Pay cheques soar as miners flood to West Coast for biggest opportunity in a generation

Tuesday, 12 August 2025

Reefton is experiencing a revival as new mining projects bring jobs, infrastructure and renewed energy to the historic gold town.

A surge of mining activity is reshaping the West Coast economy, with hundreds of high-paying jobs, major infrastructure investments and a wave of optimism not seen in the region for several years.

Three mining operations — two mineral sands projects and a large-scale underground gold mine — are expected to inject significant economic activity into the region.

Together, they could create more than 500 direct and indirect jobs and support the region’s push to diversify beyond coal.

Mining employment on the West Coast has climbed to its highest level since 2012, with 750 people now working in the sector — up 90 from the year prior. Data from Stats NZ shows the region is riding a clear upward trend as multiple new mining projects move toward development.

The most advanced of the projects is Federation Mining’s Snowy River underground gold mine near Reefton, which is nearing the final phase of development.

Gold ore will be processed in a new plant currently under construction. About 150 workers will be brought in to complete the plant over the next 12 months. Once operational, the mine will employ about 240 permanent staff.

Director Simon Delander said in a company video that the business already employed 80 people on site and is actively recruiting for a range of roles, including fitters, electricians, geologists, health and safety professionals, truck drivers and underground machine operators.

“We’re also looking for engineers, accountants, and logistics support. It’s a full operation — and we want people who’ll stay and grow with us,” Delander said.

“Our preference is that people come and live on the Coast. We’re working on accommodation solutions, and we’re also offering relocation incentives to help people settle in Reefton or Greymouth.”

Delander said the processing plant would take raw ore from the underground tunnels and turn it into gold bars on site.

Two mineral sands operations are also moving forward. The Mananui project, just south of Hokitika, is being developed by Westland Mineral Sands and has received consent. It is expected to employ about 70 people directly, with another 70 roles supported through transport, services and supply chains.

The Mananui mineral sands project is expected to generate a total wage bill of between $6.6 million and $7.6m a year, with average salaries ranging from $101,500 to $117,500 for its direct workforce.

That is well above the West Coast’s median mining wage of $82,750 — already the highest of any local industry and about 54% higher than the regional median income.

Further north, TiGa Minerals and Metals is preparing to launch the Barrytown mineral sands mine. The project is expected to create 137 jobs during development and operation. Barrytown will extract ilmenite, garnet and zircon, minerals used in paint, industrial abrasives and ceramics, for export markets.

The renewed interest in mining is driven by strong global demand for gold and minerals linked to manufacturing and clean energy technologies. Local authorities and developers say this wave of investment could mark a long-term shift for the region’s economy.

Reefton is experiencing a revival, with the Snowy River gold mine bringing new jobs, infrastructure and optimism to the historic mining town.

Heath Milne, chief executive of Development West Coast (DWC), said this is the biggest opportunity the Coast has seen in a generation. “The moons are aligning — global demand, policy settings and momentum on the ground are all coming together.”

DWC has taken equity stakes in two of the projects, investing $3m in Westland Mineral Sands and another $3.3m in Federation Mining. It is also providing commercial finance for housing developments and worker accommodation to support the incoming workforce.

“These jobs are among the highest-paying in the country,” Milne said. “And for every mining job, Infometrics estimates another 1.6 jobs are created in the community. That includes builders, engineers, freight, retail and hospitality.”

Wages in the sector reflect the high demand. Workers at the Mananui project are expected to earn between $85,000 and $117,000, well above the West Coast median income of $53,608.

Housing, however, could be a challenge.

In Reefton, DWC, Buller District Council and Federation Mining are jointly funding 10 accommodation units at the local campground for mine workers. The company said these will be temporary, with a goal of encouraging long-term settlement.

John Bougen, chairperson of Reefton Inc and a former Buller district councillor, said the town is adapting quickly. “The only person not employed in Reefton is the one who doesn’t want to work. It’s brought a real bustle to the town.”

Development West Coast chief executive Heath Milne says the region is seeing its biggest economic opportunity in a generation.

Bougen acknowledged housing was tight but said the increase in mining has been steady and well supported. “There’s been time to prepare. This isn’t our first gold rush.

“We’ve got about a year to scale up infrastructure, and we’re already working on it. The schools, the medical centre — they’re ready.

“Reefton isn’t just a mining town any more. Tourism is up, agriculture is strong, and businesses are busy. Mining is the icing, not the whole cake.”

Not all communities are on board.

The Snowy River gold mine near Reefton will extract ore from deep underground and process it on site in a new plant now under construction.

TiGa’s Barrytown project faced more than 130 submissions during its consent process, with opposition from residents and environmental groups who raised concerns about truck traffic, dust, noise and threats to wildlife, including the endangered Westland petrel. The project was granted consent with strict conditions, but tensions remain.

Milne said the actual land area being mined is tiny — less than 1% of the region — and argued West Coast communities can balance development and protection.

“Some mining companies are supporting native planting and biodiversity projects. We think both can exist here.”

The West Coast has been through mining cycles before, with booms followed by painful busts. Milne said the current phase is more resilient because it is not reliant on a single commodity like coal.

“We’ve got gold, rare earths, titanium and zircon — and that spreads the risk. Some of these mineral sands resources could last 50 or even 100 years.”

For now, the jobs are real, the wages are high, and local leaders are doing what they can to keep pace with growth. The challenge will be ensuring the benefits reach all parts of the community and that the region is left better off when the mining slows down.

“This is a big moment,” Milne said. “We’ve got to get it right.”