N. Zealand PM warns oil slick ship at risk of break up

Fears grew Wednesday that a ship stuck on a New Zealand reef would break up and release a new wave of pollution, as its two chief officers were charged over the nation's worst oil spill.

Prime Minister John Key said cracks had been found in the hull of the stricken container ship Rena, and the situation was precarious, with the boat teetering at a steep angle in stormy seas.

"We have identified stress fractures on the ship. We can't rule out the risk of the ship breaking up, that's certainly being monitored," he told reporters near Tauranga, where already beaches have been fouled and wildlife found dead.

"I wish that boat wasn't spewing oil out into New Zealand's pristine sea, but it is and we're dealing with that."

Television footage of the ship stranded on the Astrolabe Reef, 22 kilometres (15 miles) off the North Island coast, showed a gaping crack in its hull, with Transport Minister Steven Joyce saying saying it would "probably" shear in two.

Up to 300 tonnes of heavy fuel has already leaked into the environmentally sensitive Bay of Plenty since the Rena ploughed into the reef last Wednesday, creating New Zealand worst maritime pollution disaster.

Officials have warned the crisis will deepen if the Rena breaks up and releases all 1,700 tonnes of oil it is carrying.

The ship's captain, a Filipino in his 40s, appeared in Tauranga court amid a heavy police presence, charged with operating a vessel in a manner causing unnecessary danger or risk.

He was bailed to reappear on October 19 on the charge, which carries a maximum penalty of NZ$10,000 ($7,800) or one year in jail. His name was suppressed amid fears for his safety as anger grows in the local community.

The Rena's second officer, who was in charge of navigational watch when the ship hit the reef, was charged with the same offence late Wednesday.

Overnight, containers began toppling from the ship's deck in heavy seas. Maritime New Zealand (MNZ) said none contained hazardous material, but TVNZ reported seeing bright blue smoke emitting from one of them.

It was highly likely more containers will plunge into the sea because of the severe weather conditions and the vessels heavy list, MNZ said.

"There are 1,368 containers on board. Eleven containers containing hazardous substances are still on the vessel and are not among the 70 estimated overboard," it said, adding that shipping was re-routed to avoid the hazard.

Radio New Zealand reported that a floating crane was en route from Singapore to transfer the rest of the containers off the ship.

Efforts to remove the oil and refloat the Rena remain on hold after a salvage crew issued a mayday and evacuated Tuesday when the ship shifted on the reef as it was pounded by huge waves.

Compared to some of the world's worst oil spills, the disaster remains small -- the Exxon Valdez which ran aground in 1989 in Alaska dumped 37,000 tonnes of oil into Prince William Sound.

But it is significant because of the pristine nature of New Zealand's Bay of Plenty, which contains marine reserves, wetlands and teems with wildlife including whales, dolphins, penguins, seals and rare sea birds.

Lumps of toxic sludge began washing ashore Tuesday, and local residents awoke Wednesday to a black tide as thick waves, topped with a dark foamy scum, swept dead birds and fish onto the shore.

"I can smell it from my house," local artist Peter Cramond, who lives 400 metres (1,300 feet) from the beach, said as he leaned on his walking stick in howling winds and driving rain.

"I haven't slept all night knowing what's happening here to all the bird and sea life. It's horrible."

The toll on the bay's wildlife remains unclear, although a 50-metre stretch of Papamoa Beach contained the oil-drenched bodies of four birds early Wednesday, as hundreds of defence personnel joined MNZ coastal clean-up crews.

Locals have also formed their own clean-up teams, ignoring official warnings to avoid the shoreline.