The Schedule 4 Debate

This term has been in the news a lot recently. Schedule 4 is a section of the Crown Minerals Act. A government review of Schedule 4 will be released later this month. What is the debate all about?

  • Schedule 4 identifies land administered by the Department of Conservation (DOC) that is currently unavailable for any surface mining activity.
  • Underground mining that disturbs only a very small area on the surface is permitted as long as it meets the requirements of all the other applicable laws and regulations.
  • Areas included in Schedule 4 include national parks and nature reserves, but also areas that do not have the same significant conservation value.
  • About 40% of conservation land (around 13% of all of New Zealand) is in Schedule 4.
  • The Ministry of Economic Development (MED) and DOC are reviewing Schedule 4 land to determine conservation areas that should be added or removed.
  • The government is also proposing a stocktake of minerals in Schedule 4 land.
  • The review will 'determine areas possessing significant mineral potential that, with the removal of the access prohibition provided by Schedule 4, could, through responsible mining techniques, contribute considerably to New Zealand's prosperity.'

The Favona underground mine portal and stockpile footprint is small compared to surface mining.

The Favona underground mine portal and stockpile footprint is small compared to surface mining.

 

An award-winning example

At present a mining permit can be granted in Schedule 4 areas but the amount of land permitted to be disturbed on the surface is limited to a very small area.

It is possible to construct a portal outside the Schedule 4 area, on privately owned land, and then mine under it. The Pike River coalmine that operates under the Paparoa Range is an example.

This mine has been described as a showcase and recently received an award from DOC for the environmental consideration it has demonstrated. Conservation Minister Tim Groser stated, 'Pike River Coal has shown it is possible to undertake a full-on commercial activity with significant economic benefit to the West Coast and the country - and still safeguard the outstanding natural environment it is working in.'

 

What if ...

...the stocktake identifies minerals in areas that are considered to be of significant conservation value?

Does this mean mining will be allowed to happen anywhere?

Definitely not. It would not mean that a mining company could knock the top off Mount Moehau or level the Pinnacles. Such proposals would never meet the requirements of the Resource Management Act (RMA). A change in Schedule 4 would not be an automatic licence to mine. It is distinctly possible that an area of land could be removed from Schedule 4 but any proposed activity could still not be granted resource consents.

Mining DOC land

Can mining occur on DOC land now?

Yes, with restrictions, and subject to all other applicable acts, regulations and consents. There are already 82 mining concessions on DOC estate throughout New Zealand.

What about the 'Green Line'?

The 'Green Line' refers to all conservation land north of the Kopu-Hikuai Road and the entire foreshore on the Coromandel Peninsula. All of this land is contained in Schedule 4. As such, the peninsula is open to underground mining now, or surface mining on privately owned land.

When the 'Green Line' was put in place some environmental groups incorrectly claimed to have succeeded in banning all mining on the Coromandel Peninsula, with the exception of current operations such as in Waihi. This inaccurate claim has not been widely challenged.

Do councils, mining companies and activist groups talk to each other?

In August 2009, after 12 years of hearings and mediation, Thames Coromandel District Council, environmental groups, the MED and the New Zealand Minerals Industry Association signed consent documents resolving appeals relating to the activity status of mining in the Thames-Coromandel district.

The agreement reached included:

  • Generally all mining would be prohibited in the area around Mt Moehau on the northern tip of the Coromandel Peninsula.
  • Surface mining would be prohibited in specified coastal areas and in urban and industrial areas.
  • Surface and underground mining are classified as discretionary or non-complying activities on the rest of the peninsula and companies would need to apply for resource consent to operate in these areas.

Can I have a say on the government's proposals?

Individuals will have a chance to express their views by making submissions. We encourage everybody to say what they think based on the facts.

Newmont's View

The review doesn't change the way Newmont Waihi Gold conducts its business.

NWG has long been aware of the high conservation values of areas within this region. We respect the significance of our region's conservation values to residents, absentee land owners, iwi and New Zealand as a whole. The consent documents signed off in 2009 between conservation, mining interests and Thames Coromandel District Council clearly demonstrates the ability of each side of the debate to reach agreement on areas of prohibited mining and further restrictions, appropriate mining methods (underground) and activity status under the District Plan consent process.

Newmont has a 20 year track record of working with communities in Waihi and more recently in regional exploration works undertaken in Onemana and Opoutere. As with any issue we encourage agencies or individuals with concerns to discuss them with us directly.

Newmont's interest is in high grade deposits in relatively low-value conservation localities that can be mined by small footprint underground methods. The RMA consultation process is rigorous and transparent and will be in place for all consent applications. The review will require public consultation as well before any alteration to legislation. As a mining company we will be one voice in the review process alongside community, conservation and governmental groups.