Trans-Tasman Resources has walked away from a vast offshore prospecting licence off the West Coast of the South Island.
NZ Petroleum and Minerals confirmed the permit had expired last Thursday and was not renewed.
The company is still fighting in the courts for access to the seabed ironsands off Taranaki. The case was before the Supreme Court in April and the decision was reserved.
The company has reportedly spent $80million getting its North Island project this far.
Trans-Tasman applied for the West Coast permit in 2015. It covers 4436sq km, extending from Karamea to Ross, from as close as 1km offshore.
Chief executive Andrew Stewart said the company did not renew or extend the permit as it was still awaiting the decision of the High Court appeals concerning the North Island prospect.
The company said a few years ago it would focus on developing offshore mineable resources of iron-rich mineral sands known to host ilmenite, zircon, garnets and gold. Ilmenite can be used for paint, and garnets for sandblasting.
The permit was granted a year later.