Oceana Gold

The new year could herald the beginning of the end of Oceana Gold's New Zealand operations, with the winding down of some West Coast and Otago production.

There appears to be a degree of optimism among 70 Oceana Gold employees, despite learning yesterday they are to lose their jobs at the Macraes gold mine.

Cost savings across Oceana Gold's operations, including about 150 recent redundancies, appear set to flow through its balance sheet.

The wait for more information about the scale of Oceana Gold's cutbacks may be damaging local contractors' businesses, a Dunedin business leader says.

After a troubled start to its calendar financial year East Otago-based Oceana Gold is reaping benefits from cost savings and predicting a ''strong finish'' to the year, underpinned by better-than-expected copper production from ramping up its Philippines gold-copper mine.

East Otago-based Oceana Gold has bought a Central American gold and silver mine exploration company for $12.1 million in a cashless share transaction.

Redundancies at Oceana Gold - whether from a sweeping company review or separate collective contract negotiations - appear inevitable.

Speculation is mounting on the outcome of a business-wide review of all operations by Oceana Gold, one of Otago's largest employers.

Hopes are high the review of Oceana Gold's operations - particularly of its Macraes gold project - will not cut deeply into the Otago economy.

Oceana Gold announced cutbacks at its Macraes mine yesterday as the company reduces operating expenditure by about $US100 million ($NZ125 million) over the next 18 months, as part of a company-wide review of operations.

Oceana Gold's Globe Progress open pit mine at Reefton on the West Coast could have its mine life slashed in half to about two years.

Oceana Gold has released a bold market update, predicting it will be operating up to four mines in several countries within five years, but fired a surprise warning shot across the bows of its mainstay New Zealand operations.