Foreshore bill could deter investment - minerals industry

The minerals industry voiced concerns yesterday that the Marine and Coastal Area (Takutai Moana) Bill would create uncertainty for operators and deter investment.

Bernie Napp, senior policy analyst for Wellington-based mining industry representative Straterra, told the Maori Affairs select committee that more clarity is needed with regard to existing rights and access arrangements.

The bill protects existing permit rights and resource consents but permit holders are worried that they may be blocked from upgrading exploration to production permits if customary marine title is granted in the interim period.

Mr Napp acknowledged that the minerals industry is accustomed to seeking permission rights from existing private property rights holders, including iwi.

“The only problem is changing the rules midstream,” he said. “It's a bit like someone trying to build a 20 storey building and the city council changing the rules when they get to the 13th floor,” he said.

Todd Energy general counsel Chris Hall told the select committee that the bill eroded the company’s ability to explore and produce petroleum – which, he said, is in the national interest as well as in the company’s own.

Todd Energy supports the government’s objective of restoring Maori customary interests, in particular the ability to seek customary marine title before the courts.

But the company wants all claims to be negotiated through the court system and for the proposed scope of customary marine title holder rights to be limited.

Apart from petroleum, ironsands are the mineral resource most likely to be affected by the bill.

At least three companies - Trans Tasman Resources, Rio Tinto and Fortescue Metals - hold exploration and prospecting resources for ironsands, largely located on the north-western coast of the North Island.

Petroleum operations within the marine and coastal area include offshore structures and pipelines associated with the Maui, Kupe and Pohokura fields in Tarankai, though only Pohokura has wells located inside the 12-nautical mile limit.