Middle East war threatens 41 jobs at West Coast sand mine

Tuesday, 17 March 2026

A mineral sand mine says global markets have forced it to consider a temporary pause on production which could leave 41 people without work.

Westland Mineral Sands has been mining at Okari, Cape Foulwind near Westport since 2022. It has consent to mine about 500,000 tonnes of heavy mineral concentrate until about 2032.

It also has consent to mine 300,000 tonnes of minerals every year for 16 years from coastal land near Hokitika.

Westland Mineral Sands (WMS) managing director Ray Mudgway said he announced proposed changes to its mining operations in response to sustained weakness in global markets and ongoing uncertainty arising from events in the Middle East.

“After careful consideration, WMS is proposing to temporarily pause all mining activity at its Nine Mile pilot plant, placing it into what is known in the mining industry as care and maintenance.”

Its operations at both the Westport and Grey ports, along with associated logistics, would also pause.

Mudgway said the proposed temporary pause of mining and other operational changes across the business would affect a significant portion of its “highly skilled, hard-working” workforce.

The proposed temporary pause of mining in Westport affects 41 roles.

“We are currently undertaking a formal consultation process with staff before any final decision is made,” he said.

“I am deeply aware of the impact this will have on our people, their families, our suppliers, and the West Coast community… By far the hardest considerations have centred on our people.”

The company had evaluated options to reduce costs, he said, including cutting all non-essential expenditure and halving the executive leadership team.

He said a temporary pause would protect the long-term value and future viability of the project and would restart when markets recovered.

“The world is an uncertain place right now and events in the Middle East have added further volatility to global markets, shipping routes and energy prices.”

The cost of fuel and shipping operations has risen significantly and the price of titanium and mineral sands fallen.

Mudgway said projects were being cancelled and mines put into care and maintenance everywhere, and was not something unique to New Zealand.

Its long-term objective to build an intergenerational critical minerals business on the West Coast had not changed, he said, and its key strategic focus was to build a mineral separation plant in Buller, which would move allow it to export higher-value product and reduce exposure to raw commodity price cycles.

Buller mayor Chris Russell said the announcement would cause concern across the district.

“My thoughts are first and foremost with the workers, their families, contractors, and the many local businesses who may be affected by this decision,” he said.

He said while it was a difficult decision, the proposal was prudent.

“Having spent much of my working life in the coal industry, I am very familiar with the reality that resource industries operate in cycles. Market downturns occur, sometimes suddenly and sometimes for extended periods.

“While periods like this are difficult, Buller has repeatedly shown its resilience and its ability to move through industry cycles and emerge stronger.”

Russell said it would be premature to speculate about the future viability of the port, based on the announcement.

“Westport Port will continue to support the fishing industry and other normal harbour activities as part of its ongoing operations,” he said.

The company has applied for funding through the Government’s regional infrastructure fund to build the processing plant near its Westport mine.

Mudgway said it would take about 18 months to build and, once operational, would employ up to 100 people.

He said the company was committed to the development of its Mananui project near Hokitika. Work was continuing on the project, including geological exploration drilling and an application submitted in early February to extend the mining licence area by about 100ha.

Early engineering design work, including equipment suitability reviews, were under way.

“The Mananui deposit contains coarse, high-grade garnet, which differs from the ilmenite rich heavy mineral concentrate currently produced in Buller and provides an opportunity to diversify WMS’s product offering,” Mudgway said.

He said he had been working closely with the Grey District Council on plans to develop Grey Port and was in advanced discussions with potential garnet buyers in the United States, the Middle East and Australia.

The company would continue to hold stockpiles of its product at Westport which supports its logistics and export planning as the project progresses.

The Coast Road Resilience Group, which opposed a similar mineral mine in Barrytown near Greymouth, said, in a statement, it felt for the staff and their families.

“This is often the issue with boom and bust industries that are so vulnerable to international pressures and may give pause to investors around New Zealand thinking about buying shares in mining entities,” it said.

It also hoped the stockpiles did not cause dust issues.

“What the Coast needs is a long term strategy for creating and keeping good jobs that make the most of our capacity and capabilities and provide pathways for a long term successful future for Coasters, while being the kaitiaki [guardian] we should be for our environment,” it said.