Otago gold mine and controversial mineral sands project on 'fast-track' letter list

Friday, 19 April 2024

A large open-cast gold mine in central Otago and a controversial mineral sands project near Greymouth both appear to be being lined up as candidates to bypass environmental laws and receive “fast track” consent from the Government.

Australian mining firm Santana Minerals, which owns the concession for the Rise and Shine gold prospect near Bendigo, was among more than 150 organisations that RMA Reform Minister Chris Bishop wrote to earlier this month advising them of the process to apply for fast-track consents.

Another Australian miner, Tiga Minerals and Metals, which has again been seeking consent to extract rare earth minerals from mine sands between Greymouth and Punakaiki on the West Coast of the South Island after getting knocked back in 2022, is also on that list.

Bishop released the list of recipients on Friday, but said inclusion in the list did not necessarily mean they would be considered for, or receive, fast-track approval.

“Having been sent this letter in no way guarantees that an applicant will choose to submit a project into the new process.

“If they did choose to submit a project, having received the form letter from me does not mean they would receive any preferential treatment,” he said.

Other mining businesses that had previously publicised receiving advice from the minister about the yet-to-be-enacted fast-track regime include seabed miner Trans-Tasman Resources and Chatham Rock Phosphate.

The fast-track consenting regime proposed by the Government would give ministers the ultimate power to approve new mines, roads, fish farms and other major projects without the usual checks and balances contained in several environmental laws.

Santana advised the Australian stock exchange in February that it estimated Rise and Shine contained 2.2 million ounces of gold at an average concentration of 2.2 grams per tonne.

Despite the low concentration, that much gold would have a market value once mined of almost $9 billion at current prices and exchange rates, and Santana has described the prospect as having “outstanding economics”.

Santana has said the gold at Rise and Shine could be recovered through a process that involves putting crushed ore through a centrifuge, and then cyanide-leaching.

The latter process allows gold in low-grade ore to be extracted by first converting it into a liquid solution.

A large number of wineries are located in the vicinity of Rise and Shine.

Some told The Post in January that there were concerns about the development, but that they were not aware of any organised opposition.

Objections to Tiga’s mineral sands project have reportedly centred on the alleged radiation risk from sand being exposed to the air, the impact of heavy trucks, and concerns over the possible effects on wildlife, including the “at risk” Westland petrel.

The sands Tiga hopes to mine contain a high concentration of ilmenite.

That is a magnetic and mildly radioactive mineral used in paints and plastics and turned into titanium for use across the aerospace, weapons and marine industries, and which is also used as a material in cellphones, sporting goods and joint replacements.

Labour’s environment spokesperson Rachel Brooking left the door open in March to a future Labour government cancelling fast-track consents on a “case by case” basis.

She said she would have particular qualms about consents being granted for projects that had previously gone through the Environment Court or a similar process and been turned down.

Brooking said on Friday that remained her position.

The projects proposed by Trans-Tasman Resources, Tiga and Chatham Rock Phosphate appear to fall into that category.

Brooking noted the public had until midnight on Friday to make their views on the fast-track regime known to the Environment select committee that is examining it.

Forest & Bird criticised Bishop for releasing the list of companies that had received letters only hours before submissions on the legislation closed “after the Ombudsman directed that the list be released”, and called for an extension of the midnight deadline.

“There’s nothing proactive about this. That the Government didn’t want to release this information and that it’s now only coming out the day that submissions close, shows just how anti-democratic this whole thing is,” its conservation manager Richard Capie said.

Green Party co-leader Marama Davidson backed Forest & Bird’s call for an extension, saying the Government was “trying its very best to do democracy in the dark”.

“The list released this afternoon includes organisations that have lost cases in the Environment, High and Supreme Courts, failing to meet our environmental standards and are now being given the opportunity by the Government to use this legislation to bypass them,” she said.