Mining in NZ: Offshore profits and the challenge of fair royalties

THREE KEY FACTS: Foreign ownership in mining leads to profits going offshore, with the Crown collecting 2% royalties. The sector’s production is dominated by large international companies, primarily from Australia and Canada. Mining contributes significantly to the economy, with high earnings and productivity, but relies on foreign investment.

A high level of foreign ownership. Profits going offshore. The fact that the New Zealand Crown collects royalties worth about 2% of the value of the minerals being mined.



All this begs the question as to whether mining in any way benefits the people of New Zealand. Most minerals in New Zealand are the property of the Crown , irrespective of whose land they are under..