The agreement was announced this morning by both parties, and was a significant hurdle overcome for Santana Minerals as it advances through the government's Fast-track approvals process.
The arrangement covers Thomsons Gorge Rd and the Shepherds Creek paper road, including a 20m strip on either side of the roads. It sets out how access would be managed if the project proceeds, including provisions to maintain public access and how council assets would be compensated where impacted.
The agreement would have community benefits, as Santana Minerals has committed to a CPI indexed annual payment of $1.25 million to the CODC, which would commence when the commercial gold production begins.
In a press release the CODC said the funds will support the delivery of resilient, future-proofed infrastructure to help the district manage growth, deliver enduring community and environmental benefit, and support initiatives that unlock wider economic development opportunities.
All allocations of these funds will be reported in the council’s annual accounts, ensuring the community can see how they are applied to priorities within the district, the release said.
CODC Mayor Tamah Alley said the agreement provides the district with a clear and transparent financial return from the use of council land.
"This agreement ensures that if the project goes ahead, the Central Otago community receives tangible, long-term benefits, while maintaining transparency and public accountability," she said.
The access agreement was approved by elected members at the CODC's first meeting of the year and relates solely to land access under the Crown Minerals Act.
It does not constitute approval of mining activity but addresses the land access requirements that form part of the project’s regulatory pathway.
"As a landowner, the council is required to consider and, where appropriate, negotiate access arrangements under the Crown Minerals Act," CODC Chief Executive Peter Kelly said.
"Approving this agreement provides clarity around access arrangements, but it does not predetermine whether the mine will proceed. That decision sits with the relevant consenting and regulatory processes."
Any future road stopping will be subject to the full legislative process under the Public Works Act or the Local Government Act. The CODC said it will work through that process over the coming months.
If any roads are stopped, an alternative route will be constructed to ensure continued public access is maintained, the CODC said.
Santana Minerals Chief Executive Damian Spring described the agreement as a material milestone for the Bendigo-Ophir Gold Project.
"It reflects a pragmatic outcome with CODC that provides certainty around access, delivers a clear and transparent community benefit framework, and allows the project to progress in an orderly manner, subject to Fast-track Approvals consent," Mr Spring said.
"Importantly, it reinforces that well-designed projects can align regional infrastructure, community outcomes and long-term economic value, with sustainable environmental stewardship, as demonstrated in our Fast-track application."
A spokesperson for Sustainable Tarras, one of the key groups against the mine going ahead, said the announcement was "disappointing".
"This morning's announcement from CODC is disappointing, to say the least," the spokesperson said.
"We've been in discussion with CODC on this very issue for well over six months. It's complex and has huge implications for the local community, including significant numbers of people who use these roads.
"We believe there are considerable legal pitfalls to granting such access, and we have repeatedly pointed these out to CODC and cautioned them to take time to consult, consider the consequences and involve the wider community. Today, in announcing this behind-closed-doors decision, they've made it clear that community is secondary to their private negotiations with Santana.
"We do not understand the urgency with which CODC has decided to conclude this agreement with Santana. From the information we have so far, it again excludes the public and local community impacted, and fails to take into account what Santana has clearly stated it will do with these roads.
"Let's not forget that one road will end up under a 200 million tonne waste rock dump holding back a toxic tailings dam with 18 million cu m of toxic sludge, and the other will be carved away into two open pits. These mine impacts will be left to CODC to manage after Santana heads back to Australia in 15 years or more; and to manage forever. These are perpetual liabilities, and we know from other examples in New Zealand and around the world that they can come with eye-watering costs.
"'Public excluded' says it all."
- Allied Media
