Global mining sector company MCAM expects to spend more than $US70 million ($NZ88.5 million) developing two Southland and three West Coast open pit gravel-wash mines, targeting gold and platinum.
The company wants to extract gold and platinum from South Island gravels, is advertising for staff and expects to fill up to 200 jobs during the next 16-18 months, including 60 indirect engineering and project management positions.
The jobs are timely, Solid Energy and Oceana Gold having between them shed hundreds of positions recently, and Oceana's Reefton mine under threat of closure.
Buller coal mine developer Bathurst Resource's 400 jobs are pegged at 100, with a stalled mine ramp-up because of languishing global prices.
However, despite saying it ''has recently acquired five mining permitted areas'' in the South Island, privately-owned MCAM is yet to formally apply for the permit transfers from Government permitting agency New Zealand Petroleum & Minerals (NZPM).
A spokesman for NZPM said, when contacted, the agency was ''aware'' MCAM intended to take over permits for metallic minerals on the West Coast and in Southland, but the agency was yet to receive its formal transfer application.
''They have up to three months from the time of agreement with the existing permit-holder to apply for the transfer,'' the spokesman said.
However, before any permits could be legally transferred, MCAM's financial and technical capability to undertake the proposed work would be assessed, with sign off by NZPM, on behalf of Energy and Resources Minister Simon Bridges.
It is not known from whom MCAM (Mining, Construction, Aviation, Machinery) is purchasing the permits, but it was understood not to be from Canadian-owned platinum explorer Lynx, which in July was granted five South Island permits.
MCAM New Zealand representative Michael McDonald was contacted by email, while in Scotland this week, and was initially keen to release a statement, but postponed that until next week, citing some unspecified ''sensitive issues'' still being worked through.
He had been asked to provide details on the South Island permits, the previous permit-holders, the background details on MCAM's ownership and its mining operations elsewhere.
MCAM contact details include MCAM Minerals Ltd and MCAM Ltd, both registered with the Companies Office.
Mr McDonald is both a director and the companies' 100% shareholder.
Comment was sought from MCAM's head office in Hokitika, but a spokeswoman said only Mr McDonald could respond to media inquiries.
MCAM said on its website the Westland mines were close to Hokitika and Greymouth and the Southland mine was close to Riverton and
Invercargill.
It estimated a total investment of ''$US70 million plus'', which includes 140 new local jobs, plus an additional 60 local staff in indirect jobs.
The company said exploration work completed provided MCAM with gold grades ranging from 0.195 grams per cubic metre of ore up to 2g, from ''some 60 million cubic meters of wash ore''.
Two separate alluvial gravel-wash mines have recently been operating in Otago and Southland.
The Earnscleugh operation near Alexandra was shut down in August, due to low gold returns and the depressed gold price, while the $18 million Waikaia valley operation of Waikaia Gold Ltd has been operating successfully for just over one year.
The five MCAM mines would operate at depths ranging from 10m to 80m, using both conventional large mining trucks and excavators, with extensive use of land-based conveyers, to ''significantly reduce'' operational costs and also to reduce noise and emission pollution.
''These mines are to be developed from greenfields to world class open cut alluvial mining operations at full capacity within the next 18 months,'' the company said.
MCAM said its investment into alluvial gold mining would develop ''five large land based operations'', each plant capable of processing 900cu m of gravel per hour.
The company said it would be extracting gold, ilmenite (titanium component) and garnet (gemstone) from all five mines, and the Southland mine would produce platinum.
''This will be New Zealand's only platinum-producing mine,'' the company said.
Orepuki, in Southland, has delivered New Zealand's only commercially viable platinum to date, with 47kg taken from gravels between 1897 and 1907.
The Longwoods range, west of Invercargill, has long been prospected for platinum, but never mined, other than 80,000oz of gold taken in the late 1800s.
A 47kg platinum haul at yesterday's global price of $US1260 an ounce would be worth about $US2.08 million.
MCAM describes itself online as a privately owned international mining company and supplier to that sector and construction.
It includes excavators, bulldozers and mining trucks, with supply centres in seven countries.
A raft of job descriptions is on MCAM's website, for ''sand mining operations in Westland and Southland''.
The positions include mining manager and mine planner, equipment operators, senior geologist, shift supervisors and dump truck operators, through to tradesmen and labourers.
The advertised jobs, with a stated preferance for West Coast residents, ''have various start dates ranging from six to 12 months, as our mines come online''.
• Canadian-owned Lynx was in July awarded five five-year South Island permits, including 355sq km around Murchison and 168sq km near Invercargill, including Longwoods.
It expects to spend $3 million during the first three years, then possibly a further $4.5 million during the last two years.
Lynx is a subsidiary of Canadian company Coronado Resources Ltd, which has mining and power generation interests.
Metals and their uses
• Platinum Estimated 130 tonnes mined annually. 80% South Africa and 10% Russia. One of the rarest and most expensive precious metals. Durable for jewellery setting, laboratory equipment, dental fillings, electrical components, chemotherapy drugs. Mainly for engine anti-pollution devices (catalytic converters).
• Ilmenite Estimated more than 5 million tonnes mined annually. Worldwide. Iron-titanium oxide, main ore for production of titanium, while titanium dioxide is a white pigment replacing lead in paint.
• Gold 2013, 2920 tonnes; 2014, estimated 3000+ tonnes.
