A Minerals Industry Association proposal calling for New Zealand's mining - worth about $1 billion annually - to be more than doubled by 2010, is to be considered by Industry Minister, Max Bradford. Calling for a large increase in mining of non-metallic and metallic minerals, including coal, gold and silver at sites around New Zealand, the Association is urging the Government to increase its research and development funding from $3 million a year to $426 million to advance present projects and new initiatives. It also wants industry investment to rise from $15 million a year to $60 million.

The potential to double production values is supported by an inventory of New Zealand's mineral resources, written for the Association by Tony Christie and Bob Brathwaite of the Institute of Geological & Nuclear Sciences. A comparison of New Zealand's past total mineral production with other countries indicates considerable undeveloped mineral potential, particularly in metallics and non-metallics apart from limestone. New Zealand has large resources, although not well quantified, of a range of non-metallic minerals and aggregates, adequate for domestic demand on the foreseeable future. Large resources of coal and ilmenite coastal sands, determined by previous exploration, could support increased and new production for export. In addition to current production of gold, silver, iron and vanadium (from titanomagnetite ironsand), there is potential for the discovery of deposits of most metals. The best potential in the next few years is for gold, silver and platinum group metals, and to a lesser extent copper, zinc and lead.

The report outlines a scenario for an increase in mineral production from the current $1 billion to more than $2 billion annually by 2010 by:

• An increase in production of most non-metallic minerals, aggregate and ironsand to past maximum annual levels.
• Development of high value products from bentonite, perlite, processed silica and zeolite.
• Development of known ilmenite deposits near Westport and Barrytown, which could produce 10,000 tonnes/year of high grade titanium oxide.
• An increase in coal exports from the West Coast, including at Mt Davy and Pike River, to boost production from 3.5 million tonnes to more than 5 million tonnes by 2010.
• Exports of groundwater for the overseas bottled water and mineral water markets.
• Expansion of gold and silver production from existing mines at Waihi and Macreas, together with the development of new deposits in Otago and the Coromandel and the known resources at Reefton.
• The proving up and development of a platinum-palladium deposit, such as that currently being explored in the Longwood Range of Southland.
• To obtain and sustain an increase in production of this order, mineral exploration expenditure would need to increase from the current level of $5 million to about $40 million by 2010. The increased production would not require mining on conservation land presently 'locked up' under Crown legislation, though mining on some conservation land is not ruled out.
• Mineral Association Executive Director Doug Gordon pointed out that present day environmental law guaranteed that mining would be carried out responsibly, with minimal effect on the environment. Renewed mining promised considerable wealth to local communities, along with 25,000 jobs in the broader industry and an increase in mineral exports from $400 million a year to $1 billion.

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