Fonterra Sneaks Round The Corner – Part 2

Jeanette Fitzsimons writes… Our recent post about Fonterra’s new coal mine seems to have provoked a flurry of denials from Fonterra and Solid Energy. Why so sensitive? fonterra_still_burns_coal Fonterra says their Mangatangi mine is not “on hold” but “deferred”. This is what they told residents at a meeting of the North Waikato community group some weeks ago. As there was no time frame for the deferral we interpreted this as “on hold”. Can anyone illuminate us as to the difference?

They say the mine is deferred because of delays in meeting environmental requirements, though they told the community earlier it was because of low coal prices.

We calculate the mine is now around 17 months behind schedule. It was to have produced coal this year, but not a sod has been turned. Meanwhile, Solid Energy says it is still considering (“doing work on”) whether to reopen the Kopako 1 mine in the Maramarua coalfield about 5km from the Mangatangi site. This seems to be a re-consideration.

They obtained resource consent for this in 2006 from Environment Waikato. Their website recently announced it and carried job recruitment advertisements, but these have since been removed. An announcement was also seen in the local Franklin paper, and their annual report refers to “resuming production from our Maramarua opencast mining area”.

A local resident received a notice in his letterbox in November saying the mine was going to be reopened; machinery has been moved on site and some surface earthworks done but no coal seems to have been removed yet.

We assume this was a firm proposal until the latest round of Solid Energy’s financial disasters, which may have caused a rethink. Solid Energy said in its 2014 annual report that it has renewed contracts with the two largest coal users in NZ, Genesis (which runs the Huntly power station) and NZ Steel.

In addition, it had signed a new contract for over 100,000 tpy with an un-named customer. Only Fonterra uses coal on this scale. The only alternative we can imagine is a very large new industry that nobody seems to have heard of.

While the NBR report on the latest statements from Fonterra and Solid Energy says we “claimed” Fonterra is the third largest coal user in the country, that is not open to dispute. The figures are all published year by year in MBIE’s Energy in New Zealand report (formerly Energy Data File).

Given the current world price of coal, no business in their right mind would start a new mine for export, so there must be a local customer.

Consider this:

Fonterra has only three coal-fired milk drying plants in the North Island, Waitoa, Te Awamutu and Hautapu, all in the Waikato.Together, they use roughly 120,000 tpy. They have been supplied from Fonterra’s subsidiary,

Glencoal‘s Kopako 3 mine which was scheduled to run out at the end of 2014. Fonterra now says it is due to run out in 2017. It is unclear from observation whether it is still producing some coal, but there is not much machinery there.

Mangatangi (over 100,000 tpy) was planned and scaled to replace Kopako 3 and supply those three plants. If Fonterra has a contract with Solid Energy for more than 100,000 tpy those plants cannot use Mangatangi coal as well.

Solid Energy says in its attempted rebuttal that it sells coal from Rotowaro to Fonterra for its milk drying plants. That will be how they are meeting the new contract while they decide about Kopako 1.

Rotowaro produces a little under a million tonnes a year and is also in decline but is clearly capable of supplying Fonterra’s three North Island plants without reopening Kopako 1 if Solid Energy continues to contract its operations.

Whatever they decide, it is not possible for both mines to go ahead and supply Fonterra, which was the point of our original blog. Fonterra has not commented on contracts with Solid Energy but has clearly “sneaked around the corner”.

Why does all this matter? It matters because coal is the biggest contributor world wide to climate change, and most of what is left must stay in the ground if we are to prevent climate chaos. This is the real issue – everything else is obfuscation.

Unlike NZ Steel, which has very limited options, Fonterra has a ready alternative. Wood chips from forestry residues can run boilers for heat, and in many NZ industries they do already. Fonterra has claimed for over a year now that it is actively investigating renewable fuels for its heat plant, but has made no demonstrable progress and has stopped the trials it was doing at Studholme. fonterra_use_wood_waste

Why are these two companies prevaricating and trying to confuse? What we need is some transparency and some honest communication.

