Chatham Rock Phosphate has vowed to continue its bid to mine seabed phosphate from the Chatham Rise but that could hinge on a future law change.
Chatham's more immediate future, however, may lie in the hands of some shareholders, who saw the share price plunge from 20c to less than 1c this week and are being asked to stump up $245,000 next week.
The Environmental Protection Authority (EPA) has rejected Chatham's bid to suction dredge phosphate chips from the sea floor, finding seabed destruction could not be mitigated nor the seabed rejuvenated, and the project could destroy stony corals on the Chatham Rise.
Chatham managing director Chris Castle told the ODT he had had talks with ''key ministers'' in the Government, whom he declined to name, who assured him changes would be made to the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012 (EEZ Act).
''Changes will be made soon; the wheels are already turning ... Then it's going to get easier,'' Mr Castle said. While acknowledging law changes were not made overnight, Mr Castle speculated Chatham could be in a position ''in one to two years'' to submit another marine consent application to the EPA.
Chief executive of resource lobby group Straterra Chris Baker said the EEZ Act had ''major flaws'' and had to be amended, in order for ''responsible mining projects'' to be developed.
The EEZ Act's intent was to provide for responsible economic development in the EEZ, but the Act's requirements for information and consideration of uncertainty meant any mining proposal would likely be declined, Mr Baker said.
Mr Castle was asked how Chatham would survive, given it had spent $33 million in the past seven years and had incurred a trading loss of $1.8 million in the last half-year.
''We would downsize - operating costs are very low and we'd move into survival mode,'' Mr Castle said, adding many staff were on contract.
There was no immediate plan to raise more capital, and unspecified cash in hand was sufficient to keep operations going while the company was in ''semi-hibernation'', he said. A meeting with shareholders was planned for next week.
Before the Wednesday decision was released, Chatham was offering a convertible loan agreement, to raise $245,000 from wealthy ''qualified investors'', which would convert to shares in March next year.
Craigs Investment partners broker Peter McIntyre said ''shareholder patience had already been stretched'' because of time delays, capital costs and decision outcomes.
''The existing shareholders' confidence will be dented. The question is now on Chatham's ability to raise finance from them,'' he said.
As at September, Chatham had assets of $1.9 million, including $122,000 cash and $400,000 of receivables.
Mr Castle said dozens of shareholders had emailed to offer support and encourage Chatham to continue.
He also did not rule out a merger or ''alliances'' with other companies in the future, but declined to identify those parties.
''We had merger discussions last year. It's always a possibility,'' he said.
Mr Castle said lawyers were expected to brief him today on whether there was a point of law to dispute in the EPA's 300-page decision, which is the only option to force a High Court appeal.
He ruled out dropping the project, saying a ''key part'' of a proposal resubmission would be proving the affected stony coral was not unique to the mining area, but widespread.
''We're not going to die and go away. We'll cut our cloth to suit,'' Mr Castle said.
