Tender Opens: Minerals Exploration In Central Volcanic Zone
Tender Opens For Minerals Exploration In Central Volcanic Zone
The government’s second competitive minerals tender, New Zealand Epithermal Gold 2013, opened today.
The tender for exploration permits is open to companies interested in exploring for metallic minerals over 8,040.3 square kilometres of the Central Volcanic Zone, located across the Bay of Plenty and Waikato regions of the North Island. The area is known to contain epithermal style gold and silver deposits in both extinct and active geothermal fields.
Land listed as unavailable for mining under Schedule 4 of the Crown Minerals Act is automatically excluded from the tender. It also excludes areas of significance and sensitivity to iwi and hapū, including that around the Rotorua Lakes, Mokoia Island, the Hinehopu, Lake Rotoiti and Lake Ōkātaina Scenic Reserve, as well as Rotorua City and Taupo township.
“The government wants to manage any interest in minerals exploration, strategically,” says David Binnie, General Manager of New Zealand Petroleum & Minerals, a branch of the Ministry of Business, Innovation and Employment.
“The competitive tender process is a fair and effective way to do this. It is not a financial bidding process. A bid has to outline how the company proposes to explore the area over the period covered by the permit. Our evaluation ensures that only the most capable operators are granted exploration permits and the opportunity to carry out responsible exploration activities.”
“Only through the investment of the exploration companies is it possible to identify whether there are economically viable minerals deposits. Exploration is the first step in a long process that eventually may or may not lead to mining activity. However, there are potential benefits for local and regional economies of exploration and mining activities.”
The launch of New Zealand Epithermal Gold 2013 follows consultation with 99 affected iwi and hapū and 13 local authorities between 26 March and 19 July 2013. Twenty-two submissions were received by New Zealand Petroleum and Minerals to the proposal, with the feedback helping shape the make-up of the final tender area.
“The government is committed to ongoing engagement with iwi and ensuring that wahi tapu are respected,” says Mr Binnie. “As part of this we encourage information sharing with iwi for the protection of cultural sites. The terms and conditions of the tender also require permit holders to engage with iwi and to report back to NZP&M annually.”
Companies interested in exploring for minerals have until January 2014 to submit staged exploration work programme bids. Under the terms of the tender process a company may apply for more than one permit in the tender area, with the size of any one permit limited to 7,500 hectares.
New Zealand Petroleum & Minerals evaluate the bids across a number of criteria including the applicant’s proposed work programme, technical and financial capability, iwi engagement strategy, risk management and health and safety and environmental practices. NZP&M expects to grant exploration permits, which will be issued under the new Crown Minerals Act, in May 2014 for an initial five-year period.
More information is available at: http://www.nzpam.govt.nz/cms/minerals/competitive-tender/2013/epithermal-gold-2013
A
minerals competitive tender involves a number of
steps:
Background
1. Iwi and local authority consultation – to seek feedback on a tender proposal.
2. The tender – when companies provide a work programme based bid to explore in a certain area; companies can put in multiple bids.
3. Evaluation of bids – undertaken by New Zealand Petroleum & Minerals, it includes a rigorous assessment of all bids against the criteria, terms and conditions of the tender.
4. Award of exploration permits.
If successful, a company will be awarded an exploration permit for five years but this may be extended for a period up to, but not exceeding, 10 years from the commencement date of the permit.
An exploration permit gives the permit holder the exclusive right to explore minerals over the area specified in the permit only. It does not give the permit holder holder automatic access to the land – this must be negotiated with the landholder (who could be a council or private landowner).
Companies must meet strict health and safety obligations and any environmental requirements set by a regional authority under the Resource Management Act consenting process.
Exploration activities typically include land based and aerial surveys, geological mapping, geochemical sampling of rocks, and exploratory drilling. This work helps to build understanding of the geology of the permit area and to identify mineral deposits. Any discoveries are then evaluated for their commercial feasibility. Exploratory drilling would proceed on a small footprint within an exploration permit area.
An exploration permit does not include mining rights – any company that wishes to start mining will have to apply for a new permit and meet additional health and safety and environmental requirements. A mining permit is awarded for a much smaller land area than an exploration permit, with the actual mine footprint at any one time is much smaller again.
The minerals sector in New Zealand contributes around $20 million each year in government royalties and over $1.1 billion to the New Zealand economy. This goes towards funding of public services including health, education and roading.
