A postponement by Newmont Waihi Gold of the reopening its historic Martha pit has prompted the loss of 50 jobs, after the contract of Macmahon Contractors (NZ) Ltd was terminated.
The pit was closed in early April, following a slip on the north wall, and mining was suspended, but further geotechnical investigation was required, the company said in a statement yesterday.
''Due to the time needed to reach a decision regarding the resumption of safe production from the Martha pit, Newmont Waihi Gold must terminate its contract with Macmahon Contractors (NZ) Ltd,'' Newmont said.
East Otago-based Oceana Gold is undertaking due diligence with the intention of buying the Waihi operation from Australian mining giant Newmont for $132 million, and is understood to have factored in the pit access issue.
Before the contract termination, about 340 people were employed at Waihi.
Its underground mines and mill are unaffected by the Macmahon termination.
Martha pit, first mined in the 1880s, was scheduled to be mined through to the first quarter of 2016, but the statement said ''it could be up to a year or so'' before the pit was reopened.
Over the next month, Macmahon mining equipment would be removed from site.
Newmont said all buildings and workshops would remain, environmental monitoring and reporting would continue and closure bonds remained.
''Although the Martha open pit will not be operating, all of the obligations and procedures associated with an active mine site remain in place,'' the company said.
Some areas around the site would be recontoured, such as modifications to stockpiles, bunds and drainage.
While underground mining continues, the water level in the pit will not change and the tailings storage facilities will remain operational for the underground operations.
