With a mining history dating back to the 19th century and a federal government committed to economic development through industrial growth, New Zealand offers considerable investment opportunities.
Measures such as the new Fast-track Approvals Bill — which aims to shorten the permitting process for mining and exploration — only make the country an even more attractive jurisdiction for investment.
It is essential that investors gain an understanding of New Zealand’s new direction and the opportunities it represents when evaluating investment opportunities.
Other major mineral and resource exports of New Zealand include iron ore, oil and natural gas.
The new government, on the other hand, in a bid to boost the country’s mining sector, has introduced a Fast-track Approvals Bill for infrastructure and mining projects that cut the permitting process from two years to six months. Investors and mining industry experts are incredibly optimistic about the bill, noting it has the potential to bring about a new gold rush for New Zealand. The legislation is going through the drafting process in Parliament and feedback from various groups is being discussed and incorporated into the final bill.
Federated Farmers noted the bill could allow companies to seize private land through “ministerial power” rather than “fair and equitable negotiation and compensation.” The New Zealand Law Society and the New Zealand Planning Institute both expressed concern the bill allowed ministers to disregard the advice of experts without explanation, citing a lack of transparency. Greenpeace, meanwhile, was highly critical of the fact the bill removed environmental protections.
“Expert evidence, public participation, scrutiny by the courts — these are the processes by which our society decides what development is and is not appropriate,” Greenpeace spokesperson Amanda Larsson told RNZ. “If passed into law, the Fast-track Approvals Bill would completely undermine these processes, [opening] the door to development not in the name of the public good but in the name of whoever lobbies hardest.”
The Fast-Track Approvals Bill still has the potential to significantly boost New Zealand’s mining industry through streamlined mining and exploration — it simply needs to get past these initial growing pains.
New Zealand’s long-running mining sector means there are several companies with an established presence in the country. Below, you’ll find a few that we believe investors would do well to keep an eye on.
A multinational gold mining and exploration company headquartered in Vancouver, OceanaGold owns Project Martha — an underground mining operation built on the country’s longest-running gold mine at Waihi. In addition to Project Martha, the company operates mines in both the Philippines and the US. OceanaGold claims it is committed to safety and sustainability.
Bathurst is New Zealand’s largest coal-mining company, operating with a strong commitment to sustainable development and community. It owns and operates coal mines throughout the country, providing energy for industry sectors, including agri-business, education and healthcare. Bathurst also exports high-quality coal for steel production and is involved in two steelmaking coal development projects in BC.
A promising gold exploration company based in New Zealand, Rua Gold owns two highly prospective land packages. The first, Reefton, is situated in a high-grade orogenic gold province with considerable production and multiple recent discoveries. The second, Glamorgan, displays all the hallmarks of a major epithermal gold-silver system.
All permits and title work for the two drill-ready projects are secured, and both current and future development is backed by a team of mining industry experts and veterans with considerable working knowledge and access to funding.
New Zealand is an incredibly promising mining jurisdiction, and it will only become more compelling once the Fast-Track Approvals Bill is passed. Investors would be wise to pay attention to the region. After all, it could be on the verge of another gold rush — and those with an existing foothold will be well positioned to take full advantage.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
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