Footnote: there have been media claims that Coal Action Network Aotearoa is trying to stop coal mining. It is very clear on our website that we are not – we are trying to stop new mines opening so the rest can be phased out as they deplete and miners retire, without the abrupt and deep disruptions in coal mining communities that Solid Energy has caused with its drastic and sudden layoffs.

Fonterra Sneaks Round The Corner

Jeanette Fitzsimons writes…

Fonterra’s subsidiary Glencoal has put its plans for an open cast mine on SH2 at Mangatangi on hold indefinitely. The local community is celebrating. They worked very hard with submissions on all the impacts of coal mining that you are allowed to talk about in consent hearings – water, dust, traffic – but not climate change, the worst impact of all. We hear Fonterra was really surprised at the strength of the opposition.

Much of the credit though must go to Auckland Coal Action which has turned out seven times on the last afternoon of holiday weekends to face traffic crawling back to Auckland from Bay of Plenty and Coromandel, with huge placards saying

“Fonterra plans coal mine here”

“Coal Cooks the Climate”

coal cooks the climate

“Fonterra could use Waste Wood”

The mine was planned for such a public site, adjoining SH2 and the protests got some publicity, as did CANA’s opposition at the consents hearing. We brought expert evidence (PDF) to show wood chip from forestry residues was available and technically feasible as a boiler fuel with no net carbon emissions. This is what a win looks like. But….

Solid Energy has just reopened Kopako 1, an old mine around 5km away which still contains a lot of coal, on a back road hardly anyone ever a uses except for mining. It’s part of the same Maramarua coal field. They have a contract with Fonterra to supply more than 100,000 tonnes a year for their Waikato milk drying plants. Fonterra has just sneaked round the corner and passed responsibility for the mining to Solid Energy.

mangatangi_deferred

From the perspective of the atmosphere, nothing has changed. Emissions will continue as planned. But we have shown that Fonterra is susceptible to pressure. All those motorists tooting support for the ACA protests has got to them. They have had to sneak away to a less public site. But it’s not that easy.

Now is the time to keep up the pressure. Fonterra is the third largest coal user in the country by far. With the Huntly power station phasing out they may already be the second largest, after the steel mill. At least 400,000 tonnes a year – we are still working out just how much more than that. This is not compatible with the “clean green image” they like to use to sell their milk overseas.

There is a big opportunity here for Fonterra to position themselves as working towards sustainability by transitioning to wood waste. In fact they told us they were doing that, but are dragging the chain. We intend to keep the pressure on to help them recognise their own self-interest.

Global Divestment Day Is Coming. Here’s How To Take Part.

Global Divestment Day spans continents and time zones. It’s being held worldwide on February 13th and 14th – and there are five New Zealand events for you to get involved in.

So what is Global Divestment Day? It’s a day organised by 350.org to increase the pressure on banks and other institutions, as well as individuals, to withdraw their investments from fossil fuel companies: the miners, drillers, frackers and their backers who are ruining our planet’s climate by their continued extraction of fossil fuels.

Our goal of coal staying in the hole:  achieved!

Let’s keep all the coal in the hole – and stop investing in companies trying to remove it

And it’s a movement that’s gaining momentum. Here in Aotearoa, thanks to the efforts of 350.org.nz, Coal Action Network Aotearoa and other groups, we’ve seen churches, universities and local bodies divest from fossil fuels. On Valentine’s Day, let’s come together to show how much we love the planet and how little we love fossil fuels and those who seek to profit from them.

We’re aware of five events in New Zealand – each is listed on the GDD global map and on Facebook. Please note that the Dunedin event is on Friday 13 February. The other events are on Saturday 14 February:

Matauri Bay: The Big Beach Picnic, Sat 14 Feb, 10.00am, Matauri Bay, Northland. Facebook event: https://www.facebook.com/events/1596914170539548/

Auckland: Flash Mob, Sat 14 Feb, 12 noon, Silo Park, Corner Jellicoe & Beaumont Streets, Wynyard Quarter, Auckland. Facebook event: https://www.facebook.com/events/739039812870728

Hamilton: Picnics and Placards, Sat 14 Feb, 5:00 PM, Hamilton Garden Arts Festival – English Rose Garden. Facebook event: https://www.facebook.com/events/1530734060526545/

Christchurch: Love Divestment Day, Sat 14 Feb, 1.oopm, Edmonds Garden, 365 Ferry Road. Facebook event: https://www.facebook.com/events/632797643492987/

Dunedin: Renewable Affair, Fri 13 Feb, 12 noon, The Octagon, Dunedin. Facebook event: https://www.facebook.com/events/625548474240288/

Get along and help build the pressure for worldwide divestment from fossil fuels!

