The Minerals Industry and its Contribution to New Zealand's Economic Development

While the new Minister of Economic Development sends his apologies at being unable to speak at this Conference, I am delighted to present on his behalf. The Ministry of Economic Development is not only responsible for managing the Crown mineral estate, but also for developing initiatives and policies to promote regional economic development and for managing the GovernmentÆs broader economic development strategy. IÆd like to talk to you today about the critical links that need to exist between these three areas.   I am going to start with a question for all of you. What do these towns have in common? +        Waiuku, +        Thames, +        New Plymouth, +        Nelson, +        Greymouth, +        Arrowtown, +        Reefton, +        Palmerston, and +        Dunedin.   The answer is minerals. These towns were nearly all founded on the back of minerals and mining. In the case of Greymouth it was gold that brought the people to the mouth of the Grey River and it is coal that sustains the town.   In 1870 the town of Shortland had 20 000 people, 90 hotels and was twice the size of Auckland. We now know Shortland as Thames, and of course Auckland is considerably larger. One wonders whether the good folk of Shortland suffered from ætraffic jamsÆ with 90 pubs to navigate between. Gold mining in the Aorere River near Collingwood led early entrepreneurs to develop the land surrounding Nelson as a food basket to sustain the mining population. Nelson is still thriving on this legacy today. The town of Palmerston was founded in 1862 as a stopping point for gold miners heading into central Otago. The gold rush made Dunedin New ZealandÆs first highly industrialised city. Reefton on the West Coast was the first town in New Zealand to have electric lights and in the recent past we were wondering whoÆd be left to turn them off. New Plymouth, and Waiuku are still known as energy and mining centres.   By contrast once thriving towns like Capleston, Canvastown and Blackball are just names on a map now, and at the extreme you have places like Waiuta which has been reclaimed by the West Coast forest. Queenstown was built off the back of the gold rush, but by 1900 with the gold gone, only 190 people lived there yet Queenstown has managed to rebuild itself thanks to some other stunning natural assets. These examples help illustrate three key points that I am sure will each be extensively linked with our minerals and mining industries. First, NZÆs development and that of its regions has been, and continues to be, inextricably linked with our minerals and mining industries.   Second, things change. Sectors, regions and countries must continually adapt and improve if the are to avoid the fate of the Waiutas of this world. And third, the development challenges faced by NZ and its mining industry in the 21st century are vastly more complex than in the past. Governments and industry alike must balance and respond to a range of domestic and international environmental, cultural, economic and other interests and considerations. If you thought of your industry as æjust digging holes in the groundÆ then you may as well simply stick your head in one!