Snowy River Gold Mine to Begin Production, Creating Jobs and Boosting Economy

In February alone, the Snowy River project injected $2.9 million into New Zealand’s regional economy through supplier contracts, employee wages, and services, with approximately $1 million directly benefiting the West Coast.

New Zealand is set to see its next major mining operation come to fruition, with the Snowy River underground gold mine in Reefton on track to commence commercial production by next year. The project, operated by Federation Mining, is expected to create 250 local jobs and contribute significantly to the Coalition Government's goal of doubling mineral export revenue to $3 billion by 2035, Resources Minister Shane Jones has announced.

Following nearly 25,000 meters of exploration drilling, the Snowy River project is targeting gold production by the end of 2026. This marks a significant milestone for both New Zealand’s mineral sector and the West Coast community.

Reviving a Historic Gold Prospect with Modern Technology

The project focuses on the Birthday Reef, a historically productive gold deposit that yielded 733,000 ounces of gold over nearly 50 years in the early 1900s. Advances in mining technology have now made it possible to revisit and extract further resources from this rich deposit.

In addition to its economic contributions, the project is committed to sustainable mining practices. Federation Mining plans to implement innovative water management strategies, including reusing and treating water throughout the mining and processing operations. More than 12,000 native plants will be established over the lifetime of the project, and the surrounding environment will benefit from ongoing pest and weed control efforts.

Strong Investment and Local Development

Federation Mining has successfully raised over $200 million in capital to advance the project, with AustralianSuper—Australia’s largest superannuation fund—moving to take a majority interest in the company and the mine.

"While local investment has been crucial in advancing the Snowy River project, securing Australian capital is what will bring it to production. The backing of one of Australia’s largest investors is a major vote of confidence," said Minister Jones.

He also expressed his hope that New Zealand’s own superannuation schemes would recognize the potential of the country’s resource sector and capitalize on such opportunities, as Australia has successfully done.

Employment and Community Growth

Federation Mining is now shifting its focus toward constructing its processing plant, with development scheduled to begin in mid-2025. Over the next 12 months, more than 160 workers will be employed to support construction activities. To facilitate recruitment, the company is collaborating with the Mayors Taskforce for Jobs, an initiative dedicated to helping individuals secure employment, training, and education opportunities.

Additionally, in partnership with the Buller District Council and local businesses, the company is investing in affordable housing solutions in Reefton. The construction of one- and two-bedroom homes aims to accommodate the mine’s future workforce, ensuring long-term community benefits.

Economic Impact and Future Prospects

In February alone, the Snowy River project injected $2.9 million into New Zealand’s regional economy through supplier contracts, employee wages, and services, with approximately $1 million directly benefiting the West Coast.

"I commend Federation Mining on the progress of the Snowy River project and their ongoing collaboration with communities, iwi, and regulatory bodies. This represents the future of modern mining in New Zealand," Minister Jones concluded.

With construction and development well underway, the Snowy River underground gold mine stands to become a major economic driver, reinforcing New Zealand’s commitment to responsible and sustainable mining while generating employment and growth for the West Coast region.