Environment Minister David Parker pens scathing letter to Rio Tinto

Wednesday, 11 March 2020

Environment Southland chief executive Rob Phillips said the regional council is considering taking legal action against Rio Tinto.

Environment Southland is considering taking legal action against Rio Tinto about the ouvea premix that has been dumped in Southland warehouses.

The council sought legal advice after the aluminium producer pulled out of a deal to fast-track the removal of 9500 tonnes of the hazardous substance last month.

Environment Minister David Parker has written a scathing letter to Rio Tinto about the ouvea premix being stored in Southland.

Environment Southland chief executive Rob Phillips said the regional council has received legal advice about New Zealand Aluminum Smelter's responsibilities regarding dross from its lawyers.

'We are reviewing this advice and considering it in detail in order to make an informed decision about our next steps,' Phillips said.

* Smelter and Government continue talks over Mataura's ouvea premix

* Rio Tinto behaviour 'outrageous' over ouvea premix, Environment Minister David Parker says

* Deal to remove hazardous substance from Mataura canned**

The regional council has already contributed $250,000 to a deal which was agreed to last year to remove the premix from the Mataura paper mill building.

However, after the Mataura River flooded last month, threatening the mill building where the premix is stored, a new deal was struck remove the hazardous substance.

The premix gives off ammonia gas if it becomes wet and after a State of Emergency was declared, Mataura's residents were evacuated.

That deal was scuppered after Rio Tinto pulled out of it.

Gore District Council chief executive Steve Parry said at the time that 'it [Rio Tinto] didn't want any more liabilities on the Tiwai site before the company's strategic review is completed at the end of March'.

At the time, Environment Minister David Parker said it was 'disgraceful' that Rio Tinto had pulled out of the deal and he was considering legal action.

However, in a letter to Rio Tinto, he said he was 'continuing to explore the Government's options'.

The letter, dated February 27, was released to Stuff under the Official Information Act.

Parker says the wellbeing of Southland's people and its waterways have been put at risk and significant costs associated with disposal [of the ouvea premix] have fallen to local and central Government rather than NZAS or its contractors.

Parker was 'extremely disappointed' by the response from New Zealand Aluminium Smelters (NZAS), which 'essentially passes the buck to central government and the local community to find ways to clean up the by-product of its operations…'

'In my view, the limited commitment on the part of NZAS to addressing the historical stockpiles of aluminium dross by-product stored at four, or potentially more, sites in Southland, and no commitment at all to speed up the process, is not consistent with the social and community responsibility espoused on the company's website.'

Parker says he has not been provided with any practical reason as to why Tiwai Point is not a suitable site beyond a need for minor work to secure a weatherproof building.

The ouvea premix was left in the building when Taha Asia Pacific went into receivership in 2016. It had a contract with the smelter to use aluminium dross to produce fertiliser, but the company's contract was not renewed.

In the letter, Parker says Southland Metal Recoveries Limited went into liquidation after storing aluminium dross for NZAS in 1996.

Parker says: 'I am increasingly dissatisfied at what amounts to a pattern of unsatisfactory arrangements for the disposal of aluminium dross by-product which has meant organisations other than NZAS or its contracting parties have had to pick up responsibility for this material.

'I will continue to explore the Government's options in this regard.'

The NZAS has been contacted for comment.