The New Zealand government looks set to go ahead with plans to open up some conservation land to prospecting and mining, Prime Minister John Key said on Tuesday.

In his speech to Parliament on Tuesday, Key said that a discussion paper on potential changes to land covered under the schedule would recommend that some land be removed and that other areas be added, New Zealand Press Association reported.

He said new mining on Crown land had the potential to increase economic growth and create jobs.

Key said any new mines on conservation land would have to meet strict environmental tests.

Key is proposing a new Conservation Fund be set up, potentially using royalties from mining operations, to pay for conservation projects.

A discussion document will be released soon on potential changes to Schedule 4 of the Crown Minerals Act, which bans mining on specified areas of Crown land.

New Zealand Energy Minister Gerry Brownlee last year controversially started a stock take of valuable minerals in conservation land protected under Schedule Four of the Crown Minerals Act.

The estimated value of untapped minerals has been put at about 140 billion NZ dollars (96 billion U.S. dollars) -- about 70 percent of that in the conservation estate.