A proposal for Oceana Gold to pay $4.475 million as part of its Macraes mine expansion has the "hallmark of some kind of punitive measure", company counsel Stephen Christensen says.
He was commenting on a consent condition suggested by the Waitaki District Council at the Oceana Gold expansion hearing this week.
"Alternatively, if it is compensatory rather than punitive ... to benefit a small community of 48 people is unprecedented in my experience," Mr Christensen said in his closing submissions.
Instead, the company wanted the hearing panel to take account of the hundreds of thousands of dollars the company gave to the community and as part of the extension project the $100,000 it was proposing to give to the Department of Conservation, the 78 extra jobs, the wages of more than $43 million and the enormous impact on the area's school rolls.
Oceana had proposed paying a newly created "Oceana Gold Community Trust" $2 million as part of a community development strategy which was to replace the Heritage and Art Park which had been part of earlier consented work.
Mr Christensen said the strategy was appropriate and provided a fair contribution to the local community so it would not pay the additional $2.475 million.
"It is important to understand that under the [Heritage and Art Park] consent the community would only ever receive indirect financial benefit as a result of the expenditure on the park. The fact is that the $2 million proposed goes to the community and does so now."
The purpose of the extra money was to cover maintenance of the Heritage and Art Park over 10 years to ensure community stability but that would now be provided by the extended life of the mine, he said.
The company did agree to the proposal that the trust take only Stanley's Hotel, the manager's house and associated land and buildings if it wanted to, but it had to make the decision within 12 months.
"Oceana Gold is not offering additional cash if the community elects not to take on these assets."
If the community took up the offer, the company's contribution to the trust would be more than $2.4 million.
Oceana would continue to maintain the Heritage and Art Park for the life of the mine and would retain parts of the processing plant after mine closure so it could be an attraction. It would also complete six heritage activities listed as part of the park.
"The suggestion that extra cash be contributed is essentially asking Oceana Gold to pay twice."
The Heritage and Art Park and proposed community strategy were not aimed at mitigating adverse effects of the mine extension, that was covered by a $20,000 annual payment to Macraes Community Incorporated, a condition in place since 1989.
The extra physical changes and effects the community were being asked to tolerate were "not so significant as to create major concern".
"Rather, the most significant effects are the social and economic consequences."
Those included maintaining employment, school pupil numbers and population levels in the district.
"It is important to realise the mine provides real employment and real income to the local and wider community which would not otherwise occur."
It also contributed in 12 months last year $200,000 to community groups throughout Otago.
"The requirement to contribute an additional $2.475 [million] is not appropriate and could jeopardise wider community contributions."
Oceana disagreed with proposals by the Waitaki council's ecologist for predator control and extra habitat to be protected saying it was "unnecessary and unrealistic" and would cost hundreds of thousands of dollars.
Her requirements were not what the Department of Conservation had agreed to with the company as an appropriate way to address the ecological effects of the project.
The hearing was adjourned and the panel has 20 working days to make its decision.
