Regulator’s Update – November 2024

Kia ora,

Welcome to this issue of the Regulator’s Update – a newsletter from the Ministry of Business, Innovation and Employment (MBIE) for permit holders and other people interested in the work of New Zealand Petroleum and Minerals (NZP&M).

In this issue

Draft Minerals Strategy – publication of summary of submissions
Draft Critical Minerals List – public consultation complete
Mineral endowment report released
Crown Minerals Amendment Bill process
Draft Crown Minerals Programmes – upcoming consultation
Minister attended the International Mining and Resources Conference
2024 Annual Review Meetings concluded
First permit processing timeliness report released
Snapshot of minerals permit applications
Changes to application fee refunds
Unpermitted quarrying of Crown-owned minerals under regulator’s spotlight
Resolution of illegal mining case sees reparation to local community
New guidance available to minerals applicants

Draft Minerals Strategy – publication of summary of submissions

Thank you to those who provided a submission on the draft Minerals Strategy for New Zealand to 2040 (the Strategy).

Draft Minerals Strategy for New Zealand to 2040 – mbie.govt.nz

We have summarised the submissions received during the consultation, which closed on 31 July 2024. The feedback we received is being used to inform revisions to the Strategy for Cabinet’s consideration, with the aim to release the final Strategy by the end of the year.

You can access and download the Summary of Submissions report, published on the MBIE website at the following link:

Summary of Submissions on draft Minerals Strategy to 2040 – mbie.govt.nz

Draft Critical Minerals List – public consultation complete

We consulted on a draft Critical Minerals List for New Zealand from 15 September 2024 – 10 October 2024. The development of a critical minerals list is a key deliverable identified in the draft Minerals Strategy that was recently consulted on and is key to delivering the Strategy.

The draft list identifies 35 minerals covering a range of applications throughout our economy.

To be included in the draft list, a mineral must be:

essential to New Zealand’s economy, national security, and technology needs, including renewable energy technologies and components to support our transition to a low emissions future and/or
in demand by New Zealand’s international partners, and
susceptible to supply disruptions domestically and internationally.

In this definition of a critical mineral, ’essential’ is defined as vital to maintaining New Zealand’s economy today and into the future and not readily substitutable.

We are currently analysing the submissions received on the draft Critical Minerals list. We intend to publish a summary of submissions report in due course and finalise the list before the end of the year.

Read and download the draft Critical Minerals List – mbie.govt.nz

Mineral endowment report released

A new report on New Zealand’s mineral endowment identifying short, medium, and long-term prospects for potential development has been released.

Undertaken by the Institute of Geological and Nuclear Sciences Limited (GNS Science) as a key deliverable of the draft Minerals Strategy for New Zealand, the specialist report brings together extensive mineral deposit research, geological, geochemical, and geophysical studies and mapping, and GIS-based mineral prospectivity mapping.

The report may be used to inform policy decisions and attract investment in mining opportunities to enable a strategic and considered approach to growing our resources sector.

The mineral potential of New Zealand report, 2024 - nzpam.govt.nz

Crown Minerals Amendment Bill process

Changes to the Crown Minerals Act (1991) are detailed in the Crown Minerals Amendment Bill 2024 Crown Minerals Amendment Bill 2024 – New Zealand Legislation.

The Bill is being revised and updated following the select committee process, with the aim to pass legislation by the end of the year.

For more information see Crown Minerals Act Law Changes - nzpam.govt.nz

What happens next?

If the Bill is passed, the development of secondary legislation, including updating the Minerals and Petroleum Programmes, will take place in the following 3-6 months.

The secondary legislation will support the Crown Minerals Act as it will address matters such as how petroleum exploration permits are allocated, and what the application fees will be for the newly proposed Tier 3.

We will keep you informed about how to give feedback on the development of any secondary legislation.

For more information about Crown minerals legislation including regulations and Programmes see Legislation we act under - nzpam.govt.nz

Draft Crown Minerals Programmes – upcoming consultation

The Crown Minerals Programmes (the Programmes) are currently being reviewed and updated as part of the package of legislative changes relating to the Crown Minerals Amendment Bill.

The Programmes are secondary legislation that give operational effect to the Crown Minerals Act 1991 (the CMA) and associated regulations. They set out how the Minister and Chief Executive will exercise their powers, how they will interpret and apply specific legislative provisions, and provide general operational guidance on the CMA and regulations.

Public consultation on the draft Programmes will take place from mid-November through to mid-January 2025, with information available via the New Zealand Petroleum and Minerals (NZPAM) website. Subscribers to the Regulators Update will receive an email notification when public consultation commences.

We encourage you to review the draft Programmes once available and provide feedback by the due date.

Minister attended the International Mining and Resources Conference

The Minister for Resources, the Hon Shane Jones, along with Ministry of Business, Innovation and Employment (MBIE) officials, attended the International Mining and Resources Conference (IMARC) in Sydney from 29-31 October 2024.

One of the Government’s priorities is to increase the scale and pace of the development of mineral resources to help increase prosperity and boost economic opportunities for New Zealand.

The conference provided the Minister and MBIE officials with an opportunity to hear from and meet with mining leaders, resource experts, representatives from Australian states and territories and potential investors.

