WELLINGTON, New Zealand,
April 16, 2019 /CNW/ - Chatham Rock
Phosphate Limited (TSXV: "NZP" and NZAX: "CRP" or the
"Company") advises with great pleasure that today we
executed an Information Sharing and Collaboration agreement with
Ngāti Mutunga O Wharekauri AHC (Ngāti Mutunga).
CRP holds a mining permit to extract rock phosphate from an
offshore area located on the Chatham Rise (the Project). In
order to pursue the Project CRP needs to obtain a marine consent
under the Exclusive Economic Zone and Continental Shelf
(Environmental Effects) Act 2012 (Marine Consent).
Ngāti Mutunga is a wholly owned subsidiary of Ngāti Mutunga o
Wharekauri Iwi Trust, based on the Chatham Islands and has a
significant interest in protecting the Chatham Islands marine
environment and securing the economic, social and cultural
well-being of the Chathams community.
Following discussions between the Parties they now wish to
formally collaborate on the Project with a view to:
- Developing a CRP Marine Consent application that meets the
environmental, economic, social and cultural objectives of both
Parties individually and together;
- In the event that the content of such an application is
mutually agreed, to formally support the lodging of the CRP Marine
Consent application for approval;
- In the event that the CRP Marine Consent application is
successful, ensuring that all operations implemented under that
consent are carried out in in a manner that best mitigates
environmental effects and respects indigenous rights, beliefs and
customs to protect the interests of the Chatham Islands community;
and
- Ensuring that the Chatham Islands community realises tangible
benefits from the Project.
The first objective of the Parties is to arrange close
engagement with the Chathams community to ensure that the Project
proceeds in a form that satisfactorily addresses both the
reasonable concerns and aspirations of that community. The
agreement will be a success if it results in formal community
support for the Project. If mutually agreed ways of
addressing reasonable community concerns and aspirations cannot be
found then the terms of the agreement will no longer apply.
Ngāti Mutunga o Wharekauri Asset Holding Company director
Tom McClurg said "we consider this
Project to be one that can potentially work for the benefit of our
people, our economy and the environment. We look forward to working
closely with the Chatham Rock Phosphate team to ensure that
commercial, social and cultural benefits are realized by this
Project and that these benefits are not at the expense of the
marine environment that is so important to us all. We applaud
the willingness of CRP to share information and respond to
community perspectives that is evidenced by this innovative
agreement".
Chatham CEO Chris Castle noted
"the communities of the Chatham Islands, represented by and
including Ngāti Mutunga o Wharekauri, Moriori, and the Chatham
Islands Enterprise Trust (CIET), are the stakeholders most directly
affected by the operations of our proposed rock phosphate recovery
operation. Significantly these stakeholders also have major fishing
industry investments in the waters surrounding the Chatham
Islands.
It's very exciting that we have reached a point where we can
begin working together to ensure that this project can proceed in a
manner that protects and benefits all concerned. The signing of
this collaboration agreement is a very, very significant milestone
for Chatham Rock Phosphate as it signals important support for our
project (if it is appropriately managed) from such directly
affected stakeholders.
We are also gratified that Ngāti Mutunga o Wharekauri is
proposing to make a significant future investment in Chatham Rock
Phosphate if the agreement proceeds and the Marine Consent is
obtained. In those circumstances Ngāti Mutunga o Wharekauri and
possibly Moriori and the CIET would receive options that are in
total equal to 15% of the number of shares on issue at the time a
Marine Consent that has their support is granted (being 5% per
party). The exercise price of these options will reflect and
recognise the accumulated investment made to that date by our
shareholders.
About Ngāti Mutunga o Wharekauri
Ngāti Mutunga o Wharekauri is a Maori iwi
(tribe) of New Zealand, whose
original rohe (tribal lands) were in north Taranaki. They migrated
from Taranaki, first to Wellington, and then to the Chatham Islands in
1835. The rohe of the iwi includes all of Chatham Island (Wharekauri), Te Whānga Lagoon
and all of the outlying islands of the Chathams Group.
About Chatham Rock Phosphate
Chatham Rock Phosphate is the custodian of New Zealand's only material resource of
ultra-low cadmium, environmentally friendly pastoral phosphate
fertiliser. Our key role is connecting the resource with
those who need it.
The resource represents one of New
Zealand's most valuable mineral assets and is of huge
strategic significance because phosphate is essential to maintain
New Zealand's high agricultural
productivity.
New Zealand's current access to
phosphate is vulnerable to economic and political events in the six
countries controlling 98% of the world's phosphate reserves, with
85% of the total in the Western Saharan state of Morocco.
Chatham takes very seriously the responsibility vested in it
through its granted mining permit to use the world's best knowledge
and technology to safely extract this resource to help sustainably
feed the world.
Our initial environmental consenting process independently
established extraction would have no significant impact on fishing
yields or profitability, marine mammals or seabirds.
Our project ticks all the boxes: environmental, health, ethical,
security of supply, economic, regional development, rare earths and
other green minerals
- Our rock is a proven reactive phosphate rock. Using it results
in much less run-off into waterways and an improved soil profile
compared with the effects of manufactured fertilisers.
- It's an organic fertiliser with no additives and with the only
processing being grinding and possible pelletisation
- It contains ultra-low levels of cadmium, a cancer-causing heavy
metal with much greater concentrations in other rock phosphate
deposits
- Being locally sourced and needing to be applied less frequently
results in much lower carbon emissions (in effect increasing the
present NZ electric vehicle fleet from 10,000 to 29,000
vehicles)
- It is New Zealand's only
significant source of phosphate and seabed extraction involves a
far smaller environmental impact than that imposed on local
overseas communities which mine phosphate
- The rock is located within one day's sailing distance and
supply is far more secure (and more ethical) than phosphate rock
imported from unstable regions on the other side of the
world
- The project economics are attractive and Chatham will pay
significant royalties and income taxes
- The project will generate new jobs in environmental monitoring,
on the mining ship, in the home port and in the science and
agricultural sectors
- Chatham rock phosphate has been independently shown to be as
effective as other phosphate fertilisers used in New Zealand. We could provide the two
fertiliser co-ops supplying most of New
Zealand's fertiliser with a green fertiliser alternative to
naturally complement their other products.
Neither the Exchange, its Regulation Service Provider (as
that term is defined under the policies of the Exchange), or NZX
Limited has in any way passed upon the merits of the Transaction
and associated transactions, and has neither approved nor
disapproved of the contents of this press release.
SOURCE Chatham Rock Phosphate
