By Keith Nuthall and Wendy Mill
|
A free trade deal would help
boost New Zealand's mineral sector which is hindered in
part by the country's distance from major industrial
markets. (Source: Phillip Capper). |
New Zealand’s industrial minerals sector could
benefit from a new planned trade agreement with the European
Union (EU) with preparatory talks for the deal now under
way.
EU Trade Commissioner, Cecilia Malmstrom, and New
Zealand’s Trade Minister, Tim Groser, met in
Brussels last week to explore a future bilateral free trade
agreement.
A deal is expected to go beyond the classic tariff reduction
agreement and also address regulatory harmonisation and trade
facilitation issues. Given the potential clash between EU and
New Zealand agricultural interests, talks could be
protracted.
Both sides said they wanted to make progress however:
"New Zealand is a close partner of Europe that shares our
values and views. I am committed to strengthening this
partnership by working towards an ambitious trade agreement,"
said Malmstrom.
A trade deal could boost the New Zealand industrial minerals
sector, the development of which "is constrained by the
population’s concerns about the environmental
issues related to mining, the ecological sensitivity of the
country, and New Zealand’s location far from major
industrial markets", according to a US Geological Survey (USGS)
report.
According to the UGSG, New Zealand has reserves of antimony,
bauxite, bentonite, beryllium, clay, diatomite, dolomite,
perlite, phosphate rock, pumice, rare earths, salt, silica,
sulphur, and zeolites.
In terms of production in 2013, the latest USGS figures, New
Zealand produced 762 tonnes bentonite (2,263 tonnes in 2012);
62,288 tonnes clay for bricks and tiles; 13,066 tonnes kaolin;
4 tonnes diatomaceous earth; 5,542 tonnes dolomite; 3,598
tonnes perlite (in 2012); 93,865 tonnes pumice; 100,000 tonnes
salt; 101,702 tonnes silica and glass sand; and 155 tonnes
zeolites.
New Zealand exported $6.5m worth of kaolin in 2014 and $5.7m
worth in 2013, according to international trade data. It sold
overseas $11.5m worth of salt in 2014 and $10.3m in 2013. The
country also exported $375,907 worth of perlite in 2014. As for
pumice, New Zealand exported $88,419 worth in 2014. $79,491
worth of silica sand in was meanwhile sold in 2014, and
$104,060 worth sold in 2013.
Bernie Napp, policy manager for Straterra, the collective
voice for the New Zealand minerals and mining sector, stressed
that New Zealand is currently "more of a niche exporter of
these goods". While current duties for New Zealand mineral
exports were low, he said an agreement could have a positive
impact on investment guarantees.
Salt exports are one niche where an EU trade deal could
help. Dominion Salt Ltd, based near Blenheim, South Island,
exports gourmet food salts to Europe, but not the 50,000 tonnes
of pharmaceutical and high grade food manufacturing salts that
it currently sells overseas.
"Given that freight makes up 50% of our export costs, Europe
has never been a natural home for our products. We are focused
on regions south of the equator such as South-East Asia, South
America and the developing world," said Shane Dufaur, Dominion
Salt’s CEO.
Imerys Tableware New Zealand Ltd, based northwest of
Whangarei, quarries and processes halloysite. Part of the
Paris-based Imerys group, a world leader in mineral-based
specialities for industry, the company could also benefit. Its
products are exported globally for ceramics applications and
New Zealand is the only location where Imerys works this
mineral. Currently, the EU represents only a small percentage
of sales for Imerys Ceramics’ New Zealand
division.
The Crown Minerals Group, under New Zealand’s
ministry of economic development, is responsible for managing
all state-owned minerals in the country, which includes all
minerals on or under crown-owned land.