Organisations involved with securing a large-scale timber-processing plant in Ngawha, New Zealand say it isn’t off the cards despite reports. Source: Stuff NZ
Top Energy chief executive Russell Shaw says everyone has missed the point following the release of a pre-feasibility report into the viability of a proposed mechanical pulp and sawmill in an industrial park at Ngawha.
“The whole thing is not being cancelled until we have greater certainty. That methodology is still being consulted on and may change, no decision has been made to stop a mill, the next stage has purely been put on hold until this matter is clarified,” he said.
The integrated pulp and sawmill proposed an estimated 300-400 jobs and sales of more than NZ$280 million per annum.
The report identified that a standalone mechanical pulp mill could be feasible and that a full feasibility study will not be undertaken at this time.
The Electricity Authority’s Transmission Pricing Methodology Review proposes increases to transmission costs that could not only put the mill in jeopardy but Top Energy’s planned expansion of its geothermal power generation plant at Ngawha, as part of the industrial park.
Mr Shaw says the issue will be revisited once the consultation process has closed and that in order for the project to gain investors there needed to be certainty around future costs.
The pre-feasibility study was carried out by independent agency Indufor on behalf of Northland Inc, New Zealand Trade and Enterprise and the Ministry for Primary Industries.
Kaikohe business owner and Business Association Chair Mark Anderson says Northland Inc should be funding the next level report for the mill feasibility.
“If anyone is going to be pushing the barrow it should be them, everyone else has day jobs, and Top Energy is not a property developer,” he said.
He says Northland Inc (a subsidiary of Northland Regional Council) has been asked numerous times to attend working group meetings for the industrial park but declined the offer.
Northland Inc chief executive David Wilson says all they were doing is investigating an opportunity.
“The report says it’s possible but there are issues that any perspective investor would be considering. We could address that and have further consultation,” he said.
While Northland Inc made a submission in regards to proposed increases of transmission costs in July it did not specifically mention impacts to the mill project.
The consultation process for the Transmission Pricing Methodology Consultation closes on February 24 2017.
