Gerry Brownlee’s earlier attempts at consultation with East Coast iwi — which Mr Rolens called “a process of exchanging letters”.

“I can hardly think of that as consultation. I want to do a better job.”

Dayle Takitimu made no apology for the heated feelings of the 11,000-strong iwi, TeWhanau a Apanui.

Her main concerns were the lack of regulations governing the oceans and this region’s inability to respond to a disaster on the scale of the BP oil spill.

She said the Government had offered the country’s resources to the world without consulting Treaty holders.

“Our world view is very different from theirs. We don’t view the Earth as something to be exploited but as something to pass on to future generations,” she says.

The tribal legal adviser says there will be no jobs for local Maori, only for specialists in deepwater operations.

Pepanz chairman, John Bay was surprised at the opposition to mining off East Cape because New Zealand offshore drilling had been going on for 50 years.

New Zealand was known as a gas-prone province and it was the second country in the world to have become involved in commercial production, drilling its first well as far back as 1867, he said.

The oil and gas industry was among the largest private investors in alternative energy because the sector was committed to a future using clean technology.

Ngati Porou MP Moana Mackey told the forum the waters out past Lottin Point were home to a protected species of marine mammal.

The Labour list member spoke out against policies supported by her party in opening the Raukumara Basin to exploration and asked why questions about whether seismic testing impacts on fish spawning grounds remained unanswered.

The Environmental Protection Agency (EPA) Bill was being rushed through without being sent to Select Committee, she said.

“Don’t be fooled by the Government’s new legislation,” the MP cautioned.

She criticised the EPA, saying it stood for “Economic Promotion Agency” because its purpose statement did not include a duty to protect the environment.

Chris Baker, Straterra chief executive, said offshore prospecting could show up a range of minerals including high-grade sulphides, methane, hydrates, manganese crusts, manganese phosphate nodules, placer gold, ironsand, aggregate and silica.

The proposed regulations introduced to Parliament this month included a modified version of the RMA to regulate the EEZ, he said.

Kaitiaki co-ordinator, Moana Flowers spoke of the dangers of the extraction technique called hydraulic fracturing or fraccing.

She believes the technique will be used in the Waitangi Hill mine above the Waipaoa River.

Ms Flowers said she did not want to divulge the sources of her information to those in the industry.

“They will put wells around your children’s schools, in the backyards of your homes. They will turn up overnight and you won’t know what’s happening,” she says.

The industry preferred to hide behind gas rather than admit to seeking oil because “gas is the new greenwashing”, said Ms Flowers.

Greens MP David Clendon said minerals such as gold could be extracted from materials already above ground.

“NZ’s economic future should be in clean energy and weightless exports as well as food and fibre,” he said.

Fossil fuel production did nothing to guarantee the security of supply of our energy needs, he said.

He argued that good urban design, public transport and organic agriculture were simple ways to transition from fossil fuels without the need to wait for technology to come up with a “silver bullet”.

The oil and gas industry professionals stressed that upstream (drilling) created direct employment (about 1700 jobs in Taranaki).

They refuted claims that revenue from oil and gas was insufficient to justify the risk, saying the hydro-carbon industry contributed about 44 percent of its profits to the Government.

Last year, petroleum and gas made $2 billion for New Zealand, our third-largest export after dairy and meat, and the equivalent of buying a new hospital every year.

They rejected what they described as the “sensational rhetoric” used by extraction opponents — adding the anti-drilling lobby would do their argument more justice by sticking to proven fact.

The Gaslands documentary was given as an example of “misinformation” because 100m wells in Pennsylvania did not compare with New Zealand wells of 1500m depth and igniting methane from taps had proved to be naturally occurring.

They pointed to the science that proved seismic surveys did not kill penguins or cause earthquakes.

The industry spokesmen said they wanted to use best practice to make sure New Zealand never had a Deepwater Horizon-scale oil spill.

Prospecting opponents made the point that New Zealand’s clean green brand was worth more than any amount of revenue from fossil fuel production.

Mr Clendon presented the British newspaper headline, Middle Earth No Friend to the Earth, as an example of how easily our ‘eco-image’ could be destroyed.

