Council asks Oceana to double payment

Oceana Gold Macraes Gold mining operation. Photo from ODT files.
Oceana Gold Macraes Gold mining operation. Photo from ODT files.
The Waitaki District Council has called for Oceana Gold to invest double the $2 million it is proposing to give a community trust as part of its mine expansion consents.

Yesterday, consenting authorities, the Waitaki District Council and the Otago Regional Council, presented their proposed conditions if consents were granted.

Waitaki District Council planning consultant Andrew Purves said on the fifth day of the hearing that Oceana should settle $4.475 million on the trust and give it the option of deciding if it wanted to accept the "gift" of owning buildings such as Stanley's Hotel and manager's house.

At the start of the hearing last week, Oceana proposed to give a newly set up community trust $2 million and the "gift land", if the extension consents were granted, in return for not completing the heritage and art park it had committed to during previous consent rounds.

Mr Purves said the $4.475 million figure was obtained by looking at the costings for maintaining the art park over 10 years, estimated at $2.475 million and adding that to the $2 million already offered by Oceana.

Engineering geologist Barry McDowell said he had peer reviewed the geology evidence on behalf of the district council, in particular the possibility of an uncontrolled failure of the west wall of the mine, which could result in 15cu m to 20cu m of material falling into the mine pit.

Mining the area would cause the west wall to move a reasonably long distance by the time mining finished, he said.

"The key to uncontrolled failure is the rate the slope moves."

Just what the safe rate of movement was, needed more investigation as the proposed mining was moving beyond the company's level of experience, he said.

A detailed management plan was needed before it started mining and the trigger levels needed to be in the consent conditions, as should be the requirement for specialist advice before mining started again.

Ecologist Dr Mandy Tocher, on behalf of the district council, said to adequately protect the wildlife in the area, including lizards and birds, predator control in perpetuity was essential - stock fencing, covenants and planting would not improve the condition of the lizard population.

"All the techniques suggested by the applicant to help mitigate adverse effects on lizards are untested and unproven."

She suggested predator control of an area no less than 100ha encompassing a variety of landscape was needed.

About 67ha of New Zealand pipit habitat would be lost through the project but predator control over the 100ha would help enhance their numbers, Dr Tocher said.

The project would negatively impact on the important wetlands but the creation of new wetlands to match the size and loss would mitigate that.

Otago Regional Council resource officer Hilary Lennox said after hearing evidence, the council had decided to drop the consent requirement for a technical group.

The council had also not been specific about the requirement for the trout barrier requested by the Department of Conservation as, on its own, it was not necessarily enough to protect the galaxiids, she said.

Resource officer Justin Kitto said flathead galaxiids were able to exist in Camp Creek and Deepdell Creek because of their low flows which excluded large trout from existing.

"Our concern that with the summer augmentation ... from Camp Creek dam these dry sections will no longer dry up ... and provide barriers to trout."

The hearing was adjourned until tomorrow afternoon when Oceana Gold will continue to give its right of reply.


Oceana Gold hearing
Day 5

Applicant: Oceana Gold.
For: Resource consents to extend the life of Macraes mine.
Panel: Otago regional councillors Louise Croot (chairwoman) and Duncan Butcher.
Submitters: Waitaki District Council: planning consultant Andrew Purves, Tonkin and Taylor engineering geologist Barry McDowell, Wildland Consultants Dr Many Tocher; Otago Regional Council resource officer Hillary Lennox, environmental resource scientist Justin Kitto; Oceana Gold counsel Stephen Christensen, Macraes Gold Project general manager Bernard O'Leary.

Macraes Phase III Project

• Close existing mixed tailings impoundment and southern pit impoundment.
• Construct a new tailings storage facility called Top Tipperary.
• Construct a new dam on Camp Creek for water storage.

Mining Round Hill - Southern Pit

• Continuation and expansion of Frasers Underground Mine.
• New waste rock stacks and extensions to existing rock stacks.

rebecca.fox@odt.co.nz

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