The application sets the stage for the first judicial review of mining practices.
That scenario has been avoided by the Coalition Government with the separate oil and gas exploration sector, by not challenging permits obtained under previous government regimes.
In December last year, Oceana was granted consent to extend mining at Waihi by about 12 years, but last month Ms Sage declined an application for it to purchase 178ha of rural land to construct a new tailings reservoir.
Oceana's chief executive, Mick Wilkes, told a mining conference in Dunedin last week Waihi potentially had decades of work ahead, but not having the tailings reservoir could force the mine's closure within five to eight years.
Oceana employs around 350 people at the Waihi mine and annual economic gains are estimated to be about $73million.
Ms Sage could not agree with with Finance Minister David Clark that the proposed purchase would create ''substantial and identifiable benefits'' to the region and with ministers in disagreement, the application had to be declined.
Oceana is understood to have been granted 85 previous decisions in its favour, many with conditions, before Ms Sage declined the latest application.
In a statement yesterday, Oceana said it had issued High Court proceedings seeking a judicial review of Ms Sage's decision.
The proceedings would claim the decision was flawed as a result of errors of law and irrelevant considerations.
Oceana said the decision should be quashed because the benefits to New Zealand of the land purchase were likely to be substantial and identifiable on any analysis undertaken, in accordance with the relevant public law principles.
''We take our commitment to invest in our gold-mining operations seriously and will continue to work with the community and our business and regulatory partners to honour our commitment to invest and extend the life of the region's gold-mining industry, and help sustain what is a vital industry for the Hauraki District and the New Zealand economy,'' the company said.
Oceana declined further comment as the matter was before the court.
In announcing she had declined the application, Ms Sage said she did not believe using productive farmland to establish a long-term reservoir of mining waste created substantial and identifiable benefits.
