A visual simulation released by Santana Minerals showing what the mine would look like from Ardgour Road, Tarras. Photo: Supplied
Getting consent for a vast gold mine in Central Otago is an "extremely rigourous and difficult process", the Australian company behind the project has told shareholders
Santana Minerals plans to tap into a $4.4 billion gold deposit between Bendigo and Ophir, and said on Friday it was on the threshold of lodging its application.
In its annual report, chairman Peter Cook alluded to hurdles - noting New Zealand had a thriving gold industry from the mid-1800s but now "too often demonises modern mining by ideological overreach".
A surge in demand for expert services to prepare fast-track applications, coupled with a shortage of specialist consultants, had slowed progress on the Bendigo-Ophir project, Cook said.
"I apologise to shareholders for our failure to meet earlier submission expectations. At the same time, I thank our team for their steadfast persistence in preparing a 'belts and braces' submission under some of the strictest permitting standards anywhere in the world," he said.
Cook said the Fast Track Act had created an important opportunity for objections to be dealt with in a timely and structured way - but "fast track" did not mean "short cut".
"The integrity of baseline and background work previously required under the RMA continues to underwrite an extremely rigourous and difficult approvals process," he said.
Some Central Otago residents have mounted vocal opposition to the mine, claiming it was a wholly unsuitable project for fast-tracking and could harm existing industries and devastate the natural environment.
Santana Minerals said it aimed to start earthworks in February, if the project secured the necessary consents.
Rob van deer Mark, a local resident and member of the advocacy group Sustainable Tarras, said Cook's comments overlooked the fact the approvals process "should be rigourous".
"We're talking about one of the largest open-cast gold mines in the country, in an outstanding natural landscape, with massive impacts on the environment and on the local economy," he said.
"When Mr Cook talks about ideological overreach he may not fully respect or consider the fact that Central Otago is a very different place to mine than Western Australia, where Mr Cook is from. We value our landscapes, our environment and our local community."
A visual simulation released by Santana Minerals showing what the mine would look like from Māori Point Road, Tarras. Photo: Supplied
Minister says system coping with demand
Santana Minerals said Cook's comments dealt with "sector-wide issues", not just the Bendigo-Ophir project.
New Zealand's permitting process was rigourous and the shortage of specialist consultants was a reality for every applicant navigating the new Fast Track Approvals Act framework, a spokesperson said.
Minister Responsible for Resource Management Act Reform Chris Bishop said at the panel stage of the process, he had not been advised of any resourcing problems.
"The number of applications in the fast-track process at this time is well within the anticipated volumes," he said.
Bishop said as Cook stated in his letter, the fast-track was not intended as a shortcut.
"Instead, it focuses on streamlining approvals and creating a one-stop shop. For example, the Port of Auckland recently received consent in just 55 days, whereas similar projects previously took up to five years. While this represents significant progress, there is always room for improvement. The government is therefore making some technical amendments to the Act," he said.
Environmental Defence Society challenges benefits claims
Santana Minerals estimated the mine could create more than 850 direct and indirect jobs, contribute $5.8 billion to GDP and deliver $1.8 billion in government revenue.
However, the Environmental Defence Society (EDS) challenged the company to provide more detail about what the mine could cost the community, not just what it could add.
EDS chief executive Gary Taylor said without quantifying the potential environmental, social and cultural costs, Santana Minerals could be overstating the advantages.
Under section 85 of the Fast Track Approvals Act, a project could be declined if its adverse impacts were out of proportion to regional or national benefits, he said.
"Santana has not done a proper cost-benefit analysis, and if it doesn't do that, then it's going to get consent refused, or at least it should be," he said.
"I'm putting them on notice early on - this is a requirement and you can't expect to get a free pass without doing that piece of work."
Taylor also raised concerns about the mine's tailings dam, which would store toxic by-products above the Clutha catchment.
He said he wanted to see financial guarantees in perpetuity to protect communities if anything went wrong.
"One of the big things that we're looking for is a substantial cash bond... otherwise any incident of that kind would fall on the local council and the local ratepayers and that wouldn't be okay."
Santana Minerals said the points raised by EDS would be part of its substantive proposal.
However, it told RNZ any claim the project had not been properly costed or that the benefits were overstated "ignores the mountain of data already on the table".
Santana Minerals chief executive Damian Spring. Photo: RNZ / Katie Todd
Santana Minerals chief executive Damian Spring said the company stood behind the numbers it released, which were "based on independent analysis and peer-reviewed modelling".
"This is one of the most heavily scrutinised projects Central Otago has ever seen, and we welcome that standard," he said.
The EDS would seek to be heard by the expert panel if the application progressed and was preparing expert evidence on economics, freshwater and ecology.
Taylor said the case would test how rigourous the new system was and whether large-scale, high-impact projects such as Bendigo-Ophir were appropriate for the fast-track process.
Split views in the community
Truck driver Mark Davidson, a third-generation Tarras resident, said that beyond the "vocal" group of opponents in his community there were many residents who supported the employment and economic benefits a mine could bring.
"My old man used to say you can't stand in the road of progress. And progress is what this country needs, at the moment," he said.
"There's a lot of people locally that are supportive of the mine - some with conditions, as long as the environmental side of it's up to scratch."
The area had long been mined and not always with such scrutiny, Davidson said.
"Anything that's done now has to be done to a much higher environmental standard than in the past. They didn't give a s*** about the environment. They just dug holes and left them behind."
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