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Friday 3rd September 2010 |
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Widespread Energy says it expects to report back early to the Crown Minerals Unit of the Ministry of Economic Development, as its project to mine undersea deposits of rock phosphate off the coast of Christchurch.
"We're achieving significant progress on a number of fronts and this project is developing a lot of momentum," said Widespread director Chris Castle.
"We want to be in a position to complete our first year report to Crown Minerals well within the specified timeframe."
The company has a team of technical experts, which is now analysing data gathered in the 1970s and 1980s. Widespread gained a one-year prospecting permit in February to explore the commercial prospects of deposits in an area on the Chatham Rise.
The area may contain as much as 100 million tonnes of rock phosphate, an essential ingredient in fertilizer, which could be worth $28 billion.
The year one work programme will assess technical data, environmental impacts, project economics, and designing an exploration programme to be undertaken in year two.
The two year exploration permit carries further priority rights to extend the permit or apply for a mining licence.
Castle said the project would provide a locally produced alternative to the 1 million tonnes of rock phosphate imported into New Zealand annually, which would have the benefit of sidestepping high transport and foreign exchange costs.
The value of the project is currently $20 million, with a further $280 million needed to take it to the startup phase, according to the company's website. Shares of Widespread Energy, which owns 90% of the joint venture, were unchanged yesterday at 14 cents.
Businesswire.co.nz
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