Chatham Rock Phosphate Limited · NZX:CRP
Chatham Rock Phosphate — Corporate Update (November 2013)
42 slides from Chatham Rock Phosphate's corporate update, November 2013
Slide 1: Chatham Rock Phosphate – Chatham Islands visit
Chatham Rock Phosphate Chatham Islands visit November 2013
Slide 2: Update on status
Update on status Here last in May. Feedback valuable for gathering information to answer questions. Here to do that today Completing Mining Licence application. Approval close Once licence received will submit Marine Consent environmental application early next year. Now finalising research. D
Slide 3: CRP Licences
CRP Licences MPL 50270 4,726 km2 MLA 820 km2 3
Slide 4: Significant Project
Significant Project o Only major NZ rock phosphate deposit (25-40m tonnes) o Replace some of 1m tonne annual imports – mostly from Morocco o New industry – 1st or 2nd undersea mining project o $900m value to NZ – NZIER estimate o Import substitution and exports of $250m per year
Slide 5: What you want to know
What you want to know Environment – No impact on Chathams Fish stocks on Rise and around Chathams – Not affected No impact on eels, lobster - research reports on website Benefits for Chathams – yes 5
Slide 6: Stakeholder focus
Stakeholder focus o Iwi/imi and Chatham Islands o Fishing and industry o Ministerial, political, government agencies o Research and environmental o Partners, Investment, Media 6
Slide 7: Environmental benefits
Environmental benefits o Very low in cadmium compared to Moroccan rock o Lower carbon footprint through reduced transport o Can be applied directly – more effective than superphosphate (SSP) o Less run-off to environment than SSP (important for Chathams)
Slide 8: Formed 5m years ago by current action on limestone seabed
o Formed 5m years ago by current action on limestone seabed o Discovered 1952. Significant research in 70s, 80s and 2010-13 o At 400 m. Nodules 1- 150mm in top 30-40 cm of sandy silt - 15% of seabed layer volume 8
Slide 9: Technology Partner Royal Boskalis
Technology Partner Royal Boskalis o International dredging contractor developing mining and processing systems o World’s largest provider of dredging, earthmoving and maritime infrastructure services o Fleet of 1,100 vessels, 14,000 employees in 75 countries o Strong safety and environmental focus 9
Slide 10: Something old, something new
Something old: system based on existing technology Something new: flexible connections 10
Slide 11: On board process
On board process o No chemicals - mechanical separation process o Ship is modified trailing suction dredger o Nodule separation on board
Slide 12: What we have learned
What we have learned o Studies in 70s, 80s spent $70m - best known marine territory in EEZ o CRP spent $20m+ on research - 3 years collecting & analysing data. 30+ reports on tides, currents, turbidity, benthic life, sea floor sediments, impacts on seafloor and water column o Used information to des
Slide 13: Seafloor pictures
Seafloor pictures Chatham | k2%Snate ua
Slide 14: More seafloor pictures
More seafloor pictures Chatham | k2%Snate ua
Slide 15: Samples in CRP MLA Area
Samples in CRP MLA Area Valdivia a B&B Tranquil Image @ Dorado Discovery z a 2 2 i £ o a 3 = a
Slide 16: 2011-12 Environmental surveys
2011-12 Environmental surveys Remote operated vehicle collected video, high- resolution bathymetry and samples
Slide 17: Iceberg furrow
Iceberg furrow bioturbation features
Slide 18: Iceberg-rafted boulder
So ae = . a - a — BEEN “/ Boulder ‘ iceberg-rafted boulder ea ate : a °a es — | : ’ ' i@ ’ s . a 7 + ; ae . . , . Small rocks e ’ Chatham | k2%Snate ua
Slide 19: Mining plan and effects
Mining plan and effects o Plan to mine 30 sq km a year at 400m for 15-20 years o 450 sq km or 0.5% of Chatham Rise shallower than 1000m o Reports found no long term impacts on key spawning, juvenile or young fish habitat o Effects confined to a few km, reversible and low risk o Will remove organisms
Slide 20: Possible mining plan (4 months)
Possible mining plan (4 months) returns
Slide 21: Seafloor & water column effects
Seafloor & water column effects o Studied water and sediment quality, ecology, conservation values, loss of benthic habitat and fauna, suspension of solids in water, sediment impacts on fauna and fish o Deltares/Boskalis research on removing 30-40cm of sandy silt by draghead predicts little impact o
