Mining Sector Contributes $242M in Royalties, Drives Regional Growth

Resources Minister Shane Jones says the data underscores the sector’s crucial role in supporting the economy and funding essential services.

New figures released by the Ministry of Business, Innovation and Employment (MBIE) reveal that New Zealand’s mining sector delivered nearly a quarter of a billion dollars in royalties for the 2023/24 financial year, largely driven by petroleum and gold production. Resources Minister Shane Jones says the data underscores the sector’s crucial role in supporting the economy and funding essential services.

“This revenue demonstrates how the sector contributes not just to regional economies but also to national priorities like transport, education, and healthcare,” Mr Jones said. Key Highlights from the Report:

Royalties Revenue: The Crown collected $242 million in royalties from mineral production in the 2023/24 financial year.

Industry Investment: The mining industry invested $91.3 million in prospecting, exploration, and development, boosting regional job opportunities and economic activity.

Aggregate Production Growth: Quarrying activity saw a 17.9% increase in aggregate production compared to 2022, driven by demand for materials like rock, sand, and gravel for infrastructure projects.

“These numbers reflect a strong foundation that we’re building upon to maximize the economic potential of our abundant mineral resources,” Mr. Jones said.

Focus on Regional Development and Infrastructure

The report highlights the critical role of quarrying in addressing New Zealand’s infrastructure needs. Increased production of aggregates is particularly significant as the country tackles its infrastructure shortfall, with materials being vital for road construction and other projects.

“The quarrying sector is essential for development. There’s no construction without access to quarried materials,” Mr. Jones added.

Strategic Initiatives to Boost Mining

Over the past year, the Coalition Government has implemented policies to expand and modernize the mining sector, including:

• Reversing the ban on petroleum exploration.
• Drafting a Minerals Strategy and Critical Minerals List to prioritize resources critical for technology and energy security.
• Commissioning the GNS Minerals Potential of New Zealand report to attract further investment.

These initiatives aim to strengthen New Zealand’s self-sufficiency, improve energy resilience, and boost export-led economic recovery.

Future Outlook for the Sector

The data reflects a decade-long trend of increasing investment in the mining sector, which has bolstered regional economies by creating jobs and local contracts. The Government’s strategy seeks to scale up this success.

“We are committed to utilizing our mineral resources to unlock regional opportunities, enhance energy security, and drive sustainable growth,” Mr. Jones said. “With the initiatives we’ve introduced, I expect these numbers to grow significantly in the coming years.”

The mining sector’s continued performance is a cornerstone of New Zealand’s broader economic recovery efforts, combining local and national benefits with a focus on long-term sustainability.