Mining the depths more than pie in the sky

Stuff - 

Mining rock phosphate in the Chatham Rise area presents obvious benefits, but the hurdles are huge, reports James Weir.

Extracting rock phosphate from under 400 metres of water on the Chathams Rise has obvious benefits in that the mineral is a key part of fertiliser for New Zealand farms, but the challenge from a mining point of view is a "steep one", says an analyst's report.

If all goes to plan, Widespread Energy, one of the companies looking at rock phosphate, believes it could start underwater mining as early as 2013, although it faces big hurdles in raising cash overseas and getting government approval to mine.

McDouall Stuart's head of research, John Kidd, says rock phosphate is not "pie in the sky", but a real and valuable resource that could offset phosphate shipments from Morocco.

"Despite the obvious benefits, the challenge would be a steep one," he said, considering that seabed mining presents higher risks than onshore mining, especially considering the mid-water depth of 400 metres. However, seabed mining technology is well established and the challenges of applying it to the Chatham Rise "appear manageable".

However, the project is expected to face opposition from environmental groups.

Also, there is the challenge of mining phosphate at a depth that has never been achieved anywhere else. Still, three different overseas dredging companies believe it can be done and they have mined alluvial diamonds at up to 170 metres, says Widespread managing director Chris Castle.

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