The New Zealand Mining Regime with Particular Reference to the Development of Minerals Programmes

The legislative operating environment, or the mineral regime, that a country has to offer is one of the key determinants that a company wanting to invest in an area takes into account in formulating its investment decision.   The New Zealand Government recognises this and the importance of getting the regime right in order to provide for continuing investment in mineral exploration and mining in New Zealand . In recent years, the Government has given considerable attention to developing legislation which provides for investment to take place; for those making the investments to have a stable, fair and open investment environment with government intervention only when considered absolutely necessary because other approaches are not working; and for the people of New Zealand to know that investment must meet acceptable health and safety standards and have acceptable impact on the environment. Also of key importance is having a clearly defined mining regime which includes rules on how to obtain a permit and rules in respect of ongoing permit compliance, rights to develop a mineral resource and permit conditions (in particular, the royalty regime). In New Zealand , these matters will all be addressed in what are referred to as 'minerals programmes'.   The Crown Minerals Act 1991, which is the legislation governing the allocation and management of permits for Crown owned minerals, requires that the Minister of Energy prepare minerals programmes. Minerals programmes establish the policies, procedures and provisions that the Minister shall follow in exercising his or her functions and powers under the Crown Minerals Act. Minerals programmes set out the principal reasons for and against adopting these policies, procedures and provisions and also restrictions on prospecting, exploration and mining for Crown owned minerals. Essentially minerals programmes define the mining regime for the minerals to which they apply, other than the taxation regime, environmental and health, safety provisions, land access matters and general matters concerning the investment climate.