NZ Resources.com, July 2009
Posted in: Perspectives: Friday, 31 July 2009
By Richard Michael, Chief Executive, Straterra
The recent resolution of a long running dispute over mining on the Coromandel Peninsula probably did not resonate with many people beyond those specifically involved in the process.
From an industry point of view, however, it was very significant. Originally Thames-Coromandel District Council (TCDC) had wanted to impose a blanket ban on mining on most of the peninsula in its district plan.
That would have been a very draconian step and, if the council had succeeded, the results would effectively have been national policy being set at local level.
While it is right and proper that local councils should have input into national policy, there was a strong risk in this case of the tail wagging the dog. Allowing national policies to be set through local council planning processes would have been an unhealthy precedent.
The dispute had also been ongoing for 11 years which is far too long. Legal action over the ban started in the late 1990s and went through to the Court of Appeal and back to the Environment Court.
Under the new agreement, all mining would be prohibited in and around Mt Moehau on the northern tip of the peninsula and surface mining would be prohibited in coastal areas adjacent to areas classified as outstanding landscapes and in urban and industrial areas.
Surface and underground mining would be zoned discretionary or non-conforming on the rest of the peninsula and companies could apply to operate in those areas.
The outcome does seem to be a good and sensible compromise. All parties have had to adjust their hopes but areas of significant environmental value are protected under the agreement and outcomes look to be durable and beneficial to all.
There is still some work to be done. The parties will now seek consent from the Environment Court for the agreement which was hammered out through court mediation sessions between the council, opponents, the Minerals Industry Association and the Ministry for Economic Development.
Hopefully, given the substantial time the case has already taken, that will proceed as smoothly and as swiftly as possible.
This agreement shows the way in which industry and community groups can work together and come up with practical and durable solutions. It also illustrates the way in which the industry attitudes have changed over time, with the emphasis now on developing relationships and addressing issues in an open and transparent way.
Gold mining has played a major role in the region’s history and economic prosperity but Newmont Waihi Gold’s Martha mine is close to winding down due to dwindling reserves – with estimates for closure between Mid 2010 and 2012.
Both Newmont and Glass Earth Gold have carried out extensive exploration adjacent to Martha and in the wider Hauraki region in recent years without economic results.
However, it is considered that the potential exists to find other high grade gold systems and, hopefully, this agreement will provide added impetus for continued exploration investment – perhaps in new areas.
While a fairly extreme case, the painfully long time taken to reach this agreement, does highlight the difficulties and lengthy time delays faced by the national resources industry in New Zealand.
We understand Government is currently looking at policy setting around the natural resources sector and, hopefully, an added outcome of this case will be that processes will be put into place to ensure such disputes are resolved far more swiftly and efficiently,
Ultimately however, to ensure the best prospect of such changes are made, we need a whole of government response to issues related to the natural resources industry - and industry needs to engage as one with government.
Straterra, which was launched in September 2008, aims to provide a united voice for companies working in the oil, gas, aggregates, minerals, metals and coal industries.
The organisation’s purpose is to bring together the interests of the entire natural resources sector and related bodies. Its vision is of prosperity through one partnership, including engaging with government,
We will also press for a national policy statement outlining long-term goals for the sector to provide potential explorers and investors with continuity. Straterra will also concentrate on the many common sector wide themes and issues and ensure they are well articulated to government and the public.