The Central Otago District Council (CODC) agreement, signed behind closed doors on January 30 and marked ‘‘strictly confidential’’, has now been released under the Local Government Official Information Act to the Otago Daily Times.
Two organisations that have expressed opposition to the mine - the Environmental Defence Society (EDS) and Sustainable Tarras - both said the document raised ‘‘concerns’’.
Titled ‘‘access arrangement’’, the document makes a point of distinguishing between the council’s role as landowner and its role as an elected body.
The agreement is signed by the council as a landowner, the document says.
Under the agreement, would-be miner Santana will have access to public land owned by the council ‘‘beyond the Bendigo-Ophir Gold Project’’ and until 2055.
The land includes historic Shepherds Creek Rd and the section of Thomson Gorge Rd between Matilda Rise Rd and Thomsons Saddle.
The land in the agreement is substantial because of the length of the two roads, which travel through two parallel valleys, and the inclusion of 20m strips either side of both roads.
The agreement says the council will ‘‘agree to consent to and support the company’s [Santana’s] applications for any mineral permits, or RMA consents on the land, or any consent or approval required from the Overseas Investment Office relating to any matters arising from this agreement’’.
The support extends to ‘‘any application for variation or extension’’ of any mineral permits or resource consents within the terms of the agreement.
The support is ‘‘strictly in its [the council’s] capacity as owner of the land only and not in its capacity as a regulatory authority’’, the agreement says.
The agreement - which the council was required to strike under the Crown Minerals Act - means that, subject to fast-track consent, Santana will be able to dig into areas occupied by the roads for its open-cast mines, processing plant and dumps.
In light of Santana’s plan, the agreement is puzzling in parts. One clause says all gates will be ‘‘left as found’’ and another says Santana will take ‘‘all practicable precautions’’ to avoid erosion.
Both roads have already been used significantly by Santana heavy machinery for exploration purposes, including the miner undertaking road widening in parts.
The agreement - which includes an annual payment to the council of $1.25 million - also promises that the council will not make any claim against Santana ‘‘for any further compensation’’ and the council will ‘‘indemnify the company against any claim by any person for any such further compensation’’.
Environmental Defence Society chief operating officer Shay Schlaepfer said the charity, which hopes to be called to give evidence to the fast-track panel regarding Santana’s proposal, was examining the agreement.
On first reading there were ‘‘concerns’’, she said, including the ‘‘sweeping nature of the indemnities and undertakings to not oppose anything’’.
The EDS had sought all correspondence about the agreement from the council, but had not received it.
A Sustainable Tarras spokesperson said it was also ‘‘very concerned’’.
The council had chosen to ‘‘leave us and the wider community completely in the dark while they negotiated with Santana’’.
Repeated requests to be involved in access discussions had been ‘‘ignored’’ by the council, which should not be making such significant decisions behind closed doors, they said.
A Santana stock exchange announcement last month about the access agreement had a headline saying the council ‘‘endorses’’ its proposal.
Responding to the stock exchange announcement, Mayor Tamah Alley had said the agreement did not mean the council supported the mine.
Speaking yesterday, CODC chief executive Peter Kelly also said the agreement did not constitute support for the mine but rather ensured that, if the mine was approved by the fast-track panel, the council would receive ‘‘fair payment’’.
No mention is made in the agreement of any alternate access to be provided by Santana to either the other half of Thomson Gorge Rd - which descends to Ophir - or to the historic Come in Time battery, now accessed from Thomson Gorge Rd.
A Santana spokesperson said information about a replacement road was included in its fast-track application but did not answer questions about the access agreement.
