Chatham Rise Phosphate Project ? Technical and Environmental Challenges and Economic Opportunities to Marine Phosphate Extraction in New Zealand

Following the recent award of a prospecting license by the New Zealand Government, Widespread Energy Ltd. (Widespread) is focused on the acceleration of its exploration program in order to bring a potential phosphorite deposit to market in the near future. Rock phosphate is the primary constituent of most fertilizers that are manufactured and distributed in New Zealand. Field trials in the 1980s demonstrated that direct application of rock phosphate can result in a more effective fertilizer (than super-phosphate) with less environmental damage from run-off. At present virtually all of the rock phosphate used by the New Zealand fertilizer industry (approximately 1 million tonnes a year) is imported from Morocco. In recent years price increases of up to 12 fold (peak of $500/t) with massive increases in freight costs have bought to the forefront the economic opportunity to in part replace foreign imports with a local source of phosphate. The Chatham Rise phosphate deposits are relatively well understood, having being discovered during the 1950?s and it is estimated that approximately 100 years supply (at current requirements) is present at shallow depths. An estimated 100 million tonnes of rock phosphate is present within the license area based on previous private and publicly funded research. Widespread has engaged several parties to assist in the exploration planning to confirm the resource potential. Widespread has commenced investigating the feasibility of recovering the phosphorite nodules off the sea floor, and presently has several conceptual technical solutions under consideration and will advance the discussions with potential contractors during the exploration phases. Widespread is acutely aware of its responsibilities to conduct both the exploration program and extraction of the rock phosphate, in a manner that causes minimal disruption to the marine environment. To this end, the National Institute of Water and Atmosphere (NIWA) ? a New Zealand Crown Research Institute has been engaged to assist in designing sampling and extraction methods that will minimize disruption to the seabed. All sampling and extraction activities are planned to be conducted with reference to the environmental guidelines published by the International Marine Minerals Society ?Code for Environmental Management of Marine Mining.? Widespread is conducting its project with a background of changing regimes to both the allocation and environmental management of its activities.