12 Jun 2013

Govt says mining report doesn't reflect what's happening in NZ

10:16 pm on 12 June 2013

The Government says a new report which shows the global mining industry slowing down does not reflect the reality in New Zealand.

The report's author, accountancy firm Ernst and Young, says hundreds of small mining firms face collapse within the year as they struggle to raise money from investors.

About 60 companies are involved in mining or exploration projects in New Zealand, three quarters of which are small.

The report says companies operating in New Zealand are not immune and exploration activity is likely to wind down over the next two years.

Ernst and Young's global mining and metals leader Mike Elliott says only those companies that are able to raise money from investors will survive and companies in New Zealand are very reliant on the slowing global investment markets.

But Energy Minister Simon Bridges says while the global sector is falling behind, New Zealand is actually bucking the trend.

He says the local mining industry is actually expanding, as New Zealand is viewed as a more attractive place to do business.

Mr Bridges says the Government has been raising the profile of mining.