Holcim decision held

Will a new $400 million cement plant be built in North Otago's Waiareka Valley? Views differed at the Environment Court in Oamaru yesterday.

The Waiareka Valley Preservation Society, which opposed the project, said it was unlikely.

Holcim (New Zealand) Ltd, proposing to build the plant, and the Otago Regional and Waitaki District Councils, were more positive.

In any case, they argued, that was not an issue for the court, but a commercial decision Holcim would make.

Judge Gordon Whiting said that the court could consider it in terms of efficient use of natural resources, although it accepted it could not from a commercial point of view.

The preservation society had told the court it did not think a new cement plant was needed in New Zealand because of overcapacity in existing production, which would increase as the construction industry declined in the economic recession.

Yesterday, its legal counsel Royden Somerville predicted Holcim was unlikely to proceed with the project.

Mr Somerville said Holcim was not in a position to tell the court whether the plant would be built.

A comprehensive feasibility study had yet to be carried out.

Holcim's counsel Mark Christensen said the financial viability of the plant was an issue for the Holcim board, not something which could properly be reviewed by the court.

Holcim's New Zealand managing director Jeremy Smith had told the court the Weston plant was "provided for and has not been shelved".

Mr Smith also said that, based on current conditions, he would "most likely recommend", at the earliest at the end of this year, the plant be built.

Holcim had invested about $15 million in the project since 2004.

Its assessment of the need for new cement production capacity in New Zealand, and when it should be provided, would be based on its commercial assessment and expertise. Counsel for the two councils, Alastair Logan, said the earliest the plant would be commissioned was 2013.

Holcim had made no secret that the plant was intended to meet current needs and future demand.

Essentially, the society was inviting the court to review Holcim's commercial wisdom, when its task was to assess the resource management issues.

• A decision on whether the plant can be built could be available by the end of August.

Judge Gordon Whiting said yesterday the court had a lot of evidence to consider and would meet in Wellington on June 17.

It hoped to have its decision ready by the end of August.

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The Holcim story

> A $400 million cement plant producing 880,000 tonnes a year, coal mine, limestone and sand quarries in the Waiareka Valley.

> The Otago Regional and Waitaki District Councils granted 46 resource consents for the plant in February, 2008.

> Consents appealed to the Environment Court. Hearing ran from March 9 to 11, March 30 to April 17 then concludes May 13 to 15.

> Adjourned yesterday and decision reserved.

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