Court clears way for Coromandel mining

A court ruling has cleared the way for mining to resume in parts of the Coromandel Peninsula, prompting some residents to threaten action against any company resuming the search for the region's rich gold reserves.

A High Court decision released yesterday confirmed that mining on the peninsula can be deemed a discretionary activity, meaning any company can apply for resource consent to mine in certain areas.

Debate has raged for the past seven years on the issue, with gold estimated to be worth $10 billion still in the peninsula.

In 1998, the Thames Coromandel District Council banned mining in coastal and conservation zones and in all recreation and open space policy areas, making it a prohibited activity.

The Minerals Industry Association and Ministry of Economic Development wanted mining to be a discretionary activity.

They took their fight to the Environment Court in May last year and won.

The council and the anti-mining group Coromandel Watchdog appealed, but the High Court has now ruled against them.

Coromandel Watchdog says the decision is a step backwards. Spokesman Mark Tugendhaft said the first company to make an application could expect opposition.

"It will be a land war. It's just another land war we thought we had won."

Mr Tugendhaft said he could not see how mining could be a discretionary activity, given the peninsula's strong tourism growth and pristine nature. He believed the council would have to oppose any potential applications.

"It means there will be years of applications and the local residents will have to fight for their future against multinational companies."

Yesterday's High Court decision, by Justice Simon France, confirms an earlier, interim Environment Court ruling which said mining on the Coromandel should be a discretionary activity.

Mayor Philippa Barriball said she was disappointed with the ruling.

"After seven years of often emotional discussion we now have closure."

She said mining companies wanting to set up operations on the Coromandel would still have to jump significant hurdles.

Minerals Industry Association president Peter Atkinson said the ruling reinforced the decision by the Environment Court.

He said it was not about the Thames Coromandel District Council but about the Resource Management Act and how it was applied.

The association had spent eight years trying to work with the council on the issue and went to the Environment Court as a last resort.