Minerals, Mining the West Coast, and the Future
Some thoughts at year’s end …


Whenever the West Coast’s buoyant economy gets an airing the primary drivers of this new found well-being are inevitably cited as the big three; tourism, dairying and mining. There is no doubt that New Zealand and the West Coast continue to be seen as a safe destination for the highly mobile global tourist. There is also no doubt that dairying is enjoying a time of growth of both new developments and conversions resulting in sustained production increases. Likewise mining is experiencing a period of sustained growth fuelled along by high global commodity prices and record spending upon exploration.

Historically the minerals industry proceeds through cycles of some six to ten years when global demand for resources waxes and wanes and exploration and development follow suit. A lag period of several years exists, so the product of one exploration and growth cycle often coincides with a downturn on global markets and development is stalled. However with the current global commodity prices driven by the emerging Indian and Chinese economies – comprising some 35% of the world’s population – this current period of buoyancy looks like it has a few years to run. This augurs well for our region.

Although New Zealand is well endowed with mineral wealth, it is not a country that could claim to have a mining industry or culture like that of Australia, Canada or other minerally rich countries, this is in spite of the country being kick started in the mid 1800s by the discovery of gold. But within New Zealand the West Coast is an exception. The Coast has a mining culture and mindset that sets it apart from the other areas. With a relatively small population the Coast ranks second only to the Waikato as New Zealand’s principal mineral producer, where the same three resources – coal, limestone and gold – account for a very large proportion of the output.

Irrespective of philosophical views it is hard to refute that modern society and lifestyles are intrinsically dependent upon the winning of mineral resources from the earth. Yet, in spite of historical and the current mining operations, mining is poorly understood and an often maligned, globally, nationally and even locally. Mining has negative connotations in many people’s minds. They question its worth, its value and its necessity. There is a ‘disconnect’ between the mining operation and the received benefits to the community.

I am a new resident on the Coast, just like many people I work with and chat to. I have been a new arrival in many places, and it is not until you work in a place do you start to get a feel for what establishes character. I have visited the Coast often, but have never fossicked around to try and get an understanding of the region, its communities and what makes it tick. I have dug around and come up with an eclectic mix of facts and figures that help define the region for me and put things into perspective in terms of economics, key industries and social aspects. All are from the public domain and in no particular order of importance or rank.

• Based upon feedback from key primary industries that include dairying, mining and forestry, total sales for all West Coast businesses to March 2006 were up 6% on the previous year at $3.8 billion.
• Gross Domestic Product for this same period is some $1.31 billion, nearly an 8% increase over the previous year.
• Total employment for the same period totalled some 13,582 representing a 6% increase over the previous year.
• Mining leads all other primary producers in terms of individual industry contribution to regional GDP, having increased 26.4% over the year to Mar 2006, tourism ranks second and agriculture third.
• In terms of employment the order is reversed, with tourism being the biggest employer accounting for some 4800 jobs, but in terms of growth of Full Time Equivalents (FTE) mining at 66%, exceeds both tourism (27%) and agriculture (11%)
• Mining production accounts for some 70% of all West Coast primary sector exports and exports nearly 90% of all the industry’s sales
• The most highly paid activity in the region is coal mining with all other mining combined lying about midway in remuneration rankings
• In terms of industry productivity and profitability coal mining tops the rankings and other mining combined falls about midway.
• The region has sustained economic growth of over 3% since 2000. Mining is the dominant driver and forecast to double in size in the next 4-5 years.
• The West Coast shares the lowest national unemployment rates of less than 3% with the rest of the South Island except Otago
• Together with Marlborough the Coast records the highest rates of voter turnout at local body elections in stark contrast to the principal commercial centres of Auckland, Wellington and Christchurch
• Although democracy is alive and well total turnout, the region records the lowest level along with Otago and Southland of women in local government
• The region’s total population is forecast to fall anywhere between four and 20% by 2021. This is the largest predicted decline in the country.
• The region shares the lowest hourly earnings for all wage and salaried jobs along with Tasman/Nelson, Southland and the east Coast of the North Island
• Alarmingly and perhaps of the greatest concern we have the lowest level of school leavers with higher qualifications, this figure being significantly above the national average.
• A third of our school leavers exit the region.
• Coasters are active, experience a low rate of road accident casualties and deaths, but have some of the poorest drinking water quality standards in the country. This in spite of having the nations highest supply of clean water courtesy of mother nature.
  

So, apart from the last six bullet points, you might be tempted to think that the future for our region looks good. In general I would have to agree, but also temper this with a reminder that past and /or present performance is no guarantee of future achievement. The warning signs are there: lowest hourly earnings, lowest level of school leavers with higher qualifications, and an aging workforce with no obvious replacements available. There’s some warning signs that the figures don’t show too; our transport infrastructure to export goods efficaciously is near capacity, and the time period taken to access the mineral estate is unnecessarily drawn out and uncertain and thus acts as a disincentive to future exploration activity.

Is this important, and if so, what can we do?

I believe that we need to take action on a regional not district basis on all of these points if we are to maintain or improve our lifestyle on the Coast. We need to address the quality, appropriateness and levels of education being achieved by our secondary school students. We need to address the availability of labour across the entire skills spectrum, and find ways to attract and retain skilled and qualified people. We need to develop our export infrastructure; it is our lifeline to the world. And finally, we need to investigate a more efficient management of and access to the region’s mineral estate. We must work to challenge attitudes to resource use borne out of a poor understanding of the connection between our lifestyles and what supports these.

Approached with vision, collective will and a readiness to embrace change the resources in our region managed sensibly can continue to contribute significantly and sustainably to the welfare of the all our Coast communities Industry has to be driving this, its is simply a case of self help.

This is the challenge facing the sector.


Proposed Kawatiri Heritage Park
The Minister of Conservation has received a recommendation to proceed with the proposal to establish a Heritage Park covering 146,563 Ha stretching from immediately north of the Buller River to the Little Wanganui catchment near Karamea. The proposal has been publicly notified with the submission period to close on the 2nd March 2007. The West Coast Tai Poutini Conservancy is willing to meet industry collectively to discuss the proposal should there be sufficient interest to call a meeting. If interested please advise MWC by email or phone.


Access to Public Conservation Land
In March 2006 Minerals West Coast and the Department of Conservation held a half day industry workshop in Greymouth where approximately 45 attendees aired their views and in cases frustrations with the processes and management of access to public conservation land. From this a number of suggestions were tabled for the department to investigate and consider in the effort to improve access to crown land and provide more certainty and timeliness to the application processes. Although DoC are in the process of changing and updating the way they undertake and implement statutory requirements - these are in themselves limiting - there remains some disquiet and belief that more could be done. MWC Trustees plan to meet with the Department in the Q1/07 to revisit the topic and seeks input from industry by forwarding any comments or issues effected parties would like tabled. A reminder will be sent out in early February calling for industry views.

MWC office will be closed during January.

Sincere thanks to all those organisations who have supported MWC during 2006.

Season’s Greetings to you all on behalf of Minerals West Coast and special thanks to those who have sent Xmas cards.

Enjoy Christmas, Welcome in the New Year and make the most of summer when it finally arrives.

Keith Brodie Project Co-ordinator

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