There does, however, remain a small but hardy band of NZ mining advocates, convinced that the industry can play an increasing role in the country’s future and eager to demonstrate it is able to do so in accordance with the stringent environmental guidelines set in place by Government.

Buoying the belief of this group right now are signs that the world minerals development comet, which is being propelled by strong commodity prices, has not completely passed NZ by.

For starters, the value of the country’s annual minerals output has risen three years in a row, with the figure reaching about $NZ1.1 billion in 2005.

Then there are encouraging projects such as Newmont Mining’s Favona underground development at Waihi; OceanaGold’s Globe-Progress opencut development at Reefton and the Frasers underground development at Macraes; and Pike River Coal’s namesake development at Greymouth, which are all soon to come on line.

Topping it off, mineral exploration expenditure totalled $NZ20.4 million in the 12 months to March 31, 2005 – an increase of 129% on the corresponding period in 2004 – and is believed to have since continued on an upwards trend.

Still, no one is under the impression that the NZ mining industry is close to fulfilling its potential.

In 1999, the Institute of Geological and Nuclear Sciences prepared a study that estimated there was at least $86 billion worth of mineral resources (excluding coal) yet to be exploited in NZ.

Building on this, in 2002 the NZ Institute of Economic Research undertook to model the economic effects of mining industry growth on the NZ economy and made a number of key findings, including that the industry could:

Sustain an increase in output to more than $2 billion a year;

Create employment for +25,000 people;

Increase overall export growth by 7%; and

Potentially boost GDP by 2.9%.

These findings have helped the NZ Minerals Industry Association (NZMIA) form its National Minerals Strategy (NMS), which lays out a formula for achieving the broad objective of doubling the industry’s contribution to the economy by 2015.

Arguably the biggest factors inhibiting the growth of NZ mining in recent years have been the perceived uncertainty surrounding land access and the Government’s reputation for layering the green tape when it comes to new project or expansion approvals.

Alluding to the problem, the NMS states: “Most of our mineral endowment and more than 30% of the land area of this country is Crown-owned and thus belongs to all New Zealanders. The public interest should not be confined to management of the land surface, but should also be directed at wisely using sub-surface resources.

“NZ has the capacity to develop its resources while controlling the effects of their development, and should do so. If we don’t, we will contribute to an accelerating shift in resource development to third world countries that lack our advantages of low population density, an educated workforce, well-developed infrastructure and world-class environmental performance.”

Although it has drawn fire in the past for bogging down the approvals process, NZ’s Resource Management Act – through which regional and district councils regulate mining and exploration activity – has been recognised globally as being at the forefront of natural resource legislation.

Mining companies operating in NZ say that while the requirements of the RMA may seem onerous, it is simply a case of familiarising yourself with them and compliance should not be an issue.

“We don’t find it difficult at all,” Peter Atkinson, managing director of junior explorer Heritage Gold and president of the NZMIA, told Australia’s Mining Monthly.

“We did when it was first introduced [in 1991] because no one knew how to administer it or how it was going to be administered. But now there is a decent bank of precedents set up and there’s a good understanding by both councils and the industry as to what’s required.”

According to Atkinson, one of the best examples that the RMA had embraced – or at least accepted – was Newmont’s decision to pull the sale of its Waihi Gold operations three years ago and the subsequent commitment from president Pierre Lassonde that the company would remain in NZ.

“That, to me, says the legislation can’t be any worse than any other developed country Newmont operates in,” he said.

Stephen Orr, chief executive of NZ’s biggest gold miner, OceanaGold, agreed that the RMA was no more difficult to negotiate than the permitting and regulatory systems in North America, where he began his career in the mining industry.

He added there were plenty of other factors in NZ’s favour. “You get the benefit of having a very low geopolitical risk profile, a highly educated workforce and relatively favourable weather conditions, so I think it’s an exceptional place in terms of investment.

“And the Government has become progressively more supportive of facilitating additional exploration throughout the country, particularly with the resources boom we’ve seen.”

NZMIA executive director Doug Gordon put forward...click here to read on.