Consent denied: Why did Sage block OceanaGold's OIO application?
Tuesday, 2 July 2019
Land Information Minister Eugenie Sage used a catastrophic tailings dam failure in Brazil among reasons not to give permission for a Coromandel gold miner to expand.
This was despite her also conceding it was less likely to happen here due to stricter rules.
OceanaGold applied to the Overseas Investment Office (OIO) in a bid to acquire land for a new tailings facility in November last year.
But the OIO was forced to decline the application after the proposal was blocked by Sage.
**READ MORE:
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* OceanaGold seeking judicial review into Waihi land buy decision**
Sage's reasons, recently made public in an OIO report, include concerns about soil contamination, increased carbon emissions and the reservoir's safety - referencing notable international dam failures where hundreds of people died.
If Sage had granted consent, as Associate Finance Minister David Clark did, the Waihī mines would have been viable for a further nine years from 2028 to 2036.
In response to the decision - released on May 3 - OceanaGold are seeking a High Court judicial review into Sage's perceived bias.
However, in her overall assessment Sage acknowledged it was likely there would be short term financial and economic benefits for locals, but the project itself was inconsistent with NZ's values, namely sustainability.
She admitted that the country's high standards for resource management would reduce the possibility of a failure, but argued the risk to the environment was still too great.
The Green MP cited multiple global tailings failings in developed nations that resulted in significant negative impacts on local ecosystems.
Specifically she highlighted an incident earlier this year in Brazil's Córrego do Feijão where 200 people died after 62 million cubic litres of toxic mining waste washed down a river.
The possibility of similar incidents occurring here should be taken seriously as a breach could have severely impact local drinking water, tourism and the state's 'clean, green' national reputation, she said.
The proposed 178 hectares of land was being used for food products, Sage said, something that could be impossible later due to soil contamination from the reservoir after the mines inevitable shutdown.
Future housing and recreational events could also be impacted.
She disputed that job opportunities would increase if the mine continued to operate due to a lack to evidence, and even if the mine remained operational until 2036 the current jobs would eventually end as mining is 'inherently non-renewable'.
The aquisition would lead to more emissions, undermining the Government's interest in investing in cleaner enterprises as the country transitions into a low-emissions economy, said Sage.
Also, resources would eventually run dry, Sage noted. This would leaving Waihī short a primary industry similar to other mining towns along the South Island's West Coast.
However, an independent economics assessment said 'with sufficient preparation and planning, likely negative effects on local employment can be reduced'.
Attracting and establishing a new industry would take about nine years, Sage said, the exact amount of time left until OceanaGold's clock runs out.
And when the mine shuts down it will take up to five years for continued monitoring the site, keeping 30 to 40 people employed during this time.
She noted that Hauraki's median income was $23,000, arguing this showed OceanaGold hasn't generated substantial financial benefit for Waihī's community.
But Clark stated in his assessment that the median income of those who work at the mine was $120,000, therefore its 360 employees benefited greatly from its continued operation.
OceanaGold issued proceedings to the High Court early last month, biting back at Sage's decision, in an effort to safeguard it's position in Waihī.