Economic development organisation Venture Southland (VS) is putting together a business case it hopes will entice an international investor to establish a silica smelter in the province.
There is an estimated 350,000-450,000 tonnes of high-purity polysilica in Southland in three main deposits - Waimumu, Pebbly Hill, near Hedgehope, and Awarua, south of Invercargill - as well as an estimated 1 billion tonnes of potentially useable lower-grade silica.
High-purity polysilica was sought-after internationally as it could be processed for use in a wide range of high-tech equipment including photovoltaic solar panels and computer chips, VS business and strategic projects group manager Steve Canny said.
In 2012, Silicon Metal Industries, owned by a South African holding company, announced it was investigating mining silica at Pebbly Hills and building a silica smelter at an estimated cost of $NZ300 million, but those plans have not progressed.
Mr Canny said VS had been monitoring silica mining and processing opportunities for several years, including having Southland's deposits analysed by international experts to confirm it was of high enough quality for refining into polysilica.
The time was now right to complete a smelter feasibility study, he said.
''Because there is a growing global demand for polysilica and it looks like there is going to be some firming of prices, now is probably the time to look at creating a business case for investment here. There have also been major technical advances in processing methods in the past few years.''
The study was expected to be completed by November, he said.
Discussions had already been held with some potential international partners but Mr Canny would not say how many or name them.
VS' aim was to keep the refining of Southland's silica in the province if possible, adding value to the resource, creating jobs and boosting the economy.
''If we are going to get into these sort of extractive industries we need to be refining the product here and producing the end product, too, if at all possible.''
Silica
• Most commonly found in nature as quartz.
• Used in raw or processed state in wide range of products including glass, ceramics and porcelain, concrete, roading material, finishes for swimming pools and bench tops. Also used in steel refining, and is a common additive in foods, primarily as a flow agent in powdered foods.
• Highly purified silicon used in photovoltaic solar panels, telecommunications optical fibres, microchips and integrated circuits, the basis of most computers.
