Yesterday, the Overseas Investment Office granted approval for Santana Minerals to buy about 3680ha of farm land at Ardgour Station and Bendigo Station, near Tarras, for a total of $80 million.
Part of the land will be used in the excavation of an open pit and underground gold mine, and the remainder of the land will be leased back to local farmers.
The approval is conditional on Santana obtaining all necessary resource consents to operate the mine.
Santana submitted to the OIO earlier this year, claiming the main benefits of the sale to New Zealand were likely to include direct capital investment of over $500m over its 13 to 14-year life span; employment of about 350 people (FTE) a year over the construction and the lifetime of the mine; and stimulation of the local economy through an increase in direct employment and local sourcing of products and services by the mine and its staff.
Hearings into Santana’s gold mining project are ongoing, although the expert panel will host a series of conferences this month to speed up the evidence-gathering process before a final decision is made in October.
The two stations are regarded as iconic examples of private farmland in Central Otago.
Santana has been waiting for a decision from the OIO for several months — in February, a third party, described as a ‘‘well-funded New Zealand entity’’, claimed they were ‘‘denied the opportunity’’ to buy the land because it was advertised for sale months after Santana had already entered into a sale agreement with the vendor — which they said was against the rules.
Santana Minerals chief executive Damian Spring said yesterday the Bendigo-Ophir Gold Project was one of the most significant economic opportunities New Zealand had seen in a generation.
‘‘We’ve already invested more than $106m into the New Zealand economy, including NZ$23.6m in the last year through wages, contractors, consultants and local procurement.
‘‘About 90% of suppliers are New Zealand-based. This project has been backing Kiwi businesses, tradies, contractors and local families from day one.’’
Mr Spring said the mine would create over 800 direct and indirect jobs when operational .
‘‘With the average salary at $140,000 a year, more than double the regional average wage, that’s generational change for Central Otago.
‘‘For a region that has watched young people leave for Australia, priced locals out of housing and leaned heavily on seasonal industries, this is the kind of long-term, high-wage employment opportunity that changes communities. These are careers. Apprenticeships. Local spending. Families staying in the region instead of leaving it.’’
Mr Spring said Santana acknowledged the work of the fast-track approvals panel.
‘‘The fast-track process remains independent and ongoing, and we will continue to meet that scrutiny head on with evidence, transparency and technical rigour.
‘‘Responsible development, strong environmental standards and long-term regional prosperity can go hand in hand and this project is proving it.’’
