Where New Zealand Fits Internationally

New Zealand depends on foreign investment for economic development. This also applies to the development of New Zealand's mineral resources. For this foreign investment to happen there must be some incentives to attract the investment. While prospectivity is the dominant parameter considered by investors it is not a variable that can be changed, only the perception of New Zealand's prospectivity. Other parameters likely to be considered are sovereign risk, red tape, green tape, land access, civil unrest, land claims, social risk, labour relations, infrastructure and natural disasters. Regulators and political will can vary some of these parameters. Where New Zealand fits internationally can be measured by investors' perceptions of these parameters. Following on from these perceptions New Zealand can be seen to have advantages in some areas and be disadvantaged in others. How to deal with the disadvantages to give investors confidence is not easy in the New Zealand environment where the development of mineral resources plays a small part in an economy dominated by agriculture. Added to this is the current global state of the minerals industry which offers even more of a challenge to attract foreign investment to develop New Zealand's mineral resources.