Nelson-based MacLab has withdrawn an application for a marine farm in Crail Bay, in the Marlborough Sounds, a month before the case was to be heard in the Environment Court.
The company says new scientific research showed the bay had productivity issues.
MacLab, which produces mussel powder for the production of the
mussel extract lyprinol, was denied an application for a 46 hectare marine farm in Crail Bay by the Marlborough District Council in February 2001.
MacLab reduced the size of its marine farm to 11 hectares and appealed the decision to the Environment Court.
The hearing was deferred about a year ago and MacLab spokesman Paul Williams said MacLab used the time to conduct more research into the productivity of Crail Bay.
"Our scientific research indicated that the bay doesn't replenish itself in terms of nutrients for the mussels and there is little current flow to enable the movement of those nutrients," he said.
Marlborough Environment Centre spokesman Steffan Browning said the scientific research vindicated the centre's position that the marine farm would not be sustainable.
"It shows how much research can develop in a year. I think it is a warning not to move too quickly with marine farm applications."
MacLab still has five other applications for marine farms in the Marlborough Sounds to be heard by the Environment Court.
- NZPA