Ms Mackey and Ms Takitimu were worried about the impact of seismic testing off East Cape, which was known to be tectonically unstable.

The forum at the Lawson Field Theatre was jointly organised by Gisborne Chamber of Commerce and Tairawhiti Environment Centre.

Future of the Kermadecs article in the DomPost 21 May 2011 by Sarah Catherall

As fishing and mining industries eye up the Kermadecs, environmentalists are in a race to turn their pristine waters into the world's largest ocean sanctuary. Sarah Catherall reports.

A thousand kilometres northeast of New Zealand, on the world's longest underwater volcanic arc, which starts in Tauranga and ends beyond Tonga, lie several sub-tropical islands celebrated by the few that have visited them as an untouched paradise.

Known as the Kermadec Islands, they are teeming with birds and mammals that can't be found anywhere else in the world, and the deep seas surrounding them are swarming with fish, some as yet unknown to science. read more

18 December 2010, Weekend Press, Christchurch

Tough times to get park status - DOC

Creating national parks and marine reserves might be harder after this year’s tumultuous mining debate, the Department of Conservation says.

In July the Government bowed to public pressure and dropped plans to allow mining on highly protected schedule four conservation land.

The U-turn was seen by some as a win for conservation but DOC Director-General Al Morrison believes it may now be harder to achieve national park, marine reserve and ecological area status.

His comments appeared in the minutes of a New Zealand Conservation Authority meeting in August.

A DOC spokesman said yesterday that Morrison stood by what he had said but did not want to comment further.

Green Party environment spokeswoman Catherine Delahunty said it would be a shame if unique areas became a “political sacrifice”.

“It’s concerning at a time when the Government is really pushing for mining … and taking a commercial view of the whole [conservation] estate, the last thing we need is for our unique ecosystems to not have the highest protection,: she said.

Parliamentary Commissioner for the Environment Jan Wright has raise concerns about the energy minister having a say in mining access to conservation land.

Under arrangements brought in last year, the Government’s minerals agency will be consulted before the public over the reclassification of conservation land with mining potential.

Forest and Bird conservation advocate Quentin Duthie said the Crown Minerals “veto” on reclassification meant the test was already higher, regardless of this year’s mining debate.

“What’s even more insidious is that it happens outside the public consultation process.”

He expected any DOC reclassification to be given greater scrutiny by Crown Minerals and ministers, given this year’s debate.

The chief executive of mining industry representative body Straterra, Chris Baker, said there should be more scrutiny of land that changes its conservation classification.

Economic values should be considered alongside environmental ones, he said, adding: “That hasn’t happened in the past.”

A spokesman for Conservation Minister Kate Wilkinson said the tests for national parks, marine reserves, and ecological areas had not changed.

DOC had commented and the matter seemed “done and dusted”, the spokesman said.

There are 57 mining permits now on conservation land and five that cover ecological areas.

 

9 December 2010, Radio New Zealand

Southland lignite should be off limits - commissioner

Parliament's chief environmental watchdog says using the lignite from large underground deposits in Southland would be too environmentally damaging.

At least six billion tonnes of lignite lie just beneath the surface of Southland, and have as much stored energy as 70 Maui gas fields.

State-owned coal miner Solid Energy and energy company L&M Group want to extract the mineral to make products like diesel, fertiliser and solid fuel briquettes.

But Parliamentary Commissioner for the Environment Jan Wright says because lignite is poor quality coal, extracting energy from it creates high emissions of carbon dioxide.

Ms Wright says New Zealand has promised to reduce greenhouse gas emissions but has in fact increased them, and making diesel from lignite would widen the gap between promise and reality by 50%.

She says the resource should remain in the ground until the greenhouse gas problems associated with it are dealt with.

Solid Energy new energy manager Brett Gamble, says new technologies, which it will use, will offset high emitting plants offshore, and mining the resource cannot be easily dismissed.

He says the report is narrow in focus and a decision on the future of lignite needs to consider all the facts.

Green Party co-leader Russel Norman says a single plant turning lignite into diesel would add 7% to New Zealand's greenhouse gas emissions and taxpayers would have to pick up the bill to cover the carbon cost.

Chris Baker of mining lobby group Straterra says the world won't use less lignite if New Zealand decides not to mine the resource - it will simply get it from somewhere else.

