Commissioners for West Coast Regional Council have rejected Solid Energy’s plans for a 35MW hydro scheme co-ordinating with its Stockton plateau mining operation. In a decision hailed as a victory by a rival Stockton scheme, the 50MW Hydro Developments Ltd project, the Solid Energy proposal is knocked back largely because it would be likely to worsen water quality in the area, including the loss of one of the few remaining “relatively pristine” water sources coming off the heavily mined Stockton plateau.

Solid Energy says it is “disappointed” by the decision, but says HDL is no closer to going ahead, since it has yet to assure the company it can build its scheme without affecting the ability to “efficiently plan and mine” Stockton coal. Solid says “we do not yet have that assurance and, until we do, we will not grant access,” stressing Stockton is the company’s single most valuable asset. Particularly irksome for Solid is the extent to which the decision appears to question the state-owned miner’s water management strategy – a long-running bone of contention with the local community, largely played out through the quality of water in the Ngakawau River, downstream from the Stockton operation. The Parliamentary Commissioner for the Environment has praised Solid in recent months for a “well-established and comprehensive environmental management system” at the mine, and “some improved outcomes” in water quality in the Mangatini Stream as well as the Ngakawau.

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But HDL principal John Easther claims the latest decision, which also finds HDL’s already-consented project could not operate alongside the additional Solid project, shows Solid’s water management strategy “does not meet the basic principles of sustainable management and imposes unacceptable risks on the environment.” HDL believes its scheme would help Solid by dealing with acid mine drainage from the Stockton site. For its part, Solid doesn’t want another party operating on its sites and prefers to manage AMD issues as part of its overall operation. Easther claims Solid’s lobbying has deterred the MED from invoking provisions which would allow it to review the mining company’s current AMD strategy and compare it with HDL’s alternative solution.

The WCRC decision found against the Stockton hydro scheme because it does not offer adequate mitigation for loss of vegetation and habitats; would interfere with the protected Ngakawau Ecological Area; and would change the flow into the Ngakawau River, as well as discharge into its lower reaches, with uncertain impacts. The Commissioners said evidence from Solid it would use hydro reservoirs as settling ponds, with consequent improvement in water quality, was “not compelling.” They recommended an ocean outfall instead, although Solid had rejected this option. The development would also have impinged on exploration permits held by L&M Mining which, in combination with the interference with HDL’s consented scheme, meant it could be many years before the Stockton proposal could be advanced. Solid Energy has yet to decide whether to appeal the decision.

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