Northland opened to mineral explorers after consulting iwi, councils

BUSINESSDESK: Bids have been invited for minerals exploration permits in Northland after consultation with local iwi and councils.

The Ministry of Economic Development's Petroleum & Minerals unit has put up for grabs the right to explore for metallic minerals in a 5537sq km block of land north of Whangarei and south-east of Kaitaia.

The tender will manage competitive interests in the exploration of metallic minerals, with companies able to apply for one 7500ha permit in the region.

Submissions close on December 7 and will be evaluated by a government panel, with five-year permits awarded to successful bidders in April next year.

"The government is determined that growth from minerals development happens. The focus now is on better understanding the metallic minerals potential of the area," Energy Minister Phil Heatley said.

"The tender opens the door for us to realise the significant potential for New Zealand to grow the economic contribution made by minerals."

The prospect of mining in Northland has divided the local community - those opposed to exploiting natural resources and those supporting economic growth in a region with traditionally high unemployment.

New Zealand's minerals' sector brings in about $20 million in government royalties annually and contributes over $1.1 billion to gross domestic product, a report by the New Zealand Institute of Economic Research says.

It also says increased mineral development in Northland will help provide better jobs, income and support for surrounding industries like retail and hospitality.

"Northland's mineral wealth means new jobs and new wealth for Northland," Mr Heatley said.

The area excludes Ninety Mile Beach, Cape Reinga, land known as Warawara, land listed as Schedule 4 of the Crown Minerals Act, the Waipoua Forest, Trounson Kauri Park Scenic Reserve and land where permits already exist.

Ministry officials will continue to engage with local iwi through the tender process to find ways to protect culturally significant sites and discuss options for Maori economic development.

Last week, the ministry put 23 oil and gas exploration blocks up for tender. They cover more than 40km of offshore seabed and 3km of land in the Waikato, Taranaki, Tasman, the West Coast and Southland.

That tender closes on October 15.