04 July 2014

Maori: NZ Steel v. Butcher

Stalled Treaty negotiations between government and Waikato iwi are hampering operations at the Glenbrook steel mill owned by Australian listed company Bluescope Steel.  Further areas for mining were opened up after the High Court released Bluescope from a 25 year old court undertaking not to mine ironsand from four identified culturally sensitive sites.
Government granted NZ Steel, now a Bluescope subsidiary, a one hundred year licence in 1966 to mine ironsands on the coast near Waiuku.  Under New Zealand law, the crown owns oil and mineral resources regardless of who owns the land on which it is found.  About twenty per cent of the NZ Steel licence area is described by Ngati Te Ata as wahi tapu: sacred ground where human remains are buried.  The original mining licence did exclude one area where there is a known burial ground.  Local sensitivities were engaged in 1990 when mining exposed parts of a human skeleton.
The High Court was told tripartite discussions started in 1990 between government, NZ Steel and representatives of Ngati Te Ata over how best to protect local interests.  Fearing that its mining concession would be unilaterally reduced by government, NZ Steel filed High Court proceedings to protect its position.  As a temporary measure, NZ Steel gave a court undertaking that it would not start mining in the affected areas until a court hearing took place.  A hearing date was set for early the following year, but no trial ever eventuated.  Instead prolonged and protracted negotiations have continued.
Evidence was given that over the ensuing twenty-five years, various governments have faced an ever-changing queue of claimants and an ever-changing list of demands.  Initially, Ngati Te Ata indicated it would accept mining in the wahi tapu areas, provided mining royalties were paid direct to Ngati Te Ata rather than the crown.  Nothing eventuated after neighbouring iwi claimed customary rights over the same land, claiming a share of any royalties.  Further negotiations stalled completely in 1998 when Ngati Te Ata decided to merge its wahi tapu claim with an overall Treaty settlement claim, stating its bottom line demand is a $170 million settlement.
The court was told NZ Steel has all but exhausted mining in the southern part of its licence area bar the wahi tapu areas.  It asked to be released from the earlier court undertaking since the wahi tapu areas provide the most economic prospects for continued mining.
The High Court released NZ Steel from its undertaking.  The undertaking was intended to be temporary; it was never intended to extend beyond the proposed trial date.  Justice Fogarty said ongoing arguments about royalty entitlements are a dispute between Ngati Te Ata and government.   NZ Steel is entitled to have the 1990 litigation brought to an end, he said.  Ngati Te Ata has not seen any need to push on with the 1990 litigation.  Instead it filed substitute court proceedings in 2013 under a different name.
NZ Steel v. Butcher – High Court (04.07.14)
14.031