Contentious proposed central Otago goldmine starts down consents path

Friday, 21 March 2025

There’s gold in them thar hills - says Santana Minerals, of its proposed Bendigo-Ophir gold project.

The contentious Bendigo-Ophir Gold project, which will establish an open pit and underground gold mine on Bendigo and Ardgour Stations in Central Otago, has taken a step forward, with Santana Minerals lodging a mining permit application this week.

The step is just an early one in the process, which requires Resource Management Act consents, a land access agreement under the Reserves Act, archaeological authority under the Heritage New Zealand Pouhere Taonga Act, and wildlife permits under the Wildlife Act.

Santana Minerals chief executive Damian Spring at the planned gold mine site at Bendigo, Central Otago.

While it is listed as a ‘nationally significant project’ and due to be fast-tracked without the approval of Central Otago District Council, it still needs to put in a fast track application, after gaining land purchase approval under the Overseas Investment Act 2005, and local road stoppage under the Local Government Act as well as the mining permit, lodged today.

The mining permit is a prerequisite for any mining operation in New Zealand and grants the legal right to extract and process mineral resources within an area under the Crown Minerals Act.

There is no public consultation on permit applications, but there can be consultation with relevant iwi and hapū as part of the application assessment process.

It is through the process of getting environmental consents where public input would usually be heard.

Once all those permits are received, the project, a centrepiece for dual-listed Santana Minerals, will be able to move towards development of the mine. Chief executive Damian Spring said in a statement to the NZX the application was a “pivotal stride towards unlocking gold production” and economic benefits.

The company has geological reports that suggest there are 1.5 million ounces of indicated (higher confidence) resources in the area it seeks to mine. It says it will excavate $4.4 billion worth of gold in its 10-year lifetime based on the current gold price of NZ$3900 per ounce.

While flying back to Washington aboard Air Force One on Wednesday night, a reporter asked President Donald Trump whether Elon Musk would pursue budget cuts at the Pentagon.

Based on getting all its consents in a timely way, the company aimed to start gold production by the end of 2026 .

“As is prescribed under the FTA, Santana expects to secure its resource consents within six months of lodging its Fast-track approvals submission, paving the way for Bendigo-Ophir to become a fully permitted mining operation,” chief executive Damian Spring said in a statement.

A group called Sustainable Tarras is fighting the mine, saying it has the potential for severe adverse effects to the environment, water supply, lives and businesses of local residents.

The gold market reached a record high recently as prices surged above $US3,000 an ounce, although it has since come back a notch. Central bank demand for the resource, falling global interest rates, and geopolitical uncertainty have been the key factors driving gold’s unprecedented rally for about a year, in which gold prices have risen almost 40%.