One of the reasons given by local commentators on the lignite mining proposals for Mataura, for the unlikelihood of Solid Energy being able to make real their plans, was their inablity to raise the huge capital necessary to scrape out an open-cut mine and build the plant needed to process the brown coal into something useful.
With yesterday's announcement by Key on selling just less that the majority of Solid Energy to 'investors', the problem of raising the cash for the mining looks less likely to be a factor. Bringing in foreign money to facilitate the project has to mean that profits from the mining will go off-shore as well. For the taxpayer, that's us, who has owned the state owned mining company all these years, it's hard to see where we might benefit from selling 49% of it to people who don't live here and who haven't contributed to it for all of their earning lives. The remaining shares will be available for sale to New Zealand investors, giving you and I the chance to buy part of Solid Energy as well, but don't we already own it??
There will be clever folk who can correct me on this I'm sure and I welcome their comments.
This article in the Southland Times suggests that it's 'southern investors' (Southland mums and dads) who will be blessed by this wonderful opportunity to buy into the mine.
1 comment:
I am sure the Pike river mine was just great for 'mum and dad' investors too, especially the ones that invested (and lost) the most precious thing they had - their children.
Take it from me, coal mining hurts, it has the potential to damage a community like no other industry can.
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