Richard Michael: Resources can be exploited without harming tourism

Mining on the West Coast benefits New Zealand but adds relatively little to the environmental footprint. Photo / Greg Bowker

Inevitably, the Government's announcement of plans for a "stocktake" of valuable minerals in the conservation estate, has led to considerable comment - particularly from environmental groups.

That is entirely understandable. New Zealanders' deep commitment to our spectacular landscape has been one of the driving factors in ensuring that our natural resources sector has developed world class environmental practices.

However, it was also reassuring to see that much of the public and media comment around Energy and Resources Minister Gerry Brownlee's announcement was balanced and considered.

Kiwis are pragmatists by nature and more than capable of weighing the facts and looking beyond any "emotional hysteria" - as Conservation Minister Tim Groser succinctly put it - to grasp the true situation.

The myth that we lag behind Australia - the so-called "lucky" country - is being dispelled. The public are recognising that we live in one of the most mineral-rich countries in the world. World Bank figures rank New Zealand second only to Saudi Arabia in natural resource wealth per capita.

The advantage Australia has enjoyed is that government has united with industry in major initiatives that have enhanced resources, maximised returns, boosted employment and raised living standards.

Mining was a cornerstone of New Zealand's early development, it remains a vital element of our modern economy and it can, used wisely, further enhance the quality of life for all New Zealanders.

The gross in situ metallic mineral potential of New Zealand is valued at more than $140 billion and there is great potential for fresh oil and gas discoveries.

Currently 4650 people are employed in our mining industry and produce minerals, coal and petroleum worth around $4 billion per year, contributing $2 billion to exports.

Carefully controlled increased access to publicly-owned and DoC-managed conservation estate could lead to the creation of a further 25,000 jobs, boost production and exports, lift household incomes by at least 1.7 per cent and deliver a steep increase in the country's economic growth.

One of the major arguments cited against exploring these untapped resources of the conservation estate has been the impact this could have on tourism.

Tourism is also an essential part of the economy of Canada, a country which is also marketed with a "clean and sustainable" image. Research has shown most tourists visiting Canada are attracted by the "outdoor appeal" and visitor numbers are expected to exceed 1.6 billion annually by 2020.

Yet this co-exists with a flourishing minerals industry which contributes $40 billion annually to the country's gross domestic product. Canada's economy grew in June for the first time in 11 months - an increase largely attributed to oil and gas drilling. Canada is also the world's top country for global mineral exploration.

While New Zealand's natural resource industry's contribution to the economy is vast, its environmental footprint is relatively small. Mining currently uses 40sq km of land, less than 0.015 per cent of New Zealand's land area, and has an export value of $175,000 per hectare. Dairy farming, by comparison, uses 20,000 sq km of land with an export value of $3500 per hectare.

Yes, the modification required to harvest natural resources is extreme during the process but environmental monitoring and rehabilitation techniques have advanced dramatically.

In his speech on the issue of conservation estate, Mr Brownlee mentioned several examples of how good mining practice can be reconciled with respect for the environment.

These included the Pike River Coal project on the West Coast, publicly hailed by DoC for the "environmental consideration" it demonstrated in the development of the new mine.

The wide range of initiatives adopted range from use of tunnel access and underground - rather than open-cut - mining methods to using the latest geological and mine planning expertise to manage any risk of subsidence.

The team worked closely with DoC to develop a narrow access road between the mine and coal preparation plant with minimal impact on forest. This also opened up previously inaccessible areas to the public.

Pike River's significant financial contribution to the local environment includes pest control programmes, monitoring and ecological and biodiversity studies - expected to have a positive environmental effect - particularly pest control in an area which has been heavily infested with such invaders as rats, stoats and possums.

The minister pointed out that, driving through the spectacular Paparoa ranges, you would not know there is a mine a few hundred metres away. That must set the standard for any such projects. Let's be clear, no one is going to be looking down on a mine from the Mackinnon Pass.

Straterra's vision is for prosperity through one partnership, a united approach that will see careful co-operation between industry, multiple government agencies and public and private sectors.

In this way those representing industry, economy, environment, tourism and many others can combine to ensure the best outcomes and, by sharing a little of our land, all New Zealanders can share in a lot of its benefits.

* Richard Michael is chief executive of Straterra, the industry group representing New Zealand's entire natural resources sector.