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Two critical minerals projects on the West Coast are getting up to $50 million from the Crown to co-fund the construction of processing facilities.
The Westland Mineral Sands project near Westport will receive $30m, and Tāiko Critical Minerals in Barrytown will get up to $20m.
Resources Minister Shane Jones said the money would come from the $80m ring-fenced in the Regional Infrastructure Fund to support the sector, and it would be accessible to the two projects as private co-funding became available.
Jones said the projects would generate about 170 jobs.
Last year, the government launched a new strategy aimed at boosting the mining of critical minerals, with 37 potential minerals identified.
Critical minerals like titanium, are a core component of many modern products and technologies, including EV batteries, wind turbines and smartphones.
The United States has been in negotiations with New Zealand about the supply of critical minerals, as it looks to reduce its reliance on China, the world's leading critical mineral producer.
The $20m for Tāiko Critical Minerals will go towards a planned $40m wet separation plant, as part of a wider mineral sands mining and processing operation.
Tāiko Critical Minerals said it was now engaged with government officials to determine the format, terms and conditions of the proposed government assistance.
In an update to the NZX it said the potential partnership with the government materially enhanced the credibility of the project with prospective lenders, equity participants and other stakeholders.
The Westland project would receive $30m towards a progressing proposed $70m mineral separation and processing facility.
Jones said the government was hoping to mimic a similar deal done under the previous Labour government.
"We spent nigh on $20 million breathing life into a gold mine in Reefton back in Jacinda's time, and it proved to be very successful because associated with the gold is a very rare earth property known as antinomy."
"The Australians eventually came in and bought the Crown out . . . the final character of the transaction will depend on the details of both of the owners in terms of what they want to achieve," he said.
He said the invest would enable the companies to set up semi-processing facilities, giving them a better foothold in the minerals market.
"They're trading into a market where the price is easily manipulated and decreased by those that control the global supply lines, and that is progressively China.
"This transaction, which will only proceed on the basis that they can raise significant amounts of capital, either internationally or domestically, and then the Crown will contribute to their efforts for semi-processing in New Zealand, will enable them to strengthen their operations in by semi-processing in New Zealand rather than sending raw material that contains the rare earths in the gravel that is sent overseas."
This story was first published on rnz.co.nz |  |