Mining giant OceanaGold has announced plans to invest $1 billion over six years to extend their Waihī gold and silver mine operations despite high regulatory costs and concerns over mining on conservation land.
The company, listed in Canada, has applied for mining consent under the Fast-track Approvals Bill and has already spent $174 million on site exploration on a new site.
The company’s operations under the exposed open-pit Martha mine continue, but a
2024 feasibility study indicated that an conservation area under the nearby Coromandel Forest Park could contain over one million ounces of high-grade gold.
Speaking with the NZ Herald’s Markets with Madison CEO Gerard Bond described the new area as the company’s top growth project, emphasising the potential of an estimated 1.21 million ounces of gold in the ore body.
The announcement comes as gold prices hit a record high of US$3,000 per ounce, exceeding the company’s most optimistic earnings projections.
Developing the Wharekirauponga deposit beneath the Coromandel Forest Park
signals the company’s intent to continue mining in Waihī long-term, provided regulatory approvals are secured.
Gold mining has been a defining industry in Waihī since the late 19th century. The Martha Mine, which opened in 1879, was one of New Zealand’s most productive, operating for nearly a century before closing in 1952 due to economic conditions.
Modern mining resumed in the 1980s with open-pit and underground operations, and OceanaGold took ownership in 2015 and expanded operations to include the Correnso underground mine.
Despite the economic opportunities that a huge investment could bring to Waihī and its surroundings, mining continues to face scrutiny over its environmental and social impacts.
Further exploration is likely to stimulate opposition from groups like Coromandel Watchdog of Hauraki, which protests against excavation in the area, arguing that previous mining operations have not led to sustained wealth for the region.
In a statement released on March 6 regarding the use of the Fast Track law to mine at Wharekirauponga, Coromandel Watchdog of Hauraki said Oceana Gold had chosen to ‘exclude all community voices and avoid public scrutiny in what appears to be the first lodging of an application under the fast-track law.’
“Oceana (Gold) say they have lodged this application which is yet to appear on the EPA Fast Track site -making them leaders in this race to the bottom. There will be no public hearings and Iwi ability to challenge is also limited” said Catherine Delahunty, Chair of Watchdog of Hauraki.
However, Gerard Bond asserted that the company has widespread support within Waihī, where many of its employees reside.
Earthworks for the expansion are set to begin on company-owned farmland, leading to the construction of new underground tunnels necessary to reach the ore including two extending underwater beneath the Coromandel Forest Park. A Third tunnel will be constructed to connect with the processing plant.
