Sector optimistic despite mines pledge
MAJOR players in the resource sector are in good heart, but a pall hangs over the industry as the Government decides where to take its ‘‘no new mines on conservation land’’ pledge.
With the Crown Minerals Act under review, and being opened to consultation in coming weeks, the uncertainty overshadows the annual Australian Institute of Mining and Metallurgy New Zealand branch conference in Tauranga, which attracted about 200 delegates.
To make the point of uncertainty ahead, all three of the preconference field trips to gold and coal mines were interrupted by protesters. Several were given precharge warnings by police but no arrests were made.
Protesters have not come to the conference centre.
The opening morning yesterday included updates from Oceana Gold and Bathurst Resources, who were both bullish in their respective outlooks.
As with other presenters, both noted their respective historic mining areas — in that mines had been established for some time so could not be considered new — as they both consider applying for mining consents.
The issue of ‘‘no new mines’’ will receive a formal hearing in a panel discussion today.
Director with consultants Campbell MacPherson, Tony Haworth, said the proposed ban over conservation land would be ‘‘antimining’’, and highlighted 70% of minerals were located on some form of conservation land.
If banning new mines came into force, that would ‘‘sterilise another third’’ of land, threatening more than $50 million of work.
Mr Haworth also introduced a theme running through the conference: the need for the industry to mine ‘‘green technology minerals’’, the Rare Earth Elements crucial to manufacturing solar panels and batteries, to help reduce New Zealand’s carbon footprint.
‘‘Green energy needs a raft of minerals for these turbines and for solar energy,’’ Mr Haworth said.
The ‘‘clean technology’’ needed was an opportunity for New Zealand, and had been talked up by Energy and Resources Minister Megan Woods a few months ago.
Dr Woods had been invited to the conference but was unable to attend, which disappointed most delegates.
Mr Haworth noted there had been ‘‘zero’’ finds of the rare earth elements, or of nickel, cobalt or lithium.
However, there had been $1.1 billion worth of gold, coking coal, iron sands and silver produced last year.
‘‘When you look at the broader suite of [those] minerals it’s very positive for New Zealand,’’ he said.
Oceana Gold’s general mana ger at Waihi in the central North Island, Bernie O’Leary, updated the conference on working towards extending the mine life from the current end of 2019 for another decade, through Project Martha.
It would be a combination of open pit and new underground, some of the latter under homes in Waihi — which had been done before.
Mr O’Leary said consenting submissions had just closed and he expected a November hearing, and subject to any appeals, mining could possibly start at the end of the year.
‘‘It would be the first time in decades that Waihi would have a mine life of more than 10 years,’’ he said.
Bathurst Resources chief executive Richard Tacon was similarly upbeat in his outlook, given the purchase of three former Solid Energy coal mines saw production boosted from 400,000 tonnes to 2.2 million tonnes last year, and an operating profit of almost $73 million.
There had been large export growth to India, but also Australia and Korea.
Bathurst will resume consenting for its Buller project, with the first coal expected off the Denniston plateau, above Westport, by 2022, which would build towards 650,000 tonnes annually.
On the question of ‘‘no new mines’’, he highlighted 120 years of plateau mining history with numerous mines spread over the area.
Bathurst has also taken a stake in a Canadian venture, but a court challenge for $60 million of payments from the company which sold Bathurst its Buller permits in 2010 is also on the table.
Bathurst has lodged an appeal, after losing an earlier High Court determination.