Solid Energy has confirmed it will be seeking resource consents to build a lignite conversion briquetting plant in Mataura in Southland as protagonists await decisions of local authorities on whether the consents will be publicly notified.

Just as National's ill-fated proposal to surgically mine National Parks inflamed environmentalists across the country, the southern lignite issue is likely to become a major election issue.

Public meetings were held in Dunedin and Invercargill this week by the Coal Action Network Aotearoa, lead by former Green Party co-leader Jeanette Fitzsimons, opposing any new coal or mine developments and wanting existing coal usage phased out during the next 20 years.

It was understood, but not confirmed, the Gore District Council and Environment Southland are due to release their decision shortly; which if publicly notified means public submissions could be made on the proposal.

Fitzsimons' environmental platform rests largely on the prospect New Zealand's carbon emissions will be dramatically raised with more coal and lignite use, to the environment's detriment.

However, Solid Energy's new developments manager, Brett Gamble, said that some claims have lead to an "impression" its proposed demonstration briquetting plant would emit "millions of tonnes of carbon" were not correct.

Mr Gamble said that "Discharges from the demonstration plant, about the size of one-and-a-half football fields, will be minimal.”

Solid Energy announced in late-January it had chosen its former Mataura mine site for the up to USD 25 million demonstration briquetting plant, which could be operational by early-2012, to process 90,000 tonnes annually.

If commercially viable, a bigger plant could be built to produce 1 million tonnes of briquettes per annum.

(Sourced from nzresources.com)