The final decision on whether to build a $400 million cement plant, creating about 300 jobs in North Otago, will now be made early next year by Holcim Ltd in Switzerland.
Holcim (New Zealand) Ltd is working on the proposal, including an updated cost of the plant, it will put to its parent board, probably in the first quarter of next year.
Capital projects manager Ken Cowie said yesterday, when contacted by the Otago Daily Times, it would be next month before Holcim had a final cost for the plant in the Waiareka Valley, near Weston.
An estimate in May put the cost of the plant at $400 million, with an additional $100 million for storage, transport, shipping facilities at Timaru's port and new ships.
"I'm not seeing that it will be less than that," he said.
Achieving accurate costs for the project was a key focus for staff working on the project over recent months.
The work had involved reviewing and refining earlier cost estimates for mechanical, electrical and civil aspects of the plant construction.
Originally, Holcim New Zealand hoped to put a proposal to the parent board by the end of this year.
"However, a number of factors, including the need to allow extra time for suppliers to provide up-to-date capital cost information, impacted on the project timeline," Mr Cowie said.
Exactly when the proposal would go to the board would depend on it being ready and how that fitted board meeting dates.
Factors influencing the board's decision could include how the New Zealand proposal compares with other international investment opportunities, timing factors around availability of capital, New Zealand Government policies, and satisfaction with the information supplied by Holcim New Zealand.
The plant and its associated quarries have resource consents from the Waitaki District Council and Otago Regional Council, confirmed in August last year after an appeal to the Environment Court.
At the peak of building the plant, 430 people would be employed.
Once in operation, about 116 workers would be needed for the plant and quarries and up to 25 management and technical staff.
A further 180 indirect jobs could be created in the local goods and services sector.
The plant would cover a site of about 24ha, initially producing 650,000 tonnes of cement a year, rising to 880,000 tonnes at full production.
There would be a coal mine at Ngapara, sand quarry at Windsor and limestone quarry near the plant.
Holcim (NZ) Ltd
• A $400 million cement plant 2.5km from Weston; coal mine, limestone and sand quarries in the Waiareka Valley.
• An additional $100 million on storage, transport, shipping facilities and new ships.
• The Otago Regional and Waitaki District Councils granted 46 resource consents for the plant in February 2008.
• Consents were appealed to the Environment Court, which granted approval in August 2009.
• Holcim Ltd to make a final decision early next year.
