Coalition partner New Zealand First wants government departments shifted to the regions, and the agency - confirmed yesterday by Cabinet - could be first cab off the rank.
Part of the coalition deal with Labour states: 'A commitment to relocate government functions into the regions'.
Minister Responsible for Pike River Re-entry Andrew Little said yesterday the agency would be a small government department and "could be based in the South Island, closer to the mine".
Pressed further by the Greymouth Star, Mr Little said: "Greymouth is a possibility, as well as Christchurch and Wellington".
"Wherever 'head office' is located, if re-entry goes ahead then the agency will clearly have a strong presence on the West Coast. The location will be worked through by me with SSC (State Services Commission) and the chief executive, when that person is appointed."
The agency has a budget of about $7.6 million a year and will be dissolved once the recovery work has been completed or abandoned.
West Coast-Tasman MP Damien O'Connor said he "absolutely" agreed the office should be based in Greymouth and had addressed that "very clearly" with the minister.
"I'm encouraging him to locate that in Greymouth," Mr O'Connor said.
"I think we have not always been well served by people making decisions in Canterbury," he said, in veiled reference to Solid Energy.
Many skilled underground miners remain in the Grey district, some flying in and out to Australian mines, and Mines Rescue is based on the outskirts of Runanga.
Grey District Mayor Tony Kokshoorn said it made sense "without doubt" to base the new agency in Greymouth.
"The disaster happened here. There will be a concentration of activity in the area. It's common sense to put it in Greymouth."
It would make the agency more accessible, too, Mr Kokshoorn said.
"It's part of the transparency it needs."
The estimated cost of the Pike River Recovery Agency and re-entry is $7.67 million a year, or up to $23 million over three years (including up to $4 million of existing funding).
It will be established by January 31 by Order in Council, which means legislation is not required.
An establishment unit within the Ministry of Business, Innovation and Employment is in place and will set up the agency. The State Services Commission will recruit the chief executive.
The agency will take over Pike River Mine assets from Solid Energy by the time it enters liquidation in mid-March 2018.
Once re-entry is complete, it will seal the mine with a reversible seal and rehabilitate the site. The site will then be returned to the Department of Conservation for ongoing stewardship.
