Deal to remove hazardous substance from Mataura canned

Wednesday, 12 February 2020

Environment Minister David Parker said it was 'disgraceful' that Rio Tinto had reneged on the deal.

Environment Minister David Parker says it is 'disgraceful' that aluminium manufacturer Rio Tinto has backed out of a deal to remove a hazardous substance from a building in Mataura.

Gore district council chief executive Stephen Parry announced on Wednesday morning that the deal he had struck with New Zealand Aluminium Smelters CEO Stewart Hamilton has been scuppered by Rio Tinto.

Gore District Council chief executive Steve Parry.

'To say I am devastated is an understatement.

'We had a deal, sealed with a good old-fashioned Southland handshake, but Rio Tinto's bosses have reneged.'

Sort out the Dross action group spokeswoman Laurel Turnbull is calling a public meeting on Friday as the group continues to exert pressure on authorities to get rid of ouvea premix from the old paper mill in Mataura, beside the Mataura River.

* Prime Minister says long-term solution needed for Mataura residents and stored ouvea premix

* Ouvea premix will still be moved if the Tiwai smelter closes

* $4m deal to remove ouvea premix from Southland signed**

Rio Tinto have been contacted for comment.

Last week Parry announced a deal in principle had been agreed to remove 9500 tonnes of ouvea premix from the former paper mill in Mataura.

Environment Minister David Parker said it was 'disgraceful' that Rio Tinto had reneged on the deal.

'It is bad enough that they have spread their aluminium dross around Southland, but then they try to wash their hands of their responsibility when things go wrong.

'To negotiate in good faith and then to decide at board level to not go ahead is outrageous.'

When asked what the next move would be, Parker said the Government had already kicked more than $1m in funding for the cleanup and it would be putting pressure on Rio Tinto.

He sympathised with the people of Mataura.

'This aluminium dross belongs to Rio Tinto and we don't think taxpayers and ratepayers should be paying to clean it up. I am staggered that they should connect their strategic review with their corporate and environmental responsibility.'

There were major concerns the flooded Mataura River, which flows beside the building, would infiltrate the building and set off ammonia gas during the floods last week.

That prompted Prime Minister Jacinda Ardern to say she was seeking advice on what could be done with the premix.

News that the deal had been called off came as no surprise to Sort out the Dross action group spokeswoman Laurel Turnbull, who said Parry should not have announced the deal until it had been signed.

'What happens now? We can't just sit here and have that stuff hanging over us forever.'

The group was holding a public meeting at Mataura's Youth Trusts Hall on River St at 7pm on Friday to question authorities on the matter.

The action group would be inviting MPs, the Gore District Council, Civil Defence and Emergency Management Southland to the meeting.

'We want answers,' Turnbull said.

Parry said the deal would have resulted in the dross being removed from Mataura by the end of June and sent to a building on the Tiwai Point complex for storage. The building is not part of Inalco's processing plant at Tiwai.

'It's my understanding from conversations with Stewart that Rio Tinto's rationale for refusing to take the dross was that it didn't want any more liabilities on the Tiwai site before the company's strategic review is completed at the end of March.'

Parry said he shared the frustrations and anger of Mataura residents who want the dross gone from the town.

'We (the council) have been working on a deal, in one form or another, to get it removed for the best part of 24 months.'

'Ironically, due to the Stop The Dross high profile campaign, the dross has become a poisoned chalice.'

Gore district mayor Tracy Hicks was forthright in his condemnation of NZAS and Rio Tinto.

'I've had a gutsful of their shilly-shallying.

'We have been working with Rio Tinto for the last three years and have bent over backwards to keep them engaged.

'All they do is thumb their nose at us and the people of Mataura.'

Hicks questioned whether some of the millions the company would be saving in its 'sweetheart deal' over power, could be used to expedite the removal of the dross.

Parry said the original deal struck with all Southland councils, landowners and NZAS to move the dross stored throughout Southland was still in place.

'However, at this point I can't offer Mataura residents any concrete method by which we can accelerate the removal process.'

The dross was dumped at the paper mill in mid-2014 by Taha Industries.

Taha had been contracted by NZAS to deliver a zero waste solution for the aluminium dross - a waste by-product from the production of aluminium.

'Let's be clear, the dross was dumped in Mataura and other Southland premises under NZAS' watch. The company's supervision of the contract with Taha is worthy of a closer look,' Parry said.

'It would be ideal if Stewart Hamilton could attend the meeting in Mataura, on Friday, to explain to our residents in more detail why his company can't take the dross.'

Hicks also condemned NZAS's performance in managing its contract with Taha.

'Mr Magoo would have done a better job.

'I understand over $20million was paid to Taha to provide a zero waste solution. Instead, we are left with this potentially toxic substance threatening our people and our environment.'