Whether there will be any relief for the minerals sector due to the Labour-NZ First- Green Party coalition becoming a Labour Party dominated Parliament remains to be seen. Green co-leader, James Shaw, has retained his position as minister for climate change, Megan Woods and David Parker have both continued as ministers for energy & resources and environment respectively. The most notable change is that of minister of conservation from Green Party MP, Eugenie Sage to Labour's East Coast MP, Kiri Allan, who so far remains an unknown quantity. There have been mixed messages on whether the previous coalition's pledge of 'no new mines' on conservation land will be carried through as a priority this term. Minerals West Coast will continue to engage with government staff and elected representatives to argue for ongoing mining industry access to public conservation land in a socially and environmentally responsible manner on a case by case basis.  

Along with the ever elusive commitment on no new mines on conservation land, the previous government had other policy proposals that were of concern to the mining industry. These included a National Policy Statement on Indigenous Biodiversity (NPSIB), changes to the Crown Minerals Act, and proposed bans on some coal boilers along with a levy on coal use.

National Policy Statement for Indigenous Biodiversity

Some of the proposals of the NPSIB could be incredibly costly for regions like the West Coast that still have large areas of native vegetation and small rating bases. Of greatest concern is the requirement for local authorities like the West Coast Regional Council to identify and map significant natural areas (SNAs).

A joint submission from the Buller, Grey, and Westland District Councils, and the West Coast Regional Council, outlined the issues with the draft statement. 

The councils’ submission drew attention to the area of the West Coast already protected by being under Department of Conservation management, and the cost of implementing some policy proposals.

For example,  the West Coast Regional Council estimated the upfront cost of of implementing the policy were as high as $4,172,000, and an ongoing cost of potentially $3,949,000 over the next 30 years – this doesn’t include direct costs to landowners and iwi, or other affected parties.

To put this in context, the annual general rating income for the West Coast Regional Council is about $2,400,000.00.

The joint council submission can be found in full here.

Boiler bans and coal levies

Just before the election, the government published the submissions on its discussion document Accelerating renewable energy and energy efficiency in which proposals had been floated on banning some existing coal boilers by 2030 (where the end use temperature is below 100°C) or banning new coal boiler installations after 2030 where the end use requirement is below 300°C, along with a levy charged on coal users per tonne of coal consumed. Coal production is already levied on a per tonne basis when it is sourced from the mine, and use is already charged through the NZ Emissions Trading Scheme. 

The Labour Party included the ban on new boilers in its election manifesto, but didn't mention a ban on existing boilers, or a coal levy.  What the government's actions will be remains unclear. 

Food producers such as Westland Milk Products, the Meat Industry Association, and Horticulture New Zealand all expressed their concern at the impacts the coal targeted polices could have on the viability of their industries in the South Island. 

In its submission, the Meat Industry Association said in its submission that a “total coal ban would incur very significant costs to the industry”, and it estimated “cost of tens of millions (of dollars) in conversion of existing coal boilers to biomass, and additional annual operating costs. Many of the South Island sites (but also some in the far north) are in areas where wood chip supplies are likely to be in short supply, making biomass unfeasible”. 

Westland Milk Products stated in its submission that the eventual conversion from coal to some form of renewables is ‘inevitable’, but stressed for the foreseeable future there are no alternatives. In its submission, Westland Milk Products said it would be “unable to access the same level of reliable energy from electricity generation due to capacity constraints on the West Coast”. It said this would not change even if the proposed Arnold or Waitaha Hydro schemes were to proceed.

The most viable alternative to coal would be wood pellets, but the investment required would possibly cost $100,000,000 over the life of the plant. It said this “could be the difference between being viable and unviable” due to the uncertainty of supply and transport logistics. 

In a joint Horticulture New Zealand, Tomatoes NZ, and Vegetables NZ submission, hothouse growers said plainly “there are no viable alternatives to coal boilers”, and that growers cannot afford the cost of transitioning”.

Radio New Zealand covered these issues on its Morning Report programme earlier this month. The story is available below.

