REGIONAL INVESTMENT | WEST COAST
West Coast
The West Coast economy is driven
by mining, dairying and tourism. The
region has a diverse mineral profile with
an established coal and gold mining
industry and an expanding onshore oil
and gas exploration programme.
The West Coast is taking advantage of
its abundant rainfall to expand its dairy
industry, while its microclimates nurture
an emerging niche horticultural industry.
The region is an internationally known
eco-tourism destination.
Regional Highlights
Rich in
mineral resources
Successful
dairy industry
Spectacular and
diverse scenery
Areas of Opportunity
Capitalising on mineral resources
The West Coast has high quality coal (used in
steelmaking) and rich gold deposits, both of which
are exported. An opportunity exists to recover
and commercialise rare earth minerals. Oil and gas
exploration is carried out onshore.
Developing dairy and horticulture
The success of the region’s dairy industry, based
on high grass growth, could be leveraged to
establish complementary goat farming and milk
processing businesses. Global market-linked
investment is required to achieve this.
Tourism infrastructure
The West Coast is a highly attractive touring and
recreational destination for international travellers
who pursue natural and wilderness experiences.
Investment in eco-tourism and accommodation could
further increase visitor numbers.
West Coast
Highly export
oriented
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REGIONAL INVESTMENT | WEST COAST
Capitalising on Rich Natural Resources
Key attributes of the region
The West Coast is New Zealand’s longest region and is nestled between the Southern Alps and the Tasman Sea.
Eighty-five percent of its land is part of the national conservation estate. Tourists are attracted by the region’s
diverse natural beauty including the world’s closest glaciers to the sea. The West Coast’s swift rivers provide
scope for mini and run-of-the-river hydro development.
The population is mostly spread between Greymouth, the region’s administrative and business centre, Westport
and Hokitika. The West Coast is connected with other regions via two airports, railway, several state highways,
and its harbours. International freight links are provided at Christchurch International Airport and the Port of
Lyttelton in Canterbury.
All
of New Zealand’s
bituminous coal
production is from
the West Coast
40%
of regional GDP
flows from the
mining industry
Vibrant
Two million
One
dairy farming and
processing industry
hectares of scenic
rainforest
of the top ten places
to visit in the world
Westport
Solid Energy
Stockton Opencast mine – the largest
opencast coal mine in New Zealand
Westport Airport
– 55 minutes to Wellington
Bathurst Resources
Denniston Plateau
OceanaGold Macraes
Goldfield
Paparoa
National Park
Nelson – 2 hours
40 minutes by road
Nelson Lakes
National Park
Reefton
Solid Energy
Reddale mine
State Highway 6
Solid Energy
Spring Creek mine
Greymouth
DB Breweries
New Zealand
State Highway 73
Hokitika
Mosman
Oil and Gas
Arthur’s Pass
National Park
Westland Milk Products – processing
plant and research facility
Hokitika Airport –
35 minutes to Christchurch
State Highway 7
Franz Josef and Fox Glaciers;
Westland National Park
Christchurch –
3 hours by road
REGIONAL INVESTMENT | WEST COAST
Capitalising on Mineral Resources
The West Coast has substantial deposits of bituminous coal, gold, platinum, titanium-bearing ilmenite and
other minerals. The mining industry is the main source of employment and economic activity in the region and
there is potential to almost triple its annual production value of $2.4 billion by 2026.
Oil and gas exploration is being carried out in an area of known seepage in the Grey Valley.
Two ports
One million tonnes
median earnings in mining
(NZ median: $67,710 p.a.)
to ship mineral production
by barge at Greymouth and
Westport
capacity at Reefton Gold
processing plant per year
19%
2.6 million tonnes
150 years
of New Zealand’s mining
workforce
of freight moved by the regional
rail network
of experience and expertise in
mining
High quality training
894,697 tonnes
International
in both underground and surface
extraction as well as other
industries that work in confined
spaces
of industrial minerals produced
by the region
companies operating in the
region such as OceanaGold
West Coast’s Tai Poutini
Polytechnic specialises in mining,
and developed the Reefton
Education Centre for training
in civil plant operation, in
partnership with industry.
