KEY POINTS:
Northland could be sitting on a gold mine of mineral resources which a study says could prove a billion-dollar boon for the local economy.
A study by GNS Science and the NZ Institute of Economic Research has revealed that mineral deposits worth $33.2 billion were potentially present.
GNS Science senior minerals geologist Tony Christie said many people would be surprised to hear that Northland already had a significant minerals industry, but by world standards the region was under-explored.
Northland produced superior china clay, and had the largest cement plant in New Zealand.
There were more than 50 quarries producing aggregates for roads and concrete and 20 quarries producing limestone for fertiliser.
Dr Christie said in addition to the minerals already extracted there was potential for aluminium, coal, copper, gold, lead, mercury, nickel, peat, phosphate and zinc.
Initially, geophysical studies including ground and air surveys would need to be undertaken to understand the region's existing deposits, he said.
Dr Christie said the metals were the most lucrative of the resources and landowners would be well compensated for access to them from mining companies.
He said gold and silver had already been identified by geochemical analysis in some prospects of geological areas likely to yield major deposits, particularly in the volcanic rocks of the eastern parts of the Far North district.
Dr Christie did not believe environmental issues would be a major barrier to mining.
"There are substantial mines in New Zealand already.
"There is legislation that looks after the effects of mining so in this day and age it can be done in an environmentally sustainable manner."
He said the "exciting" study results would raise awareness of the potential for mining in Northland and encourage exploration.
The study of the potential economic effects was supported by the Crown Minerals Group of the Ministry of Economic Development and the Far North and Whangarei district councils.
Ian Bamber, chairman of the Far North district development sub-committee, said he was astounded at the survey results which provided a compelling indication of the economic potential of the largely ignored sector.
"The reports have the potential to be a very powerful economic development tool, in part because we now have robust and quality data on the potential that minerals provide in the North."
John Halse, of Enterprise Northland, said there was potential for more than 2700 extra full-time job positions being created and billions of dollars of revenue being pumped into the economy over the next 20 to 30 years.
Mining already made a significant contribution to Northland of at least $100 million each year, and was essential for maintaining infrastructure such as roads.
Revenue from cement, aggregates, limestone and china clay has Northland ranked fifth out of 15 regions in New Zealand.
Mr Halse said the study revealed that mining revenue could increase from more than $100 million a year to $354 million a year, under a scenario for realising Northland's mineral potential.
That would inject more than $683 million into the economy each year, when indirect benefits to local business were included.
Harry Duynhoven, the associate Minister of Energy, said: "I am pleased to see central and local government working together with industry on initiatives that contribute to a higher quality of decision making and planning regarding mineral wealth."
He said the Resource Management Act would ensure that mining success could be achieved in sustainable and socially responsible ways.
Wealth Creation
Northland's mineral revenue could increase to $354 million by:
* Increasing the production of aggregates (building materials) and limestone.
* Establishing a gold-silver mine.
* Mining aluminium and copper.
* Boosting silica sand mining.
* Mining commodities like bentonite, coal, feldspar, kaolinite, kauri gum, peat and zeolite.
On the web
www.crownminerals.govt.nz