 

 

 

A German TV Crew Reports The Mission Bay “Heads In The Sand” Event

The nationwide Heads in the Sand events on Sunday 7 December to protest the New Zealand Government’s pathetic lack of action on climate change got lots of media coverage, including on English- and Chinese-language TV stations in NZ. But this coverage of the Mission Bay, Auckland event by a German TV crew is particularly good – and features Julie Anne Genter MP, climate scientist Dr Jim Salinger, and CANA’s Jeanette Fitzsimons. Check it out!

Guest Blog By John Adams: The New Zealand View On Climate Change

New Zealand may be a small contributor to global greenhouse gas emissions, but on a per capita basis our emissions are very high, so we have a responsibility to be part of the solution rather than part of the problem.

220 Christchurch people came to New Brighton Beach for #HeadsInSandNZ. Photo credit: Ruth Dyson

220 Christchurch people show what they think of the Government’s climate policies at #HeadsInSandNZ on Sunday 7 December. Photo credit: Ruth Dyson

Climate science and climate politics are frequently reported in the media, so some form of assessment of New Zealand’s role and options is worthwhile.

At the end of the recent G20 meeting in Brisbane the leaders issued a statement stressing the importance of climate change and the urgency of finding suitable responses.  They recognised that the situation is different in different countries, but stressed that action to reduce emissions will have to come from all quarters and that an easy first move is the elimination of subsidies for fossil fuels.

As was commented at the time, that statement was a rebuff for the government in Australia which had not wanted the issue to be discussed at all, and wants no constraints on its mining industry.

It was further commented that Mr. Key, speaking on behalf of New Zealand, has described us as “fast followers” on the issue of emissions reductions.  He wants to see the big players (U.S., China, and Europe) play their cards before he will commit to a course of action.

Mr. Key has used that phrase “fast followers” before and it’s worth stopping to consider it.  Are we really fast?  Are we really following? Could we lead? Is Mr. Key using the phrase to deceive the public into believing that there is action when the reality is quite different? Continue reading

We put our Heads in the Sand last Sunday. This Monday, it’s time to tell National MPs to Cut the Gap on climate change.

Cartoon by @domesticanimal for the Christchurch Press. Reproduced by permission of Sharon Murdoch

Cartoon by Murdoch for the Christchurch Press. Reproduced by permission of @domesticanimal.

We took action last Sunday…

Heads in the Sand last Sunday, in which a thousand or so New Zealanders at 12 beaches around the country put their heads in the sand to symbolise the Government’s failure to act on climate change, was a great success.

It was covered on TV1, on NZ’s leading Chinese-language TV station, by a German TV crew, on Stuff, in the Herald, on Scoop, by radio  channels including Newstalk ZB,  in the International Business Times and in the “The Ecologist” magazine. And it clearly rocked Climate Change Minister Tim Groser, who was forced to defend his Government’s awful record on climate change and ludicrously inadequate climate negotiating position just as he prepared to leave for the COP 20 climate talks in Lima.

You can see videos, photos and reports from Heads in the Sand here:

https://coalactionnetworkaotearoa.wordpress.com/?s=head+in+the+sand

…Now let’s follow up this coming Monday

Continue reading

The Imperative to Leave it in the Ground

Guest blog by Tarsh Turner, a member of the NZ Youth Delegation at the climate talks in Lima. 

tarsh at the talks

Tarsh at the talks

The United Nations Framework Convention on Climate Change (UNFCCC) has been working to avert climate disaster for over two decades.

While there are a myriad of challenges in attempting to get nations to agree to an action plan to save our planet, there is one major flaw in attempts to date.

UNFCCC negotiations have dealt only with emissions; governments are required to produce emissions reduction targets, and market mechanisms are aimed at making it more expensive to emit. Continue reading