Media Release – for immediate release
15 December 2009
Time for reason, not rhetoric
The Copenhagen climate change summit should not be used for scoring cheap political points, as the Green Party has
attempted to do this week, says Straterra Chief Executive Richard Michael.
“This is not the time for emotional rhetoric,” he said, responding to a media release issued by the Green Party that
criticised a proposed new Solid Energy lignite processing plant in Southland and the Port of Lyttleton plans to double
its coal stockyard to meet rising export demands. The release was headlined “Government commits to coal rather than
Copenhagen”.
“Yes, we need to innovate in terms of our natural resources use, and the sector is committed to doing so. But without a
sound economic base that provides a platform for growth New Zealand cannot achieve its potential domestically and
globally,” said Mr Michael.
Otago and Southland have up to 15 billion tonnes of lignite reserves. Even at its lowest value end-use, as a direct fuel
for primary processing in the dairy, meat and other sectors, the total value of this resource at today’s prices is up to
$500 billion. Converting lignite to higher value products such as transport fuels, fertilizers or other chemicals could
increase the end value of this resource tenfold. At the same time it could insulate New Zealand’s economy from rising
long-term global prices for all these products and create the equivalent of a new export industry worth up to $5 billion
per year – or more.
“We need to balance environmental needs and economic growth and we believe the Government is striving to do just that,”
said Mr Michael.
With world demand for steel exploding major producers such as India and China had a vociferous appetite for coal needed
for production.
“The world needs steel, and steel production needs coal. We have the ability to unlock the potential beneath our land
while achieving maximum benefits for the economy with a minimum environmental footprint.”
About Straterra
Straterra, which was launched in September 2008, aims to provide a united voice for companies working in the oil, gas,
aggregates, minerals, metals and coal industries. The sector has annual revenues exceeding four billion dollars and
exports of around two billion dollars. Independent studies demonstrate the potential to double these revenues and
provide much needed employment in the New Zealand economy.
ENDS