As one of the speakers, Minister Jones spoke about and promoted the New Zealand resource market, focusing on the recent release of the draft Minerals Strategy, the draft Critical Minerals List and the GNS Science report on the Minerals Potential of NZ. MBIE and New Zealand Trade and Enterprise also spoke directly after the Minister, going into more detail.

This is the first time New Zealand had attended the conference in up to six years.

Draft Minerals Strategy - mbie.govt.nz

New Zealand Draft Critical Mineral List - mbie.govt.nz

The Mineral Potential of New Zealand Report 2024 - nzpam.govt.nz

2024 Annual Review Meetings concluded

We have concluded Annual Review Meetings for 2024.

Annual Review Meetings are held for the purposes of discussing permit holders’ progress against work programmes and engagement with iwi. They are also opportunities for discussions with permit holders and other invited regulatory agencies such as WorkSafe, Department of Conservation and local and regional councils.

In total, New Zealand Petroleum and Minerals met with 13 permit holders (five Minerals and eight Petroleum) over the last two months, facilitating both general and technical discussions.

Together with our other regulatory partners, we want to thank permit holders for their work to prepare their presentations. The discussions, as always, were valuable and informative.

First permit processing timeliness report released

Earlier this year, New Zealand Petroleum and Minerals (NZP&M) introduced processing timeframes for minerals and petroleum applications received from 1 July 2024, and committed to publishing results quarterly on its performance against those timeframes.

The results for the 1 July – 30 September 2024 quarter showed NZP&M met processing timeframes for 100 per cent of new or subsequent Tier 1 or 2 prospecting and exploration permits, as well as change of conditions, operator, control and/or transfer of existing permits.

Only one application, a full surrender of a minerals permit, did not meet the processing timeframe (exceeded by one business day).

Read more at Permit processing timeliness report: 1 July to 30 September 2024 - nzpam.govt.nz

More broadly in the permitting space, it was another busy quarter with a total of 111 minerals applications and five petroleum applications resolved.

Snapshot of minerals permit applications

We have published a snapshot of the minerals permit applications for the quarter 1 July – 30 September 2024. This snapshot provides an insight into the number of minerals permit applications we received, and the decisions made.

Snapshot of minerals permit applications – July to end of September 2024 - nzpam.govt.nz

Changes to application fee refunds

As part of our programme of works to improve the efficiency of our permitting systems and processes, New Zealand Petroleum and Minerals (NZP&M) is changing its approach to the refund of application fees.

Regulation 16(2) of the Crown Minerals (Minerals Fees) Regulations 2016 provides that the Minister may approve the refund of an application fee if the Minister considers that “exceptional circumstances” warrant it.

Historically, we have taken a more lenient approach when considering a fee refund where applications are withdrawn or rejected as incomplete. However, this has led to our staff spending time assessing poor quality applications at the expense of applicants who do the work required to submit quality applications.

To ensure a fairer user-pays model, from 1 January 2025, application fee refunds will only be considered where applicants are able to demonstrate exceptional circumstances.

The best way to ensure an application progresses smoothly is to provide us with all the information we need up front.

If you have questions, please check the Minerals and Petroleum Programmes and the guidance on our website or speak to our staff before submitting an application. Once your application is submitted, please be responsive to any requests for further information or clarification.

Minerals and Petroleum Programmes – nzpam.govt.nz

New Zealand Petroleum & Minerals - nzpam.govt.nz

Unpermitted quarrying of Crown-owned minerals under regulator’s spotlight

Quarry operators are being reminded to do their due diligence following the discovery of several operators quarrying Crown-owned minerals without permits.

These operators failed to check for Crown mineral ownership on their property title or conduct a Land Mineral Status Report as part of their project planning. They have since discovered they have been unknowingly mining Crown-owned minerals illegally.

Determining mineral ownership in a land title or holding can be challenging. NZP&M recommends sourcing a Land Mineral Status Report from a supplier approved by Land Information New Zealand. This will provide an accurate picture of ownership to avoid possible enforcement action down the track.

Resolution of illegal mining case sees reparation to local community

A diversion agreement over an illegal gold mining operation at Millers Flat, Otago, has delivered a resolution that benefits all parties, including reparation to the local community.

Hawkeswood Mining Limited was found to have conducted gold mining on a permit that only allowed exploration activities – an offence under the Crown Minerals Act 1991.

The company engaged positively throughout the investigation, accepted responsibility for the offending and was granted diversion after agreeing to repay the royalties it owes to the Crown and make a sizable donation to a local charity.

New guidance available to minerals applicants

We recognise it is not always easy for a prospective applicant to know what information they need to provide to us, to enable a timely decision on their application. To help take the ‘guesswork’ out of the equation, New Zealand Petroleum and Minerals (NZP&M) has been working with the sector to develop guidance that makes the process easier.

Earlier this year, we published financial capability guidance and guidance for mapping, as well as a template to support an application for a hobby permit. Over the coming months, the remaining templates and guidance developed for Tier 2 minerals permits will be progressively published on our website, starting with the changes of operator and transfers of interest.

The guidance and templates will be ‘living’ documents, updated on an iterative basis. We welcome feedback or improvement suggestions that we can incorporate into future versions.

We are also grateful to the permit agents and operators who provided feedback on earlier drafts of this guidance to ensure it was fit for purpose. This is a great example of industry and the regulator working together to achieve a common goal of quality applications that can processed in a timely manner.