Minister to quiz China ore firm

Gerry Brownlee. Photo / Greg Bowker

Economic Development Minister Gerry Brownlee will meet representatives of a Chinese iron ore firm, which holds "mineral arrangements" in New Zealand, while in China this week on an unrelated trade mission.

Brownlee, who is also Minister of Energy and Resources, told the Herald he planned to visit Sinosteel Corporation, China's second-largest iron ore importer.

"They have got licensed areas in New Zealand and we'd like to know what their intentions are," he said.

Brownlee said he would also visit another Chinese steel firm, Baosteel, while in the country.

The Herald understands Sinosteel had plans to mine large tracts of iron sands on the North Island's West Coast, but had run into opposition from the Maori Party.

A spokesman for Brownlee said the talks with the Chinese firms were simply a "meet and greet" and had no set agenda or goal.

Meanwhile, Brownlee said the aviation sector trade mission he was leading aimed to build relationships between New Zealand companies and Chinese aviation agencies.

According to New Zealand Trade and Enterprise (NZTE), China has plans to spend $93 billion on 97 new airports by 2020.

The trade delegation includes representatives from Air New Zealand, Peet Aviation, CTC Aviation Training and Gallagher Group.

NZTE says an extra 2500 aircraft and 5000 pilots will be required in China by 2015.

NZTE's director of specialised manufacturing, Hans Frauenlob, said flight schools in China suffered the effects of that country's congested airspace, and there was an opportunity for Chinese pilots to be trained in New Zealand.

"[New Zealand] has got a great combination of great [uncongested] airspace and well respected international regulations ... that reputation is really starting to build," he said.

Frauenlob said there were also opportunities for New Zealand firms that provided airport infrastructure - such as baggage handling technology - as well as aircraft maintenance.

"Like all sectors in New Zealand the growth of China is something you can't ignore," said Frauenlob.

The mission will visit Beijing and Tianjin before attending the World Expo in Shanghai.