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Conservationists are celebrating after an Australian mining company abandoned plans to prospect for precious minerals in one of the South Island's most picturesque areas.
But they remain wary of other companies planning future forays in the top of the South Island.
Bonaparte Diamond Mines had been given permission by Crown Minerals New Zealand to prospect over almost 3400 sq km around Farewell Spit and Golden Bay, including seabed up to 12 nautical miles offshore.
The company reportedly pulled out because of more lucrative opportunities overseas.
"I'm greatly relieved by [the] decision, because the proposed mining could have been extremely damaging for the marine environment around the beautiful areas," said Green Party MP Metiria Turei.
"The risk of damage to the seabed and marine life on the seabed is very high from this type of activity, and there are also potential dangers for marine mammals. Given the area's proximity to several marine reserves and national parks, it would have been disastrous to have such environmentally dangerous activity going on in this area."
Forest and Bird, which joined iwi and community groups to oppose the prospecting, was also relieved.
"The natural environment here is one of the most precious assets of our region," said field officer Debs Martin.
"We are enormously pleased that this valuable natural heritage will not be threatened by commercial exploitation by a foreign-owned mining company."
Ms Turei said the lasting concern was that Bonaparte's departure was "nothing more than a lucky break".
"The only reason they have abandoned their plans is because they feel they have more lucrative opportunities elsewhere. There are no regulatory provisions that would prevent a similar proposal from going ahead in future."
The Crown Minerals Act allowed prospecting permits to be issued without consultation, except with local iwi.
"The Government has promised to amend the law, but the change so far has not been forthcoming. In fact, another permit application is already under way in an adjoining area."
Australian company Crossland Resources is seeking an exclusive prospecting permit in a 745 sq km area which includes part of Kahurangi and Abel Tasman national parks, in the top of the South Island.
