Decision to sell land for mine not easy, ‘but I believe it is right’

John Perriam. PHOTO: SUPPLIED
John Perriam. PHOTO: SUPPLIED
The owner of the land where part of the planned Santana Minerals goldmine is to go says he trusts the mining company and the opportunity presented by the mine is extraordinary.

Bendigo Station owner John Perriam, who has conditionally sold 10% of station land to Santana Minerals for the mine, said having lost land when the Clyde Dam was built showed him ‘‘you can fight change or you can shape it’’.

‘‘Sometimes, loss is the price of growth and sometimes you have to give something to gain something in return,’’ he said in a statement to the fast-track process for the mine.

‘‘I never sold any of Bendigo’s land to people I didn’t think would enhance or add value to Bendigo, Tarras or the local community.’’

When two geologists turned up at his farm nine years ago, he welcomed them as he did everyone.

‘‘When this progressed to something real and economic that became of value, my first instinct was to say no to the miners given the stigma that goes with large-scale mining. With advice, we decided to give them access and only to ever lease the land rather than sell it to them should it ever become viable.’’

But he realised the opportunity was too big for a farmer to control. The mining people were experts in their field, they were honest, up front and transparent about their intentions.

‘‘So in the end I chose trust over control.

‘‘The decision to sell 700ha hasn’t been easy, but I believe it is right.’’

He said the opportunity of the goldmine was extraordinary.

‘‘Billions of dollars into the New Zealand and Otago economy. This is without question the greatest opportunity and this isn’t just money on paper. It’s hospitals, it’s rescue helicopters, it’s modern roads and infrastructure.

‘‘This is continuity, not destruction.’’

In its comments, the New Zealand Minerals Council said mining was one of the most productive sectors of the country’s economy.

The value of what was produced per fulltime-equivalent mine worker was $458,952, compared with $174,045 across the whole economy.

‘‘Santana Minerals expects that more than 60% of its gross profits will stay in New Zealand through dividends to New Zealand shareholders, taxes and royalties,’’ the council said.

‘‘Let’s also not pretend that mining is the only industry that has an impact on the environment and on freshwater. In fact, mining is possibly the most regulated in that regard.’’

The council said people not liking the answers to questions was very different from accusations of a lack of willingness to explain the project.

‘‘And some people simply won’t engage — none so deaf as those who do not want to hear.

‘‘In an economy constrained by low productivity, mining is the sector with the highest productivity.

‘‘This translates into high wages, which are spent in local communities.

‘‘It is hyperbole to talk about all the money leaving the country. What does cause investment and people to leave the country is when there are no jobs, poor policy settings and a weak economy.’’

The Santana Mine Supporters group said the group supported the benefits the mine would bring to the region.

It believed there was a level of confidence in the way the project had been designed to mitigate environmental issues and key risks were identified.

‘‘This support is not based on an assumption that risks do not exist. Rather, it reflects an understanding that the application sets out a structured approach to managing those risks through design controls, monitoring systems, compliance limits and long-term planning.’’

Sustainable Tarras consultant economist Richard Meade said the economic analysis by Santana contained errors and omissions.

The benefits were overstated, and were modest at a regional level and essentially immaterial at a national level, he said.

Sustainable Tarras said the proposed mine was the biggest development project in Central Otago since the Clyde Dam. The mine’s adverse impacts were overwhelming and economic benefits minimal.

‘‘Sustainable Tarras submits the project’s adverse impacts and risks to the environment, existing community and New Zealand’s brand image clearly and comprehensively outweigh the economic benefits suggested.’’

Winegrowers said the mine could cause damage to the hard-won Central Otago wine image. The wine industry was set to be in Central Otago long term, while the mine would last 31 years, it said.

The applicant is due to give its reply to the comments by tomorrow.