The announcement of the extension of mining at Macraes has been welcomed by Palmerston business leaders and local authorities.
Oceana Gold, a major employer in the East Otago area, announced on Wednesday that mining at Macraes, which was scheduled to finish in the next two years, will continue for three to five years because of favourable exchange rates and lower oil prices.
The news follows cutbacks in the business' operations and staff numbers in the past few years, including major job losses last year when gold prices tumbled.
Waitaki Mayor Gary Kircher said that he was ''naturally'' pleased to hear the news, which was good for the company's staff and contractors and the community in general.
''The company is an important contributor to the economies of both the Waitaki district and Dunedin City so this is a significant announcement.''
It was also recently announced a ''scoping study'' was planned for gold and tungsten extraction at Round Hill, near Macraes - an operation that could go on for 10 to 12 years.
The Waitaki District Council welcomed the opportunity to continue its relationship with Oceana Gold for as long as possible for the benefit of the district, Mr Kircher said.
Other local leaders also praised the move, saying it provided some certainty for Palmerston township and its services.
They said it
Mining company Oceana Gold's announcement this week that its Macraes operation, which employs hundreds of people in the East Otago area, will remain in place for an extra two to three years was greeted with joy by locals. The Otago Daily Times spoke to some of them about the news.
• East Otago High School principal Lennox Sharp.
''This is good news for stability in the area and for the schools.''
• Palmerston Four Square supermarket joint owner David Muir.
''Fantastic news. Great for the local community and for everyone involved.''
• Z Service station manager Shirley Blanchard.
''It has got to be good. Trade had not dropped off at the service station, except for the energy drinks that the night-shift workers bought on their way to the mine.''
• Owner of McGregors Bakery and Tearooms Bernie Sugrue.
''This will provide some certainty for Palmerston. The money does circulate around the town.''
• Palmerston Preschool and Nursery manager Becky Runga.
''Great news for the families in the area and for people considering buying houses in Palmerston.''
