Warming waters in the Marlborough Sounds have led to higher fish mortality rates. Photo: Supplied/ NZ King Salmon
New Zealand King Salmon has settled appeals against its plans to move salmon farming into deeper and cooler waters in Cook Strait.
It said after mediation it had resolved objections from the Department of Conservation and the McGuinness Institute and agreed on conditions for the Blue Endeavour farms.
"We are delighted that the parties to the appeal have agreed to amended consent conditions and have sought that the Environment Court make orders by consent," acting chief executive Graeme Tregidga said.
The parties had worked on a revised set of conditions that all parties were comfortable with, he said.
The settlement still needed the approval from the Environment Court which would make legal orders approving the new conditions. The final regulatory step is an aquaculture decision from the Ministry for Primary Industries (MPI).
The company has been working on the Blue Endeavour project for several years as an answer to rising fish mortality at its pens in the Marlborough Sounds from warming waters, which significantly hit the company's finances and was exacerbated by the pandemic.
The proposal would see fish farming moved into the cooler and deeper open waters of Cook Strait, with a potential to add up to 10,000 metric tonnes of fish in conjunction with nursery sites when fully developed.
Forsyth Barr analyst Margaret Bei said the settlement was a "significant step forward" and the final approvals were likely to be formalities.
"Our view on uncertainty around the project is broadly unchanged. We expect the consent should be [eventually] granted, but key challenges remain around funding for the project, and execution of the farming infrastructure and model."
NZ King Salmon shares rose 7 percent to 21 cents on the news.