Nelson says no to Australian mining company

Public opposition has forced the withdrawal of an Australian mining company's application for exploration in the Nelson region. Filephoto / Thinkstock

An Australian mining company says public pressure has forced it to withdraw its application to mine areas near Nelson.

Greywolf Resources New Zealand chief executive John Rutherford said, in a statement, that the applications for prospecting and exploration within the Golden Bay and Abel Tasman areas would be withdrawn, the Nelson Mail reported.

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

Mr Rutherford said Greywolf had met with considerable public opposition in the Nelson region.

"It is pointless Greywolf putting millions of dollars into the area to find out what is there, if the public are so opposed to it.

"If the company is to reconsider exploration in this area, the New Zealand Government will need to get the people of New Zealand to agree to exploration."

Greywolf's applications, which covered coal, oil and gas and other minerals, caused consternation among Golden Bay iwi and environmentalists.

Questions were also raised about Greywolf's credentials.

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.

- NZPA