The government will lend $50 million to two companies mining mineral sands on the West Coast. Resources Minister Shane Jones made the announcement on 5 July 2026.

Westland Mineral Sands, which operates near Westport, will receive $30 million. Tāiko Critical Minerals, based at Barrytown, will receive up to $20 million. Both loans come with a catch: the companies must also find private funding to pay for the rest of their projects. The government won't hand over the full amount unless the companies can match it with their own investment.

Jones said the two projects would create about 170 jobs. Both companies want to process minerals in New Zealand instead of shipping raw material overseas.

The two projects

Westland's project costs $70 million. The government is paying 43 percent of that — $30 million — with the company raising the other $27 million privately.

Tāiko's project costs $40 million and will receive up to $20 million from the government, with the company covering the rest. Tāiko told shareholders it is still working out the exact terms with government officials. The company also said the government backing has made it easier to attract lenders and investors — having the government on board signals that the project is credible.

Why this matters

New Zealand identified 37 minerals as strategically important in a 2024 plan. Both West Coast projects focus on minerals on that list.

The US has been talking to New Zealand about where it sources critical minerals from, trying to buy less from China. That makes the government keen to build mineral processing here rather than just digging it up and shipping it raw — processed minerals are more valuable and give New Zealand more negotiating power.

This approach copies something the previous Labour government did: it lent nearly $20 million to a gold mine in Reefton. That loan was controversial because the government was taking a commercial risk. This government is doing the same thing, but with a formal minerals strategy backing it up now.

The way these loans are set up protects the government. Money is released only as the companies prove they have private funding in place. If private investors don't show up, the government doesn't pay. But the government's backing is enough for the companies to go to potential lenders and say: look, the Crown is supporting this.