Billions in ironsand

An estimated $2300 billion worth of ironsand is sitting off the coast of Taranaki, a company seeking rights to mine the mineral says.

Trans-Tasman Resources (TTR), a New Zealand-based company owned by overseas interests, revealed the facts and figures behind its plans in a presentation to the Taranaki/Whanganui Conservation Board.

TTR was established to explore, assess and then hopefully mine the iron-ore deposits off the west coast of the North Island, the company's environmental and approvals manager, Andy Sommerville, said.

His estimate is a result of surveys already completed. He said his company was one of several applying for, or which have already been granted, prospecting rights on the west coast.

TTR had Crown Mineral Act approval for prospecting an area along the west coast and was in the process of applying for a second, he said.

"TTR has one permitted area from the Waikato river mouth down to Awakino," Mr Sommerville said.

The second area, just off Manaia down to the Rangitikei River, north of Levin, was awaiting approval and the company had also obtained a Coastal Shelf Act licence for another area off the coast of Taranaki, he said.

"The total area of both of those [permits and licences] is 10,000 square kilometres," he said.

The company believed there was about 10 billion tonnes of mineable ore which, at today's prices, was worth US$150 (NZ$203) to US$170 a tonne – the upper figure equating to NZ$2300 billion for the total resource. Five to 10 million tonnes would be mined each year, he said.

Long-term plans would be to export the ore and raise enough capital to build a steel mill in the North Island. There was a commitment to minimise environmental risks, Mr Sommerville told the board.

The company would not conduct any mining within two nautical miles of the coastline, he said.

- © Fairfax NZ News