The West Coast has rail capacity
for moving bulk and other
materials, including coal and
gold, throughout New Zealand
and for export through East
Coast ports.
Coal and gold production
has continued to expand and
contributes billions of dollars to
the New Zealand economy.
NECTI
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$71,620 p.a.
The New Zealand Motor Industry Training Organisation (MITO), which has a national network
of offices, has a regional training office in Greymouth dedicated to the needs of the West
Coast region.
Mineral extraction in the South Island is driven by industries on the West Coast and in Otago
and the West Coast, with smaller operations in Nelson, Marlborough, Tasman and Southland.
Solid Energy is a state-owned
New Zealand coal mining
company, and the country’s
leading coal producer with
mines on the West Coast, and
in Waikato and Southland. The
company’s annual coal production
is approximately four million
tonnes, evenly split between
metallurgical coals for export and
thermal grades for industrial uses
and electricity generation within
New Zealand.
Doug Hood Mining Ltd is a
New Zealand company specialising
in mining and civil engineering
works requiring significant use
of heavy earthmoving plant. In
February 2014, the company
completed a 28-month miningservices contract with Solid
Energy at Reddale Coal Mine,
Reefton. Doug Hood Mining
operates out of Westport where
it has a regional office and heavy
engineering workshops.
Birchfield Coal Mines Limited is a
privately owned family company
whose directors have widely
established mining interests on
the West Coast. The company’s
sub-bituminous Giles Creek coal
is utilised extensively by the
industrial, service and primary
production sectors in the
South Island.
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REGIONAL INVESTMENT | WEST COAST
Developing Dairy and Horticulture
Agriculture is a critical contributor to the West Coast economy. The region is exploring opportunies to establish
complementary goat farming and milk processing businesses. Expertise and global market-linked investment
will be required to capitalise on this.
The West Coast is also exploring horticultural opportunities that, with investment, could leverage relative
climatic advantage in the production of niche crops during winter months.
$35,180 p.a.
336,227 hectares
17% increase
median earnings in primary
industries
(NZ median: $26,420 p.a.)
of grassland and tussock for
grazing
in dairy cattle over five years
1,230
316% increase
371
employees in primary industries
in irrigable land over five years
(2,300 hectares)
dairy herds in the region
120 years
Fewest frost days
Niche markets
of independent dairy farming
in the South Island give the
West Coast a mild climate
in feijoas, blueberries, cranberries
and calla lilies
The Primary Industry Training
Organisation supports the
development of the region’s
strong agricultural workforce.
Reliable rainfall of 2,0003,000mm a year, a result of
the region’s geography, yields
ample water supply for farming.
A developing dairy industry
derives advantage from the
export of value-added products
including yoghurt and infant
formula.
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Lack of scale in horticulture is mitigated by linking with supply chains in other regions such as
Nelson whose processors manufacture juices from West Coast fruit.
Westland Milk Products, a farmer–owned cooperative company has suppliers and processing
operations in Canterbury as well as on the West Coast at Hokitika.
Westland Milk Products, which produces milk
powders, butter, milk protein concentrates and
nutraceutical products, has a 77-year history of
operating on the West Coast. The company, which
has experienced record milk supply, produced
128,000 tonnes of processed product for sale in
2013 and exports to 50 countries worldwide.
True Blue Organics produces New Zealand’s only
BioGro-certified organic Tea Tree oil. This 100 percent
pure essential oil is grown, harvested and distilled
in Karamea. True Blue also has a small commercial
feijoa orchard producing well in Karamea’s subtropical climate. The company successfully markets
its oil and skin care products to organic retailers and
manufacturers throughout New Zealand who are
attracted by its reputation and integrity.
REGIONAL INVESTMENT | WEST COAST
Tourism Infrastructure
Tourism accounts for 12 percent of the West Coast’s employment and 9.1 percent of its GDP. The region
stretches 600 kilometres from rainforest in the north to glaciers and majestic landscapes in the south, and
form part of the 1.9 million hectare South West New Zealand World Heritage Site. Lonely Planet ranks the West
Coast as one of the top 10 places in the world to visit.
