New Zealand's Golden Mining Opportunities

Brief history of New Zealand's mining sector

Tasmanian Gabriel Read’s first gold discovery in 1861 in the Tuapeka district on New Zealand's South Island became the focal point of New Zealand's first gold rush. Throughout the 1860s, numerous miners and prospectors traveled to the area that would eventually be known as Gabriel's Gully.

Individual prospectors soon gave way to larger mining organizations, culminating in the foundation of the Waihi gold mine in 1880. The mine is still operational today producing over 10 million gold ounces to date, and still producing roughly 60,000 ounces of gold annually. Gold remains a staple of New Zealand's mining industry to this day, and the country is known for producing incredibly high grades of the precious metal.

Other major mineral and resource exports of New Zealand include iron ore, oil and natural gas.

Though the scope of its mineral exports appears somewhat limited at first glance, mining was New Zealand's second most productive industry in 2023, eclipsed only by electricity, gas, water and waste services.

Pushing for more production

New Zealand’s election of a new Prime Minister in late 2023 signaled a significant geopolitical shift within the country, according to an article by the Canadian Mining Journal. Up to that point, the relationship between New Zealand's government and its mining sector could be described as somewhat antagonistic at best. In August 2023, for instance, the government at the time passed legislation removing any obligation to promote the mining industry, claiming this would help its program on climate change.

The new government, on the other hand, in a bid to boost the country’s mining sector, has introduced a Fast-track Approvals Bill for infrastructure and mining projects that cut the permitting process from two years to six months. Investors and mining industry experts are incredibly optimistic about the bill, noting it has the potential to bring about a new gold rush for New Zealand. The legislation is going through the drafting process in Parliament and feedback from various groups is being discussed and incorporated into the final bill.

As reported by RNZ, on May 2, the Environment Committee fielded complaints from seven different groups.

Federated Farmers noted the bill could allow companies to seize private land through "ministerial power" rather than "fair and equitable negotiation and compensation." The New Zealand Law Society and the New Zealand Planning Institute both expressed concern the bill allowed ministers to disregard the advice of experts without explanation, citing a lack of transparency. Greenpeace, meanwhile, was highly critical of the fact the bill removed environmental protections.

"Expert evidence, public participation, scrutiny by the courts — these are the processes by which our society decides what development is and is not appropriate," Greenpeace spokesperson Amanda Larsson told RNZ. "If passed into law, the Fast-track Approvals Bill would completely undermine these processes, [opening] the door to development not in the name of the public good but in the name of whoever lobbies hardest."

The Fast-Track Approvals Bill still has the potential to significantly boost New Zealand's mining industry through streamlined mining and exploration — it simply needs to get past these initial growing pains.

Mining companies to watch

New Zealand's long-running mining sector means there are several companies with an established presence in the country. Below, you'll find a few that we believe investors would do well to keep an eye on.

OceanaGold (TSX:OGC,OTCQX:OCANF)

A multinational gold mining and exploration company headquartered in Vancouver, OceanaGold owns Project Martha — an underground mining operation built on the country's longest-running gold mine at Waihi. In addition to Project Martha, the company operates mines in both the Philippines and the US. OceanaGold claims it is committed to safety and sustainability.

Bathurst Resources (ASX:BRL,OTC Pink:BTURF)

Bathurst is New Zealand's largest coal-mining company, operating with a strong commitment to sustainable development and community. It owns and operates coal mines throughout the country, providing energy for industry sectors, including agri-business, education and healthcare. Bathurst also exports high-quality coal for steel production and is involved in two steelmaking coal development projects in BC.

Rua Gold (CSE:RUA,OTC Pink:NZAUF)

A promising gold exploration company based in New Zealand, Rua Gold owns two highly prospective land packages. The first, Reefton, is situated in a high-grade orogenic gold province with considerable production and multiple recent discoveries. The second, Glamorgan, displays all the hallmarks of a major epithermal gold-silver system.

All permits and title work for the two drill-ready projects are secured, and both current and future development is backed by a team of mining industry experts and veterans with considerable working knowledge and access to funding.

Investor takeaway

New Zealand is an incredibly promising mining jurisdiction, and it will only become more compelling once the Fast-Track Approvals Bill is passed. Investors would be wise to pay attention to the region. After all, it could be on the verge of another gold rush — and those with an existing foothold will be well positioned to take full advantage.

This INNSpired article is sponsored by Rua Gold (CSE:RUA,OTC Pink:NZAUF,WKN:A4010V). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Rua Goldin order to help investors learn more about the company. Rua Gold is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.

This INNSpired article was written according to INN editorial standards to educate investors.

INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.

The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Rua Gold and seek advice from a qualified investment advisor.