Aussie mining bid rejected

The government body tasked with managing mineral resources has rejected an Australian company's bid to mine near Nelson.

Greywolf Resources said public pressure had forced it to withdraw its application for prospecting and exploration within the Golden Bay and Abel Tasman areas.

Other permit applications, including one for offshore oil and gas exploration far distant from the Golden Bay coastline, would continue, it said.

But New Zealand Petroleum & Minerals today said it had rejected all applications submitted by Greywolf due to "deficiencies in (its) financial information".

"New Zealand Petroleum & Minerals was also concerned about Greywolf's ability to give effect to the permits, including the various work programmes," it said in a statement.

Greywolf's Sydney-based chief executive Edward Lancaster claimed he had huge Chinese financial backing but had refused to name the backers.

In a statement Mr Lancaster said the Greywolf board had asked him to "take a step back from New Zealand" to work on Greywolf's application to list on the Australian sharemarket listing later this year.

Te Tai Tonga MP Rahui Katene welcomed the withdrawal, saying she was proud of Golden Bay iwi for standing up to Greywolf.

"I see this as a clear vindication of the campaign run by Tiakina Te Taiao in opposing the exploration licences and I want to congratulate the iwi and all the locals for their successful negotiations with Greywolf," she said.

"The type of process that iwi have entered into with Greywolf is exactly what we envisage would occur, as a result of the private members bill we have drafted to ensure real consultation and real engagement with tangata whenua from any person or group who are seeking a permit under Crown Minerals Act."

- NZPA