A draft list of minerals deemed essential to New Zealand’s economy and mineral resilience has been released by the Ministry Business, Innovation and Employment (MBIE) for consultation today.
Resources Minister, Shane Jones said the draft Critical Minerals List identifies 35 minerals which are essential to economic functions, in demand internationally, and face high risk of supply disruption domestically and internationally.
“Minerals underpin just about every aspect of our modern world – from the roads we drive on and the energy that keeps the lights on – to our schools, hospitals and homes,” Mr Jones says.
“If access to some of these enabling minerals, such as aggregates to build infrastructure or phosphate to support our agricultural sector, was suddenly restricted or halted there would be serious implications for our economy.
“The majority of our trade partners recognise the importance of resilient mineral supply chains, yet New Zealand has never developed a comprehensive picture of its minerals needs and weaknesses. That is something I am correcting with the creation of the Critical Minerals List.”
The Minister said the list covers a range of minerals with many different applications within the New Zealand economy and considers minerals that are needed internationally where New Zealand may be able to contribute to supply.
“It also considers risks to domestic and international supply chains, and where there is a need to build more supply resilience,” he said.
Once finalised, the Critical Minerals List will contribute to New Zealand’s work on important international supply chains and allow the Government to investigate specific actions for securing better access to the minerals deemed critical. This could include strategies for developing specific minerals.
The draft list complements the release of a specialist geological report on New Zealand’s potential onshore and offshore mineral endowment in August. The report brings together extensive mineral deposit research, geological, geochemical, and geophysical studies and mapping.
“Together, the list and the endowment report are deliverables of the draft Minerals Strategy for New Zealand and provides us with a holistic minerals picture in terms of what we need and what we have which is all about setting our sector up to focus on the right minerals at the right time in the right places,” Mr Jones says.
“I am focused on building the foundations of an enduring minerals sector that is delivering for our people, and to do that we need good decision-making based on robust evidence. I welcome feedback through the consultation process on the draft Critical Minerals List and look forward to releasing a finalised version before the end of the year.”
Straterra chief executive, Josie Vidal says the release of the list helps to cement the valuable role of mining in New Zealand.
“Included on the list are minerals that, in addition to the minerals we already mine, will be used around the world to build technology, and support a clean energy transition,” Ms Vidal says.
“Mining some of them in New Zealand will create jobs, boost the economy, contribute to security of supply, and increase export revenue.
“The work being done by the Government to map out minerals, classify which are critical, and develop a strategy to encourage growth and investment in mining is a big step forward for industry and the Government.
“This sends positive signals to investors and our trading partners that New Zealand has a role in the global supply chain for the minerals used to make batteries, magnets, semiconductors, many of the components of clean energy, and of course to support advances in technology, health, food production and transport, to name just a few examples.
“Mining is the first step and there is also potential to look at what we could manufacture in New Zealand from these minerals.
Ms Vidal said the association was concerned that gold and coal had been omitted from the draft list.
“While ostensibly there is no shortage of coal or gold for mining in New Zealand, both make a significant economic contribution and accessibility of mining is very much dependent on Government policy. So good policy remains critical,” she said.
“Coal is now the number one product exported from New Zealand to India and gold is the number one product exported to Australia (by value).
“Coal is also an important input to much of our primary sector export industries. Without cost-effective energy, New Zealand exports would be less competitive in international markets.
“And in the current electricity affordability crisis, we must consider coal’s valuable role in energy resilience and security.
“We have seen government policy try to sunset coal while there is still domestic and export demand, and indeed, try to stop mining applications considered on conservation land. It is important to note that mining takes place on just 0.04 percent of the conservation estate and mining companies spend significant funds managing the biggest threat to the biodiversity of that land, introduced pests and weeds. Mining applications have to meet a high threshold before being approved.”
Ms Vidal said Straterra would consult members and make a submission on the draft list.
Consultation on the draft Critical Minerals List closes on 10 October 2024. Click here for more information and to make a submission.
