Santana Minerals Ltd is expected to apply for resource consent later this year to mine its Bendigo-Ophir gold prospect, about 10km from Tarras, after test drilling uncovered an estimated 2.9 million ounces of gold there, worth $9.4 billion at today’s prices.
Mr Jones said yesterday he had met the project’s proponents and "given them every encouragement to proceed".
He advised them the coalition agreement to establish a fast-track consenting and permitting process for regional and national projects of significance could come into play.
"The fast-track legislation which is at the heart of the New Zealand First-National Party coalition agreement is designed to ensure that regions no longer wither on the vine because tiny, shrill minorities have more concern over the fate of the native click beetle than the future of regional communities.
"The Santana proposal is an overdue shot in the arm for the natural resources sector.
"The prime minister has clearly stated that mining is integral to our export-led recovery and my job as the mining minister is to ensure that projects such as Santana are not hobbled by petty bureaucracy or statutory constipation."
The sector had been blighted by an absence of political leadership and statutory processes that had become "so protracted that it’s taking years and years for people to get a legislative entitlement to carry out this business".
"Mining is a legitimate business.
"In New Zealand, we are going to have to have a ‘come-to-Jesus’ discussion about mining.
"There are trade-offs.
"If we want a first world quality of life, we’ve got to use Mother Nature’s legacy — that’s the minerals estate."
Waitaki MP Miles Anderson pointed to the success of Oceana Gold’s Macraes gold mine, in East Otago, which had been running for 30 years with a strong environmental track record and had put "a lot of money into the local economy".
There was also "a lot of water to go under the bridge" before the proposed Central Otago gold mine became operational but Santana’s proposal was nonetheless an exciting prospect for the regional economy.
"If it gets up and going, in the initial stages there will be a huge number of jobs — and they’re high-paying too," Mr Anderson said.
Central Otago District Mayor Tim Cadogan said at this stage it appeared his council was likely the authority that would hear any resource applications for the mine and as such he declined to comment.
Forest & Bird Southland-Otago regional manager Chelsea McGaw said the environmental organisation knew the project area was a hot spot for lizards and invertebrates, as well as unique Central Otago flora.
"We want to ensure the biodiversity and unique habitats of this area are protected and preserved, and are interested in the outcomes of any ecological assessments undertaken by the applicants.
"We will be engaging actively in the consenting process."
The area in question had already experienced contention in relation to the use of the Manuherikia River, Associate Prof Katharina Ruckstuhl, of the Otago Business School Māori and Indigenous Economy and Enterprise Network, said.
"Any impacts of a gold mine on the important aquifers that feed the river are likely to receive intense scrutiny."
A cultural assessment would also be needed to understand any impacts on Ngāi Tahu values.
While there would be local and national economic benefits through employment, ongoing expenditure locally and royalties, communities also needed to understand what the "value-add" would be for them.
Affected communities would have different requirements, such as training and education, supply and procurement contracts, or philanthropy into the community, for example through the creation of trusts or special funds, she said.
"These are very common internationally and are an expected part of business given that land and other resources ... are being extracted or impacted.
"And although it’s still early days, people will want to understand the company’s ‘end of life’ plans — [that is] what happens when the mine closes."
