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Green Growth submission
Minerals, energy and Green Growth
Government policy and legislation
Undertanding mining - Mning 101
Introduction
Straterra Inc was formed in 2008 to be a collective voice for the New Zealand resource sector. Our membership represents 84% by value of New Zealand minerals production (excluding oil & gas, and geothermal), as well as exploration, research, service and support. Straterra works closely with the petroleum sector, and has links to the geothermal sector.
The resource sector makes a significant contribution to the New Zealand economy (ref. 1). Oil, gas, coal, gold, aggregates and other minerals contributed $2.15 billion to GDP in 2008, compared to the wine industry ($0.45bn), and tourism ($6.66bn). Resource exports in 2009 earned $3.6bn (8.2% of total goods exports) while dairy in that year was $10.0bn, and overseas tourism, $9.3bn. In 2009 there were 6800 people employed directly in mining, and 8000, indirectly, flowing from the economic activity of the 6800. The median wage for a mining employee was $57,320 in 2008, compared to the New Zealand median of $33,530.
Compared to the wealth generated, mining has a relatively small footprint, occupying 0.016% or 4000 ha of New Zealand’s land area. Most of this area is occupied by quarries, most of which produce aggregate for roading and construction.
New Zealand’s resource potential in minerals dwarfs the sector’s current contribution to the economy and society (ref. 2). Resource potential has been identified for gold+silver (e.g. proposed expansion of Newmont Waihi Gold’s operation), and coal (Bathurst proposal, Buller), and in new areas such as lignite (Southland), offshore ironsands (western North Island), rock phosphate (Chatham Rise), and seabed massive sulphide deposits of base and precious metals (Kermadecs).
Properly managed and encouraged, the New Zealand minerals sector’s contribution to the national economy could triple or quadruple. As well, New Zealand has potential for further development of oil and gas, and geothermal (ref. 3).
Straterra welcomes the opportunity to submit on the Green Growth discussion paper. We do so from the perspective that minerals and energy will form an essential part of New Zealand’s future, and that this reality should be fairly reflected in the transition towards a green economy.
(1) NZIER (2010). Diamond in the rough. Straterra submission to MED on schedule 4 discussion paper. http://straterra.co.nz/uploads/files/straterra_s4_submission_may_2010.pdf
(2) Christie, A.B., and Barker, R.G. (2011). The value of mineral exploration and research in New Zealand. Conference proceedings, 2011 AusIMM New Zealand Branch Annual Conference
(3) NZ Energy Strategy (2011-2021) http://www.med.govt.nz/upload/77402/NZ%20Energy%20Strategy%20LR.pdf