Chatham Rock Phosphate Ltd. is calling on the government to support its project if it wants to transition to a lower-emissions economy.
“We’re on the same page and have been for years,” commented chief executive officer Chris Castle with respect to the cabinet papers just released regarding its just transitions unit tasked with finding ways for the industry to reduce carbon emissions.
Chatham offers a much simpler and immediately available solution — and it is on New Zealand’s doorstep.
“No new technology is required; all the government needs to do is work in parallel with our privately funded project to help get this new phosphate extraction industry on its feet. This can best be done by ironing out the existing anomalies in the permitting process and relevant legislation.”
The papers say the government will intervene heavily in markets to achieve its aims.
An undated cabinet paper, led by Dr. Megan Woods, the minister responsible for the just transitions unit, reads, “From time to time, the government may also need to act in entrepreneurial mode to help drive the transition through.” Such action could support the development of new technologies and industries “where it is necessary to fully realize emerging opportunities, e.g. clean energy.”
Dr. Woods also proposes the private sector will lead, “The large-scale investments required to effect meaningful and positive change.”
Dr. Woods added, “We’re ready, willing and able to invest in New Zealand, in a project that will deliver multiple environmental and economic benefits.”
Mr. Castle said Chatham have been talking to successive ministers since 2012 about the role Chatham can play in reducing emissions.
“We have calculated that 800,000 tonnes of rock phosphate nodules mined from the Chatham Rise would entail 4,000 tonnes of carbon dioxide in transport emissions. That compares with 80,000 tonnes of CO2 emissions from mining and shipping the same quantity of product from Morocco to New Zealand.
“The fact the Moroccan phosphate transport emissions are 20 times that of New Zealand-sourced phosphate ought to resonate with the government and its drive to reduce emissions. Putting it another way, local production of rock phosphate would have the immediate effect of taking 19,000 petrol-driven vehicles off the roads.”
The cabinet papers refer to how a just transition can understand the different pathways to transform New Zealand’s economy to one that is more productive, sustainable and inclusive.
This includes partnering with businesses, Maori/iwi, local government, communities and the work force to identify, create and support new opportunities, jobs, skills and investments that will emerge from transition.
The report says the government has a critical role to play in facilitating a market response to the climate change challenge, including through an effective ETS, high-quality regulation and effective standards.
Mr. Castle called on the government to seize opportunities, such as Chatham, that can help New Zealand become a more sustainable economy.
The company will continue to seek meetings with the key ministers to better communicate the carbon-emission-related benefits of the Chatham Rise project, which are supplemented with a range of benefits related to water and soil quality. The company has communicated these benefits to ministers and previous governments a number of times, and the message must inevitably get through.
About Chatham Rock Phosphate Ltd.
Chatham Rock Phosphate is the custodian of New Zealand’s only material resource of ultralow cadmium, environmentally friendly pastoral phosphate fertilizer. The company’s key role is connecting the resource with those who need it.
The resource represents one of New Zealand’s most valuable mineral assets and is of huge strategic significance because phosphate is essential to maintain New Zealand’s high agricultural productivity.