 

25 November 2010, NZ Herald

Division within Maori Party over Foreshore and Seabed Act

In a sign of the division the proposed replacement for the Foreshore and Seabed Act is causing within Maori Party ranks, members of a Maori Party branch gave differing submissions on it yesterday.

Wellington-based Te Upoko o te Ika branch has opposed the law change, sending an open letter to its party leaders calling on it to drop support for it or risk losing votes.

However, at least one branch member disagreed with the branch stance and gave a submission to the Maori Affairs Select Committee in support of the Marine and Coastal Area Bill yesterday.

Heeni Collins said she had initially opposed it until she read it fully. She said she now supported the repeal of the 2004 Act and provisions allowing iwi to claim customary title through the courts. However some improvements were needed. She objected to the test requiring "exclusive" occupation and use of the coastline by iwi, saying it was unfair and too harsh.

She said it had to be acknowledged many iwi had shared their resources because hospitality was integral to Maori culture. However, she said the tests for continuous use and occupation were sufficient, provided they were applied flexibly and did not involve overly strict requirements such as weekly use of the site. She said it should be sufficient for hapu to show they had retained their customary knowledge for the uses of the resources.

However branch secretary Roimata Tauroa, who also gave a submission, said the bill should not go through, saying it was no better than the 2004 Act and set tests that were too high for most iwi to meet. She said those who marched in the 2004 hikoi had expected more than simple repeal - but it had not been delivered.

Some mining interests also gave submissions yesterday, saying while they supported the overall changes they wanted more certainty for potential future mining of ironsands and oil.

Senior policy analyst for mining industry representative Straterra, Bernie Napp, said the bill risked creating uncertainty which could put off investors. He said it protected existing permits and resource consents but there was no protection for mining companies who currently had exploratory permits who might later seek a permit to mine the area. If an iwi was given customary title over the area of coastline in between, that iwi could then veto any mining permit and waste millions of dollars in exploratory work.

"The problem is changing the rules midstream. It's a bit like someone trying to build a 20 storey building and the city council changing the rules when they get to the 13th floor."

He said while most mining companies already worked with iwi on access, access arrangements were also uncertain under the bill.

Todd Energy senior executive Chris Hall raised similar concerns, saying the objective of the bill was to reinstate Maori rights while also protecting the interests of all New Zealanders. "We have reservations about whether the appropriate balance has been struck in this legislation to the extent it overrides our ability to explore for an produce petroleum in the national interest as well as our own."

Submissions on the select committee have sometimes caused friction among the MPs on it. Chair Tau Henare had tried - but did not succeed - to expel Mr Boscawen from the committee for a question he asked of a submitter, saying Mr Boscawen had insinuated the committee members could not work without bias because they were all Maori.

"I find that a ridiculous thing to think."

Mr Boscawen disputed he had made any such insinuation. He said one submitter opposed to the law was asked by other MPs what loss he would suffer as a consequence of the bill.

Mr Boscawen had asked the submitter if one such loss would be the benefit to all New Zealand of Crown rights to minerals such as ironsands and the submitter agreed. He said he had then asked whether the submitter had confidence in a select committee that could not see that as a loss. He said nothing in his questioning implied concerns about the committee members being mainly Maori.

He disagreed that he had said something wrong but said he was concerned that some submitters opposed to the bill "were treated inappropriately and impolitely."

Mr Boscawen is also writing to the Prime Minister to try to correct Mr Henare's interpretation of his questioning."

 

14 October 2010

Chilean miners are all finally free

All of Chile's 33 trapped miners were rescued from the bowels of the earth in a special capsule on Wednesday as an extraordinary two-month survival story many call a miracle triggered wild celebrations.

Luis Urzua, 54, who was leading the shift at the time of the collapse, was the last of the miners to travel through 625 metres of rock to the surface in a capsule barely wider than a man's shoulders.

Celebrations erupted across the country as he emerged to a hero's welcome above the San Jose gold and copper mine in Chile's northern Atacama desert, wearing his hard-hat and dark shades to protect his eyes after spending 69 days in a dimly-lit tunnel.

