New Zealand must build on mining’s new gold shoots: Jones

Jobs, royalties and other economic dividends can flow from expansion of New Zealand’s gold production and resources minister Shane Jones thinks growth in the sector can bring vital skills back to the South Pacific nation. But he maintains there is an urgent need to broaden the country’s resource development base.

“New Zealand can re-enter in a significant and robust way the global supply chains pertaining to those minerals that fall within the category of critically important or rare,” he told a mining event in Auckland this month.

“[But] obviously the capital markets are key contributors and I can’t remember – it probably goes back to the late 1980s or maybe early 90s – when there was a sense of anticipation or affirmation that there is a place in the capital markets for a mining industry in New Zealand.

“We all know the various decarbonisation journeys that countries are taking around the world ... require a mineral rich context.

“If [we] want all the accoutrements that pass for a modern OECD quality of life here in the South Pacific then we've got to use our resources.

“We can no longer keep them parked up in locations where they potentially may contribute but you can never get a consent – you can never create the permission space to use them.”

In an election year in New Zealand, Jones is doubling down on the rhetoric and policies the National-ACT-New Zealand First coalition took to the 2023 poll with the aim of doubling annual minerals export earnings to NZ$3 billion by 2035 and tripling direct industry employment to 7000.

Conceding the government’s Fast-track Approvals Act wasn’t yet moving development forward fast enough, Jones has signalled further regulatory reform and earlier this year earmarked $80 million of Regional Infrastructure Fund money to “help incentivise the capital raising” activity of developers.

“We have allocated $80 million as a de-risking strategy to try and cause some of the green shoots to grow in the critical minerals sector,” the minister said.

“What we’re finding is if you want to play in this game you have to pay to play.

“[The government is] also looking at creating some special economic zones to make it easier to get all the necessary consents to advance projects.”

Jones said strong mining and metals advocacy was essential to restoring a balanced national debate about the industry in New Zealand.

He would be encouraged by results of latest New Zealand Minerals Council surveying that showed strong public support for the industry in established mining districts such as Waihi and South Island’s West Coast. The survey by Curia Market Research found 43% of New Zealanders overall viewed mining favourably, with 22% having a negative view and 32% neutral. In Waihi 72% viewed the industry favourably; 13% negatively. And on the West Coast 83% viewed it favourably and 5% negatively. The survey found 72% of New Zealanders saw mining as very or somewhat important to New Zealand’s economy. However, 20% more respondents incorrectly thought the country’s wine exports outranked mining export returns.

With adequate information about environmental and employment standards in New Zealand mines, 71% of survey respondents said they would prefer New Zealand to mine its own minerals and 12% said they would prefer to import them.

Jones said: “I've been criticised for being a bit too hyperbolic but what I [have been] doing on behalf of the government and on behalf of New Zealand was to change the way you look at the Overton window, to change the location of the pendulum, to put trade-off decisions in front of Kiwis, in front of investors and in front of communities.

“We’ve done a host of relatively modest things [but] we are not shifting the statutory goalposts quick enough to capture economic opportunity and grow our nation.

“And if there’s anything that lies at the pit of my narrative over the last two-and-a-half years, it is that sense of urgency.

“We can create high-quality job opportunities through this industry and we can find and sustain a place where a small nation, five million people, can occupy a position of importance in global supply chains.”

One part of the industry that is moving at speed to capitalise on better government sentiment towards mining – and record bullion prices – is the gold sector.

NZ Petroleum & Minerals reported gold was targeted in 163 of the 178 new mineral permits granted by the department in 2025. Most of the new gold permits were in the South Island.

Robert Eckford, CEO of Toronto-listed junior Rua Gold, said the company was pushing hard to grow gold resources at its flagship Reefton gold project north-east of Greymouth, bringing in five drill rigs to complete a 20,000m campaign that would feed results into 2026 pre-feasibility study and mine permit application.

“We want to do that with as big a resource as we can,” Eckford said.

“We’ve got four rigs working on resource definition. The fifth rig is out there looking for other opportunities to essentially build on that hub and spoke model that we see Reefton becoming.

“We have also been very busy on the technical studies front, very busy on the environmental baseline front and then obviously the community engagement and the Iwi partnerships are also forming.”

Rua Gold also has the Glamorgan gold project in New Zealand’s North Island Hauraki Goldfield, “one of the few undrilled epithermals left in the world”, and in February this year completed a dual listing in NZ. Eckford said it was an important milestone for a company looking to establish deep economic roots in the country.

“There’s a lot of interest out of New Zealand to make sure that they can take part in the minerals extraction from their country,” he said.

“Our last raise had $3 million of New Zealand funds come into it and we are really happy to have a bigger New Zealand shareholder base and become an even greater New Zealand story.”

Another company targeting South Island gold is Jake Klein-chaired Endura Mining, which last year secured A$150 million of private equity backing to advance the fully permitted Snowy River gold mine in the Buller district. Endura, ex-Federation Mining, describes New Zealand as “an attractive emerging mining jurisdiction ... with strong government support, low geopolitical risk, highly prospective geology and talented, hard-working people”.

Klein, former boss of one of Australia’s most admired gold and copper miners of the past 15 years, Evolution Mining, has said Endura wants to build a new gold-copper growth platform with “world class capital partners and an outstanding team”.

Major Endura shareholder AustralianSuper, the largest superannuation fund in Australia, and Orion Resource Partners backed the New Zealand project financing. Endura wants to establish a 10-year, 60,000oz-a-year mine by early 2027.

Jones was quick to note New York-headquartered Orion’s involvement: “I am delighted to see New Zealand taking its rightful place at the forefront of new investment in mining.”

Australian-listed Santana Minerals has meanwhile secured a 30-year mining permit for Bendigo-Ophir in Central Otago and is waiting for Fast-track Approvals Act consents. Its proposed A$277 million, circa-120,000ozpa operation could generate government royalties worth well over half a billion NZD over its 14-year life.

And multinational gold and copper producer OceanaGold is moving forward at its permitted cUS$650 million Waihi North gold project on New Zealand’s North Island, including the high-grade Wharekirauponga underground mine, the first project to advance under the FTAA.

CEO Gerard Bond told the Mining Forum Americas in Colorado, USA, in September last year the long-term operator in NZ was “excited about having a regulatory regime that is pro-investment and supportive of mining”.