Ashers-Waituna and Hawkdun Lignite Deposits: Their Resources and Use Potential

The Otago and Southland lignite deposits represent by far the largest known fossil energy resources in New Zealand. Despite their size they have remained virtually untouched since exploration in the 1970s and 1980s defined their extent. In total there is an estimated 10.9 billion tonnes of lignite in 13 defined fields in Otago and Southland. Much of the exploration work only targeted seams at shallow depth and it is highly probable that there are further resources at depth in the fields that have been explored to date.   L&M Lignite Limited (L&M) holds exploration permits over a number of lignite deposits and is currently engaged in pre-feasibility studies to investigate the potential of the lignites for gasification. L&M is focussing its studies on the Hawkdun and Ashers-Waituna deposits. Coal quality in these deposits, particularly Ashers-Waituna, is highly suitable for gasification. In total the two deposits contain 1647 Mt of potentially recoverable lignite. L&M has engaged a variety of consultants to progress this project. The Hawkdun and Ashers-Waituna deposit databases have been re-evaluated and the resources remodelled. Further drilling has been carried out and the coal quality database has been expanded. The baseline project is to develop a mine to feed a plant that will produce liquids, specifically low-sulphur diesel and naptha, using the Fischer-Tropsch process. The project anticipates a staged development of 10 000 barrel per day units, each requiring mining at the rate of 12 700 tonnes of lignite per day. The production of other products including ammonia-urea, methanol, hydrogen and electric power is also under study.