This paper provides an update to a paper by the author
on an overseas explorer's perception of New Zealand,
presented at the 1997 New Zealand Minerals & Mining Conference.
New
Zealand has one of the most open and
internationally competitive economies in the world. The petroleum exploration
industry in New
Zealand is booming with a record number of
wells planned for 2000. New
Zealand is keen to encourage investment in
mineral exploration to develop its natural resources.
A study of the geological potential of
New
Zealand estimated the value of known and
potential resources of metals at $86 billion. Gold has the greatest potential,
with a total resource estimated at $33.5 billion. The price of gold has averaged
NZ$554 since the beginning of 1998, and NZ$593 in the last year, which is very
competitive with other countries.
An assessment of country risk compared
New
Zealand with twenty other countries in ten risk
categories: sovereign risk, land access, environmental issues, land claims,
mining legislation, social risk, infrastructure, civil unrest, natural disasters
and workforce. New
Zealand ranked fifth, showing it has low
country risk. This provides a high degree of certainty for investment, which is
important for the perception of New Zealand as an exploration
destination. Corruption was considered separately, and New
Zealand ranked third out of ninety countries,
showing it is one of the least corrupt countries in the world.
New
Zealand
has a favourable business environment, good geological potential, low country
risk and no corruption. Despite this, New Zealand has not registered on the
radar screens of overseas mineral explorers, and the positive factors appear to
have been overlooked. New
Zealand has considerable undeveloped mineral potential, and
with the current rise in commodity prices, it is hoped New Zealand can
participate in a resurgence in mineral exploration.