Capital expenditure on mining in New Zealand - Data and Analysis (1987-2033)

IBISWorld estimates capital expenditure on mining to swell by 3.4% in 2025-26, climbing to $1.52 billion. The primary catalyst for this growth is the significant policy changes enacted by the central government since its election. A lifting of old bans on offshore gas and oil exploration and the introduction of aggressive pro-investment measures have cast doubt over previously pessimistic outlooks.Capital expenditure on mining has been highly volatile over the past decade. Mining investment peaked for the decade in 2014-15, but has since decreased following declining local demand for coal and volatility in the world price of crude oil. These factors reduced the financial return on mining projects, leading to lower investment. In addition, the breakup of the state-owned coal corporation Solid Energy New Zealand Limited, previously the most significant player in the coal mining industry, led to a pause in development works. This breakup contributed to sharp falls in expenditure on mining over the two years through 2016-17. Several private operators have since acquired Solid Energy's mines, but they now operate at lower production rates in many cases. Restrictions on new offshore oil and gas exploration, which the previous government introduced in November 2018, drove down private capital expenditure on mining in the country.More recently, new legislation, like the Fast-Track Approvals Act, has streamlined the environmental and planning consenting process, significantly reducing approval times and encouraging greater investment in the mining sector. At the same time, the Crown Minerals Amendment Act 2025 came into effect in August, reopening several areas to new exploration permits following a six-year moratorium, reinvigorating mineral and energy exploration companies.The current New Zealand Government has been very clear about its desire to double the country's value of mineral export revenue to $3 billion by 2035. To achieve this target, new legislation has been introduced to provide financial incentives, like allowing mining companies to depreciate 20% of new asset costs up front, de-risking private investment and prompting further expenditure on mining activity. IBISWorld estimates that private capital expenditure has grown at an annualised 10.5% over the five years through 2025-26.