Key facts
- New Zealand is accelerating gold projects and seeking mining investment due to soaring bullion prices.
- Gold production is expected to double by the mid-2030s, reaching its highest in at least three decades.
- The government aims to increase annual mineral exports to NZ$3 billion by 2035.
- A new law passed in late 2024 streamlines approval processes for major infrastructure, mining, and energy projects.
- Environmental groups and some agricultural sectors are concerned about the impact of increased mining on New Zealand's pristine image.
New Zealand is actively promoting its gold mining sector, driven by record high bullion prices and a government push to boost economic growth. The country is fast-tracking new gold projects and issuing more exploration permits, with production expected to double by the mid-2030s to a three-decade high. This initiative aims to increase annual mineral exports to NZ$3 billion by 2035 and create jobs, particularly in regions with high unemployment.
Resources Minister Shane Jones stated the government's commitment to supporting the industry, highlighting gold as a rare economic bright spot with export revenues nearly tripling in three years. A law passed in late 2024 expedites approvals for selected major projects, bypassing some standard regulatory processes and limiting public consultation and legal challenges. OceanaGold has already secured approval under this fast-track system, while Santana Minerals awaits a decision on its Bendigo-Ophir project.
However, the mining revival faces significant opposition. Environmentalists and parts of the agricultural sector are concerned that an expanded mining footprint could damage New Zealand's internationally recognized '100% Pure' brand, which is crucial for tourism and exports. Critics, including actor Sam Neill, warn that approving projects like Santana's could lead to widespread environmental damage. Groups like Natural Capital argue that the fast-track permitting system unfairly limits public response time. Additionally, the opposition Labour Party has pledged to revise the law to ensure environmental protections are not overridden.
Industry figures like Jake Klein, chairman of Endura Mining, believe New Zealand is an under-recognized mining jurisdiction with significant potential, contingent on consistent government policy. Santana Minerals CEO Damian Spring emphasizes that responsible mining is achievable and would bring high-paying jobs and substantial GDP contribution to the Central Otago region. However, Westpac economist Michael Gordon suggests that while mining is productive, its benefits may largely flow to mine owners rather than significantly transforming the wider economy.