Controversial Central Otago gold mine designated as a fast-track project

Monday, 7 October 2024

Santana Minerals’ Bendigo-Ophir Gold Project has been named as a fast-track project under the Government’s Fast Track Approvals Bill.

This designation follows a review by an independent advisory group with approval from the minister responsible for resource management reform, the regional development minister and the transport minister.

It means the Central Otago District Council would not be the consenting authority for the proposed project, and some locals, who object to the mine as being potentially ruinous of the environment and the area’s prime grape growing land, are effectively overruled.

Santana Minerals executive director Damian Spring said the company’s proposed Bendigo-Ophir Gold Project, which seeks to excavate what the company believes to be $4.4 billion worth of gold in its 10-year lifetime based on the current gold price of NZ$3900 per ounce, had met the bill’s objective of driving economic growth regionally and nationally.

“We've long known the Bendigo discovery is unique and impactful within our sector, and this acknowledgement by the central Government, along with the expedited permitting process, is a major milestone not only for us but also for those focused on economic growth and improved living conditions across the country,” Spring said.

Gold prices had since soared above NZ$4300 an ounce, he said.

The proposed mine straddles the Bendigo and Ardgour stations, near Cromwell, about an hour’s drive from Queenstown.

Santana has completed extensive environmental baseline studies in preparation for the mine's approvals under the existing Resource Management Act.

The company detailed environmental work would now receive a more focused review process under the fast-track reform, which prioritises nationally significant projects, Spring said.

He has previously said that if the company’s proposal was approved under the bill he would expect to have consents in about a year.

The select committee is expected to report back on the bill on October 18, followed by schedule 2 to be incorporated later this year, and the bill was anticipated to be enacted by end of the year.

The Australian-listed company listed on the New Zealand stock exchange in July.

The mine was expected to create 1000 jobs, including 250 working directly for the company with about 750 new positions in local associated businesses.

The scoping study had examined a 10-year lifeline for the mine, but it could operate much longer, Spring said in August.