Coromandel Peninsula braced for new gold war

By AINSLEY THOMSON

The gold-mining battle that divided the Coromandel Peninsula for decades is starting all over again.

The Thames Coromandel District Council plans to reverse its ban on underground mining, to the delight of the mining industry and the horror of conservationists.

A decision on whether mining can resume now rests with the Environment Court, which will give its verdict soon.

The mining industry sees the case as an encouraging sign that it might get access to $10 billion worth of gold in the Coromandel.

Environmentalists thought they had won the mining battle long ago.

In 1997, an amendment to the Crown Minerals Act banned mining for gold on Department of Conservation land north of the Kopu-Hikuai Rd.

In 1998, the council prohibited mining in coastal and conservation zones and in all recreation and open space policy areas.

But the Minerals Industry Association and the Ministry of Economic Development wanted mining to be classified as a discretionary activity on coastal and conservation land, meaning it would be possible to apply for resource consents to mine.

The dispute went to the Environment Court in May.

Environmental groups were not unduly worried at that stage. They supported the council's position and thought there was little chance of mining being allowed.

Then the council changed its mind and told the hearing it wanted to reclassify underground mining as a discretionary activity in all parts of the district.

That meant a company could start underground mining once it had resource consent. Surface mining would still be prohibited.

It will not be known until the court gives its decision whether the council's new policy will override the 1997 law change which effectively put all Department of Conservation land off limits to mining.

Council spokesman Peter Hazael said mining companies would have to cross big hurdles, such as notification and public consultation, to get a resource consent.

Mayor Chris Lux said people thought the council had rolled over to the mining industry, but that was not the case.

"We are still fighting the battle."

The Ministry of Economic Development, which is the asset manager of the Crown mineral estate, said it did not support a mining ban in entire zones and therefore had appealed against the council's original plan.

Heritage Gold managing director Peter Atkinson said he believed the council had softened its position, but it had taken eight years. "I have to say it is most encouraging. But really, mining deserves to be treated like any other industry."

Environmentalists say the only difference between underground and surface mining is visual effects - all the other effects such as dust, vibration, noise and acid mine drainage remain.

Coromandel Watchdog spokesman Mark Tugendhaft said resumed mining would introduce a new era of toxic pollution.

"It's devastating because it took so many years and it wasn't an easy victory. It would be terrible for this monster to resurface again."

Green Party co-leader Jeanette Fitzsimons said the council made the decision without public consultation. "People on the peninsula are very upset."