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Video supplied by OceanaGold
OceanaGold has nearly $7.5 billion of gold in its sights as part of a fast-tracked plan to extend the life of Macraes mine for another decade.
The multinational mining company has lodged an application for its Macraes Phase Four (MP4) project under the Fast-track Approvals Act, seeking to extend the life of the East Otago goldmine into the late 2030s.
MP4 has been listed as a fast-track project for some time, but OceanaGold officially lodged its application on Thursday.
In a statement, OceanaGold legal and public affairs senior vice-president Alison Paul said MP4 would unlock significant additional value from Macraes.
The project would target an additional 1 million ounces of gold — worth about $7.46b in current gold prices — with a spend of about $3.1b over the mine’s more than 10-year lifespan.
About $1b of the projected $3.1b domestic spend was estimated to be generated within in Otago.
“We have spent many months talking with and listening to a wide variety of stakeholders both locally and across the wider region in the lead-up to lodging this application,” Ms Paul said.
“That engagement has directly shaped the project design, including mitigation and ecological enhancement measures now built into MP4.”
The project would sustain more than 760 direct jobs and thousands of indirect jobs across Otago.
“We are proud to say around 80 cents in every dollar we spend remains in New Zealand, and OceanaGold continues to be a significant contributor to New Zealand’s export earnings.”
Macraes is one of New Zealand’s largest and longest-running gold mines.
It began production in 1990.
MP4 proposed to extend activities across the mine’s Coronation, Coronation North, Innes Mill and Golden Bar areas.
Video supplied by OceanaGold
It included open pit extensions, further underground development, changes to waste rock and tailings management, water infrastructure and roadworks.
More than 875ha were proposed for “enduring ecological protection”.
Without MP4, the operation would begin winding down from 2027, with final closure by 2030.
Ms Paul said MP4 was an opportunity to secure the future of Macraes, which was important for the wider communities, jobs and businesses.
It was also an opportunity to secure the way they looked after the environment, she said.
“We need to equip this site for the future, and the moment to do that is now.”
This was OceanaGold’s second fast-track application; its Waihi North project was granted approval in December last year.