Posted in: Perspectives: Monday, 01 March 2010
The New Zealand Government’s announcement that it expects to make significant changes to Schedule 4 of the Crown Minerals Act, regarding valuable minerals on conservation land, is a bold and far-seeing move.
The mineral wealth which lies beneath our lands and seas - and potentially beneath some of our conservation estate - could have a major beneficial impact on the New Zealand economy.
It is estimated that carefully controlled increased access to publically-owned and DoC managed Conservation estate could boost production and exports, lift household incomes by at least 1.7 per cent and deliver a steep increase in the country’s economic growth.
Currently some 4,650 people are employed in our mining industry and produce minerals, coal and petroleum worth around $4 billion per year, contributing $2 billion to exports. Increased access could lead to the creation of a further 25,000 jobs, including many new opportunities for contractors.
Schedule 4 is protected land, generally of higher conservation value and includes our National Parks, specified in the Crown Minerals Act.
It provides a higher level of protection of these areas from mining but, over the years, areas have been added in a fairly ad hoc way and it now includes a wide variety of land types with differing levels of conservation value.
In fact, a number of projects are already permitted and operating successfully on Schedule Four land.
Some of these permits were issued by the previous Labour Government and others by the current administration and include the Pike River coal mine in Parapoa National Park.
What is patently evident is that for many years New Zealand has muddled along with no clear picture on what is a very important economic and environmental issue.
This Government clearly recognises the high economic value of the natural resources industry and the bigger role it can play both in New Zealand’s economy and in conservation.
Mining and conservation are not mutually exclusive outcomes, as some conveniently argue. The Government’s proposals, which also include the establishment of a new Conservation Fund, potentially drawing on royalty revenue from mining operations on Crown land, recognises the need to balance New Zealand’s high conservation values with the economic value of minerals found on Schedule 4 lands.
Not unexpectedly, the Green Party has been vociferous in its opposition and has vowed to oppose mining in our “precious places”.
“Precious places” is a very appropriate term. New Zealand is extremely fortunate to have such valuable lands - precious in terms of environmental value, tourism value and mineral riches. With great care and with the benefits of the world class techniques available and stringent environmental standards practiced today, New Zealanders can enjoy all of these benefits.
Last year Pike River was awarded a certificate by DoC recognising its environmental consideration in establishing the mine.
Prime Minister John Key also held up Pike River as an example of mining having minimal impact when he highlighted how modern “surgical mining” techniques can operate through minimal incisions in the land.
Today’s mining companies put significant sums and extensive effort into environmental management. While, they have a legal requirement to do so, their commitment goes beyond environmental obligations set out in consent conditions and often includes extensive community consultation to ensure the company maintains its social license to operate.
This review will not lead to a change in those standards. In fact further access to Schedule Four lands may require legislation requiring even more stringent rules than those imposed on other new mining developments.
But the opportunities it would open up would lead to significantly increased investment and job creation and could also enable major contribution to the conservation programme in New Zealand - from ridding the country of possums or moving the kiwi from the endangered list.
The minerals industry’s aim is prosperity through partnership. It is willing and ready to further work with Government, communities and environmental groups, as is already happening successfully on a number of existing projects, to ensure mutually beneficial outcomes for the economy and the environment.
The favourable public response to the announcement of the review suggests there is widespread recognition of the need for a national discussion about balancing the economic value of minerals found in Schedule 4 lands.
New Zealanders want high standards of conservation management of our wilderness areas – but we also want a high standard of living and development of our mineral resource can make a large contribution to that outcome.
We look forward to the full report of the Schedule 4 review and the opportunity for public debate that will follow.