The property rights of mining conservation areas

For any new Government policy, Robin would probably have asked "what property rights are involved? Who holds them? Who is trying to change them?"

So looking at Brownlee's conservation-mining proposal through a property-rights lense, I note that:
1. The property rights are initially held by the Crown as the land is public conservation land. Conservation areas are 'public common goods'.
2. That initial allocation does not change if a conservation area is mined. The miner never has full freehold title. The asset, and any liabilities, remain with the Crown, when mining ceases. For example, the Crown has ended up with a $NZ10 million liability for the Tui mine.
2. The Crown's property rights are restricted by statutes such as the National Parks Act 1980 and the Conservation Act 1987 which provide generally that such public land is to be managed for conservation purposes.
3. However, Section 61 of the Crown Minerals Act 1991 provides the exception; a statutory access process for mining within conservation areas.
4. Section 61(2) provides the specific matters that the Minister (of Conservation) must consider.
5. Schedule 4 of the Crown Minerals Act 1991 prohibits mining access via the Section 61 to certain high value conservation areas.

So, the 'property right' to mine in a conservation area is a privilege to be applied for, not an exclusive right. And it is 'prohibited' from even a case-by-case assessment under S 61 of the Crown Minerals Act 1991 in some conservation areas by Schedule 4 of the Crown Minerals Act 1991.

So Schedule 4 and Section 61 act as an 'allocation plan' for a restricted subset of property rights, the right or permission for a private company to mine, subject to conditions, within a conservation area.

But miners don't need exclusive property rights to mine and will want to avoid ownership liabilities such as orphan mines like Tui mine. Also, the relevant case law, the Buller Electricity case says that the Minister of conservation cannot dispose of conservation areas for social or economic reasons.

So the Crown Minerals Act provides a Crown guarantee for mining Crown land, as well as providing a process that gets round the obvious inconsistence of mining with 'management for conservation purposes' statutory objective.

National is proposing to change this 'allocation plan' by increasing the conservation areas allocated to 'access-on-application'. The minerals, once mined, are certainly private goods owned by the miner.

The Brownlee conservation-area-mining plan is therefore a transfer of property rights from the public to private interests.

Like a postage stamp on Eden Park

Gerry Brownlee was on TV1 'Close Up' last night and on 'Morning Report' today using his best new soundbite. The magnitude of the area of conservation land that will be opened to mining will be "like a postage stamp on Eden Park".

I sent off this email to Morning Report.

"morningreport@radionz.co.nz

Subject: Gerry Brownlee Mining

Last year, Dr Jan Wright, Parliamentary Commissioner for the Environment, recommended that the Government legislate to ensure 111 old mining licences be brought under the RMA. National and Gerry Brownlee completely ignored her.
Therefore, RATIONALLY speaking, Gerry Brownlee and National have absolutely no credibility in declaring mining of conservation areas to be environmentally responsible.

Yours sincerely"

The failure to action the PCE's recommendation shows to me that National have no real interest in mitigating the environmental effects of mining. Their talk of mitigation and compensation is just greenwashing to assist the mining industry.

National's mining of conservation areas

It's time to understate both the conservation values of conservation areas listed in Schedule 4 of the Crown Minerals Act 1991 and the environmental impacts of mining and overstate the benefits of mining within conservation areas.

Gerry Brownlee and Kate Wilkinson have released their mining conservation areas proposal. Its also on Scoop.

Their statement includes a classic oxymoron in the first paragraph. The discussion paper contains "a suite of measures to facilitate the environmentally responsible development of New Zealand's extensive mineral estate".

It gets worse. The statement includes the same grossly superficial nonsense argument that the proposal is environmentally acceptable as the newly opened areas for mining will be so small compared to the areas protected. Brownlee says:

"7,058 hectares is just 0.2 per cent of Schedule Four land. Moreover, if that land subsequently saw mining development, only around five per cent of the land might actually be mined - as little as 500 hectares. This is nothing like the vast tracts of land suggested to date by the environmental lobby".

But as I previously posted, it is Brownlee and Key who are playing fast and loose with misleading and/or factually incorrect areas of mining.

Brownlee says that of the 7,000 hectares to be reclassified, only 5% or 500 hectares might be actually mined. Didn't John Key tell us in his statement to Parliament that all mining in New Zealand only had a footprint of 50 hectares? Oh well, whats the big deal about a factual error of an order of magnitude between National cabinet ministers?

The proposal is covered by Fairfax and more acerbically by No Right Turn, who has also described National as the "Government of Orcs".

