12. CHRIS AUCHINVOLE (National) Link to this
to the Associate Minister of Energy
Is he satisfied with his and Crown Minerals’ handling of the recent mining permit application 50100 from Macdonald Investments Ltd; if so, why?
Hon HARRY DUYNHOVEN (Associate Minister of Energy) Link to this
Yes, and I also think the people of the West Coast deserve to know whether that member supports development of resources on the West Coast and local jobs.
Hon Harry Duynhoven Link to this
I raise a point of order, Madam Speaker. Due to the noise, I could not hear the first bit. Could the member begin the question again, please?
Madam SPEAKERI know that it has been a long time for members to sit in their seats but would they please keep the level of noise down, so we can hear.
How many non-compliance notifications did Crown Minerals issue to Macdonald Investments Ltd regarding its previous exploration permit on the West Coast of the South Island, given that section 39 of the Crown Minerals Act requires the Minister to revoke a permit if the holder does not comply with the agreed conditions?
Hon HARRY DUYNHOVEN Link to this
First, I think the member should be accurate in what he says in his questions. The permit had not yet reached the end of its period. However, there were three issues: Macdonald Investments Ltd had 22 work obligations to comply with in its exploration permit. It did not comply with three of those obligations. These were to complete a review of drilling requirements of work on Dobson and Rapahoe, to drill the Fosters Farm prospect, and to re-enter Card Creek-1. I am advised there was a change of technical management at Macdonald Investments Ltd, which led to a review of what was considered to be best practice, in order to advance towards mining of this resource.
Maryan StreetWhat work programme is in place to ensure that petroleum mining permit 50100 is being actively worked?
Hon HARRY DUYNHOVEN Link to this
An active work programme has been set up for this permit. The permit holder is required to drill two core wells within 24 months in the central area, and within 36 months the permit holder will acquire, process, and interpret at least 10 kilometres of 2D seismic data, and drill one core hole within the southern area of the permit, in addition. There are also ongoing work programme commitments to be delivered at 48 months, 60 months, and 84 months. All of this work will occur as a result of the decision to award a mining permit.
Has the “new and very able geologist” employed by Macdonald Investments—a point that persuaded the Minister to approve the mining application—ever worked in New Zealand before, and did he declare any conflict of interest when writing in support of Macdonald Investments’ mining permit application?
Hon HARRY DUYNHOVEN Link to this
I do not know about the latter, but given the member has tried on many occasions to insinuate that something untoward is going on, in that I as Minister approved the mining permit, can I tell the member that the reason I approved the mining permit is that I was advised to do so by officials. The reason I was personally interested is that this was the first time a coal-seam gas permit for mining had been applied for in New Zealand. That may be why the company has chosen to employ a specialist in coal-seam gas mining, from Australia.
Did he check, before granting Macdonald Investments this extremely valuable mining permit, whether its claimed commercial discovery had been subject to an independent review, or did he simply take the company’s word for it?
Hon HARRY DUYNHOVEN Link to this
Given the company itself has to outlay its own resources, its own cash, to do its own mining, in its permit area, I do not see why I should second-guess the company when it puts up a proposal for work that is accepted by my officials who recommended that I sign the permit—because the company takes the risk. If the member is proposing that the Crown should take the risk, I suggest he moves to Albania.
Dr Pita SharplesWhat involvement has there been with Kati Waewae and Makāwhio, mana whenua of Te Tai Poutini, to discuss heritage issues as per the requirements defined by Te Ture Whenua Māori Act 1993 for minimum impact activities?
Hon HARRY DUYNHOVEN Link to this
What I can tell the member is that, first, if he likes to put down a written question, I will give the detail of that answer. Second, under the minerals permitting regime that we run in New Zealand, Crown Minerals has a responsibility to go out to local iwi, long before a permit is established, to liaise with iwi about the issues they may have in relation to any particular area. I would assume that has been done, because it has always been done in the past with areas. But if the member sets down a written question, I undertake to give him a detail of the answer of how, when, and why.