Govt strategy on mining flawed, says Newmont

Gordon Ward. Photo / Greg Bowker

Goldminer Newmont says it would have taken a different tack to the Government in trying to rally public support for more mining.

And an analyst has also criticised the way in which the review of protected land was sold, saying the Government was on the back foot from the start.

Newmont mines at Waihi and its submission on the mining review urged there be no amendment of Schedule 4 but a relaxation of rules covering how much vegetation can be cleared for exploration rigs on the land.

Spokesman Kelvyn Eglinton said that it was always going to be a tough debate.

"When it became about the removal of land [from Schedule 4]) that's where it probably erred.

"The compromise deals we suggested might have got better resonance with middle New Zealand."

He said in hindsight the Government should have approached the issue differently.

"It certainty shows that the accusations of collusion between the industry and the Government don't exist.

"Clearly if they'd been talking to us at Newmont we wouldn't have done it that way."

Newmont Waihi Gold mines at an open pit and underground in the town. It was concentrating its exploration on areas near its existing operations and any future mines would be underground although they could still be on low-value conservation land covered by Schedule 4.

'The Schedule 4 debate for us was never about mining large tracts of conservation land. It was about finding out what was there and doing a comprehensive stocktake so that as a country we can make some informed decisions."

Newmont found itself under the media spotlight and the target of a reawakened anti-mining movement.

"It has rattled the cage a little bit but if you look at the people who are opposing these things it was the same people and the same arguments that were put forward 30 years ago. They're not prepared to meet with us and see the changes we've made," Eglinton said.

"We're back to where we were and we'll carry on."

Energy and Resources Minister Gerry Brownlee did announce the Government would do an aeromagnetic survey in Northland and the South Island's West Coast's non-Schedule 4 land to learn which areas have high concentrations of valuable minerals.

Decisions on access to land for mineral-related activity will now be made jointly by the landholding minister and the Energy and Resources Minister, rather than just the landholding minister, as part of the changes.

Listed South Island miner Pike River Coal welcomed the aerial surveys and change to land access approval.

"Conservation is one part of the puzzle and the mineral potential is the other," said chief executive Gordon Ward.

"I think that the Government clearly listened to the people in the submissions they made. Because of the misinformation that was out there it was not going to be acceptable to proceed," he said.

"I think that's really unfortunate because we haven't had that proper debate on Schedule 4 land. The message has been confused with mining in national parks."

The company had spent about $300 million on developing its mine on the West Coast which would soon employ 180 staff. He said there had been a "missed opportunity".

The head of research at McDouall Stuart Securities, John Kidd, said the mining industry was now left not knowing what minerals might lie where in most parts of New Zealand.

"The Government started on the back foot by not having done enough of the detailed analysis needed to be able to claim with authority that the prize was worth pursuing."

He said that instead of being able to improve understanding of the potential resources, the focus of debate was continually deflected to peripheral issues such as defending the estimated value of minerals or the potential for exploitation by foreign companies.