New Zealand Backs West Coast Critical Minerals Processing

The funding comes from the Government's $80 million allocation reserved specifically for developing the country's critical minerals sector.

The New Zealand Government is putting fresh investment behind two major critical minerals processing projects on the West Coast, marking a significant step in its plan to strengthen regional industries while increasing the value of the country's natural resources before they reach international markets.

Government funding to boost local mineral processing

Regional Development and Resources Minister Shane Jones announced that up to $50 million from the Regional Infrastructure Fund (RIF) will support two large-scale projects that focus on processing mineral sands containing valuable critical minerals. The funding comes from the Government's $80 million allocation reserved specifically for developing the country's critical minerals sector.

The investment will support Tāiko Critical Minerals in Barrytown and Westland Mineral Sands near Westport, both of which are preparing to establish processing facilities that will transform raw mineral resources into higher-value products within New Zealand instead of exporting them in their unprocessed form. The Government believes this approach will create more skilled employment opportunities, strengthen regional businesses, and increase export earnings by keeping more of the value chain inside the country.

Shane Jones said countries across the world are actively searching for reliable supplies of critical minerals because they are needed in industries ranging from advanced manufacturing and clean energy to aviation, electronics, medical technology, and scientific research. He said New Zealand has the resources required to become part of these international supply chains and the Government is prepared to support projects that help unlock that opportunity.

Two projects expected to create jobs and regional growth

The Barrytown-based Tāiko Critical Minerals project has been offered up to $20 million toward the construction of a $40 million wet separation plant. The facility forms part of a larger mineral sands mining and processing operation that already has the required consents in place. The project will process ore sourced from privately owned farmland, creating a direct pathway from mining through to processing before products are exported.

The second investment will provide $30 million to Westland Mineral Sands, supporting progress on a proposed $70 million mineral separation and processing facility near Westport. Once completed, the plant will process ores containing titanium, zirconium, and rare earth-bearing concentrates such as monazite, minerals that are increasingly important for modern industrial technologies.

Government officials expect both developments to establish early-stage mineral processing capability within New Zealand, allowing valuable resources to be refined locally instead of relying on overseas processing facilities.

Critical minerals seen as a long-term economic opportunity

The Government views resource development as an industry capable of delivering stable economic activity across several decades, creating reliable employment and supporting local businesses throughout the life of each project. Officials believe early public investment can help attract private sector development during the initial stages when major infrastructure costs are highest.

Combined, the Barrytown and Westport projects are expected to generate around 170 permanent skilled jobs once operations begin, while creating approximately 90 construction jobs during the building phase. Those positions are expected to provide a substantial economic boost for West Coast communities and strengthen New Zealand's growing role in supplying critical minerals that are becoming increasingly important in global manufacturing and technology industries.