Rich in mineral resources. Spectacular and diverse scenery. Capitalising on mineral resources
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1 WEST COAST The economy is driven by dairying, mining and tourism. The region has a diverse mineral profile, with a long history of coal and gold mining and an expanding onshore oil and gas exploration programme. The is taking advantage of its abundant rainfall to expand its dairy industry, while its microclimates nurture an emerging niche horticultural industry. The region is also an internationally known eco-tourism destination, with extensive areas under conservation protection which support a range of accommodation and tourism operators. REGIONAL HIGHLIGHTS Rich in mineral resources Spectacular and diverse scenery AREAS OF OPPORTUNITY Capitalising on mineral resources The 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, among others. 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, offers the potential to establish complementary goat farming and specialty milk processing businesses. Global market-linked investment is required to achieve this. Wilderness and eco-tourism destination The 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, developing the sector and supporting new business opportunities. WEST COAST Successful dairy industry Highly export-oriented 1
2 CAPITALISING ON RICH NATURAL RESOURCES Key attributes of the region The is 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. dairy production The s swift rivers provide scope for mini and run-of-the-river hydropower development, providing clean energy for development and industry The population is mostly spread between Greymouth, the region s administrative and business centre, Westport, and Hokitika The is connected with other regions via two airports, railway, several state highways, and its harbours which support coastal shipping. International freight links are provided at Christchurch International Airport and the Port of Lyttelton in Canterbury /8 2014/ kgms per cow Milk solids (000T) 11% 40% Vibrant Two million One growth in Agriculture Fishing and Forestry in 2015 of regional GDP flows from the primary sector dairy farming and processing industry hectares of scenic rainforest of the top ten places to visit in the world State Highway 6 Westport to Nelson - 2 hours 50 minutes by road Westport Airport Travel Time Wellington 55 minutes Westport Murchison Nelson Lakes National Park Tasman Sea State Highway 6 Reefton Greymouth TranzAlpine railway State Highway 7 Hokitika Airport Travel Time Christchurch 35 minutes Hokitika Franz Josef and Fox Glaciers, Westland National Park Arthur's Pass Westport to Christchurch - 4 hours 10 minutes by road 2
3 CAPITALISING ON MINERAL RESOURCES The has a long and celebrated heritage of mineral wealth, including sources of pounamu (greenstone) which have been under continuous guardianship by the local Ngāi Tahu people since well before European arrival in. Discoveries of gold in the 1860s accelerated European settlement in the region, with an expanding coal industry following soon after. The holds substantial deposits of bituminous coal, gold, platinum, titanium-bearing ilmenite and other minerals. The mining industry has been a main source of employment and economic activity in the region and has the capacity to diversify its portfolio, including downstream processing. Oil and gas exploration is being carried out in an area of known seepage in the Grey Valley. People Infrastructure Business 70,630 a year median earnings in mining in 2014 (NZ median was 73,950) Two ports to ship mineral production by barge at Greymouth and Westport 205 million tonnes of potentially recoverable coal resources 15.5% of s mining workforce High quality training in both underground and surface extraction as well as other industries that work in confined spaces Industry-ready education Digger School is a division of Tai Poutini Polytechnic (TPP). It is based from the and also has campuses in Southland, Waikato and Auckland. 2.6 million tonnes of freight moved by the regional rail network 894,697 tonnes of industrial minerals produced by the region Equipped for resource transport The has rail capacity for moving bulk and other materials, including coal and gold, throughout and for export through East Coast ports. 150 years of experience and expertise in mining International companies are currently carrying out exploration in the region Diversification potential Coal-based downstream processing is being investigated to take advantage of local resources and low global coal prices. Growing mineral wealth for investors and communities Minerals was established as a charitable trust in 2005 to further the community benefits of the minerals industry. The objectives and purposes of the Trust are to increase cooperation among all involved in the minerals sector on the, so as to have real, significant and positive effects for the general community. KiwiRail operates the Midland Line, a 212-kilometre section of railway between Greymouth and Rolleston in Canterbury. The line carries coal traffic and other general freight, including products from the Westland Milk Products factory at Hokitika. Up to ten freight trains a day run to the international port at Lyttelton, including coal services with a total capacity of 1,800 tonnes. The Midland Line has also earned an international reputation as a scenic passenger rail journey. The Mayors and Chairs Group comprises the Mayors of the Buller, Grey and Westland District Councils and the Chairs of the Regional Council and Development. The Group has developed a Minerals Strategy, setting out the s goals for its mineral extraction sector in the short- and long-term, as well as the s offering to prospective investors in the mineral sector. 3