Tourism has grown to nearly 2 million visitors annually. The conservation estate encompasses the bulk of the
region’s habitats and landscapes and is a major economic contributor. Recent investment in eco-tourism and
accommodation could further increase visitor numbers and profit.
Four highways
Tourism West Coast
median earnings for construction
– a proxy for tourism infrastructure
(NZ median: $42,080 p.a.)
and a railway link the West Coast
to other regions
specialises in promoting
the region nationally and
internationally
1,830
Two airports
4.5% of GDP
employees in accommodation and
food services
connect with other regional
airports and Christchurch
International Airport
in the region generated by the
tourism industry
Tourists
Fifth
114% growth
contributed $288 million to the
regional economy
most visited place in
New Zealand by international
tourists
in spending by Chinese visitors
to the region
The West Coast Trades Academy
(WCTA) is a partnership between
the region’s schools and Tai
Poutini Polytechnic supporting
tourism workforce development.
The West Coast Construction
Alliance (WCCA) brings
together engineering,
construction and manufacturing
companies to bid for
infrastructure projects within
and outside the region.
Private tourist operators and the
Department of Conservation help
facilitate recreational activities
such as short walks, hunting,
fishing, jet boating, mountain
biking, caving, exploring glaciers,
climbing, surfing and kayaking.
NECTI
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$47,600 p.a.
The West Coast’s Tai Poutini Polytechnic offers a range of specialist industry training
programmes for employers. The institution has four campuses in the region and others in
Wanaka, Auckland and Christchurch.
Scenic Hotel Group is
New Zealand’s largest
independently owned and
operated hotel group with 16
hotels located in 11 popular
holiday and visitor regions. The
Scenic Hotel Group’s West Coast
properties under the Scenic and
Heartland brands are in Franz
Joseph, Fox Glacier and Haast. The
Group’s Te Waonui Forest Retreat
at Franz Josef Glacier is a five-star
Qualmark-rated luxury eco-hotel.
Ngāi Tahu Tourism owns and
operates iconic New Zealand
experiences. On the West
Coast, Ngāi Tahu’s Franz Josef
Glacier Guides company is
an internationally recognised
operation. The company also has
the Glacier Hot Pools, located in
Franz Josef.
Over 80 percent of the West
Coast is conservation land
administered by the Department
of Conservation (DOC). This
government agency manages all
New Zealand’s conservation land
and waters. DOC is responsible
for more than one-third of
New Zealand’s land including
14 national parks, 34 marine
reserves and six marine mammal
sanctuaries.
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REGIONAL INVESTMENT | WEST COAST
Who has invested in the West Coast?
Bathurst Resources (Australia and New Zealand)
“I think the West Coast has phenomenal opportunity, not only coal. There’s been
a very good study by West Coast Development, West Coast Minerals on the
potential there.”
– CEO Hamish Bohannan
Bathurst has exploration and mining permits covering 10,000 hectares on the
Buller Coalfield, home to some of the world’s most valuable, hard coking coal used
for making steel. Bathurst is listed on both the New Zealand and Australian stock
exchanges. The company’s operations and all of its staff are based in New Zealand.
DB Breweries New Zealand (The Netherlands)
DB Breweries (DB) New Zealand is 100 percent owned by HEINEKEN and is a
member of the HEINEKEN Asia Pacific network. DB was previously owned by
Asia Pacific Breweries (APB) until APB was purchased by HEINEKEN in one of the
largest business acquisitions in the global brewing industry.
In 2012, DB Breweries invested $4 million into the redevelopment of its Monteith’s
Brewing Company in Greymouth. The Brewery is the home of the Monteith’s brand,
New Zealand’s leading craft beer and cider brand.
The Brewery is an innovation hub for the Monteith’s Brewer’s Series range and a
successful West Coast tourism destination offering brewery tours. Monteith’s beer
has been brewed on the West Coast for close to 150 years. The HEINEKEN network
has enabled Monteith’s beers and ciders to be exported into Western Europe.
Mosman Oil and Gas (Australia)
“The board met a number of stakeholders in the West Coast, and greatly
appreciated the support from local contractors, government departments and
local landowners.”
