State-owned Solid Energy said coal in the Inangahua sector of Paparoa National Park identified by the Government today for potential mining would almost certainly be destined for use in the domestic market.The Government today identified 7058 ha of land i
State-owned Solid Energy said coal in the Inangahua sector of Paparoa National Park identified by the Government today for potential mining would almost certainly be destined for use in the domestic market.
The Government today identified 7058 ha of land it proposes be removed from schedule four in the Crown Minerals Act, to pave the way for access for mining. The area included 3315 ha in the Inangahua sector of Paparoa National Park on the West Coast of the South Island.
Solid Energy chief executive Don Elder said his company had investigated a small and more accessible part of the area.
"We identified that there was probably between 15 and 20 million tonnes of sub-bituminous coal, or low quality thermal coal," he said.
"We don't yet know a lot more about it, but we've been having a close look," he said.
Such coal could be a relatively low cost fuel for dairy companies like Westland Milk or Fonterra's plant at Takaka and schools and hospitals.
Solid Energy had an exploration permit in the Inangahua coal field, he said.
It welcomed the Government's discussion paper released today.
"New Zealand's natural resources are worth thousands of billions of dollars.
"This is the opportunity for New Zealanders to understand the potential value of our mineral resources and to have a sensible and balanced national discussion about their use and that includes the constraints around their use. The decisions that we make today will impact on our country for decades, if not hundreds, of years and could bring significant benefits for generations to come," Dr Elder said.
The company particularly supported the proposal for a Conservation Fund which could draw on royalty revenue from mining operations on Crown land and resource special conservation projects to improve New Zealand's overall natural environment.
"We know that New Zealanders value our unique natural environment extremely highly. We also know that New Zealanders want good jobs and a high standard of living. Smart well-managed use of our natural resources, combined with a conservation fund to create long-term environmental gain will allow us to have both."
Pike River Coal general manager Peter Whittall said his company was open to looking at any options but it did not have any comment on specific areas.
Pike, which is currently mining high quality coal for foreign steel mills near and eventually under the Paparoa National Park, has said it is open to be more than a one mine company.
"We haven't reviewed the document so we are not in a position to make any comment," he said.
His company was not falling over itself to look at the discussion paper.
Business NZ chief executive Phil O'Reilly said New Zealand had in-ground natural resources worth thousands of billions of dollars and developing them could create a step change in New Zealanders' prosperity.
"These resources belong to all New Zealanders and should be used carefully in creating new industries and growing our economy.
"In taking stock of resources below the conservation estate the Government is acting judiciously on behalf of all New Zealanders.