4 DEVELOPING DAIRY AND HORTICULTURE Agriculture is a critical contributor to the economy, with long-established dairy farming and processing businesses. The region is exploring opportunities to grow that contribution by establishing complementary goat farming and dairy businesses. Expertise and global market-linked investment are required to capitalise on this, presenting opportunities for investors to explore relatively untapped areas and resources. The is also exploring horticultural opportunities that, with investment, could leverage the region s relative climatic advantage for niche crops during winter months. People Infrastructure Business 36,660 a year median earnings in primary industries in 2014 (NZ median was 28,480) 336,227 hectares of grassland and tussock for grazing or 70,812 ha in dairy production in % increase in dairy cattle over five years 1,310 employees in primary industries 316% increase in irrigable land over five years (2,300 hectares) 376 dairy herds in the region 120 years of independent dairy farming Fewest frost days in the South Island give the a mild climate Niche markets in feijoas, blueberries, cranberries and black passionfruit Commitment to workforce development The Primary Industry Training Organisation supports the development of the region s strong agricultural workforce. Abundant water for agriculture The s geography produces reliable rainfall levels of 2,000-3,000mm a year, yielding ample water supply for farming. Potential for value growth A developing dairy industry derives advantage from the export of value-added products including yoghurt and infant formula. primary industries heritage, innovation and quality Westland Milk Products, s second largest dairy co-operative and founded in 1937, is supplied by over 400 farming families on the and in Canterbury. Producing and marketing a range of high quality consumer and foodservice products, as well as infant nutrition and other dairy ingredients to over 40 countries, Westland has facilities located in Hokitika and Rolleston and is a major contributor to the local economies of both regions. Cranberries Westland Limited, based just inland from Hokitika, has been growing cranberries on the for over ten years. The provides an ideal climate and setting for commercial cranberry production, and berries tend to be brighter and juicier than their American equivalents, ideal for producing the range of niche products that Cranberries Westland has developed. The company sells throughout as well as exporting to China and Australia. True Blue Organics produces s only BioGro-certified organic Tea Tree oil. This pure essential oil is grown, harvested and distilled in Karamea on the northern. True Blue also has a small commercial feijoa orchard. The company successfully markets its oil and skin care products throughout. 4
5 WILDERNESS AND ECO-TOURISM DESTINATION The s diverse landscape stretches for 600 kilometres, from rainforest in the north to glaciers and majestic landscapes in the south, and forms part of the 1.9 million hectare South West World Heritage Site. Lonely Planet ranks the as one of the top ten places in the world to visit. Tourism accounts for 12 percent of the s employment and 4.8 percent of its GDP, and visitor numbers have grown to nearly 2 million annually. The conservation estate encompasses the bulk of the region s habitats and landscapes, and is a major economic contributor. Recent ventures in eco-tourism and accommodation signal the future potential of the sector, and there is scope for further investment to cater for increasing visitor numbers and raise the profile of the as a tourism destination. People Infrastructure Business 49,070 a year median earnings for construction in 2014 a proxy for tourism infrastructure (NZ median was 45,200) 1,922 employees in accommodation and food services Four highways and a railway link the to other regions Two airports connect with other regional airports and Christchurch International Airport Tourism specialises in promoting the region nationally and internationally 4.8% of GDP in the region generated by the tourism industry 348 million contribution from tourists to the regional economy Sixth most visited place in by international tourists 36% growth in spending by Chinese visitors to the region A workforce to welcome the world The Trades Academy (WCTA) is a partnership between the region s schools and Tai Poutini Polytechnic supporting tourism workforce development. Specialised education provider The s Tai Poutini Polytechnic offers a range of specialist industry training programmes for employers. The institution has four campuses in the region. A thriving business ecosystem 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. Unique experiences, lasting potential Scenic Hotel Group is s largest independently owned and operated hotel group with 16 hotels located in 11 popular holiday and visitor regions. The Scenic Hotel Group s 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 experiences. On the, Ngāi Tahu s Franz Josef Glacier Guides company is an internationally recognised operation. The company also owns the Glacier Hot Pools, located in Franz Josef. Ngāi Tahu is the largest tribal group (iwi) in the South Island and is a major business owner and investor. The Department of Conservation (DOC) administers over 80 percent of the as conservation land on behalf of the Government, partnering with local operators to protect and showcase the region s natural heritage. DOC manages all of s conservation land and waters, including 14 national parks, 34 marine reserves and six marine mammal sanctuaries, and is responsible for more than one-third of s land. 5
