Oceana to close Reefton mine

Oceana Gold is moving to close its mothballed Reefton mine, which delivered more than $1 billion in export receipts over 10 years, in preparation for handing the rehabilitated 260ha back to the Department of Conservation.

Oceana announced yesterday it is starting to commence closure and rehabilitation activities at the open pit Reefton, which will take several years, general manager of the Reefton-Macraes operations, Dale Oram said in a statement yesterday.

A detailed restoration plan would now be worked through, in consultation with the Department of Conservation and regulatory and community stakeholders, to ensure there was ``collective agreement'' on the rehabilitation, he said.

Rehabilitation of landforms and revegetation had been ongoing and would continue with capping and replanting of waste rock areas.

At the end of 2015, more than 55ha of the disturbed 260ha mine footprint had been rehabilitated, and an additional 60,000 trees were planted this year.

Modern mining began in July 2006 and by the time it was mothballed in early 2016 Reefton produced 610,000 ounces of gold over 10 years, or about 20% of all New Zealand's gold production for that period.

Up to 300 staff were employed at the mine. Five were now left on care and maintenance.

Mr Oram estimated that through direct and indirect employment the mine provided 550 full time jobs and contributed $250million to the West Coast's economy.

Mr Oram said Reefton's closure that would not affect the company's ongoing exploration work at Blackwater mine, historically an underground mine.

Blackwater is 37km south of Reefton, beneath the abandoned township of Waiuta, in the foothills of the Victoria Range and produced

740,000 ounces of gold from 1908, until the shaft collapsed and the mine was closed in 1951.

Oceana's calendar production remains at up to 425,000oz from its mines at Macraes, in East Otago, Waihi, in the North Island and Didipio in the northern Philippines. A South Carolina development mine will come into production next year.

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