​The Minerals West Coast 2020 forum was this year held in Reefton in September. In all about 100 delegates attended, with the event limited to that number due to the alert level two restrictions in place at the time. The focus for the 2020 forum was on the products and the outcomes of mining. Steel manufacture, food production, gold mine security, jewellery, kiwi monitoring, and water quality control were among the topics speakers covered. As well as a good line up of presentations, the event was a good chance for people in the industry to connect and catch up throughout the day and in the evening at the post-forum dinner and drinks. It was good to have attendance from West Coast local body politicians and local MPs from both the Labour Party and National Party in attendance. Machinery exhibitions from sponsors such as Aratuna Freighters, CablePrice NZ, Oceana Gold, West-Trak, and Rosco Contractors Ltd. also added to the atmosphere on the day. The day also included the launch of Minerals West Coast's industry factbook, Prospects for the future, which is available in its digital form on Minerals West Coast's website - click here to find the online copy.

Later the same day, Bill Watts, whose grandfather had worked in the historic Globe underground hard-rock gold mine, cut the ribbon on the Oceana Gold funded 'Golden Globe Theatre' in the Reefton i-Site. 

In the theatre, people can see the story of gold mining in Reefton generally and the Globe and Progress mines specifically. The video is available below.

In October One News visited Stockton mine to look at how the coal export sector has been impacted by the international drop in coal prices resulting from the Covid-19 pandemic. The story can be viewed on One News's website - click here to watch the full video.

In the past calendar year, Minerals West Coast manager, Patrick Phelps, has appeared on RNZ National's evening show, Nights with Bryan Crump, about once every ten weeks to discuss different topics relating to the mining industry on the West Coast. The final interview slot for the year was in the second week of November, and covered the future of mining on the West Coast. The interview is available below. An earlier interview about mining on conservation land, from September, is also available. 

Minerals West Coast's 2020 forum dates are set and tickets available. The theme for this years' forum is Product and will focus on the end uses of West Coast minerals. It will be held in Reefton on the 3rd of September. For full information about the forum, and to purchase tickets, click the button below. As with all industry events, time at the forum can be counted towards required CPD points for COC holders.

The impact of the rising cost of carbon under the New Zealand Emissions Trading Scheme has been taking a toll on coal reliant businesses, particularly the South Island horticultural sector.  Minerals West Coast has been working hard to bring this issue to public attention and it is encouraging to have this issue picked up by national news agencies like Radio New Zealand and Television New Zealand. 

With ongoing economic uncertainty worldwide, gold prices continue to hold high in New Zealand and around the world. In recent days the price of gold per ounce reached record levels of US$1,946.72 (Tuesday 28th July) and holding steady since then, at NZ$2,946.29/oz today (Friday 31st July). The economic impact of Covid19 combined with tensions between the United States and China are understood to be behind the high prices. 

MinEx will be holding a health and safety training workshop in Greymouth on Tuesday the 11th of August. The workshop will focus on operating and safety systems and leadership and legislation. For more information, and to register online, visit the link here.
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Federation Mining (formerly Tasman Mining ) is getting nearer starting dates for the Blackwater project to reopen the the Birthday Reef ore body. When it was last operational, the ore body had produced 730,000 oz of gold from the historic gold mine that once stood at Waiuta. The Snowy River Mine will drive twin 3.3km tunnels from the Snowy Valley, with plans to meet the ore body where the old timers left it back in 1951. Located approximately 25 km from Reefton, the site will have a small surface infrastructure footprint and will employ a local workforce with support from specialist contractors, with production targets of 60,000 oz/year once operational. Works are expected to start by September this year. 

The New Zealand Minerals Forum, organised by Freeman Media, Straterra, and AusIMM, is back online and in person, to be held in Hamilton on the 13th and 14th of October. ​The New Zealand Minerals Forum in partnership with AusIMM is a two-day conference and exhibition covering mining in New Zealand. It is designed to showcase the New Zealand mining sector to stakeholders and prospective investors, and to educate and inform the New Zealand mining community. It attracts high-level attendance from mining companies, government regulators and agencies, the investment community and service companies. After disruptions due to lock down earlier this year, the event is back. For more information and to purchase tickets, visit the forum website by clicking here.

​The threat of Significant Natural Areas and other implications of the proposed national policy statement for indigenous biodiversity has been delayed until April 2021 at the earliest – after this year’s general election on the 19th of September. The policy would have been wide reaching in its ability to prevent land use on both public and private lands. The Ministry for the Environment said in an email yesterday that delivery of the national policy statement has been delayed due to the impacts of Covid19.

