The New Zealand producer has asked a Buller resource consents panel to set conditions on any water rights it might grant to Hydro Developments to use water from its Stockton open cast mine, north of Westport.

A combined panel of the Buller district and West Coast regional councils is hearing an application from HDL for water rights related to a planned hydro-electricity generation project.

Solid Energy has asked the panel to grant HDL’s consents subject to the future water needs of Solid’s current and future mines in the area.

Solid chief operating officer Barry Bragg said until recently, Solid Energy believed it had prior rights. However, the regional council advised that, if HDL received the rights it was seeking, it would become an “affected party” to water rights and other consents Solid Energy required to operate the mine.

“That could mean our future applications are either refused or that we end up with conditions so restrictive that our mining operations become uneconomic,” Bragg said.

“We have been in discussions about this with HDL and although they have told the hearings panel they do not wish to jeopardise our mining, we have not been able to agree suitable conditions which would ensure this.

“As it stands, we believe this application is a significant risk to future mining operations at Stockton.

“That is why we are asking the panel to ensure that conditions are placed on any rights they might grant HDL so that they are subject to the requirements of our current and future mining in the area.”

The company said the Stockton mine was capable of producing at about current levels for up to another 20 years. Resources within the neighbouring Upper Waimangaroa mining permit, valid until 2033, have the potential to extend Stockton’s operations beyond 20 years.