Source: New Zealand Minerals Council
For the economic contribution of mining to grow to its potential, it’s important that Government doesn’t squeeze it too hard, too soon, says New Zealand Minerals Council chief executive Josie Vidal.
Today the Government released an independent review of the New Zealand minerals royalty regime, which is welcomed by the industry. It finds the regime is transparent and broadly comparable with similar overseas mining jurisdiction.
“Miners are more than prepared to pay their way, and they pay into the Government coffers in a number of ways including taxes, royalties, and fees and charges,” Vidal says. “And while it is a growing industry, it is important that the Government doesn’t kill the golden goose before it gets a chance to lay an egg.
“We are happy to see that in releasing this report, the Government has said any policy work that results from it will continue after the upcoming election. This allows time for proper analysis and consultation with the industry.
“Government revenue from royalties increases as the industry grows, so supporting growth is a better way to extract revenue than putting up royalty rates.
“Recent high commodity prices have contributed to $30 million plus being paid in royalties in the past year and people can get excited about that. But we need to take a longer term view to grow the industry in a way that benefits New Zealand.
“New Zealand always needs to be careful not to price itself off the market and must keep the costs of doing business to a level that makes us an attractive country to invest in. Mining investment is competitive and investors shop around.
“Mining is a success story in this economy. Export earnings are on an upwards trajectory. This is partially because of the gold price, but there has also been higher mineral production overall, driving the increase. Minerals exports have jumped ahead of many iconic export sectors such as wine and seafood and are nipping at the heels of logs and cheese.
“At a time when unemployment is high, mining is adding to the workforce. Employment across the sector grew from 5230 jobs in 2024 to 5520 jobs in 2025.
“Wages are good, with a mean of $125,630 compared to $82,500 across the whole economy.
“On top of a growing economic contribution to the economy, miners are unique in that they pay royalties in addition to the taxes and the other government charges all industries pay.
“The best scenario for the Government is mining continues to grow and therefore, contributes to its take that way, rather than in some kind of punitive regime,” Vidal says.