Kiwi town sitting on a rare mineral the world wants

Saturday, 28 December 2024

This story was first published on March 24, 2024

Reefton is enjoying a boom in the minerals industry, and has a “humming” property market.

A large amount of the rare mineral antimony has been found around Reefton.

Not only can you buy a three-bedroomed house for $300,000, the town is “adorable”.

A New Zealand town is enjoying a boom in its economy, attracting international interest and multimillion-dollar investment, with its discovery of a rare mineral “of huge geopolitical significance”.

It has “the best fishing in the world” too, a climate like the South of France, and you can still get a three bedroom house there for $300,000.

“Reefton was a diamond in the rough years ago, now it’s sharper than a rat with a gold tooth,” says a former Auckland richlister who moved there and invested millions.

Mention Reefton to New Zealand city dwellers, and chances are they will be struggling to put a pin in the map.

But those who live there are not only enjoying the West Coast old mining town’s resurgence, but say it’s going to be of international importance at the “highest government levels,” with Resources Minister, Shane Jones, “jumping up and down” in excitement.

Reefton has become one of New Zealand’s property hotspots, with house prices increasing in value by 114% over five years, the sixth biggest ‘suburb’ jump in the country, according to Corelogic analysis.

Buller, the region Reefton sits in, has the lowest average house value in the country at $339,212 – 1.4% higher than a year ago, says Corelogic.

In Trade Me’s latest property index, the West Coast is the highest regional performer, with growth driven by Buller, which recorded double digit growth for the past six months, said Trade Me’s property director, Gavin Lloyd.

“The West Coast has been a stand-out region looking at the average asking price for a property. While most of the country experienced a decline in 2023, prices in the West Coast increased every month apart from May.”

Reefton in particular is hugely popular, he said.

“In February there was an 86% increase in listing views compared to the same time last year,”

Those still looking to bag a bargain will not be disappointed.

“You can get a solid three-bedroom house on a large section for around $300,000 mark. For a little more you can get amazing houses a fraction of anywhere else” said Linda Jones at Property Brokers Reefton.

She’s currently marketing a large renovated villa at just $580,000, “which would set you back millions in Auckland,” and a picture book cottage backing on to a 30 acre reserve for $359,000.

A local mining project generating 140 jobs, as well as other businesses moving in, is creating high demand and even a shortage of houses which is driving prices up, she said.

Jones has seen a “flurry” of activity, with buyers from all around New Zealand including Auckland, Christchurch and the Coromandel, as well as overseas.

She emigrated to New Zealand 37 years ago from the UK, initially staying with a relative in Reefton and liked it so much she never left.

“It’s very likeable, so people visit and end up buying.”

All it took for Emma Timmis, also from England, was an ice cream and a gin.

Three years ago, she lighted upon Reefton “by chance” on a trip around the South Island.

“We came over the hill to this “adorable” town, so stopped for ice cream. One of the locals suggested visiting the local distillery.

That night I was looking at houses, and before I knew it I sold my house in the UK and bought here.“

She’s met other expats who are moving in, many coming to work in mining, building a diverse population still only 1200 but poised to grow.

“It’s a quirky town attracting lots of creatives and entrepreneurs - there’s definitely a buzz.”

The chief executive of Development West Coast, Heath Milne, said the “pride and entrepreneurial spirit” of locals was driving resurgence, coupled with strong primary industries and new business moving in.

Reefton’s historic buildings have had authentic makeovers, leaving the main street full of busy shops, cafes, antique stores and galleries celebrating the town’s rich gold mining price.

It’s also home to some of the best trout fishing and mountain bike tracks in the world, with 12 rivers within a 40-minute drive, he said.

“Reefton has been one of New Zealand’s post-Covid success stories. Visitor spending in Reefton is up by 30.4% - jumping from $5.3m in pre-Covid 2019 to $6.6m in 2023,” he said.

In contrast to other historic towns in New Zealand, Reefton is not just relying on showcasing times past.

“The minerals sector is booming again, while former mining sites are being carefully rehabilitated.”

Federation Mining’s underground gold mining project beneath the old Waiuta township recently struck the old Birthday Reef.

