31 May 2006

Northland’s mineral potential largely untapped

Two studies released today have found that considerable potential exists to expand Northland’s minerals industry and enable the industry to contribute further to the region’s economic development.

The ‘Mineral Resource Assessment of the Northland Region’ and ‘Northland Mineral Resources Potential Economic Impacts’ studies were prepared by GNS Science and the New Zealand Institute of Economic Research respectively. Both studies used the scenario of increased mineral production to determine what additional economic benefits could be gained for the region.

“The studies estimate that Northland’s metallic and non-metallic mineral deposits are valued at $33 billion,” Harry Duynhoven said today.

“Metal resources have the greatest potential to contribute to the regional and national economy as their markets are highly developed, unlike those for non-metal resources which are constrained by the need for specialised industries.

“By increasing Northland’s current mineral production from $58 million to $354 million per annum, the studies found that the total value of Northland’s economy could increase by $683 million.

“Under such a scenario, an additional 1,127 full time jobs could be created in Northland’s mining sector and a further 1,596 jobs in other sectors of the region’s economy.

“I am pleased to see central and local government working together with industry on initiatives that contribute to a higher quality of decision making and planning regarding mineral wealth,” Harry Duynhoven said.

The Resource Management Act will ensure that mining success can be achieved in sustainable and socially responsible ways.

A copy of the reports can be found at the Crown Minerals website: www.crownminerals.govt.nz

ENDS

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