Ruahine Corner and back

On Saturday, Sunday and Monday I went tramping in the Ruahine Ranges to Ruahine Corner Hut. I went with 'Dr Fi' and her running and multi-sport friend Pip. The trip was:
Friday afternoon. We drove over the Rimutakas and up the east coast via State Highway 50 until we were about 40-50 km from Hastings. Just after Tikokino we turned off SH50 onto Kereru Road, then Big Hill Road, then along Mangleton Road.
Saturday. Masters Shelter, Golden Crown ridge, Aranga Hut, Main Range, Piopio, spot height 1503, Potae, Ruahine Corner. A 12 hour day.
Sunday. Walk across Ruahine Corner airstrip, follow stoat trap line down a spur to Ikawatea Forks Hut, walk up the non-maintained track to Trig 1407m to 'No Mans'. An 11 hour day.
Monday. Walk south along the range to the junction with Golden Crown ridge, drop down to Masters Shelter and drive back to Wellington.

Paramedic Media Stars against mining in conservation areas

My best mate, the Paramedic Media Star, is also strongly opposed to more mining in conservation areas. He has also written to the Government.

Dear Minister

I am extremely concerned about the Prime Ministers statement to Parliament that the Government intends to make "significant changes to Schedule 4 of the Crown Minerals Act ... to increase economic growth and create jobs".

By definition the land covered by Schedule 4 is of the highest conservation values and includes National Parks - "...areas of New Zealand that contain scenery of such distinctive quality, ecological systems, or natural features so beautiful, unique, or scientifically important that their preservation is in the national interest." National Parks Act (1980).

The Prime Minister then stated incorrectly that only 40 square km of land is mined in NZ. That figure is straight from the website of the Minerals Association. The correct figure is over 200 square km (Parliamentary Commissioner for the Environment), not including the land area for access requirements in the form of roads. The fact that the Prime Minister has used an incorrect figure from an association representing private sector mining companies, rather than his own Commissioner, is telling.

The economic benefit of mining is a one off with an on-going cost of the environmental clean up. Contrary to the PM's assertion that it is surgical mining analogous to keyhole surgery, the vast majority of mining is not of this nature and the huge issue is pollution of waterways in particular. Tourism and the intrinsic worth are sustainable; extractive mining is not.

Pristine wilderness areas such as those covered by Schedule 4 can only diminish as the world demands more resources. New Zealand is one of the few countries with legislation permitting mining to occur in National Parks. This has tarnished our reputation amongst international conservation organisations. Indeed, Australia, our closest neighbour held up as wealthy because of its mineral resources, bans mining in National Parks.

As Minister of Conservation, what are you doing to up hold the National Parks Act, that " [National Parks] shall be preserved as far as possible in their natural state...in perpetuity for their intrinsic worth"?

Our company worked on the film Avatar which was mostly filmed at Peter Jackson's studios in Wellington. Avatar is proving to be one of the most popular and profitable films in history connecting with mass audiences all over the world. One of the keys messages in Avatar, as the bulldozers destroyed the pristine wilderness of Pandora to mine the precious mineral "Unobtainium", was -"can't you see - the real wealth doesn't lie underground, but above the ground - it is all around you (in the eco-system)."

It appears that the National Government is ignoring this message.

Yours sincerely

Johnny Mulheron
Sideline Safety Ltd

Johnny will no doubt also go on the list of people that John Key's office will advise to expect a considered answer from the hon Ann Tolley, the part-Minister of Education.

Sierra Club and IUCN say 'mining in conservation areas: WTF?'

Metiria Turei and the Greens have highlighted that the Sierra Club has formally written to the Government to say what on earth are you doing thinking about mining in conservation areas. The Greens have made public a copy of the Sierra Club's letter.

The International Union for the Conservation of Nature has also commented on what message is sent by New Zealand, a relatively wealthy country, considering resource extraction from areas set aside for conservation of biodiversity.

I guess John Key's office will advise both groups that they can soon expect a considered answer from the hon Ann Tolley, the part-Minister of Education.

John Key owns shares in a mining company

I have just realised why John Key's private secretary has forwarded my email about mining in conservation areas to the Hon Ann Tolley, the part-Minister of Education.

It's to avoid conflicts of interest!

John Key owns shares in a mining company.

Hat-tips
TV One's Q & A current affairs program
Register of Pecuniary Interests of Members of Parliament: Summary 2009. Scroll through to page 36.

This has generated a few headlines.

Key criticised over shares in uranium mining company.

Key steps into a political minefield.

Actually, I think this is a side issue to the main issue that Key and Brownlee are using factually incorrect information to argue for mining in conservation areas.