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MINING
MINING IN NORTHLAND
Within the definition of mining there are a wide range of activities between a small quarry for
road metal to a major open cast mine. The potential benefits and impacts vary with the scale of
the operation.
In Northland there have been some relatively low level mining operations over time. China clay
is mined in the Kaeo area (Matauri Bay); limestone for cement production is extracted from the
quarry at Hikurangi, and at Portland; and sand for construction needs is extracted on and off
shore.
In 2009 Northland produced 3.6 million tonnes of minerals with a value of $36 million. From
2007 the Far North District Council and the Northland Regional Council supported an aerial
survey of mineral resources. The data was then analysed and made available to industry, and
formed the basis of exploration bids currently being considered by Government (with decisions
due in April).
Mineral resources identified in Northland include gold, copper, aluminium, antimony,
manganese, mercury, lead and zinc. Of these gold has the most favourable current economic
prospects.
As well as land based prospecting and mining there are possibilities of offshore activities. The
nature of these activities and the potential impacts differ greatly from their onshore
equivalents.
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MINING INTERNATIONALLY1
Global mining activity is dominated by 15 major companies, all with balance sheets of over $5
billion. Over 1000 “junior” companies with balance sheets under $10 million do much of the
initial exploratory work for the major companies. Initial prospecting in Northland can be
expected to be undertaken by these junior companies.
Mining is the second biggest global economic activity, after food production; and with
associated activities accounts for 40% of global GDP. The total value of projects being currently
developed is $735 billion.
While the products of mining are mainly found in urban environments, mining itself is an
activity which impacts rural communities.
THE STATUTORY CONTEXT
The Crown Minerals Act
Permits for exploration, prospecting and mining are issued by NZ Petroleum and Minerals, who
report to the Minister of Energy and Resources (currently Simon Bridges).
Initial exploration and prospecting may involve only “low impact activities”, some of which such
as aerial surveys require no access to private land. If there is a need for access, such as to
collect rock samples or to conduct other low impact activities, the permit holder has to give the
land owner a ten day notice of the date of entry, the nature of the work, and contact details. 2
For Māori land the permit holder must “ensure that reasonable efforts have been made to
consult with those owners of the land”, and must give ten days’ notice to the “local iwi
authority”3.
While there are constraints relating to wāhi tapu, and some Treaty settlements have cultural
redress provisions for restrictions, there are in reality no other ways of denying access for these
“low level activities”.
For activities which have more than “low impact” permission to enter private land is required,
and compensation can be paid to the land owner.4
1
Information in this section is from a paper presented to the Northland Economic Development Group by Wayne
Brown, mayor of the Far North District Council.
2
s49 of the Crown Minerals Act
3
s51 of the Crown Minerals Act
4
S76 of the Crown Minerals Act
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The Resource Management Act
Activities, other than the low impact ones, will generally require a resource consent (and even
some low impact activities could potentially impact on cultural values and heritage resources
and could arguably require a consent).
Higher impact activities are subject to the usual hierarchy of RMA planning instruments –
National Policy Statements and National Standards; the Regional Policy Statement; regional and
district plans.
While potentially some activities could be granted a non notified consent, it is probable that
most applications would have some degree of notification.
Treaty Settlement
The Crown has consistently refused to include mineral rights in Treaty settlement redress.
ECONOMIC BENEFITS
As with any potential development, proponents talk up the economic benefits; and opponents
question them.
It has been estimated that a small gold mine in Northland would bring well over $100 million
into the regional economy5. The challenge for any community where there are mining activities
is to retain the maximum amount of that economic bounty.
Waihi provides an example of what can happen. Over the last 25 years more than $4 billion
worth of gold has been extracted, but Waihi has been measured as having the lowest score on
the Social Deprivation Index. The formerly poor community has remained poor. And while
there are jobs in the mine, many of the top jobs have been taken by people coming into the
community rather than by locals.
If Northland is to benefit from future mining there will need to be effective preparation. For
instance, work force development through appropriate skills training could make jobs more
likely to go to locals. The Northland Economic Development Group is considering how greatest
benefit for the region can be derived from future mining development.
5
Wayne Brown
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It should be noted that while Taranaki as a region has benefited from its petrochemical
resources, iwi there have had ongoing problems with the industry.
