Oceana Gold proposes $2m community trust

A $2 million community trust is proposed as part of Oceana Gold's plans to extend the life of its opencast and underground mines at Macraes Flat by about another 10 years.

Oceana Gold's land-use consent requires mining activity at Macraes Flat to end by August next year and it has sought a range of resource consents from the Otago Regional Council and Waitaki District Council to allow it to keep mining.

The hearing, expected to last about a week, began in Dunedin yesterday before regional councillors Louise Croot (chairwoman) and Duncan Butcher and independent commissioner David McMahon.

Oceana Gold proposes to extend some areas of its operations and reopen areas previously mined.

The work would include establishing a new tailings storage facility, expanding some pits, reclamation and relocation of tailings from within a tailings storage facility, new waste rock stacks and extensions to existing stacks, and expansion of the Fraser's underground mine.

Oceana Gold counsel Stephen Christensen said in his opening submissions roads would need to be realigned and a new freshwater dam constructed in order to supplement naturally occurring low flows in Deepdell Creek.

"Today's high gold price means that previously mined open pits can now be mined deeper," he said.

The company had also reviewed its consented closure strategy, including the Heritage and Art Park, he said.

While Oceana Gold was obligated to a staged completion of some of the work, such as the track to the Haast's eagle sculpture, the large art works could not be completed until the mine closed.

A revised closure strategy had been developed, involving redirecting funds to a community trust.

Trustees would be drawn from the community and Oceana Gold, and would focus on "enhancing the future wellbeing of the Macraes community", he said.

In addition, Stanley's Hotel and the manager's house, owned by Oceana Gold, would be vested in the trust.

Oceana Gold Macraes Gold Project general manager Bernard O'Leary said the intent of the trust was to create employment, improve community infrastructure, enhance the economic viability of Macraes and promote the community as a desirable place to live.

Tourism consultant Jimmy Young said the review found there had been significant changes in tourism in the region since 2000.

Building further artworks or adding heritage assets would not "in itself attract more visitors to the area".

Funding would be better directed to infrastructure such as Stanley's Hotel and walking and cycling trails to connect the completed artworks, he said.

Mr O'Leary said the proposed mining extension would cause little change to the amenity values of those living near the mine.

"It will simply be more of the same, both positive and negative, for longer."

Opus International landscape architect David McKenzie said the cumulative effect of the proposal would be "slight to moderate".

The potential landscape and visual effects would be mitigated by the measures built into the proposal.

Economist Michael Copland said the proposals would help reduce unemployment and the underemployment of labour and other resources in the region, as well as enabling increased economies of scale.

The hearing continues today.

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Macraes mine facts

• Largest gold mine in New Zealand.

• Located 30km northwest of Palmerston.

• Commissioned in 1990; capable of processing 1.5 million tonnes of ore annually.

• Now processes nearly 6 million tonnes of ore per year.

• Since 2007 processed concentrate from Reefton mine.

• Has produced about 3.2 million ounces of gold.

• Estimated 5.2 million ounces of gold remains.

The hearing
Day 1

Applicant: Oceana GoldFor: Resource consents to extend life of Macraes mine.
Panel: Otago Regional councillors Louise Croot (chairwoman) and Duncan Butcher and independent commissioner David McMahon.
Submitters: Oceana Gold (solicitor Stephen Christensen); Opus International landscape architect David McKenzie; tourism planner Jimmy Young; Macraes Gold Project general manager Bernard O'Leary; economist Michael Copland; Opus International consultant, environmental services Wendy Turvey.

rebecca.fox@odt.co.nz