Ouvea premix removal stalls

Plans to move a toxic substance stored in Southland buildings after a business went bust have stalled as officials wait for the overseas buyer to sign off on the deal.

However, Gore District Council chief executive Steve Parry said he’s hopeful the agreement will be settled by Christmas.

About 10,000 tonnes of ouvea premix, a class six hazardous substance, is being stored in the former paper mill building at Mataura and in buildings at Awarua near Bluff.

Parry is fronting a group of affected parties negotiating a purchase with an overseas company.

‘‘We’re still to-ing and fro-ing a fair bit. There is now a contract with the purchaser for review, but until we get a signature there is noting we can do in terms of moving the product.’’ He’d given ‘‘no thought whatsoever’’ to what would happen if the deal fell through.

‘‘I’ve had no indication that this is not going to happen and I’m hoping to get something resolved by December.’’

Parry said there was no risk of the premix, which produces ammonia gas if it saturated, getting wet in this week’s floods.

‘‘There is a flood wall on the Waikana Stream to divert the water, which was built as part of the resource consent.

‘‘I have had no indication that there was any risk at all and the council continues to monitor the situation.’’

In September, a $4 million deal between the New Zealand Aluminium Smelter, the Ministry for the Environment, the Invercargill City Council, Gore District Council and Environment Southland was signed which paved the way for the substance to be moved from the buildings it is in and shipped to an overseas buyer when the final purchase agreement is signed.

Ouvea premix was left in the buildings after Taha Asia Pacific went into liquidation in August 2016.

Its contract with New Zealand Aluminium Smelters to process the ouvea premix expired and was not renewed.

Liquidators EY formally disclaimed the oxide residue in December 2017, meaning the ouvea disposal was no longer the liquidated firm’s responsibility. Rather, it was up to ‘‘interested parties, including central and local government and the landlords of the storage sites’’.

About 10,000 tonnes of premix is understood to be stored in the mill buildings next to the Mataura River.

The premix is a class six hazardous substance used to produce phosphate fertiliser.

If saturated with water, it can produce ammonia gas, which can burn the nose and throat if inhaled.

‘‘I have had no indication that there was any risk at all . . .’’ Gore District Council chief executive Steve Parry