Otago Daily Times - 8 September 2009
Posted in: Perspectives: Tuesday, 08 September 2009
Otago Daily Times - 8 September 2009
Richard Michael, Chief Executive of Straterra
Now that Energy and Resources Minister Gerry Brownlee has opened discussion on the possibility of unlocking Conservation land for mining exploration, it’s time for some reasoned and balanced discussion around the issues.
In a speech to the Australasian Institute of Mining and Metallurgy in Queenstown last week, the Minister outlined plans to review the protection for Conservation Department land, improve access, and to allow the possibility of exploration and extraction of mineral deposits in some cases that would previously have been excluded from consideration.
It was predictable that environmental groups rushed to criticise the Minister’s plans, with emotive outcries rather than rational consideration of what the Minister actually said, but the issue deserves a lot more than wholesale condemnation because the future of New Zealand’s economic wellbeing is at stake.
The use of Conservation estate is not an either /or situation. DoC administers nearly 5 million hectares - 50,000 square kilometers - of land. This is about 20% of New Zealand’s total land area. It is made up of conservation parks; ecological, sanctuary, wilderness and watercourse areas; marginal strips; stewardship lands; and other specially protected areas. There is enough estate available to allow for untouched, pristine areas, for tourism and outdoor activities and for mining exploration. These activities can all co-exist.
We have the ability to unlock the potential beneath our land while achieving maximum benefits for the economy with minimum environmental footprint. To accomplish this, however, it is vital that all organisations work together, with common objectives, full understanding and clear communication.
This is not the time for emotional rhetoric on either side of the fence.
Straterra was formed a year ago to bring together the interests of the entire natural resources sector and related bodies. Its vision is national prosperity through partnership. Our objectives include increasing co-operation between the private and public sectors to generate maximum benefit for all New Zealanders.
Today nearly 5,000 people are employed in New Zealand mining and we produce minerals, coal and petroleum worth about $4.5 billion per year, contributing $2 billion to exports. The country's metallic mineral potential alone is estimated at $140 billion.
Otago and Southland have up to 15 billion tonnes of lignite. Even at its lowest value end-use, as a direct fuel for primary processing in the dairy, meat and other sectors, the total value of this world scale energy resource at today’s prices is up to $500 billion. Converting lignite to higher value products such as transport fuels, fertilizers or other chemicals could increase the end value of this resource tenfold. At the same time it could insulate New Zealand’s economy from rising long-term global prices for all these products.and create the equivalent of a new export industry worth up to $5 billion per year – or more.
Straterra and the mining industry are very aware that natural resources activity can have significant effects, from employment to the environment.
Such factors require careful co-ordination and co-operation between industry and multiple government agencies. Proper co-ordination will result in projects that can deliver widespread benefits and enhance local communities without compromising the outstanding environmental values all New Zealanders hold dear.
Yes, the natural environment can be modified significantly during the mining process but the area affected is very small. Mining currently uses only 40 sq km, about 0.015% of New Zealand’s land area, and has an export value of $175,000 per hectare. Dairy, by comparison, uses 20,000 sq km of land with an export value of $3,500 per hectare. To suggest mining could affect huge tracts of conservation land is mischievous and does a disservice to the interested public. Even a very large future mine might affect only 1 to 2 square kilometers of land – about the size of a single dairy farm.
Natural resources underpin all economic activity in the world from aggregates for road building and concrete manufacture to coal for steel making and industrial processors and oil for transport.
It’s a fact that New Zealand’s massive untapped sources have the potential to provide a major boost to New Zealand’s economic growth.
The Minister’s review plans offer all involved parties the chance to work together to make this economic growth a reality while maintaining New Zealand’s clean, green international image.
Prosperity through partnership is just a matter of the partners working together not against each other.