New mines ban a threat to Reefton's future

Part of the Globe Progress mine near Reefton. Photo: LDR / Lois Williams
Part of the Globe Progress mine near Reefton. Photo: LDR / Lois Williams

A ban on new mines on conservation land could stop the Reefton goldfield revival in its tracks.

A leaked report last week said the Labour Government was back on track with its contentious plan to ban all new mines on conservation land.

Few places will feel the pain more than Reefton.

Oceana Gold's now-closed Globe Progress mine produced more than 610,000 ounces of gold over 10 years with export receipts of over $1 billion - about 20% of total gold production in New Zealand for that decade.

Part of the unworked portion of the Globe Progress permit area was recently picked up by Siren Gold under a five-year exploration permit. The town has been busy and geologists and drilling rigs have been flown in.

Willow-Jean Prime
Willow-Jean Prime

Inangahua Community Board chairwoman Linda Webb said yesterday no new mines would be devastating for the town.

"If the bill went through, it would stop expansion across the West Coast. It would stop growth."

The benefits of goldmining could be seen at the nearby Federation Mining underground operation on private land near Waiuta, with the jobs on site and downstream benefits.

"Surely common sense will prevail. It should be case by case, not a blanket rule," Ms Webb said.

Tony Lyons, part-owner of West Coast-based Ecodrilling Ltd, said Reefton was mostly surrounded by conservation land.

Anyone looking to mine underground would have to look at access via private land if no new mines progressed, because exploration and drilling on the surface would be too difficult.

Mr Lyons said countries like Australia were generating wealth from mining, and New Zealand could do the same, albeit on a smaller scale.

He was watching the move to no new mines closely and the impact it would have on staff, who were all based on the West Coast.

Straterra chief executive Josie Vidal said the lack of information from the Government had led to speculation around no new mines.

"That's the worst possible thing for investment in New Zealand."

It was not clear what it meant for underground mining, or if it would affect anyone wanting to reopen an old mine, as new technology meant miners could now go deeper.

On a recent trip to Reefton, she noted the town was buzzing.

Ms Vidal said the unworked gold seams around the country could bring royalties and tax which was good for all of New Zealand.

She could not get her head around the fact that something that brought good to the country could be stopped.

For companies on the frontline that was "very deflating".

New Conservation Minister Willow-Jean Prime said yesterday final decisions on any bill had not been taken.

"A significant amount of policy work would need to be undertaken, including engaging with a range of stakeholders. As a new minister I will be engaging with officials to continue this work and will have more to say in due course."

Leaked documents seen by the Greymouth Star show the Government was intending to introduce a bill before Parliament on February 21, and that the Prime Minister was to make an announcement at that time.

The new minister's office was asked if that was ever the plan. Her office reiterated the statement.

OUTSTREAM