Regional leaders are frustrated, and warn the West Coast now stands to lose generations of underground coalmining expertise.
Terra Firma Ltd has tried for five years to get a minerals permit to reopen the former state mine, which closed eight years ago when state-owned Solid Energy collapsed.
It was expected to generate $60 million a year and add 3% to the West Coast GDP. The proposal was not for burning coking coal, but for extracting silicon which is used in electronics and solar panels.
Spring Creek failed to get a permit from government agency NZ Petroleum and Minerals.
"Underground coal-mining has been killed by bureaucracy," one industry insider said today, off the record.
Mrs Pugh said she had contacted Terra Firma principal Lincoln Smith and suggested they both talk to Resources Minister Shane Jones.
"We have been hearing very welcome messages for the mining sector and that has given the extractive businesses great hope, but the implementation is no better than it always was," Mrs Pugh said.
"We need to understand what the barriers were that led to the decline of Spring Creek's application and appeal that decision.
"It's an important opportunity for the Coast."
The Greymouth Star asked Mr Jones' office for comment, but he declined.
"I don't think there's any words to describe how disappointed I am, and the region should be," Development West Coast chief executive Heath Milne said today.
"I don't think Lincoln or us are going to give up on it just yet."
Spring Creek had been an operating coalmine and the West Coast's key people were all supportive.
"Terra Firma are the gurus in underground mining in this country. I understand it is possible and viable, and it makes a huge difference to the local economy and national economy.
"People forget it's not thermal — it's high value coal that goes into processes to make products essential for decarbonising the economy."
Greymouth Mayor Tania Gibson said the government was making big statements about mining.
Spring Creek would have added 50 more jobs on the Coast, and more further down the line.
"I hope they don't give up ... it would be a great thing and a great operation for the Coast."
West Coast Regional Council chairman Peter Haddock said Spring Creek was a great resource.
Reopening the mine would bring good job opportunities to the region, and Terra Firma had a strong background in mining.
"We will support their being able to appeal that decision," Cr Haddock said.
It was revealed last year that NZ Petroleum and Minerals suggested Terra Firma could apply for an exploration permit instead of a mining permit.
They had wanted more information on the resource and economics; the mining company said the resource had already been comprehensively detailed by Solid Energy.
"The target mining areas are comprehensively drilled and the complex mine geology is well understood," Lincoln Smith wrote in response. "Spring Creek Mine was successfully operating up until its closure, and the closure was unrelated to safety, coal resource, the market, coal quality or productivity at the mine."
"Given commercial sensitivities, New Zealand Petroleum and Minerals does not comment on why permit applications are declined other than to say the application has failed to adequately meet the tests required under the Crown Minerals Act 1991," its national manager petroleum and minerals John Buick-Constable said.
— Greymouth Star