ENVIRONMENTAL IMPACTS
Quarries and other smaller mining enterprises can have environmental impacts, but reasons for
concern generally arise from the larger operations.
For example, mining for gold can be economic when a few grammes per ton are extracted. This
requires the pulverising of rock, and usually treatment with cyanide. The waste tailings from
the rock, ground to a flour like state, usually contain toxic heavy metals associated with gold. In
the example of Puhipuhi mercury and other such elements are present. While these would be
slowly released over millennia through natural processes, their concentration in tailings
leachates can present a major problem.
Tailings are stored in large storage ponds or dams, and settle over time. The design of the
holding areas and long term security of these tailings can be problematic. Release of heavy
metals from Puhipuhi, for example, could impact directly on Whangaruru Harbour and its
kaimoana.
There has been concern nationally and internationally about the effects of “fracking”.
The term ‘fracking’ is a contraction of ‘hydraulic fracturing’ – injecting fluid
containing sand and chemicals at high pressure to fracture rock.
…….
The purpose of fracking is to extract previously inaccessible oil and gas from the
earth’s crust.6
In the Parliamentary Commission for the Environment report on fracking it concluded:
The risk of environmental damage from fracking depends on where drilling – and
indeed fracking – takes place. In geological terms, New Zealand is very ‘young and
active’. Drilling should only take place with great care, if indeed at all, if it is in the
vicinity of major faults or aquifers which are used for drinking water or irrigation.
Knowledge of the depth and extent of aquifers and of groundwater flows is also
critical because contaminants may travel.
6
Evaluating the environmental impacts of fracking in New Zealand: An interim report Parliamentary Commission
for the Environment November 2012
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Any fracking would require a resource consent. The Regional Policy Statement give high level
protections for water quality and other resources (currently under review). Any application
would be evaluated using the Water and Soil Plan, which is due for review next year. The
current operative Water and Soil Plan does not deal with mining (or fracking) specifically, and
its soil disturbance and water bore provisions did not anticipate these activities.
It is acknowledged that information on Northland aquifers is limited.
Under the RMA, plan change preparation must “take into account” iwi planning documents.
The Ngatiwai Aquaculture Management Plan has provided strength to many arguments during
process of the NRC Coastal Plan change for aquaculture. A similar focused planning document
could address mining prior to the review of the NRC Water and Soil Plan.
The potential for extreme offshore drilling’s negative effects was demonstrated by the Gulf of
Mexico incident. While this is a high impact / low probability event, the potential effect on the
marine environment from a similar occurence here would be disastrous. It is less likely that
there would be applications for such an activity within the 12 miles of the coastal marine area,
and therefore would not be regulated under the RMA but under the new EEZ statute.
LESSONS FROM SAND MINING
The sand mining offshore from Pakiri was supported in principle by the Board, in preference to
onshore sand mining of sand dunes. The project was carefully examined to ensure that the
environmental impacts were minor and appropriately managed. The Board also negotiated a
payment per tonne for sand extraction.
International best practice for mining requires companies to gain a “social licence” to operate,
and seek to establish “Impact Benefit Agreements”. These agreements are similar to RMA side
agreements, which was the format of the arrangement for the sand extraction.
A NGATIWAI RESPONSE
Ngatiwai Trust Board should:
1. Ensure that the relevant agencies make contact for any proposed activity which can
have impact in the rohe.
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2. Monitor the work of the Northland Economic Development Group with respect to
mining.
3. Consider Treaty Settlement cultural redress provisions relevant to mining.
4. Inform owners of Māori land as soon as practicably possible when there are permit
holder notifications of intent to enter the land.
5. Endeavour to establish side agreements beneficial to the iwi with mining operators,
without any compromise in environmental standards.
6. Develop an iwi planning document for mining to be taken into account in the NRC Water
and Soil Plan review, which would include:
a. Provisions for low impact activities and their potential impacts on cultural values.
b. Conditions for notification of consents, and iwi consultation requirements.
c. Provision for identification and protection of aquifers.
d. Monitoring processes to include resourced iwi participation.
e. Template consent conditions for a range of mining activities.
f. Prohibited activities in specific locations.
RECOMMENDATION
This paper is adopted as the basis for a mining policy.
Adopted 31 May 2013