New Zealand Epithermal Gold 2013 – Iwi and Local Authorities Consultation
Iwi consulted with (99)
Hauhungaroa 2C Block
Incorporated
Hauhungaroa Partnership
Hauraki Māori
Trust Board
Hinengakau Development Trust
Horahora
Marae
Kapenga Māori Trust
Lake Taupo Forest
Trust
Maketu Taiapure Committee of
Management
Mangorewa Kaharoa Te Taumata
Trust
Maniapoto District Maori Council
Maniapoto
Māori Trust Board
Maroanui Hapu
Mataatua District
Maori Council
Mokai Hapu
Nehenehenui Regional
Management Committee
Nga Potiki A Tamapahore
Trust
Ngāti Hako Treaty Settlement Negotiators
Ngati
Korokī Kahukura Trust
Ngati Korokī Kahukura
Trust
Ngāti Mākino Iwi Authority
Ngati Maniapoto
Marae Pact Trust
Ngāti Maru (Hauraki) Treaty Settlement
Negotiators
Ngāti Maru ki Hauraki Inc
Ngāti Pikiao
Iwi Trust
Ngāti Pūkenga Iwi ki Tauranga Trust
Ngāti
Ranginui Iwi Society Inc
Ngāti Rangiteaorere Claims
Committee
Ngati Rauhoto Land Rights Committee
Ngāti
Rongomai Iwi Trust
Ngāti Tahu Ngāti Whaoa Runanga
Trust
Ngāti Tamaterā Treaty Settlement
Negotiators
Ngāti Tarāwhai Iwi Trust
Ngāti
Tūwharetoa (Bay of Plenty) Settlement Trust
Ngāti
Tūwharetoa Fisheries Charitable Trust
Ngāti
Uenukukopako Iwi Trust
Ngati Whare Iwi
Ongaroto
Marae
Opepe Farm Trust
Puketapu 3A Block
Inc.
Raukawa Settlement Trust
Rautahi Maori
Committee
Rotoma Trust
Tainui Hapū Environmental
Management Committee
Tapuika Iwi Authority
Trust
Taumata WiiWii Trust
Tauranga Moana District
Maori Council
Tauranga Moana Maori Trust Board
Te
Arawa Federation of Māori Authorities
Te Arawa Lakes
Trust
Te Arawa River Iwi Trust
Te Au Māro o Ngāti
Pūkenga
Te Iwi o Mua-Upoko Inc
Te Komiti Nui o Ngāti
Whakaue Trust
Te Kono Te Aho and Te Taka Trust
Board
Te Kotahitanga o Te Arawa Waka Fisheries Trust
Board
Te Kupenga o Ngāti Hako Inc
Te Mana o Ngāti
Rangitihi Trust
Te Maru o Ngāti Rangiwewehi
Te Maru o
Rereahu Trust
Te Pūmautanga o Te Arawa Trust
Te
Putahitanga o Nga Ara Trust
Te Rohe Potae O Rereahu
Maniapoto
Te Roopu O Ruatahuna
Te Roopu Whakaruruhau o
Ngati He
Te Runanga A O Te Whanua
Te Runanga Ngai
Tamawhariua Inc
Te Runanga o Ngāi Te Rangi Iwi
Trust
Te Runanga o Ngāti Awa
Te Runanga o Ngāti
Kearoa - Ngāti Tuarā Trust
Te Runanga o Ngati
Manawa
Te Runanga o Ngati Pikiao
Te Runanga O Ngati
Rangitihi
Te Runanga o Ngati Whakaue ki Maketu
Te
Runanga o Ngati Whare Iwi Trust
Te Runanga O Te
Whanau
Te Runanganui O Te Arawa Inc
Te Ruunanga a Iwi
o Ngāti Tamaterā
Te Tokanga a Noho RMC
Te Whanau A
Hikarukutai Hapu
Te Whanau A Maruhaeremuri Hapu
Trust
The Proprietors of Taharoa C Block
Tiroa 'A' &
Te Hape 'B' Trusts
Tuhoe Tuawhenua Maori Trust
Board
Tuhoe Tuawhenua Trust
Tūhourangi Tribal
Authority
Tuhua Hikurangi RMC
Tūwharetoa Hapū
Forum
Tūwharetoa Māori Trust Board
Tūwharetoa
Settlement Trust
Uenuku Tribal Authority
Waikato –
Tainui Te Kauhanganui Incorporated
Waikato Raupatu River
Trust
Wairaka Trust
Wairoa Maori Committee
Waitaha
Hauoranga Trust
Waitaha Raupatu Trust
Waitaha Resource
Management Committee
Whakarawa Ahu Whenua
Trust
Whanganui River Maori Trust Board
Local Authorities consulted with (13)
Horizons Regional
Council
Ruapehu District Council
Waikato Regional
Council
Otorohanga District Council
Matamata-Piako
District Council
South Waikato District Council
Waipa
District Council
Taupo District Council
Waitomo
District Council
Rotorua District Council
Bay of
Plenty Regional Council
Whakatane District
Council
Western Bay of Plenty District Council
ENDS