CRP response to TTR decision

CRP response to TTR decision

18 June 2014

Chatham Rock Phosphate (NZ: CRP) (“CRP” or “the Company”) today notes the announcement made by Trans-Tasman Resources (TTR) regarding the marine consent application decision of New Zealand’s Environmental Protection Authority (EPA) Decision-making Committee (DMC).

While CRP has yet to study the decision in detail, we remain very confident we have submitted a robust and comprehensive application which will meet the legal tests under the relevant New Zealand legislation. We have proposed comprehensive monitoring, mitigation and compensation conditions, following discussions with interested parties.

We feel for TTR as the company has worked hard and invested significant capital. However it is important to remember our application cannot be compared with TTR’s. It is for a different mineral, in a very different marine environment and using different extraction methods and will be considered by a different Decision-making Committee.

CRP’s application also has some unique environmental and economic benefits which include:

• It offers security of supply for New Zealand’s most significant industry

• It’s an organic New Zealand-origin product that can be applied without any chemical processing

• It’ll reduce the carbon footprint by lowering transport distances

• It has one of the lowest known concentrations of cadmium of any phosphate rock

• It reduces water pollution from run-off when used as a direct application fertiliser because it releases slowly, requiring less frequent applications than conventional fertilisers, further reducing its carbon footprint

• The rock is highly reactive, heightening its effectiveness as a fertiliser, and has strong liming qualities.

According to regulatory filings, the main basis of the decision regarding TTR’s marine consent application relates to concerns about potential adverse environmental effects.

CRP’s own Marine Consent to the Environmental Protection Authority, filed in May 2014, comprehensively accounts for the low level of potential environmental impacts proposed by its own mine plan throughout the development, operation and reclamation of its permit area.

The Company continues to prioritise environmental responsibility within its role as a corporate citizen and economic contributor to New Zealand.

Accordingly, CRP continues to engage with EPA, Iwi and all relevant local stakeholders as part of the six-month process towards the DMC’s decision on its application, which is still expected in Q4 2014.

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