Mokihinui Gold Ltd has received resource consent to begin suction dredging for gold in a section of the Nevis River.
The Dunedin-based company plans to begin mining in the new year, in an area of about 39ha stretching from 250m downstream of the Nevis Crossing bridge upstream to the confluence with Whittens Creek.
The Otago Regional Council has granted the company a 20-year land-use consent and discharge and water permits for the operation.
Conditions imposed include allowing only small areas of the river to be worked on at any given time; restrictions on the size of the nozzle used; no work be undertaken between May 1 and January 15; mined areas be left in a tidy state; and that riverbanks not be disturbed.
Mokihinui Gold director Darryl Sycamore said the terms of the consent heavily restricted operations in the flats used by fishermen, but allowed for the gorge to be mined using a commercial-sized dredge all year round.
"There is multiple millions of dollars of gold within the claim, and we are teeing up a joint venture project with a man from Nelson to do some mining also."
The project was supported by the Director-general of Conservation, Al Morrison, Kati Tahu ki Otago Ltd, New Zealand Fish and Game and the New Zealand Historic Places Trust, subject to conditions.
Otago Fish and Game chief executive Niall Watson said there were stringent monitoring conditions, including no mining during trout spawning and peak holiday season angling.
"While our preference would have been not to have the area mined, we are confident that, with strict compliance with conditions of operation and extra care in the management of the mining operation, adverse effects will be minor."
Mokihinui Gold would be in the spotlight and "we would expect to hear quickly if things don't run according to plan", Mr Watson said.
