Time for reason, not rhetoric

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

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