NewsUpdate on Cabinet Decisions to Amend the Crown Minerals Act

Cabinet has now made decisions on the consultation document that suggested controversial reforms to Schedule 4 of the Crown Minerals Act 1991 (see the government press release here).

Mining on conservation land requires an access arrangement from the Minister of Conservation. An access arrangement cannot be made, except in limited circumstances, for any land that is included in Schedule 4. Schedule 4 was inserted in 1997 and includes most national parks and marine reserves and other land of high conservation value.

Unlike most schedules, Schedule 4 can be amended by the Minister of Energy and Conservation after public consultation (s61(4) and (5)). The discussion document proposed both removing and adding conservation lands.

No land is to be removed from the protection of Schedule 4 and additional land is to be included. Other important decisions have also been made by Cabinet. Some of these decisions will require amendment to the Crown Minerals Act and other Acts that govern the status of conservation land. Changes to legislation are likely to include:

• Currently access arrangements on conservation land require the approval of the Minister of Conservation (Hon Kate Wilkinson). Cabinet has decided that both the land holding Minister and the Minister of Energy and Resources should approve an access arrangement.
  
• A further amendment to mineral-related access arrangement provisions will be required to enable Ministers to take into account economic, mineral and national significance criteria. This will be an material change because the current legislation restricts considerations to the purpose for which the land is held i.e. conservation and relevant management plans. Other "relevant" matters are currently able to be considered but it will be a significant change to have economic criteria specifically listed.
• Certain categories of land (i.e. national parks and marine reserves) will be automatically included in Schedule 4 when that status is conferred. To balance this automatic inclusion any reclassification of land will require the sign-off of cabinet to ensure that economic factors are considered. The press release suggests that all reclassifications of conservation lands will require cabinet approval. The change from the Minister of Conservation's sole sign off in the Conservation Act (ss8 and 18), Reserves Act 1977 (s16) and National Parks Act 1980 (s7) to the approval of cabinet would require amendment to these acts.
• Significant applications to mine on conservation land will now be publically notified. There is no information on what the rights of submitters will be beyond the ability to submit i.e. whether or not there will be a mandatory hearing and whether submitters will have any appeal rights. If the process follows the Conservation Act then submitters' rights will be limited. 
• Metiria Turei currently has a member's bill that would require legislation, rather than regulation, for the removal of land from schedule. The bill was introduced in May and it has been suggested that the Government will consider supporting it.
  

The new areas to be included in Schedule 4 will be inserted by October this year. Legislation required to implement the other decisions is expected to be introduced late this year. Presumably any amending legislation will considered by select committee with the requisite public submission process. We will analysis the amending legislation once it becomes available.

For further information on mining please contact Mark Christensen or Stephen Christensen.