Urzua beamed as an elated crowd chanted, yelled, sobbed and waved red, white and blue Chilean flags. The miners have set a new world record for survival trapped underground.

Rescue workers opened the capsule door and hugged Urzua, who had insisted throughout that he would not leave the tunnel until all the other miners were safely evacuated.

They are now all safe, thanks to a meticulously-planned rescue operation that went quicker and more smoothly than anyone dared to believe.

Now the rescue workers who travelled the down the shaft to help evacuate them will themselves be winched to the surface in the metal capsule, named Phoenix after the mythical bird that rose from the ashes.

Church bells rang out in Chile when the first miner was extricated and Chileans were glued to their televisions, proud of their nation's ability to save the men in a world class rescue operation.

"This was the toughest match of my life," said Franklin Lobos, a former professional soccer player who turned to mining and driving a taxi to make ends meet, as he emerged from the mine.

The miners were whisked away for medical check ups and were found to be in good health, except for one who has pneumonia and is being treated with antibiotics.

"This is a miracle from God," said Alberto Avalos, the uncle of Florencio Avalos, a father of two who was the first to emerge shortly after midnight.

Euphoric rescuers, relatives and friends broke into cheers - and tears - as the miners emerged to breathe fresh air for the first time since the mine caved in on Aug 5.

They were all initially believed to be dead but rescue teams found the men 17 days after the collapse with a bore hole the width of a grapefruit. The tiny hole then became an umbilical cord used to pass hydration gels, water and food to keep them alive during one of the world's most ambitious rescue operations.

Their story of survival captured global attention. Some 1500 journalists were at the mine to report on the rescue operation, which was broadcast live around the world, including dramatic live images of the miners hugging rescuers who travelled down the shaft to their refuge deep in the mine.

The flawless rescue was a big success for Chilean President Sebastian Pinera, who waited at the mouth of the shaft through the night and day to greet and hug the men as they emerged from the red, white and blue capsule - the Chilean colours.

1 October 2010

Hydro Developments Ltd and Solid Energy NZ Ltd agree way forward for hydro at Stockton.

Hydro Developments Ltd (HDL) and Solid Energy New Zealand Ltd have reached an agreement about using water from Stockton Plateau to generate electricity. The agreement clears the way for HDL to progress its hydro-electric scheme at Stockton alongside Solid Energy’s mining operation on the plateau.

Hydro Developments gained resource consents in January 2010 for a hydro scheme at Stockton. Solid Energy appealed that decision, concerned that the HDL scheme could compromise its ability to efficiently and economically mine at Stockton. Solid Energy was not successful with its application in
June 2010 to gain consents for an alternative hydro-electricity proposal and has appealed that decision. Solid Energy is continuing to pursue its own appeal but accepts that any consents granted will be subordinate to the consents for the HDL scheme. As a result of today’s agreement, Solid
Energy and HDL will abandon their appeals of the other’s scheme.

Solid Energy will now provide HDL access to the land it requires and HDL has agreed not to oppose any consent applications for water diversions Solid Energy may require for the efficient operation of its coal mining operations at Stockton.

HDL Director, Ant Black, and Solid Energy Chief Operating Officer, Barry Bragg, say the agreement addresses both sides’ concerns and smoothes the way for HDL to continue developing its proposal.

“It’s been a somewhat convoluted route to what is an equitable and good-spirited outcome,” Ant Black says. “HDL is excited about progressing the project and is looking forward to an improved and cooperative relationship with Solid Energy.”

Barry Bragg says Solid Energy too is looking forward to working with HDL as it moves its project forward. “We are pleased we’ve been able to come to an agreement, particularly on Solid Energy’s right to use water for current and future mining and at the same time giving land access to HDL so
they can take their project forward.”

● For further information, please contact:
- Chris Coll, Hydro Developments Ltd Chairman, tel 03 789 8425
- Bryn Somerville, Solid Energy Communications Manager, tel 03 345 6090 or 027 295 4299
- Vicki Blyth, Solid Energy Communications Director, tel 03 345 6000 or 021 670 250

22 September 2010

Miners should pay to dig on DOC land, says report

By KIRAN CHUG - The Dominion Post

Mining companies are getting special privileges which allow them cheap and easy access to conservation land, says the country's environmental watchdog.

