New Zealand chases gold as record prices burnish allure

As rising bullion prices revive a sector long in decline, New Zealand is accelerating gold projects and attracting interest from mining investors as the government looks for ways to lift a weak economy. It is testing the country’s “100 percent Pure” brand.

New Zealand’s gold production is on track to double by the mid-2030s to its highest level in at least three decades, “helped by two new projects already approved and a third project awaiting final decision,” according to Reuters calculations.

This will put the country on track to surpass the government’s target of increasing annual mineral exports, including coal and silver, to NIS 3 billion (US$A2.5 billion) by 2035.

Miners see potential in this underexplored country as the government moves to boost employment amid nearly a decade of high unemployment and weakening business confidence.

Government data shows New Zealand will issue 163 new exploration, mining and exploration permits in 2025, up 16 per cent on the previous year.

But there is concern among environmentalists and some in the farming industry that a larger mining footprint could undermine the pristine, natural image projected in marketing for New Zealand’s tourist destinations and exports.

The revival faces two big tests in 2026: the future of current policies beyond the hotly contested Nov. 7 election and whether a controversial project will win final approval.

“New Zealand has been under-recognized as a mining jurisdiction for a long time,” said Jake Klein, who founded Australia’s No. 2 gold miner Evolution Mining and heads Endura Mining, whose Snowy River project is scheduled to begin production in December.

“The mining industry likes to explore new jurisdictions… but this will depend on the success and consistency of government policy,” he said.

Resources Minister Shane Jones told Reuters that the government, which last month cut its economic growth forecast to 2.3 percent for 2027, was committed to supporting the sector.

“Our economy needs every arrow in the economic quiver to be shot with incredible accuracy,” he said.

Gold is a rare economic bright spot. Export revenues have nearly tripled in three years to NZ$1.83 billion; this accounted for 2.3 percent of total goods exports, compared to 0.9 percent in 2022.

To help revive a stagnant economy, New Zealand introduced legislation in late 2024 that aims to increase approval times for selected major infrastructure, mining and energy projects from years to months.

Fast-track approval allows these developments to bypass some standard regulatory processes and limits public consultation and legal challenges.

The opposition Labor Party has said it will amend the law to ensure environmental protections are not overridden.

Canadian-listed OceanaGold received approval under the fast-track process and Santana Minerals is awaiting a decision under the enhanced system.

Snowy River will add 250 regional jobs and at least NZ$350 million annually to the country’s export revenue, according to government estimates.

New Zealand’s largest gold producer, OceanaGold, expects to invest NZ$1 billion in the Waihi North project, which will start production in 2032.

Michael Gordon, a senior economist at Westpac, said that although mining was highly efficient, most of the benefits would flow to mine owners rather than transforming the economy.

The gold mining debate is most acute in Central Otago on New Zealand’s South Island. Australian-listed explorer Santana Minerals expects a decision on its Bendigo-Ophir gold project by October 29.

Santana Minerals CEO Damian ‌Spring, a New Zealander who lives an hour’s drive from the proposed mine, pointed out that the mine would create high-paying regional employment.

“Responsible mining is not a contradiction here. It’s a choice New Zealand has made,” he said. According to government estimates, the proposed mine will contribute an average of NZ$360 million per year to GDP and directly employ 351 people.

But the wineries face opposition from heritage and environmental groups.

Wine interests in central Otago fear open-pit mining could threaten water supplies and expose vineyards to airborne pollutants, undermining a world-class wine industry that has been built over decades.

Actor Sam Neill, owner of Two Paddocks winery in Central Otago, warned that if approved, the mine at Santana could be followed by other miners.

“This would be catastrophic. #destructionandlooting,” he said in an emailed comment to Reuters.

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