Judge: Mediation over Mataura premix ownership makes progress

Thursday, 10 September 2020

Tagging on the former paper mill building in Mataura where tonnes of ouvea premix is being stored, clearly conveys some residents’ feelings that they want it removed from their town.

Two organisations involved in mediation say they accept the urgency and the seriousness of leaving tonnes of ouvea premix in a former paper mill at Mataura.

Court assisted mediation was held in Invercargill between the New Zealand Aluminium Smelters Ltd and the Environmental Defence Society on Tuesday and Wednesday.

In July, the society filed declaration proceedings in the Environment Court in Christchurch concerning the storage of the premix, and the proceedings will determine whether the smelter is responsible for removing it.

Environment court Judge Laurie Newhook said he took the unusual step of issuing a minute after two days of judicial settlement conference because of the high level of public interest, and because he has directed the parties to confine their discussions to the conference parties and not beyond its confidential confines.

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Progress has been made through robust discussions, and constructive practical solutions were on the table and were being actively worked on by the major parties, Judge Newhook says.

He had directed a resumption of the settlement conference on September 28, with a view to finalising solutions.

He has directed steps to be taken by parties meantime, and a timetable.

In the minute it also says the current contractual arrangements for removal of the ouvea premix from the Mataura mill are operating ahead of the originally-anticipated timetable, but the parties are working on developing considerably faster arrangements if at all possible.

Judge Newhook has directed the smelter and the society not to make further comment to media so as not to prejudice the ongoing work and co-operation.

A by product of the smelting process is dross.

Taha Asia Pacific had a contract with the smelter to take the dross and turn it into ouvea premix which has the potential use in fertiliser manufacturing.

However, Taha Asia Pacific, which owned the premix, went into liquidation in 2016, leaving 10,000 tonnes of the substance in the Mataura building and more in other buildings in Invercargill and Awarua.

In December 2017 liquidators formally disclaimed the premix, leaving district councils in Southland to deal with it.

The premix, if it gets wet, releases ammonia gas. In February flooding meant there was a concern the Mataura River, which is next to the mill, might breach it.

The Prime Minister Jacinda Ardern, at the time, said something must be done to help Mataura residents.

'…clearly there needs to be a long-term solution found for the residents of Mataura,' she said.