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Ross Louthean — 8 May 2013
The future of gold mining in the medium to long term in Waihi now appears assured with resource consents granted for Newmont Waihi Gold’s (NWG) underground mine in the Waihi East area – on the outskirts of the North Island town.
Correnso is the next major step by Newmont Waihi Gold, the operating New Zealand subsidiary of Newmont Mining Corporation.
Without Correnso gold mining in Waihi could cease when reserves are depleted on the new Trio underground mine - within four to five years.
The decision comes after the project was put through the arduous consents process and public scrutiny, including the Green Party and others who oppose anything that sniffs of mining.
NWG announced yesterday a positive decision by the independent commissioners’ hearings panel considering the mine application under NZ’s Resource Management Act.
The panel granted consent for Correnso subject to a range of conditions, but has not granted consent for the wider Golden Link Project Area that was originally sought by Newmont Waihi Gold.
The commissioners said: “‘We are satisfied that the development of the Correnso underground mine will, subject to appropriate conditions, enable people and communities to provide for their social, economic and cultural wellbeing.
“The potential of natural and physical resources to meet the reasonably foreseeable needs of future generations will be achieved, while the life-supporting capacity of the local environment will be appropriately safeguarded.
“The adverse effects of the proposal will be avoided, remedied or mitigated, subject to the imposition of appropriate conditions.”
NWG’s general manager Glen Grindlay said the commissioners’ decision must be considered in tandem with Newmont’s assessment of the viability of the project given the conditions set.
“We anticipate that some objectors may wish to appeal the decision or seek alternative conditions through the Environment Court, and it is highly likely that we will also lodge an appeal to address some conditions,” he said.
Grindlay says that Newmont is committed to the process and is ‘in this for the long haul’, stating that the company has committed several million dollars to the Waihi East Community.
“We have funded the Waihi Community Forum which appointed an Independent Review Panel that has just recommended that the company purchase seven residential properties in the Correnso area at a cost of about $NZ2 million with the same amount again yet to be spent.
NWG has, he added, also contributed significant funds to the Waihi East community through the ‘Top Up’ programme for property purchases; the ‘Healthy Home’s programme will see 270 homes insulated for free; the ‘Streets Ahead’ programme has committed $400,000 for Waihi East residents to spend on community amenities and committed funds to the local primary school and pre-school facilities.
NWG’s big Martha open cut and Favona underground mines have either finite or no reserves left and because the company was too coy to embrace the media, the arch anti-mining Green MP Catherine Delahunty, also a member of the Coromandel Watchdog group, did so with relish.
She told Radio New Zealand that while the decision would suit miners it was disastrous news for the townsfolk devastated that mining would continue with Waihi now a “man-made Christchurch” through the constant noise and disruption caused by mining.
Also, she said it was providing a short term economic solution due to the fluctuating gold price, whereas the upper Coromandel was travelling fine through no mining and other industries.
Perhaps Delahunty should take off her large blinkers because Waihi has been transformed from being a subsistence community through the revival of gold mining at Martha in the 1990s, and continued ever since.
This could not be said for most of the Coromandel where factories like the one that operated in Waihi decades ago, are either closed or struggling.
Newmont’s Waihi operations have been put up in the global mining industry as an example of the importance of community relations, and that includes the fact that current operations are on restricted time, excluding weekends, and drills operating near the town are encased in steel containers to mute the noise.
As for painting a picture of a disenchanted town, a recent poll on maintaining gold mining showed that opposition like the Greens would have as much chance of winning the public heart as a Labor candidate in a marginal Queensland seat in the coming Australian federal election.
One of the concerns for mining gold in Waihi, stemming from when the operations were taken over as part of Normandy Mining by Newmont in 2001, was that the Waihi operates were a small fish in Normandy’s big pond.
While it was put on the auction block it was withdrawn after some Canadian suitors became shy with the extent of environmental and resource consents involved.
Newmont, like other global mining giants, has been cutting exploration, marginal projects and even chief executives in the past year due to dwindling profit margins but it appears – based on Newmont’s presentation at Diggers & Dealers in Kalgoorlie last year – that Correnso is seen as a great discovery.
The project may operate seven days a week, round-the-clock and employ about 400 and is expected to be a $US200 M development.
Based on known reserves Correnso will begin construction on the eastern side of the Martha pit mid year and could ramp up to annual production of 100,000 ounces of gold and 750,000 oz silver. The target zones underneath 45 homes – some occupied by company people – is about 130 metres deep and extends to 350m.