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NZ First on Economy
Economy · In depth

Returning 50% of mining royalties to the regions

In depth — from NZ First’s policy document

Half the royalties from any mine would stay in the region it came from rather than going to Wellington, earmarked for local infrastructure and services. Around that sits a wider mining package: new zones with clearer rules on where mining may happen, longer permits covering the full life of a mine, a reined-in role for DOC and other agencies, a modern geological survey of what is underground, and the reopening of the School of Mines.

Royalty share
50% to the region
From mining in that region, rather than to Wellington
Permits
Longer
Covering the full life of the mine, including rehabilitation
Mining zones
New and clearer
Recognising regions where mining is already key
Agencies
Reined in
Including DOC, told to stay on core priorities
Survey
A modern geological survey
Plus advanced core-scanning of existing data
Workforce
Reopen the School of Mines
With investment in skills and training
What the regional half would be invested in
  • Water services
  • Flood protection
  • Energy generation opportunities
  • Tourism opportunities
  • Transport and connectivity upgrades
  • Housing development in areas of high minerals industry growth
  • Critical infrastructure projects, plus properly funded Mines Rescue capability

How it would work

Half the royalties stay put

Where mining happens in a region, 50 percent of the royalties would remain there to support local infrastructure, services and long-term development, backed by targeted regional investment to help those projects succeed. The document’s framing is that the benefits of mining should flow back to the communities the mining happens in rather than to Wellington.

Simplifying a system they call overly complex

The stated problem is duplication, delay and rules that the document says do not improve environmental outcomes but do stop investment and cost jobs. New mining zones would set clearer rules about where mining can occur, recognising regions where it is already a key part of the economy.

Longer permits

Permit duration would be changed to reflect that mining is a long-term business, with permits covering the full life of a mine including rehabilitation. The argument is investor certainty: more confidence, more investment.

Reining in the agencies

The package would limit the role of government agencies including the Department of Conservation, on the basis that they should stay focused on core priorities and that regional prosperity should not be sidelined by processes the document says have lost all sense of proportion.

Finding out what is actually there

A modern geological survey, plus investment in advanced core-scanning technology to unlock existing data. The document’s case is that New Zealand does not currently have a modern understanding of what lies underground while other countries do.

Value here rather than dig and ship

The concern raised is that New Zealand risks exporting critical minerals raw and letting others capture the value. The response is continued investment in science and innovation, and rebuilding the sector workforce — including reopening the School of Mines so New Zealanders can take the high-paying jobs.

In their own words

“If mining happens in a region, a 50% share of the royalties will stay in that region, supporting local infrastructure, services, and long-term development.”

Returning 50% of mining royalties to the regions · On the regional share

“You can protect the environment and grow the economy at the same time. They are not mutually exclusive.”

Returning 50% of mining royalties to the regions · On reining in government agencies

“Right now, we don’t even have a modern understanding of what we’ve got beneath our feet.”

Returning 50% of mining royalties to the regions · On the geological survey

“At the moment, we risk being stuck in a ‘dig and ship’ model for key future industries, sending our resources offshore and letting others make the real money.”

Returning 50% of mining royalties to the regions · On adding value in New Zealand

What the document doesn’t settle

Points the document defers or leaves undefined. These are gaps in the document, not criticisms of the policy.

  • No total royalty figure is given, so there is no way to tell what the regional half would amount to.
  • Who would hold and spend the regional share — councils, a new body, or central government — is not stated.
  • Which region receives the share where a mine spans a boundary, or sits offshore, is not addressed.
  • Whether the new mining zones would permit mining on conservation land is not said, though the policy does cut back DOC’s role.
  • “Reining in” DOC and other agencies is not defined, and no statutory change is named.
  • Longer permits are proposed without saying how long, and no cost is given for the geological survey, the core-scanning programme or reopening the School of Mines.
Summarised from Returning 50% of mining royalties to the regions, published by New Zealand First. Read 2026-08-16.
Read the full document
Back to NZ First on Economy

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