TABJ - June 3 - Since New Zealand’s Prime Minister John Key conveyed support for Solid Energy’s proposal to mine Southland lignite, a whirlwind backlash from environmental groups has taken place.

Speaking at Invercargill yesterday, Key said that currently, “companies like Solid Energy are growth companies and we want them to expand in areas like lignite conversion.”

“We know there is lots of resource there and we know they potentially have the capability [to convert lignite to urea or diesel] and so we will see how that progresses, but the briquette plant is a good starting point.”

The company’s plans include a $25 million pilot plant, capable of processing 148,000 tonnes of lignite a year (converting to 90,000 tonnes of briquette).

However, the local Greenpeace division has deemed his support, “reckless, short-sighted and dangerous to our economy.”