The Parliamentary Commissioner for the Environment is calling for urgent changes, saying that, while the Government is planning to expand mining on conservation land, gaps in its protection must be addressed.

Jan Wright's report, Mining the Conservation Estate, was tabled in Parliament yesterday, and included a call for mining companies to pay for the privilege of using public land.

Asking them to pay royalties was not enough, Dr Wright said. The money could be used by the Conservation Department for pest control.

However, she warned that the opportunity to increase payments to DOC should not be used as an opportunity to cut funding.

In addition to not having to pay for using conservation land, Dr Wright said mining companies faced lower hurdles to access than commercial operators such as tourism companies. "I find this quite extraordinary ..."

Chris Baker, the chief executive of mining industry representative body Straterra, said the system was robust. "If it's not broke, don't fix it."

However, he welcomed Dr Wright's report, saying the sector agreed that mining companies could help provide conservation gains. "Many companies already have as a goal to achieve a net positive impact on the environment from their activities ..."

He pointed out that Dr Wright had said the biggest threat to conservation was from pests, not mining.

Dr Wright also called for greater consistency when giving mining companies access to conservation land in return for a bond or conditions, saying ad hoc decisions were made without considering the bigger conservation picture.

Mr Baker said seeking a legislative framework for conservation work already being done by the industry would not work. "You would create more problems. It doesn't need to be regulated."

Forest & Bird conservation advocate Quentin Duthie said the current system could not continue as it lent itself to being used as public relations. "At the moment it's optional and it's ad hoc.

"It's also not necessarily of benefit, so it's sometimes used as greenwash."

Dr Wright said the Government planned to expand mining on conservation land. Though it had ruled out opening up schedule 4 land, which is protected under schedule 4 of the Crown Minerals Act, 60 per cent of conservation land was still at risk.

"This land includes forest parks, conservation parks, stewardship areas, ecological areas and scenic reserves."

Dr Wright said the Government plan for the conservation minister to share decision making on mining with the energy and resources minister would undermine her position. However, Conservation Minister Kate Wilkinson disagreed. She said access to DOC land would still require her consent.

There are currently 57 mining permits which cover conservation land and five which cover ecological areas.

Ms Wilkinson said she would seek advice on Dr Wright's recommendations, but some were already being addressed.

The report comes a day after Energy and Resources Minister Gerry Brownlee told a petroleum industry conference that the Government was serious about benefiting from natural resources.

 

16 September 2010

Pike workers expected to get $10,000

Pike River's new chief executive, Peter Whittall, knows every nook and cranny of the West Coast site.

Pike River Coal has moved quickly to appoint Peter Whittall as its new chief executive and its workforce should have $10,000 bonuses in their pockets just before he takes up the job.

Whittall is presently mines general manager and will move into the top job on October 2, a week after the bonus will be paid if the company's hydro mining technique is up and running.

"It's a significant incentive for the workforce to focus on. People have been working towards that diligently, as you can imagine," said Whittall, who replaces outgoing chief executive Gordon Ward.

Whittall joined Pike River at its West Coast mine site in 2005, and moved to the Wellington head office in January. He has been involved in capital raisings, and was responsible for on-site construction, mine development and recruitment.

Before joining Pike River he had 24 years' experience in underground coal mines for BHP.

Pike River said last week that Ward, who has been chief executive and managing director since May 2007, would leave the company next month. Chairman John Dow said Ward had been involved with the mine since it was conceived 14 years ago.

Whittall was an outstanding candidate, he said. "The issues with Pike are now mainly operational. He knows every nook and cranny around the place and that's the expertise we need."

Hydro mining - water blasting coal from the seam and pumping it out of the mine with water in pipes - will increase production rate and if successful is seen as a big step for the West Coast mine, which has been plagued by delays and the need to regularly tap investors for more funds.

Whittall said no further capital raising was envisaged.

Pike River Coal shares yesterday closed up 3c to $1.09.

Setback in Chile Miners Rescue

14 September 2010

When the drilling stops, the 33 miners who have been trapped underground for weeks in northern Chile notice. And they are not pleased about the progress above.

