GOVERNMENT’S DRAFT ENERGY STRATEGY AND CLIMATE CHANGE POLICY
SUBMISSION BY NEW ZEALAND MINERALS INDUSTRY ASSOCIATION

Sustainable Strategic Approach
We regard our mining and quarrying operations as forms of progress that meet present needs without compromising the ability of future generations to meet their needs.

Accordingly we regard sustainability as a business approach that integrates environmental, social and economic aspects to ensure the long-term supply of minerals (aggregates, ironsands and stone to the built environment, coal for energy, industrial minerals for our primary industries – horticulture, milk, meat, wool – gold and base metals for balance of payments and strategic uses) – to our society.

We hope the Government shares our view in its approach to developing New Zealand’s Energy Strategy and Climate Change Policies.

Critical to developing an Energy Strategy is to recognize and use the country’s naturally endowed proven and potential resource assets – water, coal, oil and gas; sun, wind and sea wisely. Wisdom would dictate an environmentally responsible approach to optimise energy security (independence from imports using world best technologies and practice) whilst increasingly benefiting the socio-economic well being of all New Zealanders on a level as possible playing field.

Proportionality and Competitiveness – Fairness and Equity
Proportionality should drive our global climate change response.

The perceived problem is global. Our emissions are 0.2% of the world’s. The quanta and rate of the measures we choose ought to be proportional and in phase, fair and equitable, with our competitors not only without risk to our domestic economy but also conferring added value and benefit to it.

All sectors need to be treated fairly and equitably to avoid market distortion and ensure political support and longevity.

Climate Change Policy Performance Criteria
Should:

• Maximise social and economic benefits.
• Avoid, remedy, and mitigate environmental impact.
• Be least cost, economically efficient, and incentivise technology change.
• Be administratively and politically durable, equitable and have where possible co-benefits.

Industry’s Contribution to Emissions Management
We will continue to work with the Government to develop policy that sets balanced long-term social, economic and ecological goals, which provide for increasing benefit to New Zealanders and that incentivises sound technology applications within a certain investment climate.
That may include revitalisation of voluntary emissions management agreements and possibly a form of emissions trading.
For emissions trading in New Zealand’s best interests it ought to involve least cost methods of abatement; be measured against criteria including those above – and should not be introduced until:

• There is a mature and stable international market, with global coverage, liquidity and depth for a New Zealand market to link into.
• New Zealand’s trading competitors face similar equivalent proportional costs to avoid competition risk and leakage.
• Transaction costs would need to be minimal, recognising previous/historical emission reduction efforts – and mindful of New Zealand’s size – proportionality.

About NZMIA
NZMIA represents 17 corporate mining and quarry companies who account for about 1% of New Zealand’s GDP and provide 12,000 jobs, directly and indirectly. There exists the potential to increase our contribution two to four times this. Members produce 95% of the hard rock gold, about 90% of the country's coal, ironsand and steel, china clays, lime, and industrial minerals, over 50% of the country's aggregate and cement, and provide over 90% of all exploration expenditure. In addition there are 19 associate members who are providers of advice, knowledge and equipment to the minerals industry.

Minerals Industry Advisory Committee – MIAC
Constituted from industry-wide CEO level representatives beyond NZMIA membership to include Aggregate and Quarry Association of New Zealand and New Zealand Engineering, Printing & Manufacturing Union.

National Minerals Strategy
Includes vision to double economic contribution of sector by 2015 from one to two percent GDP and create an additional 12,000 jobs.

Underpinned by GNS Science 1999 report New Zealand Minerals Potential and 2002 NZIER project Quantifying the opportunity cost of New Zealand’s mineral potential. Funding contributions from Aggregate and Quarry Association of New Zealand, Crown Minerals – Ministry of Economic Development.

Critical Issues Identified
Public perception of sector’s behaviour towards the natural environment. Access to minerals.