6 WHO HAS INVESTED IN THE WEST COAST? Eco-Tourism () Eco-Tourism (ETNZ) is a subsidiary of Tai Poutini Polytechnic (TPP). It works to educate and assist the international tourism industry to better understand the importance and value of sustainable tourism practices, acting as another set of ears, eyes and heart to its industry partners and clients in and overseas. ETNZ is based at TPP s campus, near to the rugged wilderness and eco-tourism heartland of the region. From there it also draws on the wider TPP network of campuses around. ETNZ makes regular visits to Hong Kong, China, Scotland, Chile and the United States to work with tourism operators, education providers and private institutions. TPP has also signed Memorandums of Understanding with Chengdu Technician College and the Guilin Institute of Tourism in China, to create partnerships for developing customised eco-tourism training programmes for delivery in, China and Hong Kong. DB Breweries (The Netherlands) DB Breweries (DB) is 100 percent owned by HEINEKEN and is a member of the HEINEKEN Asia Pacific network. In 2012, DB Breweries invested 4 million into the redevelopment of its Monteith s Brewing Company in Greymouth. The Brewery is the home of Monteith s, s leading craft beer and cider brand. The Brewery is an innovation hub for the Monteith s Brewer s Series range and a successful tourism destination offering brewery tours, tastings and pub fare. Monteith s beer has been brewed on the for close to 150 years. The HEINEKEN network has enabled Monteith s beers and ciders to be exported into multiple locations across the globe including Australia, the Pacific and Western Europe. Mosman Oil and Gas (Australia) Mosman Oil and Gas is a and Australia-focused oil exploration and development company, established in 2011 to examine opportunities in overlooked and emerging resource areas. It listed on the AIM market in March Mosman Oil and Gas met several stakeholders on the as part of its examination of the area, and exploration on its Petroleum Creek Project 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. 6
7 HOW THE WEST COAST COMPARES Population 32,600 4,693,000 Annual net international migration 75 69,954 Regional GDP (NZbillion) GDP per capita 50,491 52,953 People 65 Years Years Years 0-14 Years 16 % 14 % 38 % 33 % 27 % 32 % 19 % 20 % 0% 20% 40% Top 5 industries contributing to GDP Rental, Hiring and Real Eastate Services Owner-Occupied Property Operation Construction Agriculture Manufacturing 5.7 % 6.9 % 6.8 % 6.7 % 7.1 % 5.3 % 10.7 % 4.2 % 10.9 % 13.2 % 0% 10% 20% Education % of all school leavers achieving university entrance standard (2015) 27.0 % 40.6 % Mean household income 83,583 91,198 Median house price 255, ,500 Mean weekly rent 232 Unemployment rate 2.8 % % 's only source of high-grade coking coal (used in steelmaking) Produces virtually all of s highgrade coking coal (used in steelmaking) 7
8 WELCOMING INVESTORS Development (DWC) was set up as a trust in 2001 to manage, invest and distribute income from an adjustment package received from central government. Its objectives are to promote sustainable employment opportunities and generate sustainable economic benefits for the, both now and into the future. DWC co-invests in businesses through loans and equity. It has supported a wide range of industries including construction and engineering, timber processing, commercial bee-keeping, tourism, horticulture and accommodation. Economic development strategy DWC exists to: 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 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. How we help investors DWC provides a first point of contact, advice and information for investors interested in exploring opportunities on the. It draws upon its connections, including local council economic development staff and national businesses and agencies, to assist investors. DWC also works to identify new areas of investment opportunity which can leverage the region s competitive advantages, to deliver lasting value to investors and local communities. CHRIS MACKENZIE Chief Executive Officer, Development T E chris@dwc.org.nz W dwc.org.nz Region-led initiatives Since its inception, DWC has been involved in, invested in and supported numerous projects and businesses throughout the, with the goal of creating additional employment and generating sustainable economic benefit in the region. DWC has made significant investments into various industries and sectors, including approximately 10 million into the tourism sector (including cycleways), more than 6 million into dairying, and 10 million into forestry and timber processing. This document was produced by Trade and Enterprise, s international business development agency. Copyright Trade and Enterprise (NZTE) 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 December
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