New Zealand has an opportunity to double the value of its mineral exports and mine for elements that are heavily sought after for electric technologies, a draft strategy says.
Resources Minister Shane Jones released a minerals strategy document with the Ministry of Business, Innovation and Employment (MBIE) on Thursday afternoon.
It proposed a plan which could help to grow the extractive industries in New Zealand through a stocktake on known mineral potential and relaxation of the consenting regime.
Greater awareness of available resources, and an easier process to get at them, would help to attract more investment in the sector and boost exports.
The minerals sector exported just over $1 billion in 2022 and Jones hopes to see that number double by 2035 — which would require an annual growth rate of 7.2% each year.
In a speech, Jones said New Zealand had a rich history of mining and the sector had played a significant role in how the country has developed over the past 200 years.
“Māori excavated pounamu, obsidian and adzite for use as tools, weapons and ornaments, followed by the increasing number of European settlers searching for valuable minerals, particularly gold, and coal,” he said.
Securing the social licence for mining had become difficult, not helped by communities having to cope with accidental deaths and environment fallout from abandoned projects.
But both the Government and the sector had learned from these mistakes and had “no appetite for irresponsible practices,” he said.
Clean green minerals
Mining had potential to boost regional opportunities, increase self-sufficiency, and be connected to global supply chains being built for transition to clean energy.
“We have a vast estate of minerals opportunities due to our dynamic tectonic history, yet we currently don’t have a clear picture of what we possess and its economic potential, the minerals needs of our country, or what we could supply to global markets,” he said.
One example given in MBIE’s consultation document was a gold mine in Reefton, where its operator had also found high grade antimony.
Antimony is used in semiconductors and as a flame retardant for electric vehicles and big batteries. The vast majority of the world’s supply comes from China and Russia.
Western countries would be eager to secure an alternate source of this semi-metal as they work to disentangle itself from these two authoritarian competitor countries.
MBIE also highlighted the potential to find lithium, which is used in rechargeable batteries, in the Bay of Plenty and the Far North.
While these energy-related minerals were heavily emphasised in the draft plan, the initial beneficiaries would likely be gold and coking coal miners.
MBIE said gold was projected to “contribute significantly” to mineral export earnings in the mid-to-long-term future and that there were “major opportunities” for steelmaking coal.
Less confidently, it said “some clean-tech minerals may also be able to be produced in New Zealand and sold into global supply chains”.
Drill baby, drill
Jones wants to relax the rules which make it difficult to establish a mine on conservation land, which makes up a third of the entire country.
He has promised not to touch Schedule 4 land—national parks, nature reserves, wildlife sanctuaries, and marine reserves—but wants to clarify where mining could occur.
Labour’s climate spokesperson Megan Woods said coal mining locks communities into dependence on a declining industry.
“Coal mining has no environmental benefits — especially when it’s on land that should be set aside for conservation,” she said in a press release.
Priyanca Radhakrishnan, the party’s conservation spokesperson, said Jones had shown he was willing to sacrifice native species for short-term economic gain.
“Shane Jones has said multiple times that he doesn’t care if a mine destroys habitat of native animals like kiwi or Archie’s frog,” she said.
Jones said, in his speech, that people who argued against mineral extraction in New Zealand but relied on things that were enabled by those resources were a sort of NIMBY.
The country should ask itself what could be achieved if it were able to enable more mineral extraction while still protecting the environment.
“Because in my view the opportunity is huge but it needs us as a country to get behind it”.
102 Comments
Yes, NZ faces a stark choice, rely on agriculture's low value commodities and low wage paying tourism or bankruptcy by 2050 with its best and brightest long gone to Oz, OR develop its minerals of all kinds to try and begin to pay down the structural (and growing) national debt (deficit) NZ has.
If you are going to comment re the future, please try and apply some logic before you prognosticate.
We have run an exponentially-increasing resource-extraction agenda, for 200 years. We used a finite energy resource to do the work. Simple (compound) math tells us you have to be wrong; there are no more 'doubling-times' left, and the debt is an overhang that will default - via collapse, most likely.
https://onlinelibrary.wiley.com/doi/full/10.1111/jiec.13442
Figure 3 is the one. If you're away back in thinking, try this oldie-but-goodie:
https://www.financialsense.com/contributors/chris-martenson/the-trouble…
The obvious joke is that no mining will even get underway in NZ, before the global system collapses. So no 'markets' no trading. All very local, all od a sudden. This is a fight the Greenies don't need to fight - Jones' initiative is based on an assumption which is self-destructing already.
I support it with one caveat, no member of the current Nat/Act/NZf coalition can work for, be a director of or financially benefit in any way from a company that is permitted to mine. Let's say 10 years.
That won't be a problem of Jones is doing it for the right reasons, it might if he's in it for himself and his mates.
