Why do we need a minerals strategy?

A strategy is a plan for action. Strategies act as a roadmap for how resources should be directed, and effort focused to achieve an aim. They convey a strategic approach for how to achieve that aim by setting actions that can overcome challenges and unlock opportunities. The strategy intends to double the value of New Zealand’s mineral exports over the next 10 years. This is aligned with a broader government target to double the value of exports in ten years to help rebuild the economy so all New Zealanders can get ahead.

Like many other countries, New Zealand’s minerals sector is experiencing challenges.

The challenges

Minerals are critical to our economic functions

We need to understand our needs and ensure reliable access to minerals.

There are challenges to minerals development in New Zealand, including lack of complete understanding of our minerals ecosystem and strategic risks such as supply disruptions domestically and internationally.

A lack of quality data hinders good decision-making. We are in a vulnerable position when it comes to supply. We need to understand demand and shore up supply of the minerals that keep our economy moving, such as sand and aggregates.

We need to get the regulatory framework right

There are barriers within our regulatory system. The length of time it takes to deliver mining projects is costing us. We need to get the enabling policy and regulatory settings for the resources
sector right, to unlock economic opportunities for the benefit of New Zealanders.

Mineral activities need to happen in a responsible and environmentally sustainable manner

Our mineral production needs to be done in a responsible way. This involves ensuring we balance environmental protection and long-term environmental sustainability with the need for resource development. We need to take measures to minimise environmental impacts, ensure best practice rehabilitation plans, and mitigate environmental risks associated with mining.

This also includes ensuring ongoing protection of areas of high value (recognised as Schedule 4 conservation land in the
Crown Minerals Act 1991), while also considering proposals to responsibly explore mining potential in other conservation areas. There have been times when the sector hasn’t got it right.

If environmental risks associated to increased mineral
activities are not properly managed, they could mean fiscal risks to the Crown and New Zealanders. New Zealand has reputation for high environmental standards. We want to leverage this reputation and establish a regulatory system that is consistent with global standards but also position ourselves as a worthy example of where responsible mining happens.

Technological innovation and responsible recycling of materials need to be part of a responsible minerals regime

Embracing technology and innovation can enhance productivity and reduce financial, social, environmental, and governance costs associated with minerals development. We also need to be proactive in how we recover minerals for their re-use and recycling. This could help us avoid or significantly minimise the environmental impacts associated with scrapped or decommissioned components made from minerals and could ease the scarcity of critical minerals.

For example, projections by the International Energy Agency suggest that recycled amounts of lithium, nickel, copper, and cobalt could reduce the global primary supply requirements of these minerals by 10% by 2040.

We need to attract the right investment for our economic growth and access international markets

There are significant economic opportunities which our minerals sector offers. But capital investment is also required to tap into
the economic opportunities. We need to explore measures to attract and retain international investment in the minerals
sector. As we think about our national minerals sector, we also need to create channels to access international markets
through leveraging existing trade agreements and export promotion initiatives.

Avoiding unintended consequences

While we know that some of our regions have grown on the back of the minerals sector, we also want to avoid any unintended social and environmental consequences that could occur due to increased minerals activities. There will be a need to work with other agencies to design measures to plan for any increased demands across our regions.

We need to make informed choices about how we wish to develop our minerals

We are anticipating opportunities for the sector. We have potential to scale up production of existing minerals, that we
know are valuable exports now and will continue to be in years to come. Gold is projected to contribute significantly to New
Zealand’s minerals export earnings in the mid– to long-term future. New Zealand also has significant amounts of different
types and grades of coal deposits, with major opportunities in high grade coking coal used internationally to make steel.
Thermal coal also plays a role in keeping the lights on when there is intermittent renewable or gas supply.

There are industrial processes in New Zealand that still rely on coal (for example domestic steelmaking which deploys a unique
steelmaking process around the chemical properties of the Waikato thermal coal). We need to make informed choices and
adopt a strategic direction on how we manage our extensive coal reserves and address the challenges and risks described
above and other challenges facing the minerals sector.

Some clean-tech minerals may also be able to be produced in New Zealand and sold into global supply chains. Like other
export-led industries, the sector can leverage New Zealand’s high standards and reputation for transparency to secure access in international trade.

There is potential to scale this contribution and add value along the way, through domestic processing and refining, to realise more of the opportunity.

A plan for action in the minerals sector will allow an all-of-government approach to anticipate, prepare and act on complex
challenges and potential opportunities that require joined up action and collective impact.

It’s a plan for all-of-government and other participants to coalesce around and sets measurable and achievable actions to drive progress

The split of Crown and privately owned minerals, the nature of permitting and consenting processes regarding extraction,
and other factors within the minerals sector means that this strategy sits in the context of a range of other intersecting
government strategies and work programmes.

The strategy is being led by the Ministry of Business, Innovation and Employment (MBIE), but there are other government agencies that have an important part to play in achieving our outcomes such as the Ministry for the Environment (MoF), the Department of Conservation (DOC), WorkSafe, New Zealand Trade and Enterprise and the Ministry of Foreign Affairs and Trade.

There are also important roles in the system for Treaty partners, local government, industry, businesses, regions and communities.

The strategy recognises 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.

Additionally, iwi and hapū may have specific interests in minerals development, either directly as participants in mining activities or indirectly with a view to regional employment and development.

In recognition of these rights and interests, many iwi and hapū have, or are in negotiation, with the Crown, on crown minerals protocols expressed through their Deed of Treaty Settlements. These may include vesting or fossicking rights, and a commitment to ensure iwi and hapū are consulted with on the issuing of mining permits and the management of minerals.

Iwi also have broader perspectives relating to resource development. Activities associated with mineral extraction may
have impacts on other kinds of rights and interests. This strategy is a chance to recognise these views and interests, in the
development of mineral resources.

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