Ruapehu Mayor Weston Kirton is welcoming the prospect of significant investment and new jobs following two separate proposals for development at a former Karioi mill site.
A biofuel production facility and a data centre campus have been proposed for the former Winstone Pulp International (WPI) site between Ohakune and Waiouru.
“Bringing productive activity back to Karioi is welcome news that could help rebuild confidence, create much-needed jobs and generate work for local suppliers, contractors and other businesses,” Kirton said.
WPI closed its central North Island mills two years ago, citing unsustainable energy prices.
The mills were the main employer in the district, with most of its workers living in Raetihi, Ohakune and Waiouru.
The closures cost more than 200 permanent jobs, with further job losses in supporting industries.
Bio-coal manufacturer Te Ara Hiko is seeking a 20-year resource consent to build and operate a manufacturing facility producing 180,000 tonnes of wood fuel pellets a year for domestic and export customers.
The proposal would repurpose existing wood-processing infrastructure using regional forestry resources and supporting employment in the wood-processing sector.
Alongside it, Data Igloo proposes a data centre campus providing secure, energy-efficient storage, compute colocation and sovereign data storage and processing.
Data Igloo says its design differs from large, water- and power-intensive overseas data centres by separating low-energy storage from intensive processing and using the region’s climate to reduce cooling and energy needs.
Both developments remain in the planning stages.
Kirton said the mill closures in 2024 compounded the economic impact of the Chateau Tongariro Hotel’s closure and the collapse of ski field operator Ruapehu Alpine Lifts.
“These successive blows have cost jobs, reduced business and visitor spending, displaced people and put pressure on Ruapehu communities and the wider central North Island economy.”
Environmental safeguards
Local iwi Ngāti Rangi has opposed Te Ara Hiko’s consent application in its current form because of proposed wastewater condensate discharges into the Whangaehu River.
Kirton said he was confident the concerns could be addressed.
“Restoring employment and economic activity is important, but so is protecting our environment and the health of the awa.
“I am confident that Te Ara Hiko and Ngāti Rangi can work together to address these concerns.”
He said building confidence in environmental safeguards would be essential to establishing successful, enduring operations.
“While I am positive about these opportunities and want to see them explored thoroughly, the outcome we should be working towards is lasting employment and investment that supports our communities while protecting the environment that sustains us.”
Ngāti Rangi has been approached for comment.
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