​The price for units under the emissions trading scheme has been holding over $30.00 NZ a unit since the government in June lifted the fixed price option for units under the ETS up to $35.00, effectively lifting the price ceiling by ten dollars. The market has responded, and since the change the price of units has gone up to over $30.00 a unit, significantly increasing coal users’ operating costs,  to the point where some operators are beginning to question the viability of their businesses. The impacts on New Zealand businesses, food producers and processors, and schools and hospitals will grow more severe as the price continues to rise.

It remains unclear what the impact of new regulations on air quality will have on mercury use in refining alluvial gold. Submissions are due by the end of July on the government consultation document on changes to the National Environmental Standards for Air Quality. The consultation document is vague about what is being proposed, nonetheless Minerals West Coast will be submitting on the proposals, and wishes to hear from any gold miners who still use mercury to refine gold and would be effected if restrictions were put in place.

​A good turn out about 20 – 30 miners at this month’s CPD training event was encouraging. Wayne Scott, chief executive of MinEx, updated miners on obligations and new health and safety practices for quarries and alluvial gold mines. Minerals West Coast will be arranging another training event for the month of July, and information will be out on this shortly. 

​About once every 10 weeks Minerals West Coast’s manager, Patrick Phelps, features on RNZ’s evening programme, Nights with Bryan Crump. In the most recent feature, Patrick and Bryan discussed the impact of the emissions trading scheme, and the past and present  state of goldmining on the West Coast. 

On Tuesday the 9th of June Minerals West Coast and the West Coast Goldminers’ Association will be hosting a Minex training night, including a presentation from Minex chief executive, Wayne Scott.

Wayne will speak to attendants about changes to the mining operations and quarrying regulations, and what these changes will mean for your mining operation, as well as when they take effect.

Mr Scott will also present on the health and safety code of practice for alluvial mining. This is a how-to guide that has been developed by Minex in collaboration with alluvial goldminers. Wayne will talk to attendants about the guide’s content, and how to use it.

There will also be general discussion on health and safety issues, codes of compliance, and WorkSafe requirements.

The even will be held at the West Rugby Clubrooms in Hokitika, and drinks and refreshments will be provided - RSVP or there won't be enough to go around.

​CPD points will be available for those who attend. Please email Patrick Phelps on manager@mwc.org.nz to register to ensure we can prepare certificates of attendance.
If you have any questions about this event, please phone Patrick on 021 238 6846.
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Date: Tuesday, 9th June
Time: 6:30pm
Venue: West Rugby Clubrooms, Brittan Street, Hokitika

In anticipation of an announcement later today on when New Zealand will return to alert level three, MinEx, the health and safety council for New Zealand's mining and quarrying sectors has prepared a template to help extractive businesses develop a safe working plan for how to operate at alert level three in compliance with the restrictions outlined. A copy of this template can be found here.

New Zealand Petroleum and Minerals, as part of the Ministry of Business, Innovation, and Employment, is encouraging companies and businesses to read the guidelines on the government website, which can be found here, to ensure they are aware of what rights and obligations exist at alert level three. MBIE says the main points are:

• The parts of a business deemed essential at alert level four will be able to operate at level three in the same manner
• The parts of a business deemed non-essential at alert level four may be able to start again, provided this can be done in a way that meets the guidance on the government’s website
• Parts of a business that cannot meet with the government guidelines will not be able to operate

MBIE says for any issues that require clarification they can be contacted by email at energymarkets@mbie.govt.nz

The demand for coal and gold and the ability for these resources to be extracted safely due to the nature of mining operations involving a degree of separation has attracted the interest of the media as the lock down has worn on. 

Mining’s role in the West Coast economy will ensure stability as the country relaxes restrictions over the coming weeks and months. This will be underpinned by a high price for gold due to global uncertainty and the metal’s ‘safe-haven’ status compared to shares and currencies, as well as consistent demand for thermal coal for food production and space heating within New Zealand. 

The outlook for export coal remains uncertain but will rely on the recovery of Asian and North American economies, and their country’s own status handling Covid19, and of course, demand for steel. A good piece on this topic can be found on Inside Resources. 

Last week Radio New Zealand ran a story discussing the possibility of the West Coast relaxing restrictions earlier than other parts of the country due to a low number of cases to date, and the ability to vet anybody entering or exiting from the region through four access roads. The story also discussed the prospects for the mining industry returning to work as operations can be carried out safely and separately. 