Wrong look at the surat basin coal seam gas around Dalby low grade coal 300 meters under ground the put pipes straight into the ground and draw the gas off it. As the water seeps down thru the soil it reacts with the coal. Pipe it upto Gladstone straight onto gas tankers to Japan and China. All you see it's Stainless Steel pipes bit like Wairakei Geothermal. It's a never ending resource. Oceania Gold mine in Waihi wants to tunnel two sky towers deep under ground how's that an eyesore
Nothing wrong with the groundwater. As the water comes up with the gas. I know because that is what I did in Chinchilla between Dalby and Roma. Built a very large water treatment plant. So the ground water comes up gets treated then the pure water is sold to the local farmers to put on their cotton.
Not a big reason to worry.
The longer-term aspiration voiced by Shane Jones for NZ to reach $2B in annual mining exports. That's about 0.33% of Aussie's mined exports in 2023. We can certainly find buyers outside of China for these minerals in relatively marginal quantities.
What percentage of those $2b of export earnings will be sent back offshore as profits to overseas investors, payments for mining machinery, oil to power them etc.
I generally support the idea as long as the actual benefits to NZ and the provences vastly outweigh the disadvantages.
Yes justified suspicion indeed. For instance how could it be that in Canterbury clean clear artesian water was allowed to be extracted for free, bottled, exported and sold for profit in China. Not only was it allowed to happen in the first face, but the Regional Council fought it tooth and nail, using rate payers money for the legal and other costs, all the way to the Supreme Court to prevent the activity being stopped.
Yeah I bet we don’t end up much better off. It will create jobs, but I’m not sure we need them given that the RBNZ is now creating unemployment due to excessive labour demand. Otherwise the govt will get a bit of tax, some foreigners will become rich, and we’ll destroy our country forever.
Seriously? The only amounts that will be sent offshore are dividends to overseas shareholders, debt and interest payments. Your comment is typical of someone that has no idea that large capital intensive projects need someone to provide the capital (ie: take the risk). If no one is prepared to take the risk, there will be 0 benefit to NZ or any of its provinces.
Still wearing the sandwich board on the street corner proclaiming "the end is nigh"? I'll put it this way, the 7 billion people outside of the white westernised block are looking forward to an increasingly bright future outside of colonial thinking patters, even as western countries are on the decline.
Here's another one.
https://www.stuff.co.nz/environment/131068139/the-toxic-paper-mill-slud…
Māori owners were robbed of their ancestral land and lake to create a toxic dump for a paper mill. Now the Norwegian owners are selling up – so who will clean it up?
There will definitely be work for local fabricators and engineers, concrete workers, electricians etc. Cheaper to make some stuff locally rather than ship it. You're right though, not many companies here with the expertise and tech for overall plant design and major equipment design but not much we can do about that.
This is the best news in a long time from a NZ govt. We have a wealth of resources at our doorstep. If we continue you to use the environment as an excuse not to mine, then this country will continue to pin all its hopes on agriculture for most of our revenue. (Which also faces environmental pressure from critics) The challenge is, to do all these industries well by the environment. Agriculture has picked its act up hugely, and theres no reason why we cant do mining responsibly too. We just need to have a "yes" attitude, instead of a "no we cant" attitude.
And what are the wages like for most who work in tourism low and the tourism operators turn around and import more cheap labour while our so called brightest head to Aus for the higher incomes. Most mines are not open cast. Look at coal seam gas surat basin I worked there for two years when that was developing it employed about 40k people. And that's 16yrs ago and it is still paying Queensland govt a royalty and there is no open cast mine
Our coal is steel coal not coking coal which is Aus actually Aussie has a way lower grade coming coal than Brazil and Indonesia. Aus is just easier to get at and export. Our coal is way more valuable.and in demand. But it's just not coal LNG is in demand wereby you don't touch the coal just draw the gas off. Meanwhile a 1000 bright young kiwis fly predominantly to Aus for what. While NZ waits for the so called green boom guess what by then there will be some other reason why we are failing
I'm in the same boat.
I'm not opposed to mining if it is done "sensibly" as you say (and with a strong focus on trying to retain as much benefit within NZ as possible) BUT Shane Jones only walks the earth for two purposes. The first being to keep the adult film industry in business, the second to hand out goodies to his mates and funders.
Think of all the greenhouse gases released by the product…coal is evil. We can do better. How about more geothermal? Think of it as mining steam if it helps. Renewable and clean, strengthens our weak and fragile grid, reduces need for fossil fuel imports, doesn’t leave a big mess behind, we already know how to do it, and all the money can be spent - and remain - in NZ
Tamarind (among others) certainly had a "no we can't " attitude to cleaning up the mess they left last time - costing taxpayers around $ 400 million .
https://www.stuff.co.nz/business/125531476/349m-tui-oil-field-debacle-p…
Rinse and repeat
https://newsroom.co.nz/2024/03/12/concerns-as-new-oil-well-operator-ris…
It's hasn't happened yet has it. Megan Woods hopes (being the word) just like 30yr ago the greens were running around the coromandel saying any minute know the tailings lake in Waihi is going to burst. That is how you progress as a nation things happen hopefully govt learns from it brings in laws and regs to stop it happening again.
