Council probes alleged illegal mining activity in hills above Wellington

Saturday, 13 September 2025

Officials have launched an investigation into reports of illegal mining activity in the bush-clad hills above Wellington, amid growing controversy over a cluster of prospecting permits.

The Post revealed on Friday that mystery surrounds a flurry of applications in the Long Gully, with one already granted and neighbours caught in a bitter dispute over land, gold and access rights.

A council spokesperson confirmed they were recently made aware of allegations of mining activity and major earthworks at the site and “very concerned”.

“We are investigating the matter and the enforcement options available if needed.”

Brooklyn resident Travis Mackay, through his company Quicksand Ltd, was granted a two-year prospecting permit in July, giving him the exclusive right to search for metallic minerals across just over one square kilometre.

He has previously told The Post the permit was intended only to allow him and his son to pan for gold “as a hobby”.

When asked to comment about the investigation he accused a neighbour of being “a nark” and the council of “incompetency”. He said he had applied for the permit to stop complaints.

The Long Gully valley, southwest of Wellington’s city centre, is flanked by ecosanctuary Zealandia, and the QEII-protected Long Gully Bush Reserve, a 100-hectare reserve and the largest area of protected private land in Wellington city.

The permits cover parts of the valley, a rugged landscape of steep ridges, forested slopes and streams that stretches to the city’s wild south coast.

The reserve is largely covered in regenerating native forest, the result of decades of recovery after the end of farming in the 1980s. It is fenced against goats and intensively managed for pests and weeds and public access is restricted.

Neighbours raised concerns this week about multiple mining applications lodged over private land without consent, warning of risks to regenerating forest, streams and wildlife.

Documents released to The Post show eight more bids are still under assessment, covering parcels of land up to three square kilometres.

They come from members of the Watson family, Joseph Hugo Lupi, and from LG510 Ltd, a company linked to director John McDougall.

The applications lay out structured work programmes including geological mapping, soil and stream sediment sampling, quartz chip analysis, trenching, and ground magnetic surveys.

Deloitte provided a letter Lupi, confirming he controls a group of entities with a “significant net worth” and cash set aside for exploration.

Lupi, a real estate agent, did not respond to a request for comment.

Samuel, Joanna, Stephen, Benjamin, Timothy and Josiah Watson have lodged multiple bids for “Golden Hills” and “Long Gully” blocks, targeting gold across parcels ranging from half a square kilometre to more than three square kilometres.

Steve and Christine Watson own the former Long Gully Station and have gradually subdivided the property for their children. The Watsons were contacted, but Steve Watson said it was unlikely they family would comment.

Geological reports cite Long Gully’s fault zones, quartz veins and red iron-rich rocks as signs of potential mineralisation. Historical records show gold mining in the wider area in the late 19th and early 20th centuries, Lupi’s application says.

While gold is the stated target in most cases, several applications also cover all metallic minerals (excluding uranium).

Applicants are required to show financial capability and commit to “good industry practice” on health, safety and environmental management.

Neighbours say they were shocked to find applications lodged over their land without consent, warning of risks to regenerating forest, streams and wildlife.

“A gold mine is not something we want for our property,” one said. “Since 2020, we’ve been working towards protecting our land under the QEII programme [that protect significant natural, cultural, and scenic areas in perpetuity] … the idea of being surrounded by gold mining operations is deeply unsettling.”

Another has also planted thousands of trees and worked for years to regenerate the land and was horrified at “the idea of strangers digging holes and looking for gold on our property.”

Prospecting permits do not give miners the automatic right to enter private land. If viable deposits were ever found, separate land access agreements and further permits would be needed before any extraction.

Chris Livesey, a trustee of the Wellington Natural Heritage Trust, which owns and manages the bush reserve, was unaware of the prospecting applications until contacted by The Post.

“Long Gully Bush, an area of native bush legally protected in perpetuity, ls downstream of the land to which the prospecting permits apply,” he said. He declined to make any further comment “at this early stage”.

The area that now houses Zealandia was previously a gold and quartz mining area in the mid-late 1800s. The ecosanctuary referred questions to Wellington City Council.

Wellington Central MP Tamatha Paul and Rongotai MP Julie Anne Genter, both from the Green Party, expressed concern.

“While the permits at this stage are for prospecting only, I think most people in Rongotai and the wider population of Wellington would be pretty shocked,” Genter said.

“Areas of Long Gully were previously identified as Significant Natural Area’s (SNA’s) containing significant indigenous biodiversity. Unfortunately, Government changes have meant that these areas are no longer required to be identified and protected, which is incredibly disappointing.”

Genter noted that if the landowners genuinely only want to pan for gold in the creek, they would likely only need a hobby or recreational gold mining permit.” According to NZPAM, such permits cover small-scale operations limited to riverbeds or beach sand.

In contrast, the Tier 2 prospecting permit already issued to Quicksand Ltd allows a broader range of activities, including geological mapping, hand sampling, offshore sampling using low-impact mechanical methods, aerial surveys, and literature searches.

Genter says this indicates that the permit is “on a far larger scale than simply panning,” even if it’s considered a smaller industrial or hobby operation.

She added: “I would expect any future proposed mining operation to face huge push-back, but the risk is that the current Coalition’s Government’s fast track process could be used to override environmental and community concerns, if it were still in place.”