- Hon Shane Jones
An independent analysis of New Zealand’s minerals royalty regime and the Crown’s return from mineral development has found it is transparent and broadly comparable with similar overseas jurisdictions, Resources Minister Shane Jones says.
The review by Deloitte New Zealand, commissioned by the Ministry of Business, Innovation & Employment, found the overall government take from mining, including royalties and company tax, was broadly comparable with other countries included in the analysis.
“Importantly, the report provides the Government with an independent evidence base on how different future royalty settings would operate in practice and the trade-offs associated with different approaches,” Mr Jones says.
The report found that in 2025, around 97 per cent of mineral royalty revenue came from permits operating under legacy royalty regimes that pre-date the current framework introduced in 2013. This means much of the revenue the Crown receives from minerals is determined by royalty settings put in place some time ago.
“It is important to note that mining projects don’t happen overnight. A permit granted years ago at the exploration stage could take a decade or more to become a producing mine, and in most cases the royalty arrangements stay with that permit for its life,” Mr Jones says.
“The report also highlights the trade-offs that would need to be considered in any change to the royalty regime, including the balance between Crown returns, investment certainty, and the long-term stability of New Zealand’s minerals sector.
“Royalties from Crown-owned minerals support economic development and help pay for the things we need as a country. Along with the associated spending by mining companies, including wages and tax, the extraction of minerals provides a huge benefit to our regions.
“With the emergence of critical minerals as a source of economic benefit to New Zealand, it’s important we consider our royalty regime and whether it provides a fair return,” Mr Jones says
Policy work on mineral royalty settings will continue, with further advice to be provided in 2027. Decisions on any future changes to the regime will be considered in the next term of government.
New Zealand’s minerals royalty regime was last comprehensively reviewed in 2012. Since then market conditions, minerals prices, industry activity and the broader policy context have changed. The Deloitte report does not include petroleum royalties which are subject to a separate regime
