NZ gov’t proposes opening land to miners

New Zealand is facing a political divide on its government’s proposal to open up conservation land for mining.

The government of New Zealand announced on March 22 that it may increase exploration of its nation’s resources by releasing more than 70 sq. km of land protected by schedule four of its Crown Minerals Act, potentially worth billions of dollars in minerals, to mining companies.

Energy and Resources Minister Gerry Brownlee said that New Zealand is a mineral-rich country with resource estimates of roughly NZ$194 billion, not including coal and hydrocarbons, of which NZ$80 billion lie under schedule four land.

Under that schedule, 3.4 million hectares — 12.75% of New Zealand’s total land area — cannot be mined.

The proposal looks to remove a small percentage — 0.2 % in total — of land from schedule four. The land of interest includes parts of the Coromandel, Great Barrier Island and portions of the Paparoa National Park. These areas are rich in gold, silver, nickel, platinum and rare earth metals, that if mined could boost New Zealand’s economic growth.

The country’s Prime Minister John Key said the government has “good initial information on significant mineralization” in the areas mentioned.

The targeted area of Coromandel, on the country’s North Island, is estimated to contain NZ$18 billion of gold and other minerals. (This region already includes Newmont Waihi Gold, a subsidiary of Newmont Mining’s [NMC-T, NEM-N] Martha gold mine.)

The 33.2 sq. km targeted in Paparoa National Park may produce more than NZ$1 billion of coal. And the 705-hectare Te Ahumata Plateau on Great Barrier Island is considered to have gold and silver deposits worth roughly NZ$4.3 billion.

The government will also spend NZ$4 million and nine months looking at “highly prospective” land in other areas of Coromandel, the Paparoa National Park and parts of Stewart Island.

Brownlee said the government’s books could use the much-needed money, which more mining could help generate, along with more jobs.

However, opponents of the pro- posal were quick to argue that mining could affect the country’s tourism and national parks.

Auckland Mayor John Banks, who is opposed to the mining on Great Barrier Island, was quoted by a local paper, The National Business Review, saying: ” This (proposal) would be an ecological disaster, a serious blow for the established economy that depends on the Barrier’s untarnished image.”

Brownlee explained if the government went ahead with the proposal, actual mining would affect no more than 500 hectares.

The proposal is open for public comment until May 4, giving the public of New Zealand six weeks to respond. A decision on the proposal will be made late this year.