Environmentalists split over revived NZ-US rare minerals deal

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Source: Radio New Zealand

Resources Minister Shane Jones. RNZ / Samuel Rillstone

A resurrected minerals deal with the US is causing mixed reactions among environmentalists.

A Cabinet paper has revealed that Resources Minister Shane Jones wants to continue negotiations for a bilateral agreement with the US over rare minerals.

Currently, the US has been heavily reliant on China for these materials.

Critical minerals are used in a variety of modern-day tech, from smartphones and renewable energy to weapons.

Their use in a military context gave Greenpeace director Russel Norman pause.

Greenpeace director Russel Norman. RNZ / Jessica Hopkins

“Donald Trump hates renewable energy. It’s all about getting minerals to fuel his war ambitions,” he said.

He worried that the deal could be used to circumvent environmental protections and let foreign interests plunder New Zealand’s resources.

He pointed to Trans-Tasman Resources, an Australian-owned company, which wanted to mine 50 million tonnes of seabed a year for 30 years in the South Taranaki Bight.

“There is no benefit in New Zealand in destroying the biodiversity off in South Taranaki just so that an Australian mining company can dig up vanadium and give it to the US military.”

The Fast Track panel rejected Trans-Tasman Resources’ plans.

Norman said New Zealand “should have nothing to do with the deal”.

“We don’t need to go and destroy the seafloor all around the world in order to get those minerals.”

University of Auckland professor Nicola Gaston. Victoria University

This was supported by University of Auckland professor Nicola Gaston.

She said highly sought-after, rare minerals can be sourced through recycling.

She cited several companies that had created circular economies of extracting materials from waste products for new applications, such as Mint Innovation and Zethos.

“If a deal is about us actually backing these New Zealand companies to do the work that they’re doing internationally, that would be super.”

But she expressed reservations about the deal if it involved mining.

“I just would not want us to be locking ourselves into some sort of exploitation that is not able to be managed according to our own policy goals or the social licence that we have in New Zealand for mining.”

‘They never have practical alternative solutions’ – Jones

Jones responded to criticism, saying New Zealand was not solely pursuing a bilateral deal with the US, but was also exploring wider partnerships with ”like-minded nations”.

He said this country was already part of an international agreement with countries like the UK, Japan and South Korea to work together to secure supplies of critical minerals.

Jones said any development of the sector would still be subject to New Zealand’s environmental and legal safeguards, including the resource consenting process and Treaty obligations.

”Obviously, the consenting process – we need to ensure that when these minerals are extracted, it happens with established statutory guardrails,” he said.

He also noted the challenges of refining, saying there was currently little capacity in New Zealand and that processing minerals can come with ”a host of negative externalities”.

Responding to the criticism from Greenpeace, Jones said environmental advocacy groups rarely offered workable alternatives.

”Greenpeace are consistent critics in terms of capitalism, economic development… They never have practical alternative solutions,” he said.

”They want a clean green future, but they refuse to acknowledge that New Zealand has the very minerals that can contribute to that future,” he said.

Jones said opponents were holding back the sector.

”Mining has been marginalised in New Zealand by green Luddites, lily-livered bureaucrats and politicians that have been unwilling to show Kiwis that we can mine and still have positive environmental impacts.”

He also downplayed concerns about the potential military use of exported minerals.

”I don’t believe it is a concern… New Zealand is not in the weapon-making business,” he said, adding that lawful trade should not be restricted based on how what’s being traded will be used.

Jones said the government would continue discussions with multiple countries and planned to host a critical minerals forum at Parliament to get feedback from the sector.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

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