WELLINGTON: New Zealand’s critical minerals strategy has accelerated mining approvals and funded early processing projects, but it lacks the capacity required for an integrated rare-earth supply chain, an industry analysis said.
Rare Earth Exchanges (REEx) said the government had strengthened the upstream investment environment through faster approvals, regulatory reforms and greater permitting transparency.
The July 25 REEx analysis followed the government’s one-year review of its Minerals Strategy to 2040.
The government has ringfenced NZ$80 million in its Regional Infrastructure Fund for critical minerals projects. It allocated up to NZ$50 million to two heavy-mineral-sands processing developments on the West Coast on July 6.
Tāiko Critical Minerals will receive up to NZ$20 million towards a proposed NZ$40 million wet-separation plant. Westland Mineral Sands will receive NZ$30 million towards a planned NZ$70 million mineral-separation and processing facility, according to the New Zealand government.
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The projects would process ores containing titanium, zirconium and rare-earth-bearing monazite concentrates. However, the government has not announced commercial rare-earth chemical separation, metal production, alloy manufacturing or permanent magnet facilities.
REEx said those midstream capabilities would determine whether New Zealand could develop a competitive mine-to-magnet supply chain.
Resources Minister Shane Jones said mineral exports had risen from NZ$1.46 billion in 2023 to about NZ$2.5 billion in 2025. The government aims to increase exports to NZ$3 billion by 2035.
Jones said officials would examine further opportunities in processing, refining, recycling and mineral recovery over the next year.
