The Gore District Council has approved the proposed briquette plant at Craig Rd, south of Mataura, but the project still needs water and air-quality consent from Environment Southland.
The decision to grant resource consent was made by two council-appointed commissioners and requires Solid Energy to prepare further reports at the time of seeking building consent to confirm compliance with the council's noise standards, and to undertake further monitoring once the plant is operational.
Gore District Council planning consultant Keith Hovell said the consent could not be appealed as there were no rights of submission.
The conditions also outline that information is to be displayed at the site, and made available to local residents, advising contact details for direct contact with Solid Energy should any noise related problems arise that required immediate action.
Solid Energy group manager new developments, Brett Gamble, said the council's approval was one step forward for the briquette plant.
"I'm pleased that the council has dealt with this plant solely on its merits as a small domestic briquetting plant to supply existing coal customers. We've already met with our nearest neighbours to discuss our plans for the plant and we plan to continue doing that as the plant progresses."
Commissioners also imposed a financial contribution that would see Solid Energy pay about $25,000 to council for use on a recreational project.
Gore mayor Tracy Hicks said that when the money is paid, consultation would be made on how it would be used.
The plant will process about 148,000 tonnes of low-grade lignite coal from a nearby mine annually, turning it into 90,000 tonnes of higher-quality briquettes suitable for fuel for households and industries. A further 15,000 tonnes of lignite will be required annually to fire its on-site boiler.
The coal would be transported to the plant from the New Vale mine, near Waimumu, about 20km away. Mr Hicks said he supported an offer made by Solid Energy at a meeting with local residents last week to establish a community liaison group to discuss any issues associated with the construction and start up of the proposed briquetting plant.
Prime Minister John Key announced his support for the proposed plant while in Invercargill last week.
"At the moment companies like Solid Energy are growth companies and we want them to expand in areas like lignite conversion," he said.
The company would have to meet the Government's environmental regulations, Mr Key said.
