Northland Minerals and Research Investigation Welcomed

Today’s announcement that the Government will contribute more than $2 million to an aeromagnetic minerals survey in Northland has been welcomed by the Far North District and Northland Regional Councils.

The two Councils have signed a Memorandum of Understanding with the Ministry of Economic Development in support of the survey to learn more about which areas have the highest concentrations of valuable minerals. They have each supplemented the cost of the aerial exploration with a $100,000 contribution.

The survey will cover 12,480 square kilometres, or 1.25million hectares, throughout Northland – none of it taking in Schedule 4 land (the most highly protected land in the conservation estate) - and is expected to provide valuable data that will allow exploration and extraction in mineral rich areas.

Announcing the Government’s funding this morning, Energy and Resources Minister Gerry Brownlee said it was his expectation that the data would pave the way for “an escalation” of activity in Northland, benefitting the economy of the region.

It would also make a major public good contribution by identifying hazards associated with rock and soil instability, which would assist with the management of earthquakes and landslides.

Far North Mayor Wayne Brown and NRC Chairman Mark Farnsworth today said the Government’s investment in the Far North’s future was “significant”, with the potential for up to $10 to be generated for every $1 spent on exploration, and the two Councils would work alongside each other and the Government to explore the region’s mineral deposits.

In a joint statement, they said Northland was currently the fifth highest mineral producing region in New Zealand and the survey would unlock further potential that could add billions to the region’s economy. (The estimated value of Northland’s onshore resources, excluding petroleum, is about $47billion according to Christie and Barker; Minerals Resource Assessment of Northland; GNS Science Report 2006/7.)

“We could be sitting on a goldmine up here and the potential in terms of economic growth, wealth and job creation is real and it’s huge,” said Mayor Brown.

“The Far North is known to have the lion’s share of Northland’s minerals which include china clay, silica sand, aggregate, limestone and cement with the potential for gold-silver, aluminium or copper gold, coal and peat.”

“The Regional Council is keen to better understand what resources we’ve got in Northland and where they are so their potential use can be managed appropriately and respectfully and we can ensure areas of environmental importance are protected,” Mr Farnsworth said.

“The results of this work will be made public and will allow prospective investors in Northland a better understanding of where the potential lies. This is turn will enable them to work with the Government and local authorities to make the best possible use of those resources.”

The survey was the first stage in a course of action to determine where Northland’s mineral rich areas are, which in turn would lead to a measured process including getting the consents necessary to extract the minerals. It was unlikely that any physical activity would result from the survey for at least five years, the Councils said.

ENDS

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