Critical Minerals Spur West Coast Mining Boom
Operations targeting critical minerals such as titanium, zirconium, gold and rare earth elements are driving a new generation of mining activity on the West Coast – and attracting the interest of significant international players, Resources Minister Shane Jones says.
Mr Jones launched the Coalition Government’s Critical Minerals List for New Zealand last month. It identifies minerals essential to the economy with an objective of diversifying the country’s minerals offering, to contribute to the growing international critical minerals market.
“The West Coast has long been a drawcard for explorers and developers of gold and metallurgical coal. With international interest in critical minerals, we are seeing revived interest from near and far,” Mr Jones says.
“Of particularly note is investment by Western Mineral Sands (WMS) in exploration next to its heavy mineral sand operation near Westport, which produces titanium, garnet, zircon and monazite containing rare earth elements. It has also lodged applications for mining permits and resource consents to integrate new acreage with its operations at the Mananui Mine south of Hokitika.
US company Energy Fuels took a 1 percent stake in WMS last October, recognising the latter as a key player in the global supply of rare earth elements
“In another vote of confidence in the economic opportunities for heavy mineral sands, TIGA Minerals and Metals Limited is progressing a mining development at Barrytown, targeting the same critical minerals as WMS.
“Together this work contributes to a pipeline of production for decades to come that will stimulate enduring regional growth and development. The varied blend of minerals it will produce provides resilience to changing markets as well as strategic value for New Zealand, with international demand for critical minerals expected to continue to grow.
Rua Gold Limited, which holds permits targeting gold on the West Coast and in the Hauraki District, has reported significant intersections of stibnite, an antimony ore, on some of its Reefton permits. Antimony is listed on a number of critical minerals lists including New Zealand’s and is highly sought after for industrial uses.
“Rua’s antimony discovery is an exciting development for the diversification of our minerals offerings and the result of an active drilling campaign and other exploration activities largely supported by significant ongoing international investment,” Mr Jones says.
“What Rua has also discovered through this work is significant gold intersections sufficient to suggest large world-class gold deposits. In the geological world, the ‘world-class’ moniker is bestowed upon only the largest and highest-grade mineral deposits in the world. Should this be proven through further exploitation, we could be sitting on another Macraes-scale deposit – and all the benefits that would bring.
“This would add to the existing pipeline of world-class gold deposits already being progressed by Oceana Gold at Wharekirauponga near Waihi, and by Matakanui Gold’s Bendigo-Ophir deposits in Otago.”
Mr Jones says the projects will provide significant employment for locals and the opportunity to grow the skills of New Zealand’s workforce.
“These projects are opportunities to attract the skilled Kiwis who are currently working overseas, particularly in Australia, as well as top global expertise to further explore our extensive endowment. They are also key to encouraging further international and local capital investment – the lack of which has previously held our potential at bay.
“In my time as Minister for Resources, I have fought hard to strip away red tape and get the sector to work because I can see how New Zealanders will benefit from the development of our minerals estate. This is the beginning of a new mining era, and the future of the sector has never looked brighter.”
https://www.beehive.govt.nz/release/critical-minerals-driving-west-coast-mining-revival