Slide 22: Sedimentation in mining areas – 5cm & 1mm
Sedimentation in mining areas – 5cm & 1mm 22
Slide 23: Sedimentation – 5cm & 1mm
Sedi Ope fae, mentation —5cm & Imm Chatham. Islands Chatham | k2%Snate ua 23
Slide 24: Seafloor effects
Seafloor effects o No effect on fish o Deposits of 5 cm of sediment likely to seriously impact seafloor biota. Deposits as thin as 1 mm could affect some smaller organisms o Our models predict 5 cm sediment will be restricted to immediate mining area - blocks of 2 x 5 km o 1 mm of silt and clay sedi
Slide 25: Water column effects
Water column effects o Sediment rises max of 50 m (1/8th of 400 m water depth) o Seafloor biota outside mining area predicted to be unaffected by suspended sediment/plume o Seafloor biota only affected if plume 100 mg/l for 1 month-plus o Concentrations of 100 mg/l only go 1-2 km from mining tracks
Slide 26: Water column effect on mining block
Water column effect on mining block (2 x 5 km) Suspended sediment > 100 mg/l Light blue 1-2 days Dark blue 2-4 days 26
Slide 27: Sediment in 400m water column
Sediment in 400m water column – rises no more than 50 m from seabed 27
Slide 28: Water column effects
Water column effects Approximate extent of significant plume 28
Slide 29: Compare effects with trawling
Compare effects with trawling o Trawling covers 50,000 sq km total seafloor every year (mostly going over same ground) – 1600x our annual footprint of 30 sq km o Trawling affects 3000 sq km new seafloor a year – 100x our area o Over 15 years we’ll touch 450 sq km once - fishing will trawl 750,000 sq
Slide 30: Bottom trawl footprint on Chatham Rise 1989-90 to 2009-10
Bottom trawl footprint on Chatham Rise 1989-90 to 2009-10 CRP licence area 30
Slide 31: What about fishing?
What about fishing? o Licence area not a lot of fish o Spawning areas well removed o Juvenile fish distributed across 188,000 sq km of Rise o Ling and scampi both widespread - don’t spawn in area o No impacts on red rock lobster, short or long finned eels o Fish trawling done continually over 19,000
Slide 32: What about Hoki?
What about Hoki? o Hoki spawning concentrated on West Coast of South Island and Cook Strait o Juveniles grow over entire 188,000 sq km of Rise, most common at 500-800 m – deeper than our mining o Bottom trawling annually disturbs the benthic ecosystem of 10% of Rise area with no reported harm to juv
Slide 33: Hoki breeding grounds
Hoki breeding CRP mining licence grounds Source – O’Driscoll et al 33
Slide 34: Hoki – immature and adult
Hoki – immature and adult Source – O’Driscoll et al 34
Slide 35: Project Status
Project Status o 2013 - Mining Permit approval expected soon o 2014 - Marine Consent process with EPA o 2014 – once approvals received, ship conversion starts (2 years) o 2016 - start production 35
Slide 36: Chathams concerns addressed
Chathams concerns addressed No environmental impact on Chathams No environmental impact on fishing in quota areas on Rise No impact on eels or lobster Potential economic benefits for Chathams and NZ 36
Slide 37: Benefits for Chathams - Jobs/economic
Benefits for Chathams - Jobs/economic Supply RPR fertiliser on very good terms – big potential for increasing island farm production, jobs Employment opportunities on ship Support services (rescue, monitoring, etc) based on Chathams Support local causes, including scholarships 37
Slide 38: Benefits for Chathams - Environment
Benefits for Chathams - Environment Biodiversity offsets Research funding Seek Chathams ideas and input on projects – e.g. albatross, gorse, ?? No money to spend without permits - need Chathams endorsement 38
Slide 39: Thank you
Thank you Chatham | Fessnate is 39
Slide 40: What about BPAs?
What about BPAs? o Established to protect benthic (seabed) biodiversity and include representative habitats. Not marine parks o Developed by fishing industry for fishing industry. Specifically avoids trawling areas. Enabled reduced industry research levies o Designed without regard to other natural
Slide 41: BPA
50'0"S 42 43°00"S co's 43°1¢ 178°100°E trawl tracks 178°300"E \ 178°500°E MPL 50270 1794 00°E PhesContent_bgm2 179°300"E * 179°50'0"W Chatham | k2%Snate ua 41
Slide 42: BPA Option
BPA Option BPA option (9,000 km2) existing BPA (8,700 km2) 42
Chatham Rock Phosphate — Corporate Update (November 2013) on 6ix