NZ opens Northland to mineral explorers after consultation

Wednesday 13th June 2012

The Ministry of Economic Development's Petroleum & Minerals unit is inviting bids for minerals exploration permits in Northland, keeping the tender area unchanged after consultation with local iwi and councils.

Up for grabs is the right to explore for metallic minerals in a 5,537 square kilometre block of land north of Whangarei and south-east of Kaitaia. The tender will manage competitive interests in the exploration of metallic minerals, with companies able to apply for one 7,500 hectare permit in the region. Submissions close on Dec. 7 and will be evaluated by a government panel, with five-year permits awarded to successful bidders in April next year.

"The government is determined that growth from minerals development happens - the focus now is on better understanding the metallic minerals potential of the area," Energy Minister Phil Heatley said in a statement. "The tender opens the door for us to realise the significant potential for New Zealand to grow the economic contribution made by minerals."

The prospect of mining in Northland has divided the local community between those opposed to exploiting natural resources and those supporting economic growth in a region with traditionally high unemployment.

New Zealand's minerals' sector brings in about $20 million in government royalties annually and contributes over $1.1 billion to gross domestic product, according to a report by the New Zealand Institute of Economic Research. The report also says that increased mineral development in Northland will help provide better jobs, income and support for surrounding industries like, retail and hospitality.

"Northland's mineral wealth means new jobs and new wealth for Northland," Heatley said.

The area excludes Ninety Mile Beach, Cape Reinga, land known as Warawara, land listed as Schedule 4 of the Crown Minerals Act, the Waipoua Forest, Trounson Kauri Park Scenic Reserve and land where permits already exist.

Ministry officials will continue to engage with local iwi through the tender process to find ways to protect culturally significant sites and discuss options for Maori economic development.

Last week, MED put 23 oil and gas exploration blocks up for tender. The blocks cover over 40 kilometres of offshore seabed and 3 kilometres of land in the Waikato, Taranaki, Tasman, the West Coast and Southland. That tender closes on Oct. 15.

BusinessDesk.co.nz

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