Mining should not damage land 'aura': Palmer

Air New Zealand chairman John Palmer - who also chairs the board of the country's biggest miner - says plans to open conservation estate to mining should not damage the "aura" around land.

A Government-ordered stocktake of the mineral potential of the land is about to be released.

Palmer is also chairman of state coal miner Solid Energy and, speaking after announcing the airline's half-year result, he said tourism and mining were not mutually exclusive if managed properly.

"I'm naturally influenced by both those roles and I should make it clear that I see those roles as entirely compatible."

During the past year Air New Zealand, the country's biggest tourist business, invested $100 million promoting the country overseas. Tourism earned $9.3 billion in foreign exchange and relies heavily on the country's clean, green image.

"I would be astounded and aghast as an ordinary New Zealander if there was any suggestion that the aura that surrounds the conservation estate is going to be damaged."

He said he was certain that was not the intention.

Air New Zealand chief executive Rob Fyfe said he took a pragmatic view.

"We believe the environmental footprint of New Zealand and how we project ourselves in an environmental sense is incredibly important to our ability to attract tourists."

But companies such as Solid Energy did have a commitment to environmental initiatives and this could also work in the country's favour.