Crown Minerals Act Review

Feb 2010

However, most environmentalists strongly oppose the review, believing any amendment to Schedule 4 could have significant negative effects on the most important and precious parts of New Zealand's conservation estate.

The review could have significant implications for the mining industry.  The Government has indicated that it wishes to open more conservation land up to “environmentally responsible mining”.  This would provide the mining industry with the opportunity to access minerals which are currently unavailable to them.

Following the release of the discussion document there will be a six week public consultation period, allowing for public submissions and feedback.  Given the significance of this review it is important that both those within the mining industry, and those strongly opposed to amending Schedule 4, become actively involved in the review process.  This public consultation period will provide all parties with an opportunity to have their say before any final decision is made.  It is intended that a final paper seeking policy approvals will be before Cabinet by June 2010.

Under the Act no prospecting, exploration, or mining can take place on land managed by the Department of Conservation without the Minister of Conservation agreeing to an access arrangement.  Schedule 4 prevents the Minister of Conservation from entering into any form of access arrangement for mining, except in very limited circumstances, in the following areas – national parks, wilderness areas, nature reserves, marine reserves, scientific reserves, wildlife sanctuaries, and a number of other sites specifically listed within Schedule 4 as deserving of protection.

There are some very limited circumstances in which access arrangements may be granted to areas listed in Schedule 4 including; to enable the construction, use, maintenance, or rehabilitation of an emergency exit or service shaft for an underground mine; to enable any mining operation that does not result in the stripping of vegetation over an area exceeding 16 square metres or any permanent adverse impact on the profile or surface of the land; to allow a minimum impact activity; to allow gold fossicking; and to allow demonstration of historic mining methods.

The Act provides a procedure to allow Schedule 4 to be amended on the advice of the Minister of Conservation and the Minister of Energy.  An assessment of the particular scientific value for which the land is held and the value of any crown minerals in the land must first be undertaken.  A consultation process must also be followed whereby the Ministers must consult with those groups who are likely to be substantially affected by the amendments, or are representative of some aspect of the public interest.

The review of mineral potential in protected conservation areas is part of the Government's new enthusiasm for more mineral exploitation to assist stronger economic growth.

In response to a question during Parliamentary question time from Green Party Co-Leader, Metiria Turei, the Minister of Energy and Resources, the Hon Gerry Browlee, described the intention of the review as:

 …to identify areas of land in Schedule 4 where the conservation values are relatively low but mineral potential high.  The Government will consider removing those areas of land from Schedule 4 so that environmentally responsible mining can take place on very small sections within that land. New Zealand is a mineral-rich country, and responsible mining of low-value conservation areas can contribute significantly to job and economic growth in this country. (Questions to Ministers, 15 September 2009)

In his Statement to Parliament the Prime Minister stated that the discussion document will recommend some land be removed from Schedule 4 while other areas be added.  He indicated that significant changes to Schedule 4 will be made:

The discussion document will recommend that some areas of Crown land be removed from Schedule 4 and in addition that some areas currently not in Schedule 4 be added to it.

Notwithstanding the public consultation process, it is my expectation that the Government will act on at least some of these recommendations and make significant changes to Schedule 4.  This is because new mining on Crown land has the potential to increase economic growth and create jobs. (Prime Minister's 2010 Statement to Parliament, 9th February 2010)

If you have any interest in the review of Schedule 4 and would like to be kept updated on its progress please contact our Resource Management Team.