“They're estimating it has around 700,000 ounces of gold. With gold prices at record highs, over $3500 per ounce for the first time ever, this is great news for Reefton and the wider region.”

Federation Mining vice president Simon Delander said construction of the processing plant would begin later this year, moving into production during 2025.

“We are planning to grow the workforce from the current 70 to over 140 staff over the next 12 months. We will be recruiting miners, processing operators, engineers, administrative, technical specialists and environmental professionals.”

Siren is also prospecting gold around Reefton, recently raising another $2m for drilling.

Of huge significance is the discovery of a large amount of the rare mineral antimony around Reefton, said Milne.

“Currently 80% of the world's supply of antimony comes from China and Russia, so having another source has huge geological implications.”

Antimony is critical to the world’s supply of semi-conductors, solar panels, wind turbines and is becoming very important to the EV and energy storage industries.

With the rest of the country in official recession this week, Reefton is bucking the trend.

For the December quarter, the West Coast had the highest GDP growth rate in the country at +0.4%, according to Infometrics.

New data from Stats NZ released this week showed the national economy contracted by 0.1%.

“The Coast was able to buck the national trend largely due to increased activity in the minerals sector and the recovery of the tourism industry,” said Milne.

The shortage of housing is creating opportunities for developers, as more people throughout the country eye it as a desirable place to live with job opportunities.

“The West Coast has the most affordable housing in New Zealand. According to Infometrics, the average New Zealand household spends 49.1% of their income on mortgage payments, while on the Coast households only spend 23.6%.

Given the current cost of living crisis, the West Coast is looking more and more appealing for people wanting to escape the concrete jungle and traffic of the big cities.”

Former co-founder of Dress Mart and Auckland richlister John Bougen could have chosen any of the 243 countries he’s visited to call home, and he chose Reefton.

He moved there in 2015 after he saw an advert for a old rimu school “at a price I thought they had missed the zeros off”.

Nine years later, he’s invested millions in about 50 projects, and is about to move into a home he’s converted from the old state mining shed,

“It’s New York-style apartment- from the ground up in Reefton.”

He met Reefton-born partner Helen “over a fence boundary” during one of his projects.

He’s also helping to supply much needed housing with “flat pack cottages” that can go up in a day.

He’s kitting some out as luxury rentals for incoming workers, with furniture, power and everything included, for rental prices that would make most of New Zealand envious.

He’s not surprised that Reefton’s boom is attracting national attention, and is used to answering the weather question.

“People ask ‘isn’t it cold and wet?’, but Reefton is 200m above sea level and we sit between the ranges. So we have our own microcosm here. Having spent quite a bit of time in Provence in France where it's hot in summer and cold in winter, it’s very much like the climate there.”

“In January and February it's over 30 degrees every day. It’s quite extraordinary. In winter, yes, it gets cold and a bit misty, but many places in New Zealand do.”

Niwa recently named Reefton as one of the country’s least windy cities.

Nor is it, as say the doubters, “in the middle of nowhere.”

“It’s very much the gateway to the west coast with Nelson and Christchurch in easy reach.”

The wi-fi is one of the fastest in the country, he says, and foodies will not be disappointed with a “world class” pizza parlour about to open.

When the gold mining kicks off, and with the additional antimony, Reefton is going to be known on the world stage, he said.

Antimony is highly desirable by the likes of US military, but with most of it currently from places like China and Russia, all eyes are on “the riches are down there in Reefton.”

“Shane Jones and Maureen Pugh are jumping up and down and doing jigs.

The gold price has never been higher worldwide, too, he said.

“Reefton is doing just fine at the moment but when these guys all kick off, which is pretty much any day then it's Hallelujah.“

The best thing about Reefton is how it’s handling growth and development while retaining it’s character.

“We’ve got everything you need, a heated pool, a hardware store, a bakery, two supermarkets, pubs, tearooms, a distillery, an old brass band, a new band, a powerhouse that was one of the first places in the world to generate electricity, and a main street of beautiful shops.

“It’s going to be New Zealand’s greatest town - it is already. Sharper than a rat with a gold tooth.”