Greymouth based gold miner and chair of the West Coast Regional Council chairman, Allan Birchfield, also argued the case for gold mining resuming as soon as possible. Speaking to Radio New Zealand he ventured gold mining is not only an industry that can operate safely but could also be deemed essential. The full story can be found on RNZ’s website. 

​Minerals West Coast has also argued this point and sought support from West Coast local politicians for a return to business as soon as safely possible, within whatever regulations as would allow operations to be carried out. Local body politicians from the Buller, Grey, and Westland districts have all been supportive in this respect. For further information, click here.

This year Minerals West Coat manager, Patrick Phelps, started in an evening slot on Radio New Zealand’s show, Nights with Bryan Crump. The most recent interview covered the state of the West Coast coal industry in 2020, and its classification as and essential service through the alert level four lock down.

​The first slot, earlier this year, was largely an overview of the history of mining on the West Coast and is included below. 

​West Coast Tasman MP and Minister for Agriculture, Damien O’Connor, confirmed in a radio interview on The Country coal mines for domestic coal consumption would be needed during the four week lockdown for Covid19. Mr O’Connor said “Clearly coal is a necessary part of heating for hospitals and schools, though they’re closed down, and for the dairy and other food sectors, and that needs to continue, but we don’t need coal mining for export, and those are the things we’re working through for industry, they need clarity, they need to explain how they’ll mine their contracts and their supply going to domestic needs.”

Bathurst Resources is still working through what the impact will be for their operations at Stockton, and how many staff will be needed for care and maintenance and environmental monitoring. ​

Alluvial miners should seek advice from WorkSafe and from local authorities such as regional councils regarding their obligations for environmental monitoring and the ability to visit sites for security reasons while New Zealand is in lockdown. MBIE officials told Minerals West Coast they are working through what obligations miners will have to fulfil in this time but will most likely defer to the judgement of authorities like WorkSafe, the Ministry for the Environment and regional councils. West Coast Goldminer’s Association president, Brett Cummings, said there will be serious consequences for anyone mining during this time, and would not recommend “pushing it”, but considers visits to mine sites for monitoring environmental issues and security essential, especially in the event of heavy rain or floods so water quality can be monitored and remedial measures can be taken. 

​The issue of mining on conservation land will no doubt take a back seat as the country grapples with containing the virus, nonetheless word that any decision on banning mining on conservation land (announced in the government’s speech from the throne in November 2017) has been kicked for touch till after the general election. Damien O’Connor said in the Grey Star last month there would be no moves on the issue before the election, and the Greens have since confirmed they are having difficulty in getting the ban confirmed. This gives miners time to make a case for the industry retaining access to the conservation estate. 

​Minerals West Coast submitted on the indigenous policy statement for indigenous biodiversity in March this year. The submission covered all aspects of the discussion document relative to the mining industry and can be found in full here. Minerals West Coast’s submission included interviews with miners and landowners for their opinions on how their lives and incomes would be affected by losing control of their land or having it effectively confiscated by the government, and how in such cases compensation should be paid. The submission also included photographs showing the regrowth of native forest after mining operations have ended. It’s unknown when the final policy will be released. 

A lack of cost-effective alternatives and the danger of sending emitting industries offshore and becoming reliant on food imports were front and centre in Minerals West Coast’s submission to the government’s discussion document Accelerating renewable energy and energy efficiency. The full submission can be found in full on our website by clicking here. The use of coal makes production of dairy, meat, and fresh fruit and vegetables possible, while staying competitive with imports domestically and competitors internationally. New Zealand produces food which boasts a smaller carbon footprint than most other producers in the world, and coal is crucial to doing so.

​With the measures being taken to contain Covid19 it is uncertain when we will be able to again hold CPD training evenings and events like the Minerals West Coast forum and field day. An evening session with Wayne Scott, chief executive of MinEx, the entity responsible for health and safety in the extractives sector, had been planned but has been postponed due to the nationwide lockdown. Once the lockdown is over, Minerals West Coast will reschedule this event. Wayne will give a presentation introducing the new training requirements and regulations for mine and quarry managers and supervisors. This will most likely be in May, but is subject to meeting and travel restrictions. 

