New Zealand-based Widespread Energy Ltd, the operator of the Chatham Rise Rock Phosphate Project, has reached agreement with three of the world’s largest dredging companies to carry out two jointly funded mining concept studies.
One study is being undertaken by Dutch dredging company Royal Boskalis Westminster NV, the other by a consortium of Rotterdam-based IHC Merwede and Belgium’s DEME. The mining concept studies, which are expected to be completed within eight weeks, are effectively engineering pre-feasibility studies. They are being funded 50/50 by Widespread Energy and the dredging companies. The requested studies will provide a mining concept with an assessment of the technical feasibility of the mining concept; considerations as to how to minimise environmental impact; and production estimates and a preliminary indication of capital and operational costs.
After the two studies have been completed, Widespread Energy will review them and then (with the assistance of suitably qualified industry experts) select an exclusive partner for detailed concept design, production testing and, ultimately the mining/dredging operation. Detailed concept design and production testing are expected to take at least 12-18 months. This process Widespread states: “will allow it to tap the expertise of several world leaders in the dredging industry without the necessity to make what could be a premature decision on a preferred partner.” Each of the dredging companies will also benefit from being able to undertake a jointly funded pre-feasibility study before being required to commit significant resources towards detailed concept design and production testing.
On 25 February 2010, a consortium comprising Widespread Energy and associated company Widespread Portfolios Ltd, was granted an offshore prospecting permit by the Crown Resources division of the Ministry of Economic Development covering an area of 4,726 km2 on the central Chatham Rise. The permit area, which is in New Zealand territorial waters, is located 600 km east of Christchurch and includes significant shallow seabed deposits of rock phosphate and other potentially valuable minerals.