Labour should be asking DOC about those giant native snails they put in the fridge to protect yet forgot to turn the fridge on. It's like the environmental group in Coromandel protesting about Oceania wanting to dig a tunnel two yes two sky towers deep. Just like they protested 30 plus yrs ago that the lake Oceania created in Waihi for all the tailings was going to fail. Still waiting. Qcania have been tunneling under Waihi township for the last 30 plus yrs had a house there never had any problems their open cast mine is in the centre of town a mile deep you wouldn't know it's there. These so called environmentalist really need to take a look at themselves and have a long hard think how do we as a country pay the bills
So really you haven't got the facts or cause it's against your thinking. Belittle someone who may have am idea. Maybe you and people like you are the reason why 1000 kiwis head off every week. Why trust power came close to turning off the lights why our health system is failing. But hey you and the people that bemoan it carry on complaining.
"So really you haven't got the facts or cause it's against your thinking. Belittle someone who may have am idea. Maybe you and people like you are the reason why 1000 kiwis head off every week. Why trust power came close to turning off the lights why our health system is failing. But hey you and the people that bemoan it carry on complaining. "
More low quality talk-back level reckons. Points for consistency I suppose.
They could just follow this lead.
https://www.stuff.co.nz/national/politics/130665671/make-no-mistake-lab…
And how about the jobs it creates and what is the average income of those people who work in the mine in Waihi and the tax they pay and the money they spend in Waihi its self. Remeber when Waihi was a ghost town literally you tied your horse up at the pub. After I think it's was PYE shut down. Then the gold mine and associated supportive industries came in and the town turned around. There are alot of local industries that are serving and paying taxes thanks to that mine
https://www.nzpam.govt.nz/nz-industry/nz-minerals/resources-potential/
For some actual data on what we might have rather than the "i reckon..."s
Notice the language that the second guide is in...
Well, John Key did say we should all start learning mandarin after his visit there.
https://www.nzherald.co.nz/nz/key-urges-kids-to-learn-mandarin/T5AQKU2W…
I am not a fan on Shane Jones or his fast track bill.We need more longer term thinking that is sustainable,and doesn't ship the profits off-shore. Have you seen the size of the tailings mountains in Waihi .They plan another and an open pit mine.The money Gold companies have to put aside as a bond is tiny compared to the real cost of a failure. We need to invest in new tech like Mint who recover gold from motherboards etc.Start ups like this are finding it hard to scale up.We need to be innovative and think of our future generations.
I have no problem with this in principle, so long as mining is of the less obtrusive sort and limited to high value products like rare earths (i.e. forget coal). It's totally hypocritical to aspire to modern life, but insist that the resource extraction that it requires is abhorrent.
Royalties need to be jacked up significantly so that we can keep benefits onshore too.
Doesn’t have to be. We have no excuse for using it now other than lack of planning. We have all the renewables we need for completely clean self-sufficiency if we put thought and effort into it. And the economic benefits of not having to import fossil fuels would vastly outweigh those of digging up some coal
except for all that steel we use in everything and all those solar panels we want to have in our country, we are completely wanting more coal for all of that. They just don't want to think about how things work or how things are made. It is the early chemistry and physics education that is now being removed from our education system.
Here is an idea try researching the processes involved in creating all the tech you are now typing on and the tools needed to make that. I will give you a clue, it involves tons of coal.
Sadly once you start digging you will find it is turtles all the way down.
All you see it's Stainless Steel pipes bit like Wairakei Geothermal. It's a never ending resource. Oceania Gold mine in Waihi wants to tunnel two sky towers deep under ground how's that an eyesore
So the hole is 2 sky towers deep where is the eyesore?? Its what comes out of that hole 2 sky towers deep that is the eyesore. I suggest you look at the "new hill" between Waihi town and the beach turnoff - thats the martha tailings.
The clue to looking at mining is to understand as soon as they stop mining they are losing money so to hang around cleaning up is a no no.
I'm dubious about Shane he's a boomer that booms when he orates.
much as I detest Shane Jones, there is a moral issue here. Almost our entire way of life involves mining stuff somewhere in the world. I can highly recommend Ed Conway's Material World to understand this. The chapter on silicon alone is extraordinary.
Every 'greenie' is dependent upon stuff that was mined-even PDK- so why would it be immoral to mine some of it here? For some, all mining everywhere should be stopped, but for most of us, that simply isn't a realistic proposition, but just how long might it take to actually get a new mine up and running? 10 years? More?
My bet is that Freddy the frog will actually outlast SJ.
If you covered the entire country with solar panels it still wouldn't be enough power. A few weeks back there was a cold snap and the electricity grid was on the very edge. The power supply was so unreliable at my last property I bought a generator, and I've got my current house wired for generator power. On one occasion at my last property we lost power for a week.
NZ's slowly but surely becoming a 3rd world country.
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