On Monday only one of three drilling efforts was operational - the so-called Plan A drill, reaching down to 230 metres. But it too must stop at 250 metres, for maintenance work. Plan B, a higher-velocity drill that will carve out a narrower escape tunnel, has been silenced since last week, when it struck an iron support beam for the mine and its drill bit shattered into small pieces. A third drill, Plan C, is still days away from starting its work.

Rescuers have already tried three times to use magnets to remove pieces of the shattered second drill and iron beam from the hole. If a fourth effort also fails, Mining Minister Laurence Golborne said Monday, then the second drill will have to be moved and start digging an entirely new hole.

The setback has caused anxiety among the men trapped by a mine collapse, who had been cheered by the sound of the constant hammering of the second drill as it bored through solid rock.

In talks with their families over a fibre-optic line rescuers dropped through one of the narrow bore-holes, they demanded explanations from authorities, who have struggled to strike a balance between can-do optimism and the reality that the miners may remain stuck a half-mile below ground for months.

"We told them that we're thinking about staging a protest or some other pressure tactic if they don't show us more progress," said Maria Segovia, whose brother is trapped down below.

With frustration growing, so is pressure for alternative solutions. But the rescue team on Monday quickly rejected a "plan D" proposed by Miguel Fort, the mining engineer who led the rescue effort immediately after the Aug. 5 mine collapse.

Fort sent an e-mail to Golborne Sunday night asking for authorization to descend to the point where the main shaft collapsed and analyze its stability. If the conditions are right, he suggested, dynamite might be used to blast a passage open.

"As a rescuer, I have to look for quicker options," Fort said.

But his idea was rejected in part because large areas of the mine are thought to be so unstable that they could collapse again at any moment.

Engineer Rene Aguilar, who is now coordinating the effort, called it an unworkable option because the rock falls were so extensive that there no longer is any way to reach the area that would have to be blasted.

"The mine rescue alternative is not viable," Aguilar said. "There is an enormous block of 700,000 tons which is very unstable, so ... entering the mine (through the main entrance) implies a danger for the lives of the people who want to carry out that operation."

Mine tunnel making progress

10 September 2010

OceanaGold loses its chief

Ross Louthean — 10 September 2010

 

The relatively short tenure of Paul Bibby as chief executive of OceanaGold Corporation is over.

The company announced this week that Bibby decided to step down from the position for personal reasons and that the quest to find a replacement would begin immediately.

Bibby, an experienced manager in the mining sector, joined the company last November to replace Steven Orr.

During Bibby’s tenure he lifted the tempo of exploration which resulted in both successful new resources and reserves at both the Macraes and Reefton goldfield operations in New Zealand.

Bibby commented in the announcement: “OceanaGold is now in a very strong position both operationally and financially, we have increased international market awareness and the exploration efforts continue to produce outcomes that will sustain the NZ operations.

“I am pleased with what has been achieved during my time with OceanaGold.”

Oceana’s chairman Jim Askew said Paul Bibby made a significant contribution since joining the company and as a result the group management is on a solid footing.

Askew will assume the role of executive chairman to lead the executive committee.

“The company is fortunate to have a strong and diverse range of skills amongst the management team and this will result in a seamless transition in the operations of the business,” Askew added.

Solid Energy issues force majeure notices

State-owned coal miner Solid Energy has today issued force majeure notices to its international customers after it received a similar notice yesterday from Lyttelton Port of Christchurch.

Both organisations are saying the moves are precautionary after the magnitude 7.1 earthquake struck Canterbury on Saturday.

Force majeure clauses in contracts excuse a party from liability if an unforseen event prevents it from performing its obligations under the contract. They can be used when natural disasters occur.

Solid Energy says that based on current information the impact of the earthquake on its business will be minimal. Solid Energy is a state-owned enterprise which operates as a commercial company.

It has mines near Greymouth, Westport and Reefton on the West Coast of the South Island. Its coal is railed to Christchurch for export from Lyttelton.

Solid Energy's exports in the year to June 30 were down at 1.4 million tonnes from 1.6 million tonnes in the previous year.

"Thanks to the efforts of KiwiRail and Lyttelton Port of Christchurch most coal trains are running from the West Coast to the port and an export coal shipment was loaded for Pike River earlier this week," Solid Energy said today.

