New Zealand as an Exploration Destination: 2000 Update

This paper provides an update to a paper by the author on an overseas explorer's perception of New Zealand, presented at the 1997 New Zealand Minerals & Mining Conference. New Zealand has one of the most open and internationally competitive economies in the world. The petroleum exploration industry in New Zealand is booming with a record number of wells planned for 2000. New Zealand is keen to encourage investment in mineral exploration to develop its natural resources. A study of the geological potential of New Zealand estimated the value of known and potential resources of metals at $86 billion. Gold has the greatest potential, with a total resource estimated at $33.5 billion. The price of gold has averaged NZ$554 since the beginning of 1998, and NZ$593 in the last year, which is very competitive with other countries. An assessment of country risk compared New Zealand with twenty other countries in ten risk categories: sovereign risk, land access, environmental issues, land claims, mining legislation, social risk, infrastructure, civil unrest, natural disasters and workforce. New Zealand ranked fifth, showing it has low country risk. This provides a high degree of certainty for investment, which is important for the perception of New Zealand as an exploration destination. Corruption was considered separately, and New Zealand ranked third out of ninety countries, showing it is one of the least corrupt countries in the world. New Zealand has a favourable business environment, good geological potential, low country risk and no corruption. Despite this, New Zealand has not registered on the radar screens of overseas mineral explorers, and the positive factors appear to have been overlooked. New Zealand has considerable undeveloped mineral potential, and with the current rise in commodity prices, it is hoped New Zealand can participate in a resurgence in mineral exploration.