Minister Brown got no advantage

Energy and Resources Minister Simon Bridges gave an assurance last week that there was nothing untoward in the fact that Te Tai Tokerau Minerals, one of three companies that had been granted mineral exploration permits in the Far North, included Far North Mayor Wayne Brown as a director and 5 per cent shareholder.

The process leading up to the granting of permits had been a rigorous one, he said, and he was satisfied that Mr Brown had not received any advantage by virtue of his position.

Mr Brown rejected criticism of his involvement in a minerals company (which he added to the Far North District Council's interest register) earlier this year, saying Tai Tokerau Minerals was a small company that intended considering investing in mining but had not yet done so.

A resource consent would not be sought for at least five years, so there was no technical means by which he could advantage himself.

"Governments, not councils, grant exploration and mining licences," Mr Brown said (Brown defends mine investment, Northland Age January 31).

"It's all about putting the Far North on the agenda of investors."

Five exploration permits were last week offered to Tai Tokerau Minerals, Waimatenui Exploration and De Grey Mining, as a result of the Northland 2012 tender.

"This presents an exciting opportunity for Northland and for New Zealand," Mr Bridges said.

"There is significant potential for the country to grow the economic contribution made by minerals. The sector already contributes around $20 million in royalties to government each year, and contributes over $1.1 billion to the economy.

"The government wants to see regions like Northland reap the benefits, directly and indirectly, of minerals development.

"But this is not about exploration and development at any cost. This is why the government has recently put in place a new, world-class regulatory regime for the responsible management of the country's mineral resources."

The tender process began in March last year with consultation with iwi and local authorities, closing in December. Bids were evaluated by an expert panel from New Zealand Petroleum and Minerals, the five-year permits allowing exploration to be undertaken in defined areas.

Tai Tokerau Minerals has two permits north-west of Kerikeri, Australian company De Grey Mining two south-east of Paihia, and Waimatenui Exploration one 30 kilometres south of Kaikohe.