OceanaGold, the operator of New Zealand’s largest gold mine, will today submit an application to extend the life of its Macraes Gold Mine until 2036, utilizing the Fast-track Approvals Act 2024.
The application seeks to prolong the mine's operation by expanding and deepening several existing open pits to access new gold veins. This initiative has been in progress for several years, garnering both support and opposition.
OceanaGold states that today's application follows extensive consultations with stakeholders. However, it is anticipated that environmental groups will continue to voice objections, citing the company's past non-compliance with environmental monitoring conditions and the risks mining poses to nearby endangered species.
Macraes, owned by the New York and Toronto Stock Exchange-listed OceanaGold, has been extracting gold from Macraes Flat in Otago since the 1860s. Large-scale open-cast operations commenced in 1990, following confirmation of gold in the area through a joint venture in the mid-1980s. OceanaGold was formed in 2003 and subsequently listed on the NZX and ASX in 2004.
In 2022, OceanaGold proposed "Macraes Phase Four" (P4), a brownfield extension aimed at significantly extending the mine's operational life to 2036. Without this extension, the mine was slated to begin winding down operations in 2027, with closure by 2030.
The initial application to be considered under the Fast-track list was submitted at the end of 2023. It encompassed all necessary components for extending the mine's life, including deepening pits, extending underground tunnels, and increasing tailings storage capacity.
Through an Order in Council, the Government broadened the scope of the original application, enabling OceanaGold to modify project parameters and ensure all required extensions were legally covered within a single application.
This consolidated application is being lodged today. It will first be assessed for completeness before being reviewed by an independent expert panel as part of the Fast-track process.
OceanaGold asserts that MP4 will optimize its current operations at Macraes by expanding existing mining areas, re-evaluating previously worked ground, and processing low-grade ore stockpiled on-site that was previously considered uneconomic.
Alison Paul, OceanaGold's Senior Vice President in New Zealand for legal and public affairs, stated that MP4 is expected to unlock approximately one million additional ounces of gold over more than ten years, with an estimated expenditure of NZ$3.1 billion during this period.
"The project will sustain over 760 direct jobs and thousands of indirect jobs across Otago, delivering substantial economic benefits to the region and New Zealand. We are proud that approximately 80 cents of every dollar we spend remains in New Zealand, and OceanaGold continues to be a significant contributor to New Zealand’s export earnings," Paul said.
Paul added that the application follows extensive engagement with "a wide variety of stakeholders both locally and across the wider region." She noted that this engagement has directly influenced the project's design, incorporating mitigation and ecological enhancement measures into MP4.
Paul highlighted the company's 36-year history in New Zealand, including the rehabilitation of the former Globe Progress Mine in Reefton, as evidence of OceanaGold's "commitment to responsible mining."
However, a late 2024 RNZ report indicated that Oceana had repeatedly breached resource consents, with two independent audits revealing "widespread and ongoing non-compliance" with several land-use consent conditions at the Macraes mine. The first audit, conducted by the Otago Regional Council, identified numerous consent breaches related to water quality.
At the time, Paul told RNZ that the company "appreciated the independent view the audit has provided, and we are working hard with the councils to close identified gaps in our delivery." She expressed confidence that Oceana Gold would adhere to current and future consent conditions.
The situation at Macraes mirrors the high-profile dispute surrounding Santana Minerals' proposed Bendigo-Ophir gold mine, which has generated community concerns about potential environmental damage, alongside support from individuals and Resources Minister Shane Jones advocating for the economic advantages of regional mining.
