The
legislative operating environment, or the mineral regime, that a country has to
offer is one of the key determinants that a company wanting to invest in an area
takes into account in formulating its investment decision.

The New
Zealand Government recognises this and the importance of getting the regime
right in order to provide for continuing investment in mineral exploration and
mining in
New
Zealand
. In
recent years, the Government has given considerable attention to developing
legislation which provides for investment to take place; for those making the
investments to have a stable, fair and open investment environment with
government intervention only when considered absolutely necessary because other
approaches are not working; and for the people of New Zealand to know that
investment must meet acceptable health and safety standards and have acceptable
impact on the environment. Also of key importance is having a clearly defined
mining regime which includes rules on how to obtain a permit and rules in
respect of ongoing permit compliance, rights to develop a mineral resource and
permit conditions (in particular, the royalty regime). In
New
Zealand
,
these matters will all be addressed in what are referred to as 'minerals
programmes'.

The
Crown Minerals Act 1991, which is the legislation governing the allocation and
management of permits for Crown owned minerals, requires that the Minister of
Energy prepare minerals programmes. Minerals programmes establish the policies,
procedures and provisions that the Minister shall follow in exercising his or
her functions and powers under the Crown Minerals Act. Minerals programmes set
out the principal reasons for and against adopting these policies, procedures
and provisions and also restrictions on prospecting, exploration and mining for
Crown owned minerals. Essentially minerals programmes define the mining regime
for the minerals to which they apply, other than the taxation regime,
environmental and health, safety provisions, land access matters and general
matters concerning the investment climate.