Website
www.minerals.co.nz was created in 1998. Series of downloadable teaching modules, fact sheets on sub sectors for schools as part of a long-term outreach programme.

E-Newsletter
Created in 2006 and produced monthly.

Environmental Code of Industry-wide Practice
Created in 2006. Supported by Aggregate and Quarry Association of New Zealand and New Zealand Engineering, Printing and Manufacturing Union.

Health and Safety
Industry-wide Underground and Surface Codes of Practice created mid-late 1990s. Funded by Department of Labour WorkSafe programme. MinEx Health and Safety Council created 2006
.
Minerals Industry Technology Strategy
Created in December 2001. Prepared by NZMIA with support of Aggregate and Quarry Association of New Zealand, Crown Minerals – Ministry of Economic Development, GNS Science.

Enabled NZMIA to negotiate the FRST earth sciences strategic portfolio outline beneficent to the funding of GNS minerals project.

The ‘Outreach Project’ funded by FRST through GNS Science drives Strategic Initiatives 4 and 5 – Regional Economic Development. The purpose is to improve the RMA operating environmental Regional Policy Statements, Regional Plans and District Plans for minerals and to stimulate regional development through them, e.g. Otago Airborne Geophysical Survey, Opportunity Cost of Northland’s Minerals, Hauraki, Thames, Coromandel Economic Development Strategy. It also complements Strategic Initiative 5 – Geological Mapping and Surveying of New Zealand’s Mineral Estate by Adding Value to Knowledge of the Estate. Inputs from Crown Minerals - analysis of Regional Policy Statements. Joint approaches to Franklin and Waikato District Councils Proposed Plans by NZMIA and Aggregate and Quarry Association of New Zealand.

DoC Access
Guideline for access to minerals on the conservation estate for low impact prospecting and exploration drafted between NZMIA and DoC in 2006. Awaiting ascension to DoC website.

Climate Change Issues
NZMIA’s watching brief in conjunction with Greenhouse Policy Coalition and Coal Association of New Zealand. Submissions on various legislative proposals.

Extractive Industries Training Organisation – EXITO
The Industry Training Organisation established by Aggregate and Quarry Association of New Zealand and NZMIA now shared by a number of other sectors.
Creation of a skills and training strategy under construction.

Regulatory Environment
Together with the Resource Management Act and Conservation Act alluded to above, improving the regulatory framework under the Crown Minerals Act has been a major focus of NZMIA efforts complemented by those from Coal Association of New Zealand, West Coast Commercial Gold Miners Association, Minerals West Coast, central and local government.

Membership

Corporate Members	Associate Members
Aurora Minerals	Anderson Lloyd Caudwell
Auzex Resources	Boart Longyear Drillwell
CanAlaska Ventures Ltd	Doug Hood Mining Ltd
Geopex Ltd	GNS Science
Glass Earth Ltd	Golder Associates (NZ) Ltd
Heritage Gold NZ Ltd	Gough, Gough & Hamer Ltd
Holcim (New Zealand) Ltd	Harrison Grierson Consultants Ltd
Imerys Tableware New Zealand Ltd	HWE Mining - Leighton
McDonald's Lime Ltd	Kenex Knowledge Systems Ltd
New Zealand Steel Ltd	Lane Neave
Neptune Resources New Zealand Ltd	Metso Minerals (New Zealand) Ltd
Newmont Waihi Gold Ltd	MWH New Zealand Ltd
Oceana Gold (New Zealand) Ltd	NSK New Zealand Ltd
Omya New Zealand Ltd	Olex New Zealand
Solid Energy New Zealand Ltd	Orica NZ Ltd
Transform Minerals Ltd	Phillips Fox
Winstone Aggregates	Simpson Grierson
	URS New Zealand Ltd

Douglas B Gordon
Chief Executive Officer
New Zealand Minerals Industry Association
PO Box 5039
Wellington

Telephone: 04-499 9871
Fax: 04- 499 9873
Email: nzmia@xtra.co.nz

30 March 2007