Central Otago goldminers aim for fast-tracked start to $4.4b project
Tuesday, 13 August 2024
Construction of a proposed $4.4 billion Central Otago goldmine could begin in a year, if it gets fast-track approval.
Santana Minerals chief executive Damian Spring said the “world class project” had “a little bit of luck” with the Fast-track Approvals Bill being introduced ahead of its resource consent application.
Resources Minister Shane Jones visited Santana’s Bendigo site in March, where he encouraged the company to participate in the fast-track process and “put their best foot forward”.
Spring said the company was preparing to lodge a resource consent application to local councils early in the new year, but had also applied to be considered under the government’s fast-track legislation.
If its proposal was approved under the bill he would expect to have consents in about one year.
Under the Resource Management Act it would likely take considerably longer, he said.
“Exploration and mining often involves a little bit of luck, and that’s a little bit more that’s come our way,” Spring said.
In July the Australian-listed company listed on the New Zealand stock exchange.
Spring said about 38% of shareholders were New Zealanders so it would enable them to trade directly in New Zealand dollars.
The company would be looking to raise capital to cover the anticipated $250m construction cost next year.
The proposed mine straddles the Bendigo and Ardgour Stations, near Cromwell, about one hour’s drive from Queenstown.
It was Bendigo Station that gave New Zealand Shrek the fundraising sheep, who was famously captured in 2004 with a gigantic 27kg fleece.
He became a travelling celebrity raising about $170,000 for the CureKids charity and was credited with contributing an estimated $100 million to New Zealand's economy.
A new goldmine could reap substantially more, with a scoping report indicating it could make revenue of $4.4b over 10 years.
Spring said about 60% of that value would return to New Zealanders in the form of taxes, royalties and dividends.
He expected it would create about 1000 jobs — 250 working directly for the company with about 750 new positions in local associated businesses.
“Our work force is probably already here in the form of people already working in the industry.”
Some of those people worked remotely or were employed in fly-in, fly-out roles in Australian mines, he said.
The scoping study had examined a ten-year lifeline for the mine, but it could operate much longer, Spring said.
The Macraes and Waihi mines had been operating for over 30 years due to ongoing success in finding gold, he said.
The discovery of the Rise and Shine deposit at Bendigo was of underground gold, so there could be other deposits within the same block of land.
Record high gold prices of about $US2400 an ounce were keeping the industry buoyant, Spring said.
There was ongoing demand in the jewellery sector, especially in China and India, there was ongoing use for smart phone components and people used gold to store wealth.
“Every smart phone has $5 to $10 of gold in there and there’s billions of phones out there. That’s a bit of gold floating around,” he said.
In a recent presentation he referred to the Bendigo project as a “gold developer’s dream” with no need for staff to fly-in and fly-out, no major camps to build, main road access, access to fresh water, cheap power, and an international airport one hour away at Queenstown.