Key Takeaways
- Santana Minerals is seeking consent to tap into a $4.4 billion gold deposit near Cromwell, with a proposal that has resulted in fierce backlash from locals.
- The company submitted a fast-track application in November, but government officials suggested it might need to wait until next September for a decision.
- Santana Minerals is pushing for a quicker decision, insisting that officials aim for the default timeframe of 30 working days.
- The proposal has sparked concerns about environmental impacts, damage to the tourism industry, and limited community input under the fast-track regime.
- The project would carve out a 1000×850-metre open pit, plus three smaller satellite pits and a tailings dam, with the company planning to extract its first gold by about March 2027.
Introduction to Santana Minerals’ Proposal
Santana Minerals, an Australian company, is planning an open-cast gold mine near Cromwell, which has sparked intense opposition from locals. The company believes that the site holds a $4.4 billion gold deposit and has submitted a fast-track application to tap into it. However, the government has suggested that a decision on the application might not be made until next September, which Santana Minerals is pushing against. The company’s chief executive, Damian Spring, has insisted that the application was "deliberately comprehensive" with over 9400 pages of evidence and technical material, and that a decision should be made within the default timeframe of 30 working days.
Concerns About the Fast-Track Application Process
The fast-track application process has sparked concerns among locals, with many feeling that the community has not been given sufficient input or time to consider the proposal. The government’s decision to backtrack on a proposed 60 working-day time limit for fast-track decisions has also raised concerns, with many feeling that the new 90-day limit with the ability to extend is still too rushed. Hollywood star Sir Sam Neill, who has been opposed to the mine, has warned that the proposal could have "enormous" effects on the region for centuries and that a decision within days is not suitable for something of this magnitude.
Environmental and Economic Concerns
The proposal has also sparked concerns about the environmental impacts of the mine, with many worried about the potential damage to the tourism industry and the region’s natural beauty. The project would carve out a 1000×850-metre open pit, plus three smaller satellite pits and a tailings dam, which could have significant environmental consequences. Additionally, there are concerns about the limited ability of the community to have a say under the fast-track regime, with many feeling that their voices are not being heard. Resources Minister Shane Jones has championed the mine as a potential source of well-paid jobs, but others argue that Central Otago already has plenty of jobs and that the mine could actually harm the local economy.
Santana Minerals’ Response
Santana Minerals has rejected the government’s suggestion that a decision on the application might not be made until next September, insisting that officials aim for the default timeframe of 30 working days. The company’s chief executive, Damian Spring, has said that the application was submitted with the intention of providing the panel with everything it needed to assess the proposal efficiently, not as a reason to slow the process down. Spring has also emphasized that the company’s timeline for extracting its first gold, which is set for about March 2027, remains unchanged. The company has been granted a 30-year mining permit by New Zealand Petroleum & Minerals, which gives it legal rights to extract gold at the site.
Community Opposition
The proposal has sparked significant opposition from the community, with many raising concerns about the environmental and economic impacts of the mine. Locals have argued that the region is already flourishing, with great orchards, a tourism industry, and vineyards, and that the mine could harm these industries. Others have expressed concerns about the potential damage to the region’s natural beauty and the limited ability of the community to have a say under the fast-track regime. The Environmental Protection Authority, which administers the fast-track regime, has been approached for comment, but it remains to be seen how the community’s concerns will be addressed.
