West Coast economy boosted by miners returning to work

Thursday, 30 April 2020

A West Coast gold miner back at work under level 3.

The West Coast economy has been given a boost with up to 600 miners back at work.

The West Coast had the first coronavirus death when Greymouth woman Anne Guenole died on March 29. It now has no active cases as the four people who tested positive are now recovered.

Minerals West Coast manager Patrick Phelps said between 500 and 600 people directly employed in mining throughout Grey, Buller, and Westland were back at work.

'The price of gold is high, and the cost of fuel low, so with returns up and costs down, it will be a good time for gold miners,' he said.

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Coal mines for domestic supply were deemed essential and allowed to continue working under level 4 lockdown, but mining for the export market could only resume production under level 3.

'The value of mining to our region's economy cannot be ignored. Tourism, long touted as a silver bullet, or at least a green one, is jammed in the chamber,' he said.

Phelps said miners could have operated safely at level 4.

'Mining is fortunate that there is an inherent degree of separation by nature of the work – operators sit in separate machines. Many can simply take lunch and smoko breaks from within the cab, or use smoko rooms separately,' he said.

Mining is tedious, with long days and early starts in a hostile environment - but it's a passion and a way of life for some West Coasters. (Video first published in July 2018)

Last year on the West Coast, accommodation and food services accounted for 11.4 per cent of employment, but 'an abysmal' 6 per cent of GDP, he said.

By contracts, mining, while only accounting for 3.1 per cent of employment, accounted for 7.3 per cent of GDP.

'With a work force a quarter of the size of tourism's, mining brought in 126 per cent more wealth – more mining jobs, double the average wage, make us richer. More tourism jobs, at half the average wage, make us poorer.'

When Prime Minister Jacinda Ardern made her speech she signalled the Government would not allow any new mining on conservation land.

'We have government officials scrambling trying to figure out how to resuscitate an industry that has burdened our infrastructure and small rating base for little economic benefit, but I ask what about the viability of our oldest and most productive, highest paid industry, an industry that has been the back bone of New Zealand's economy generally, and the West Coast's specifically, since 1864?'

In 2018 alluvial gold operations brought in $41 million to the West Coast and coal mines produced 1.3m tonnes of export coking coal for steel production.

Bathurst chief executive Richard Tacon said the bulk of the workforce at Westport's Stockton open cast mine was back at work on Tuesday, but those office staff who could work from home would continue to do so.

The price of gold is the highest it has ever been, says West Coast gold miner Allan Birchfield.

The company mines hard coking coal for export and international steel production.

'Prices are down from where they were a month ago but we are continuing to work with our customers to get the best value for them and us. All businesses are hurting at present so we are making the most of what we have,' he said.

Gold and coal miner Allan Birchfield said his nine employees were back at work under level 3. Only coal producers for the domestic market had been allowed to operate under level 4 lockdown.

'We are able to work under protocols like travelling separately and miners using separate machinery. We don't work in close proximity anyway. We should have been able to operate under level 4,' he said.

The international coal price had 'collapsed' but the gold price was the best it has ever been at $2800 per ounce (31.1g), he said.

The Stockton mine's coal handling facilities at Ngakawau.

'The gold industry has huge potential to grow and replace the tourism jobs. We always knew and tried to tell them not to rely on tourism and nobody listened,' he said.

Development West Coast chief executive Heath Milne said half the West Coast business community had been unable to work during the lockdown.

Development West Coast was offering a $250 rebate to help West Coast businesses with delivery costs.

He said a new website – www.NowOpen.co.nz – had been developed to help West Coasters shop safely and support local businesses.

It was designed by EPIC Westport funded by the Government's Provincial Growth Fund.

He said more than 140 West Coast businesses open for delivery and contactless pickups featured on the website.

'We can all do our part to support local businesses and help them keep their doors open by shopping locally.'