Source: New Zealand Government
New Zealand’s next large-scale mining operation is on track to begin commercial production by next year, creating 250 local jobs and contributing $350 million to the Coalition Government’s goal of doubling mineral exports revenue to $3 billion by 2035, Resources Minister Shane Jones says.
The Snowy River underground gold mine project in Reefton, operated by Federation Mining, is targeting gold production by the end of 2026 following nearly 25,000m of exploration drilling.
“The Snowy River project is a significant cause for celebration both for New Zealand’s minerals sector and for the West Coast community,” Mr Jones says.
“The target of the operation, known as the Birthday Reef, produced 733,000 ounces of gold over nearly 50 years from the early 1900s, and is one of the many prospects from yesteryear offering some of our best mining opportunities thanks to new and improved technology.
“Another exciting aspect of this project is its commitment to improved environmental outcomes. The mine and processing plant will prioritise water management by running reused and treated water, establish more than 12,000 native plants over the lifetime of the project, and the surrounding area will benefit from ongoing pest and weed management.”
Federation Mining has raised more than $200m in capital to progress its plans – including attracting the interest of AustralianSuper, Australia’s largest superannuation fund, which is moving to take a majority interest in the company and the project.
“While local investment has driven the Snowy River project forward, it is Australian capital that will take it to production – and you don’t get a better vote of confidence in a project than that of one of Australia’s largest investors,” Mr Jones says.
“While the investment is great news for New Zealand, it is my hope that our own local superannuation schemes can see the value in our resources sector – value that Australia has no trouble reaping.”
Federation Mining is now focused on developing its processing plant, with construction set to begin in mid-2025. More than 160 people are expected to be employed to support this work over the next 12 months. As part of its recruitment efforts, the company is working with the Mayors Taskforce for Jobs, a community programme that helps people find employment, training, and education opportunities.
It is also working in partnership with the Buller District Council and local business leaders to build affordable one- and two-bedroom houses in Reefton to accommodate future workers.
“In February alone, this project pumped $2.9m into New Zealand’s regional economy through suppliers, contracts and employee wages. Around $1m of that went directly to the West Coast.
“I want to congratulate Federation Mining on the progression of Snowy River and acknowledge the work they are doing with their communities, iwi and local regulators. This type of collaboration is what modern mining looks like in New Zealand,” Mr Jones says.
