DWC invests in Snowy River gold mine

DWC has approved an AU$3 million equity investment into Federation Mining, supporting the ongoing development of the mine located on the West Coast.

Chief Executive Heath Milne said the Snowy River Mine project represents a significant investment for the Trust.

“It’s essential that the West Coast has a stake in major developments like this, ensuring that the benefits of our natural resources flow back into the region, supporting local businesses and communities.”

“We have been working closely with Federation for several years and have confidence in the management team and board. The mine itself is impressive but so is their community engagement and environmental stewardship.”

Milne said that the region has long been a cornerstone of the national economy, contributing vital resources and innovations.

“Gold was first discovered on the Coast in the early 1860s, and it played a key role in financing New Zealand’s early development. Now, we have the opportunity to build on that legacy with a modern, productive, and forward-thinking mining operation that adds value right here in the region.”

He added the West Coast is on the cusp of a mining resurgence.

"We have some great, locally owned mining companies already making a significant contribution to the economy and this is another opportunity for Coasters to share in the bounty. We’ve also got emerging operations mining ilmenite and garnet - industries with massive export potential.

“Across all these projects, we could be looking at over $18 billion in additional exports. That would be a game-changer for the West Coast and a major boost to New Zealand’s export economy.”

Federation Mining welcomed the support from DWC, acknowledging the investment as a vote of confidence in both the project and the industry.

“We have worked closely with DWC for many years now and this investment decision is a great next step to become a shareholder to support the development the Snowy River Mine while promoting employment and economics opportunities on the West Coast, thank you to Heath and the team for your hard work to finalise this agreement,” said Simon Delander, Federation Mining Vice President.

AustralianSuper has also recently invested an additional AUD$20m and are now the majority shareholder in the project.

Federation Mining is continuing mine development, site infrastructure and advanced process plant design, in parallel with ongoing drilling and financing. The recent discovery of an additional new reef, appropriately named Christmas Reef, adds further potential to what is already an advanced and well-positioned project.

Snowy River Mine is fully permitted for all construction and production activities and currently employs over 80 staff and approx. 25 contractors.

The plant construction phase is expected to require up to 180 contract workers with positive flow-on effects in the regional economy for approximately 12 months. Federation Mining will also need another 150 permanent mine workers when the Snowy River project moves into full production after mid-2026, providing strong employment opportunities for West Coast communities

Drilling to date stands at 30km with over 160 holes completed, and ore drives have been developed onto the Birthday Reef, with 15,000 tonnes of ore stockpiled in preparation for processing.