Manuka Resources (ASX: MKR) has welcomed official confirmation that the Taranaki VTM project operated by its wholly owned subsidiary Trans-Tasman Resources (TTR) has been added to the New Zealand government’s accelerated approval list.

In early April 2024, the government invited TTR to prepare an application for the project to be included as a listed project under the Fast Track Approvals Bill, a key part of the government’s plan to rebuild its economy and refine the process that had made it increasingly difficult to build the projects New Zealand needs.

After being assessed by a specialist panel, the Taranaki VTM project was added to Schedule 2 of the bill, which is expected to be enacted before the end of the year.

Rising VTM demand

Along with its potential benefits to the economy, the Taranaki VTM project is also favoured for its potential to deliver essential and critical minerals for the shift towards net zero carbon on the back of rising global demand for VTM (vanadium titanomagnetite) products.

If approved, the fast-track listing will be a positive step toward Manuka achieving the environmental final approvals required to develop its proposed offshore 3.2-billion-tonne VTM iron sand resource, which is located in the South Taranaki Bight off the west coast of the country’s north island.

The Bight sits outside New Zealand territorial waters but within its exclusive economic zone, in waters ranging between just 20 and 40 metres in depth.

First step

“We recognise that this is the first step in the government’s approval process, including finalising the fast-track enabling legislation,” managing director Allan Eggers said.

“It is of national significance, as we have identified a world-class vanadium-rich iron sands resource that has the ability to contribute $1 billion annually to export earnings, doubling the entire mining sector’s current contribution to the New Zealand economy.”

Mr Eggers said the project also provides an opportunity for New Zealand to become a leader in marine mineral harvesting technologies, with the government focused on implementing a mining code subject to appropriate environmental safeguards.

Extensive list

Each of the 149 projects selected by the government for inclusion in the bill has significant regional or national benefits.

Once the bill is passed, nominees will be able to apply to the NZ Environmental Protection Authority to have an expert panel assess the project and apply relevant conditions.

The list includes 11 mining projects.