There's gold in them thar hills - and silver, manganese, mercury, copper and other minerals worth an estimated $33 billion to Northland's economy.
Northland's untapped mineral deposits could pump an estimated $683 million into the economy each year, but experts caution that a lot more work is needed before the region starts cashing in.
Two new studies, by GNS Science and the New Zealand Institute of Economic Research, reveal $28 billion of non-metallic and $5.2 billion of metallic mineral deposits potentially in the region. It's the first study of its type in New Zealand.
Enterprise Northland business and industry development officer John Halse said a "gold rush" to develop Northland's mineral industry was unlikely, and it could take two to three decades to start reaping the full benefits.
Mr Halse said the studies were exciting and showed enormous potential for mineral extraction. Based on the figures in the reports, it could become the third largest industry in Northland - behind only pastoral farming and tourism - and provide up to 2700 extra jobs over the next 20 to 30 years.
"The reports have identified that there are lots of rock deposits in Northland that are pre-disposed to having certain minerals, so it's quite exciting," Mr Halse said.
"However, there's a lot more work to be done, such as a geo-physical survey to find out exactly where everything is and how much there is. Then as a region we have to decide what to do about the potential."
GNS Science senior geologist Tony Christie said Northland had a long history of mining and companies were exploring today.
Mr Christie said Australian company Aurora Mining had been drilling for gold near Kaeo, while Can Alaska was looking for gold at Puhipuhi, which had a history of mercury and silver mining.
"Where there's mercury there's sometimes gold or silver further down," he said.
Mining already contributes at least $100 million to Northland each year, mostly from cement, aggregates, limestone and china clay.
The studies reveal that mining revenue could increase to $354 million a year and inject more than $683 million into the economy each year, taking into account the indirect benefits to local business.
The Far North District Council contributed to the studies through its Local Economic Development Strategy, and is delighted with the outcome.
"We are astounded at the results of this survey which provide a compelling indication of the economic potential of this largely ignored sector," councillor Ian Bamber said.
"The reports have the potential to be a very powerful economic development tool, in part because we now have robust and quality data on the potential that minerals provide in the North. We now look forward to continuing to work with our partners in this area to maximise the value that the reports deliver."
The reports add that an extra 1127 mining jobs could be created and a further 1596 jobs in other sectors.
Others, however, are sounding caution, particularly in the light of the Tui gold mine at Te Aroha.
Earlier this week the Government promised $10 millon to clean up the defunct mine's waste - and said the area will never be completely safe.
Green Party co-leader Russel Norman said the toxic waste left by past mining, especially for gold, would have to be considered before exploiting Northland's mineral deposits.
The possible harm depended on the ecological sensitivity of the areas to be mined, and whether coal mining would resume in the North.
"That's the worst greenhouse gas emitter of all fossil fuels," he said.
Studies: Mine of wealth in North
AdvertisementAdvertise with NZME.