"A further coal shipment is scheduled to be loaded this weekend subject to some repairs being completed at the port in the next two days."

Lyttelton Port has sustained $50m worth of damage, port company's chief executive Peter Davie said today.

The port is continuing to operate.

Straterra keen to be involved in energy strategy (excerpt from NZ Resources )

3 September 2010

 

The chief executive of lobby group Straterra, Chris Baker, said the organisation was keen to work with the Government on implementation of an energy strategy.

Baker was commenting on the Ministry of Economic Development’s discussion document “Developing our energy potential.” Submissions closed yesterday.

“Prioritising energy resource development is sensible, as is the Government’s emphasis on a mix of energy sources to ensure affordability and supply,” Baker said.

Both, he said, are an advance on the 2007 draft strategy. This can be done in an environmentally-responsible way. Energy efficiency is a key consideration for many businesses including the minerals industry.

“There could be tension between meeting the renewable electricity generation target of 90% by 2025 and energy security and affordability, and it’s not clear from the document how this would be managed,” Baker said.

“It’s also not clear how the NZ Emissions Trading Scheme (NZES) will affect diversity of energy sources and security of supply,” he said.

As matters stand, NZ will be leading the world on carbon prices and “we have a way to go to ensure that impacts on the competitiveness of energy-intensive industries such as dairy processing are minimised.

The review in 2011 will be an opportunity to sort this out, with the NZES in mind.”

Straterra said the coal sector was working with industry and government in the New Zealand Carbon Capture and Storage partnership.

“This is an important and complementary initiative to keep New Zealand’s options open. There is a clear case for partnership between the Government and industry in working to achieve the Government’s priorities.”

 

English says exports will drive the recovery

13 August 2010

Finance Minister Bill English said the economic recovery will be different, built on exports as a key to building a sustainable long-term performance.

That, he said, will be quite different to recoveries traditionally seen in New Zealand.

"This recovery will be patchy at times - due to the uncertain global environment and the need for businesses and households to pay down large stocks of debt.

"In this credit-constrained world, the recovery will need to come first from the earnings side of the economy such as exports," English said in a speech to the New Zealand Council for Infrastructure Development.

"All of this shows that tackling the economy's imbalances will not be a short-term task. It's not just a matter of shrugging off the global recession. The challenges we face started years earlier.

"Turning that around will require a relentless, long-term focus and commitment," English said.

This reality was reflected in stable rather than growing results for domestic industries like housing and retail, and indicators such as business confidence and the sharemarket.

Recent debate about the Government's goal of catching Australian incomes by 2025 had attracted some comment - much of it characterised by a total lack of context about the recent economic performances of the two countries.

He said in the three years to 2008, NZ's economic growth was unbalanced and sluggish. In early 2008, New Zealand went into a recession that Australia simply didn't have.

"This meant the Australian economy grew by about 11.5% in the four years to March 2010, while our economy grew just 2%.

"So the Government inherited a situation that makes the challenging target of catching Australia even more difficult. Let me stress that the Government remains committed to this target - but it's a 2025 target, not a 2011 or 2014 target."

Over the past 30 years, there had been many two year periods when NZ performed better than Australia, as dairy and other commodity prices fluctuated. But overall, the trend has been clearly in Australia's favour.

"On the commodity front, Australia clearly has the edge at the moment," English said.

"Put in simple terms, Australia's mineral industry makes up nearly 70% of its exports, while dairy makes up 20% of our exports.

"Furthermore, Australian commodity prices roughly doubled in the five years to July 2010, while NZ's commodity prices increased by only half as much.

"As a result, Australia's minerals boom is likely to mean it will perform better than NZ in the near term, but it is the long-term trend we are determined to turn around.

"The only way we can permanently lift New Zealand's economic growth is through considered and consistent reform and change, year after year.

More broadly, the Government has built its economic plan around six policy drivers. They include:

• Strengthening the tax system.
• Better, smarter public services.
• Reforming regulation.
• Education and skills.
• Business innovation and trade.
• Investment in productive infrastructure.

"In the past 18 months, we have been extremely busy rolling out policies within this plan, and you will see more announcements in the coming m