Why the US wants in on West Coast minerals

Monday, 23 March 2026

Officials say closer ties with Washington could help support the infrastructure needed if critical minerals projects expand on the West Coast.

A proposed critical minerals deal with the United States has been pitched as a potential boost for the West Coast economy, with officials pointing to ports, road and rail links, housing and health services as part of the opportunity.

Newly released Cabinet papers show ministers were told closer ties with Washington could help attract investment and accelerate projects that might otherwise struggle to gain traction.

Ministers were also told the deal could help New Zealand tap into a much larger US push to secure critical minerals supply chains, while backing the Government’s wider minerals strategy.

But the Cabinet stopped short of signing the non-binding deal in Washington last month, asking Resources Minister Shane Jones to return with further advice and leaving the next steps unclear.

The caution contrasts with the ambition in the papers. Officials said the proposed arrangement could help unlock direct US funding, support existing critical minerals projects and strengthen the case for infrastructure investment in a region where mineral resources are seen as a potential growth play.

The same documents also set out the risks. They flagged Māori concerns about the speed and process of the proposal, possible effects on New Zealand’s relationship with China, and uncertainty about what future funding, commercial expectations or policy commitments might flow from even a non-binding arrangement.

The papers also point to a harder edge in Washington’s approach. Officials noted a recent US presidential action warning that import restrictions, including tariffs, could be used if satisfactory critical minerals agreements were not reached quickly enough.

Jones said “no Cabinet decision has been made” on a possible non-binding arrangement with the US, and declined to comment further on Cabinet discussions.

He said the Government was focused on ensuring any growth in economic activity, including on the West Coast, was “sustainable and well supported” and would help build the infrastructure and services regions need over the long term.

Mining remains one of the Coast’s core industries, and Development West Coast chief executive Heath Milne said a deal with the United States could have a “major impact” if it helped ease constraints such as infrastructure, housing and workforce capacity.

He said there was about $7 billion worth of resource in the pipeline across mining companies Westland Mineral Sands, Taiko and Rua Gold, with the potential to create more than 500 jobs.

Development West Coast chief executive Heath Milne says the Coast has the resource, but needs the infrastructure, housing and workers to turn projects into growth.

“It’s not the resource – we know that’s there – it’s the enabling conditions around it,” Milne said.

He said ports, roads and transport resilience would all be critical if the sector was to expand, while housing was likely to be the biggest short-term pressure.

University of Auckland materials physicist Nicola Gaston said it made sense for New Zealand to be part of international discussions on critical minerals used in renewable energy and other future technologies.

But she said the bigger opportunity for the country was not simply extraction, but building higher-value mineral technology businesses, including firms focused on recycling, reuse and alternatives to scarce materials.

“We should be looking to the mineral technology of the future, not the past,” she said.

Mint Innovation, Zincovery and Tasmanion are examples of New Zealand firms already working on those challenges.