On Tuesday the 18th of February Ministry for the Environment staff will be in Hokitika at the Beachfront Hotel at 6:00pm.

The meeting is being held to discuss with West Coast miners the details of proposed Significant Natural Areas and other implications of the National Policy Statement on Indigenous Biodiversity.

The outcome of any new laws or regulations will impact those in the mining industry operating on either public or private land, as this relates to levels of protection given to native wildlife and vegetation, irrespective of land ownership.

For any questions regarding the meeting or its contents, please contact Minerals West Coast manager, Patrick Phelps.      

The government is making changes to the Crown Minerals Act. This will effect all miners on the West Coast. It's vital West Coast miners make their voices heard in Wellington.
The government is not giving much time. The deadline for the submissions is Friday the 20th of December 2019.

Minerals West Coast will be submitting on behalf of our members and any other parties who wish to make their voices heard. We will be holding meetings in Ross, Hokitika, Reefton, Westport, and Greymouth during the week starting Monday the 2nd of December through to Friday the 6th. Details on the submissions roadshow are available at the bottom of the page. If you can't make it but still wish to contribute please get in touch. If you wish to make a submission as a business or an individual, Minerals West Coast is happy to help.

Click here to read in full the discussion document released this week. 

It is made up of eight chapters, some of which are not relevant to West Coast miners as they relate to the petroleum industry and marine/offshore issues. The chapters relevant to miners are summarised below.

Chapter One: Role and purpose statement
This chapter outlines what submitters think should be the role and purpose of the Crown Minerals Act. The main points are:

• Whether other factors should be considered when granting a permit (social, environmental etc).
• Whether the purpose statement should be changed from "the purpose of the Act is to promote prospecting for, exploration for, and mining of Crown owned minerals for the benefit of New Zealand". There's a big emphasis on whether the word promote should be changed to "manage", or "administer", or something else. They seem very hung up on this one.

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Chapter Four: Community participation
The guts of this chapter is whether the public should have more say in permits being granted. We'll be arguing strongly against this. 

Chapter Five: Maori engagement and involvement
This chapter focuses on what the government can do to increase Maori engagement with permit holders. There seems to be an assumption within the questions that Maori are opposed to mining. We plan to engage with local Iwi, and seek feedback from our members on their experiences, what works, and what can be improved. 

Chapter Six: Compliance and enforcement
This chapter discusses new regulations and powers that may come into the Act. This covers changes to regulations, penalties for offences, cancelling licenses, and record keeping. 

Chapter Eight: Technical amendments
There are several proposed changes that will effect our industry in good ways and bad if they become law. 

• Updating the process for serving notices and documentation within the CMA - this is to ensure information sent from New Zealand Petroleum and Minerals has been received by the intended recipient.
• Including a high level environmental capability assessment for a change of permit operator for Tier 1 permits.
• Annual Summary Reports will be done electronically.
• Processes for appointing an arbitrator in relation to land access - that is to say when a land access agreement can't be reached between a party who has permits for prospecting, exploration, or mining, and the person who owns/occupies the land.
• Scrapping the yearly reassessment of permit status (deciding whether it's Tier 1 or Tier 2) by the Minister to reduce administrative burdens for both the government and permit holders.
• All prospecting permits will be Tier 2 only, regardless of the mineral.
• Proactively releasing information available to the public. Information that is confidential under the present Act will remain confidential. What is being proposed is that to have more transparency, information the public can access by request under the current law will be released proactively under the new law. 
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As discussed, the deadline for these submissions very tight. About four weeks in total, or twenty four working days. Given the time limits, Minerals West Coast will be holding small evening meetings with miners in main West Coast mining towns to gain as much input as possible from our members. Venues will be confirmed as soon as possible, but the times and dates for each townships are listed below to allow anyone interested in attending to make arrangements. 

If you have any questions, please contact Patrick Phelps by either phone (021 238 6846) or email at manager@mwc.org.nz

​​OceanaGold started developing Globe Progress mine in Victoria Forest Park near Reefton in 2005, with mining starting soon after. During the mine's life it employed about 200 full time staff and indirectly supported contractors and suppliers. In total it produced 610,000 ounces of gold. Mining ended in 2015, with full closure at the end of 2016. Replanting and rehabilitation was ongoing while mining was underway, but is now in full swing.