Mining 'back in business' with plan to double export value - Govt

Mining is "back in business" under the new coalition Government, Resources Minister Shane Jones says.

Jones today released a draft minerals sector strategy at a community meeting in Blackball - "the heart of mining country" - on the West Coast.

The Government projects the strategy, if implemented, would double the already more than $1 billion value of exports, bringing it to $2 billion by 2035, and result in over 2000 more jobs.

“Today, in the heart of mining country, I am telling Kiwis they are back in business. No longer will these communities with rich histories intertwined with mining be told they cannot utilise the rich mineral endowments contained in their land," Jones told the meeting.

“New Zealand has suffered from the lack of a clear long-term strategic direction for the development of its minerals estate."

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He said the proposed strategy would identify what needed to be done to secure and increase minerals supply and their potential for use and export with an eye to maximising economic and Crown benefit.

The strategy, titled the Draft Minerals Strategy for New Zealand to 2040, is now open for consultation and will run until July 31.

It proposes producing a critical minerals list for New Zealand and doing a "detailed stocktake of the country’s known mineral potential".

“The minerals sector is a small but productive part of New Zealand’s economy, worth $1.03 billion in mineral exports in 2022, providing more than 5000 direct jobs, supporting local businesses, and generating substantial revenue that funds infrastructure, healthcare, and education.

“We are aspirational for the sector, aiming to double mineral exports value to $2b by 2035. With the right direction and settings, mining will continue to boost regional opportunities and jobs, increase our self-sufficiency, and be a critical part of this Government’s export-led focus, especially as we take advantage of the global opportunities for new minerals uses.

“I consider the minerals sector to be critical to the economic prosperity of New Zealand - it has been a transformative agent for our country in the past, and I expect it to play a transforming role into the future.”

In the foreword to the draft strategy Jones said minerals were essential components in clean energy technology, and some regions had been built on mining.

"Minerals developments are still the heart and fabric of many of our communities."

He said the industry was a "small but mighty" part of New Zealand's productive output and the sector created job opportunities, supported local businesses, and generated "substantial" tax revenue that funded infrastructure, healthcare, and education.

"We have barely scratched the surface when it comes to our potential."

He said New Zealand's "vast mineral reserve" and role it could play in "transforming our future" remained largely unexplored.

"Other countries use their minerals sectors as cornerstones of their economy to support the sustainability of their regions, to increase resilience, and to boost prosperity.

"At this moment in time there is also another driver at play - the global clean energy transition. The International Energy Agency estimates that to reach net-zero emissions by 2050, the world will need six times more minerals for low emissions technology than are currently being extracted. Production of electric vehicles, batteries, wind turbines and solar panels are already driving significant minerals demand. This will only increase.

"We have a choice to make – do we contribute to and benefit from this growing market, or do we become the recipients of other countries economic effort and output?"

The environmental impacts of mining "can and will be managed to the highest standard", he said.

The strategy document stated the proposal recognised the interests of Treaty partners in the protection and management of mineral resources.

"Iwi and hapū have significant interests and rights in relation to the protection and management of natural resources. The Government recognises many iwi and hapū wish to have greater participation in natural resource management, given the long-standing cultural, historical, spiritual, and traditional association to specific minerals."

It said iwi and hapū may also have specific interests in minerals development, either directly and actively, or with a "view to regional employment and development".

ACT’s energy and resources spokesperson Simon Court, who was also in Blackball today, said a high-wage economy depended on affordable and reliable energy.

“In other words, we need to drill, baby, drill.

“So-called environmentalists would have us believe that we can’t have a clean, green environment and cheap, reliable energy at the same time.

“ACT believes we can have both - a thriving energy sector that serves the economic needs of New Zealanders and a sustainable environment for future generations.”

He said the energy sector was strangled by red tape and that was stopping “innovative solutions to our most pressing energy and environmental challenges”.