Seabed mining concerns

Nick Smith.
Nick Smith.
The Government seems headed on a collision course with environmentalists over its plans to amend legislation which could open New Zealand's seabed to mining.

The Bill to amend the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act was needed to address issues over the timing of existing consents, such as for the 36-year-old Maui gas platform.

Environment Minister Nick Smith says the law requires new marine consents for existing activities by the date the current Maui mining permit expires.

The Maui field provides 20% of New Zealand's gas and there cannot be any uncertainty over its operation.

Dr Smith says the situation has arisen because the law did not specify what activity could be continued if appeals were lodged and because the company running Maui did not apply early enough to allow for potential appeals.

The Bill will simply allow existing use, like Maui, to continue until all appeals on a marine consent applications are resolved.

The concern that some have over the amendment of the law is the timing.

The announcement by Dr Smith came a few days after the Environmental Protection Authority refused Chatham Rock Phosphate a marine consent to mine seafloor phosphate about 250km west of the Chatham Islands at depths up to 450m.

Chatham Rock Phosphate is considering reapplying for marine consent to mine phosphate nodules on the Chatham Rise seabed.

The company decided an appeal is pointless.

Even by winning on points of law, the company says it needs to go back before the same decision-making committee which it says collectively overlooked the key merits of the project, appeared to misunderstand important evidence and submissions and selectively ignored the company's information to decline the application.

Both Chatham Rock and separate company Trans-Tasman Resources have had their seabed marine consent applications rejected by the EPA.

Mining lobby group Straterra and BusinessNZ highlighted the economic loss associated with the consent denials and the negative signal to would-be investors in New Zealand.

Straterra is calling for EEZ Act changes, claiming it has major flaws.

A major opponent of seabed mining, Kiwis Against Seabed Mining, however, fully backs the authority's decision, citing the robustness of the regulatory framework of the Act as it stands.

This Government is not unknown for apparently doing backroom deals with business lobby groups or corporates wanting some sort of exemptions or expansion opportunities in return for a show of goodwill elsewhere.

The latest debacle regarding SkyCity Entertainment, where both the Government and the company proceeded to back down after public opinion turned against any use of taxpayer funds to build an international convention centre in Auckland, is a prime example.

After a wide show of people power, Prime Minister John Key backed off putting more than $100 million into the deal, and SkyCity is now talking about introducing an international investor to help fund the convention centre.

There are indications from the mining industry the Government is thinking about changing the rules around seabed mining, perhaps loosening up some of the existing restrictions.

New Zealand has the fourth-largest exclusive economic zone in the world which contains significant mineral wealth that could potentially make a substantial and sustained contribution to the economy.

One of the points made forcefully by Chatham Rock Phosphate related to the fishing industry which the company said destroys about 3000 sq km of new seafloor and re-scraped 47,000 sq km of already-damaged seafloor every year.

The company is proposing to mine just 30 sq km of seafloor every year but says it is seen as a greater threat than the fishing industry.

But if, as expected, Dr Smith does intend to consider opening up more of the seabed to mining, he needs to act with caution and consultation.

Any other approach must be rejected.

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