Expansion won’t encroach on town: miner

Photo: Stephen Jaquiery
Millers Flat. Photo: Stephen Jaquiery
Driven by a surging gold price, a company mining at Millers Flat is looking to expand, while "100%" guaranteeing it will not touch the township.

Some members of the community, though, are questioning the motives of Hawkeswood Mining and are wary of any future plans.

Hawkeswood Mining opened a gold mine, west of Millers Flat, beside the Clutha River, in October 2024, and is now moving into expansion mode, consulting with affected parties on new land.

Hawkeswood Mining general manager Simon Johnstone said a public meeting in Millers Flat tonight would be a chance to discuss various issues around mining in the area, including expansion.

The Otago Daily Times has obtained a map outlining three areas on the outskirts of Millers Flat which are being earmarked for mining by the company.

Mr Johnstone said expansion was driven by the gold price and natural progression.

"Once we got up and running here at Millers Flat — the current project was operational probably midway through last year — we started to broaden our horizons, basically," he said.

"Obviously, we’re a mining exploration company, so that’s what we do. You don’t just stop because you’ve found a job to do.

"For every ounce we produce here at our current site, we must find another for us to remain sustainable."

Mr Johnstone said the price of gold was making lower-grade ground more viable.

Gold had actually dropped in price over the past couple of weeks, the biggest drop in more than 40 years, but the price was still high enough to make the expansion economic.

If the expansion went ahead, staff numbers would increase from 30 to 50.

He could not put a timeline on how long it would take to get the go-ahead, saying it depended on things such as the consenting programme and the political climate.

Mr Johnstone said the current mine was going fantastically.

"It’s working out really well.

"The environmental compliance here is just second to none. All of the staff are doing a splendid job of keeping everybody on their toes and making sure everything’s done correctly."

The community was very welcoming and it had struck up good connections.

Mr Johnstone confirmed the company would not be mining any land in the township.

"Absolutely not. There is no way we’re interested in mining anywhere near, anywhere through, the township of Millers Flat — One hundred percent.

"We know there’s plenty of good gold there, but it’s not necessary. There’s plenty elsewhere."

He denied the town’s holiday park was under investigation.

He said the expansion was smaller than the current mine and was on a much smaller scale than the Santana Minerals development in Bendigo.

He said it was too early to put a price on the project.

Teviot Valley Community Board chairman Mark Jessop, who lives in Millers Flat, said the meeting would be interesting to see who would be affected.

"But until we see what they’re doing, it is hard to say. If the mine’s going to be right on your fence line, I think you’d be quite worried," he said.

He said Hawkeswood Mining had been good to deal with so far and he had not heard any derogatory comments. It had brought money into the town and Faigan’s Cafe would reopen next week after the mining company bought it. But everyone had different levels of tolerance.

"The big picture is it’s good for town. The bad picture is there are some people that it’s going to be a huge change for the way they live and some people have left because of that."

Millers Flat Water Company chairman Tony Dons said the company had 126 connections to residents in the town. The company’s bore was near the town bridge on the true left of the Clutha River and he would be concerned if plans affected that.

Millers Flat resident Marion Mewburn said she did not trust the company and was wary of anything it said.

She said it had gone ahead and carried out work before it had consents and she was worried about the proposal.