Nevis gold rush tipped

High gold prices have sparked renewed interest in the Nevis Valley and Otago Fish and Game is predicting a flood of gold-mining applications.

Two proposals to mine alluvial gold in the Nevis were considered by the Otago Fish and Game Council at its meeting in Cromwell yesterday and members expect these would be just the start of many.

"Given the price of gold, I expect we'll see a plethora of gold-mining applications coming in. Every Tom, Dick and Harry will be applying," Dan Rae said.

Fish and Game chief executive Niall Watson said the council was being asked for its opinion on the mining plans and did not have to say "yes or no" to either proposal at present.

The valley is already in the spotlight with an application to amend the water conservation order on the Nevis River and tenure review proposals for two Crown-owned pastoral lease properties in the area.

The Otago Fish and Game Council and the national body have sought an amendment to the water conservation order so the river cannot be diverted or dammed.

More than 240 people made submissions and a special tribunal spent 16 days hearing evidence.

It will reconvene in February.

Pioneer Generation, which plans a hydro-electricity scheme on the river, leases two properties adjoining the river, both of them the subject of tenure review.

Last month, the New Zealand Historic Places Trust moved to register the lower Nevis as a historic place and has suggested further protection by way of gazetting the area as an archaeological site.

Its Otago Southland manager, Owen Graham, recently described the lower Nevis valley as "virtually a gold-mining museum in Central Otago".

Gold is not the only valuable resource in the valley.

In 2007, a London-based mining company, Xtract Energy Plc, was granted a five-year mineral exploration permit covering 10,450ha of the valley to explore and test for oil shale.

Fish and Game members heard yesterday the latest gold-mining proposals were quite different operations.

Mohikinui Gold Ltd planned to mine gold using a suction dredge from Whitten's Creek to 200m below the Nevis Crossing.

The small-scale operation would operate only about 25 days a year, Fish and Game environmental officer John Hollows said.

The Golden Bush Mining Ltd proposal was a much larger operation, in the Schoolhouse Creek area.

It would be worked by three staff, six days a week, using two or three diggers.

The gold dredge would work a large pit, about 25m by 40m, which would be formed away from the river.

"Given the high level of attention the application to amend the Kawarau Conservation Order [on the Nevis River] has brought to the valley, potential environment impacts need to be carefully considered," Mr Hollows said.

He recommended the council negotiate appropriate conditions to protect sports fishery and associated values from the impact of mining in the Nevis.

If conditions could not be agreed, the council should oppose the applications.

Fish and Game officer Rasmus Gabrielsson said the small-scale suction dredge operation was in part of the valley used by few anglers, so the conflict with anglers would be minimal.

However, he was worried about the effect of both proposals when trout were spawning.

The Golden Bush proposal would cover about 5ha of land at any one time.

Mr Rae said the land covered by the Golden Bush application had been mined before and was now covered in native vegetation.

It would be difficult for the site to be returned to its current condition, given the harsh environment.

A sizeable bond of $200,000-$300,000 should be sought, he said.

Dave Witherow said if the amendment to the water order was granted, "the status of the river will be elevated and that will stop proposals like this".

"We should wait until we know that decision before discussing these."

lynda.van.kempen@odt.co.nz