– John W Barr, Chairman of Mosman Oil and Gas
Mosman Oil and Gas is a New Zealand and Australia focused oil exploration and
development company that was formed in 2011 to examine resource opportunities
in overlooked and emerging resource areas. It listed on the AIM market in March
2014. Exploration on the Petroleum Creek Project in New Zealand commenced
in June 2014 where the company announced a discovery in its first well. The
company has plans to drill three to four more exploration wells in the current
programme.
OceanaGold Corporation (Canada, Australia and New Zealand)
OceanaGold is a mid-tier, multinational gold producer with a portfolio of operating,
development and exploration assets in New Zealand and the Philippines. The
Company is publicly traded on the Toronto, Australian and New Zealand stock
exchanges under the ticker: OGC.
For the past 23 years, OceanaGold and its predecessor companies have owned
and operated the Macraes Mine, the largest gold mine in New Zealand located on
the South Island. In this time, over four million ounces of gold have been poured
from the Macraes Goldfield. OceanaGold also owns and operates the Frasers
Underground Mine located at Macraes and the Reefton Mine located in a historic
mining district on the West Coast.
REGIONAL INVESTMENT | WEST COAST
How the West Coast Compares
People
New Zealand’s only source
of high-grade coking coal
(used in steelmaking)
16%
65 Years +
14%
38%
40-64 Years
Land usage by area
33%
Grassland & tussock for grazing
130,481 ha
1.2%
Horticultural land
112 ha
0.1%
Grain & crop land
1,814 ha
0.4%
All other
35,847 ha
2.4%
27%
15-39 Years
32%
19%
0-14 Years
20%
0%
West Coast
20%
% of New Zealand
40%
New Zealand
Housing prices ($000)
Average office rent* ($/m²)
$220
$430
West Coast
New Zealand
*Average price as at May 2014, sourced from Real Estate
Institute of New Zealand
Education
32%
Greymouth
*Mid-point price based on new buildings that are 100 percent
code compliant, sourced from CVL Valuations
Employment rate
Overall life
satisfaction
Average household
income (2013)
64%
88%
$75,400
65%
87%
$88,400
West Coast
Of all school leavers
achieved university
entrance standard
(2012)
$220
$183
New Zealand
West Coast
New Zealand
West Coast
New Zealand
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REGIONAL INVESTMENT | WEST COAST
Welcoming Investors
Development West Coast (DWC) was set up as a trust in 2001 to
manage, invest and distribute income from an adjustment package
received from central government.
DWC’s objectives are to promote sustainable employment opportunities
and generate sustainable economic benefits for the West Coast, both
now and into the future.
Joseph Thomas
Chief Executive Officer,
Development West Coast
T +64 3 768 0140
M +64 27 243 5244
E joseph@dwc.org.nz
Wdwc.org.nz
DWC co-invests in businesses through loans and equity. It has supported
a wide range of industries including timber processing, adventure
tourism, horticulture and accommodation.
Focus
•Provide a range of assistance and support to the business sector including business mentoring,
training opportunities, and programmes and business networking events
•Provide the first point of contact, advice and information for investors interested in exploring
opportunities on the West Coast
• Network with national businesses and agencies
•Support individual businesses and identify new industry opportunities where the region has a natural
competitive advantage
•Support the establishment and expansion of viable commercial projects that create net economic
benefit for the West Coast.
Region-led initiatives
Since inception, DWC has been involved in, invested in and supported numerous projects and businesses
throughout the West Coast in an endeavour to promote employment and generate sustainable economic
benefit in the region.
DWC has made significant investments into various industries and sectors, including more than $4.5 million into
the tourism sector (including cycle ways), more than $6 million into dairying, $10 million into forestry/timber
and $3.5 million into cranberries/horticulture.
This document was produced by New Zealand Trade and Enterprise, New Zealand’s international business development agency. www.nzte.govt.nz
© Copyright New Zealand Trade and Enterprise (NZTE) 2014.
Disclaimer: No part of this publication may be distributed or copied for any commercial purpose nor incorporated in any work or publication without
the prior written consent of NZTE. The information contained in this publication is intended as a guide only. Professional advice should be sought before
applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this document, NZTE does
not accept liability for any errors it may contain.
ISBN 978-0-478-41641-1 3 July 2014
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