Santana Minerals says a $55 million agreement to buy part of a famed Central Otago high-country station is a "huge step forward" for the company’s plan for an open-cast mine.
The company has reached an agreement to buy about 800ha of Bendigo Station, equating to about 10% of the property.
The Australian and New Zealand stock exchange-listed company also exercised an existing option to buy another 92ha of strategically located land for water supply infrastructure and pipelines related to the proposed mine development.
Bendigo owner John Perriam, famed for creating the Bendigo Station merino brand and immortalising Shrek the Sheep, said the sale had been a long, difficult process.
"The land sold is approximately only 10% of Bendigo Station, but the predicted benefits for our regional economy estimated at over $5 billion is something I didn’t feel I had the right to stand in the path of."
Santana chief executive Damian Spring said the purchase would advance both the project and benefits to Central Otago.
"This is a huge step forward in advancing the project and delivering the significant economic benefits and job opportunities it will bring to the region.
"While detailed access agreements were already in place with both pastoralists, enabling exploration, mining and ensuring their support for the proposed operations, a mutually beneficial and practical agreement has now been reached to formalise that intent. As neighbours, and continuing to be surrounded by Bendigo Station, we look forward to working collaboratively to enhance both the mining operation and their farming enterprise, which has successfully operated on these lands for more than 125 years."
