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Mining needs takeoff

Mineral exploration is risky and, although politicians have occasionally made brave speeches supporting it.

Fri, 15 May 2015

The government’s well intentioned plans to lift economic performance include further development of extractive industries.

For instance, in job-starved Northland, Economic Development Minister Steven Joyce lists mining as fourth in a list of sector priorities. A government-backed aero-magnetic survey shows potential for a significant lift in earnings from mining.

But mineral exploration is risky and, although politicians have occasionally made brave speeches supporting it, bureaucrats who could help remain unengaged, unhelpful and risk averse.

Immigration officials warn migrants about the risks, driving this potential source of capital into houses in Auckland and government bonds. Yet the Chinese, for example, understand risk.

NZ Petroleum and Minerals (NZP&M) is lost in the bowels of Ministry of Business, Employment and Innovation. Its officials never visits prospectors and demand drilling expenditure programmes often well ahead of the required fieldwork to minimise the risk in expensive drilling.

There is no co-ordination with other departments such as Conservation, which can take years just to grant permission to wander over its land where it is within prospecting permit areas.

Permit fees are not used to help inform the local public of the benefits of mining, in the way that driver licence fees are used to publicise road rules.

NZP&M lumps onshore minerals with offshore petroleum to the detriment of both and adding to public confusion.

Environment ministry staff need to be made aware the elements in the periodic table are natural and exist in the environment. They are not the result of some fiendish chemical terrorist.

What is needed is a small conference involving only those who are prepared to put money into the sector plus senior representatives of the various departments who can help, rather than hinder this potentially job-rich sector.

Wayne Brown has an engineering degree and is a fellow of the Institute of Professional Engineers and a former Far North Mayor

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Mining needs takeoff
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