The vessel hit rocks just south of Barn Bay, 70km south of Haast, on Wednesday morning.
All four crew members on the Nelson-owned boat were rescued safely, but were "shaken" by their experience.
The commission was advised the crew chose to drift overnight and were later woken by unusual noises, after which it became clear the vessel had run aground.
The crew reportedly activated emergency beacons, transmitted a mayday signal and used a liferaft to reach shore safely.
Maritime New Zealand had launched a formal investigation into the incident, while the West Coast Regional Council was leading the environmental recovery.
Westland District Mayor Helen Lash said the obvious concern was around any oil or diesel spills in the area, part of South Westland’s Unesco World Heritage site.
"Bearing in mind the area is very relevant to blue penguins, the Department of Conservation is suitably in-line with this [response] as well," she said.
"A lot of work is going on to manage this across the spectrum." — Allied Media
