In a speech to the Minerals West Coast Forum energy and resources minister Simon Bridges reiterated that minerals make an important contribution to the New Zealand economy which the government wishes to support.
The sector contributes more than $1 billion to GDP according to Bridges. He says there are still more people working in the mining industry across the country than there was a decade ago.
Bridges says the government will support efforts to seek out more mineral mining opportunities as it did investing more than $4 million in aeromagnetic surveys of Northland and the West Coast in 2011 and 2012.
It will be spending a further $6 million on regional aeromagnetic surveys over more than 23,000 square km across Nelson, Marlborough, parts of Otago, and Southland.
The aeromagnetic survey over East Nelson and Marlborough covers an area of more than 3700 square km (3749km).
“This area has been previously mined on a small scale for base metals such as copper…there is the potential for other metallic minerals including nickel and platinum group metals,” says Bridges.
There is very little limited data over most of the area. We are seeking to change that,” he says.
An aeromagnetic survey over Otago and Southland will cover an area of nearly 20,000 square km (19,460km).
There has been some aeromagnetic coverage over Otago in the past – the new surveys will help build a consistent picture of prospecting over the whole region according to Bridges.
The Otago survey areas are prospective for gold and tungsten, similar to that found at MacReas large gold mine north of Dunedin.
The survey areas around Queenstown and Southland are prospective for chrome, nickel and platinum group metals.
These surveys are staged, with East Nelson-Marlborough and Otago-Southland surveys expected to begin in November. The North Otago survey is expected to begin in November next year.
The data also contributes to the geological understanding of New Zealand and has numerous other uses. It can be used to support geological mapping, forestry, agriculture and horticulture, geological hazard assessment, and engineering and construction investigations.
“That is why we are working with councils who may want to contribute so that the surveys can be extended and we can gain as much as possible from the whole endeavour,” says Bridges.
In his speech to the forum Bridges also suggests the demand for coal will return.
“Though exports, particularly for coal, are down we can have confidence that in the medium to long term, demand will return,” says Bridges
“Coal is still a major source of energy for industry in the South Island, including being used to heat schools and hospitals. The demand for coal to fuel more dairy processing has strengthened our domestic market.
“I am encouraged by the fact that New Zealand Petroleum and Minerals continue to see healthy levels of permitting activity.
“There are currently more than 900 (922) mineral prospecting, exploration and mining permits across the country with a further 163 permit applications being processed by NZP&M.
“More than 400 (408) mineral permits or permit changes were granted last year.
“It’s good to see Stevenson Mining is working to develop the Te Kuha coal deposit, just north of Westport. The coal is, of course, valuable for blending with other West Coast coals for export.
“Stevenson is currently in the process of obtaining land access arrangements prior to applying for resource consents. And the project has the support of Buller District Council.
Bridges says that gold prices are stable and gold production in New Zealand remains relatively steady.
“New Zealand’s gold assets have recently attracted the significant Australian gold producers Newcrest Mining and Evolution Mining, and Oceana Gold is increasing its presence through the proposed acquisition of the Waihi gold mine from Newmont,” says Bridges.
“Silver City, who were awarded a permit in the Bay of Plenty as a result of the 2013 Epithermal Gold tender, are “highly encouraged” by the geological work they have done so far – and there has been wider interest in exploring for gold in the central North Island,” he says.
Bridges says it’s heartening to see New Zealand’s minerals industry remains resilient, adaptive and ready to seize opportunities.
“We’re seeing this in Trans Tasman Resources’ application to explore for iron sands off the West Coast. This latest proposal shows continued interest in the offshore minerals domain.
“Another example is the recent interest in garnets on the West Coast – which have huge potential to be used in manufacturing and industrial processes.
“This year NZP&M have received close to 30 permits to prospect or explore for garnets in the West Coast’s mineral-rich sands,” says Bridges.
“Garnets are one of the only natural abrasives not being replaced with synthetic materials due to their superior hardness and ability to be recycled,” he says.
