Manuka Resources (ASX:MKR) has been given the thumbs up to advance its Taranaki vanadium titano magnetite (VTM) project to the next stage of the New Zealand Government’s Fast-track approvals process.
The junior explorer, which has a market capitalisation of $28.4 million, has had its application accepted as complete by the Environmental Protection Authority (EPA).
The New Zealand Government introduced the Fast-track Approvals Act in December 2024 to accelerate the development of projects with significant regional or national benefits.
Fast-track provides projects with an alternative to current processes for the resource consents, notices of requirement, and certificates of compliance usually required under the Resource Management Act 1991, or other Acts.
Under this pathway, expert panels will consider required approvals as a single application package to create a more streamlined system than current processes, which require separate applications for different types of approvals.
The Taranaki VTM Project, which is held by Manuka’s wholly owned subsidiary Trans-Tasman Resources, is targeting the mining of mineral-rich sands in the South Taranaki Bight.
The project is located 22km to 36km offshore in New Zealand’s Exclusive Economic Zone, outside the 12 nautical limit from the shoreline, in waters 20m to 50m deep.
Manuka’s goal is to produce and export 5 million tonnes of heavy mineral sands containing iron ore, vanadium and titanium.
Trans-Tasman Resources executive Chairman Alan Eggers says the Fast-track process aims to streamline permitting to stimulate economic activity while ensuring adherence to high environmental standards.
“The fact that the application was accepted on first submission speaks to the immense volume and quality of technical, environmental and social work we have undertaken over the past 10+ years,” Eggers says.
“We believe we have proposed a set of operating conditions and management plans to generate much-needed growth within New Zealand and regional areas, create high-paying jobs and minimise any environmental impacts in the South Taranaki Bight.”
New Zealand has deemed it eligible for the Fast-track process because it will require a NZ$1 billion ($918.8 million) investment that will create 1,125 jobs across the Taranaki Region and Whanganui District.
The Taranaki VTM Project, which has a 3.2-billion-tonne vanadium, titanium and magnetite resource, will also inject NZ$234 million annually into a range of local industries and contribute NZ$190 million each year in taxes and royalties to the government.
Manuka says the forecast export earnings of over NZ$850 million will make the project one of New Zealand’s top 12 export earners.
A Prefeasibility Study estimates the Taranaki VTM Project will deliver average yearly earnings before interest, taxes, depreciation and amortisation of US$312 million over a 20-year mine life.
The project, which sits on an already granted mining licence, is expected to have a net present value of US$1.26 billion ($1.96 billion) and an internal rate of return of 39%.
The New Zealand EPA now has 10 days to check for any competing applications and existing consents. The application will then be provided to the panel convener who will appoint an expert panel to meet and consider the application.
Write to Angela East at Mining.com.au
Images: Manuka Resources
