Image: Check where you are excavating is not owned by the Crown.
Some quarry operators may be unaware of the hard, cold fact that the Crown owns all
minerals in its wide estate, including aggregate.
The ignorance may not be surprising given Crown ownership of some minerals dates back to Elizabethan times, which was then picked up in this country in Victorian era legislation and land titles.
Whatever the reason, New Zealand Petroleum and Minerals (NZP&M) has become aware some operators are quarrying Crown-owned minerals without permits. As the regulator of New Zealand’s extractives industry, it’s issued a memo to get things sorted.
The Crown has owned all in-land gold and silver since a Royal Prerogative exercised in 1568 by Queen Elizabeth I. Such doctrines were ‘imported’ into New Zealand and petroleum was also added. The Crown has rights to other minerals listed in the Crown Minerals Act 1991 (CMA). It also owns minerals located within the Crown’s estate, including those not specified in the CMA, such as aggregate.
Phil Latimer, NZP&M’s National Manager Compliance, says even the mining sector would be surprised to know the Crown owns about half NZ’s industrial rocks and building stones – mostly because they are in Crown-owned land.
“We have recently discovered a number of quarry operators that haven’t sought correct permission from the Crown.”
He says they’ve failed to check for Crown mineral ownership on their property title or to conduct a Land Mineral Status (LMS) report as part of their due diligence.
“And have since discovered they have been unknowingly mining Crown-owned minerals.”
To mine Crown-owned minerals, a person or company requires a mining permit from NZP&M. This gives the operator rights to specified Crown-owned minerals within the area of the permit, subject to conditions and obligations such as paying royalties.
“In the examples we have seen to date, some operators have come forward voluntarily, accepted responsibility and have worked constructively with our compliance team to resolve the situation,” says Phil.
The process usually begins with the operator applying for a minerals mining permit.
“While this is a good outcome, we are reminding all quarry operators that checking the ownership status of the materials you are extracting should be an essential part of the planning phase of your project. This is important even when the land is privately owned.”
He acknowledges it can be challenging to determine mineral ownership in a land title or holding. In many cases, it may be necessary to search back to the first transfer or sale of the land from the Crown. This should establish whether minerals continue to be held with the fee simple title, have been reserved by the Crown, or have been excluded because of subsequent transactions.
NZP&M recommends sourcing a Land Mineral Status Report from a supplier approved by Land Information New Zealand. This will give an accurate picture of ownership and ‘’avoid possible enforcement action by NZP&M’s Compliance Team down the track.”
“If you think you may be illegally mining Crown-owned minerals without a permit, you need to do your due diligence urgently. Contact us before we contact you,” says Phil Latimer.
