Holcim Cement has leapt one more hurdle in its proposed move from Westport to Weston, by gaining approval for a 50-year lease at the port of Timaru.
The Overseas Investment Office (OIO) granted the Switzerland-based company a leasehold deal for 2.26hectares of wharf and cement storage facilities, at Evans Bay in Timaru, said an OIO document.
The wharf development was "critical'' to Holcim's new cement plant plans at nearby Weston, near Oamaru, said the OIO.
It would not release the cost of the lease.
PrimePort Timaru chief executive Jeremy Boys said PrimePort would build the wharf and Holcim would build the facilities, subject to gaining approval from Holcim head office in Switzerland.
OIO approval for the leasehold was similar to some of the other consents Holcim had achieved for its Weston plant _ Holcim had been given the authority to proceed, but it didn't necessarily mean it would, said Mr Boys.
Holcim NZ was trying to ensure it had all elements in place so it could hit the ground running if the Weston project was approved.
The commercial arrangement to develop at Timaru would only kick in, if and when the Weston plant got the green light.
"In many ways I don't think that that approval (for the port leasehold) has changed the underlying status of the project, it's still very much dependent on the parent company making a critical call ... It's just another step in the process.''
The critical question was whether the company was prepared to invest given the precarious state of the world economy.
Holcim Ltd had effectively put that decision on hold for 12 months. It was a global phenomenon and not related to what was happening in New Zealand, said Mr Boys.
The News has previously reported Holcim put off the relocation to Weston decision in 2010 and twice last year, with the Holcim board in Switzerland wanting more cost information as New Zealand's construction industry continued to face a downturn.
The Weston plant would use a cleaner, dry process technology, than the more than 50-year-old Cape Foulwind plant. It would produce about 880,000 tonnes of cement a year compared to Cape Foulwind's 500,000 tonnes and employ up to 120 people.
Around 130 people currently work at Cape Foulwind.
Holcim is the main user of Westport Harbour, although Bathurst Resources has begun shipping small quantities of coal through the port. It plans bigger shipments, requiring a multi-million dollar port upgrade, if its proposed Denniston Escarpment mine goes ahead.
- By Keira Stephenson of the Westport News
