Andrew Dickens: The debate over the Bendigo-Ophir mine

I want to start off with the Bendigo-Ophir mine near Cromwell, and the question is should it get fast track approval? The Australian company Santana Minerals has applied to build four open pits in the Dunstan Range near Cromwell, the largest of which would be one kilometre long and 300 metres deep, and it's alongside a two kilometre long tailings storage dam which would stay there forever.  

The company says the project follows the most significant gold discovery in New Zealand for 40 years. There's always been gold there in the Bendigo around Welshtown, but they've found more. The company says it will generate $6 billion in revenue and more than $1 billion in taxes and some royalties, and 357 direct jobs in the Cromwell region. It's up for fast track and the fast-track panel has until October the 29th to make its decision. 

Yesterday, it was reported that the Parliamentary Commissioner for the Environment, Mr Simon Upton, has come up with a report to the panel and it's issued a stark warning about the mine. He reckons that if the fast-track panel can't receive independent assurance that the project's environmental risks can be mitigated, he says the application should be declined. Simon's submission to the panel, which was reported by Mike White in The Post yesterday, arrives as the debate intensifies. And we've all heard about Sam Neill, the actor. He gave an interview to the Guardian over the weekend and that's given the whole thing a whole international profile. So it's all on.  

So what is Simon really worried about? Simon's primary concerns are water and earthquakes. This proposed tailings storage facility, which I told you is two kilometres long, would hold what he describes as large quantities of potentially hazardous mining residues in the headwaters of one of New Zealand's largest river systems and in an area which is very susceptible to very large earthquakes. He's worried about the seepage into the groundwater, and he noted that Santana Minerals' own experts could not give certain assurances that any leakage could be entirely prevented. And he says the leachate coming out of the tailings facility could continue for decades and even centuries after the mine closes.  

Simon was also troubled by all the imprecise language in Santana's application, citing the objective that contamination caused by the operation is appropriately remediated or managed, and he says well that's a bit airy-fairy isn't it? What does appropriately mean in this context? He said that's anyone's guess. He says the risks of acid mine drainage and tailings failures are arguably greater in New Zealand than elsewhere else, given the country's seismic exposure. And he's not wrong, there was a map actually published the other day of all the seismic events around the world and the two most seismically active places in the entire globe is New Zealand and Japan. Little red dots everywhere. We shake an awful lot. And Simon says if what happens if things do not go to plan, that is my concern. And he says we have only one opportunity to get it right and in his opinion, we shouldn't give the Bendigo Ophir mine near Cromwell fast-track approval. 

And then of course there's Sam Neill, Sir Sam, we know he doesn't want it. So he gave an interview to the Guardian over the weekend, and he was very careful to come across not as an anti-mining zealot. His quote was “I'm not against mining, I'm just against this mine." Of course he's a winemaker, he's grown Pinot in his two paddocks label in the region for 30 years. His family has been in Central Otago for 150 years. He has global influence because he's a global actor. He's his concern also extends beyond just this mine because he says Santana hold permits over a vast surrounding area and this could set off a chain reaction. He says there'll be mining all around us. He's even made a little documentary on the issue, it's called Into the Dunstan Mountains and you can find that on YouTube if you want to watch it.  

This Santana project has created deep divisions in the community, however, there's a lot of support. Supporters are represented by a Facebook group. That Facebook group has 8,500 members and they say look at the economic relief, look at those jobs, all 357 direct ones and all the subsequent jobs from money that flows through the region. And they say our region is under financial pressure, we need the jobs and we need a little bit of dink coming through the economy. But opponents like Sam and former Prime Minister Helen Clark warn that the fast-track law has little regard for the environment, and they're concerned this mine will destroy threatened plants, scar a unique landscape and pollute the land and water. And they say New Zealand will not get all the economic benefits because Santana is an Australian company, so the profits go there. The royalties are low but yes there will be jobs, and we'll get the GST and the

Episode Transcript

Speaker 1 (00:06):
You're listening to the Kerry Wood of Morning's podcast from
News Talks.

Speaker 2 (00:10):
He'd be I want to start off with the Bendigo
of fear Mine near Cromwell, and the question is should
it get fast track approval. So the Australian company Santana
Minerals has applied to build four open pits in the
Dunstan Range near Cromwell, the largest of which would be

(00:30):
one kilometer long and three hundred meters deep, and it's
alongside a two kilometer long tailing storage dam which would
stay there forever. Company says the project follows the most
significant gold discovery in New Zealand for forty years. Has
always been gold there in the Bendigo around welsh Town
and stuff, but they found more. It's the most significant

(00:54):
discovery for forty years. The company says it will generate
six billion dollars in revenue and more than one billion
dollars in taxes and some royalties, and three hundred and
fifty seven direct jobs in the Cromwell region. It's up
for fast Track and the fast Track Panel has until
October the twenty ninth to make his decision. But yesterday

(01:17):
it was reported that the Parliamentary Commissioner for the Environment,
mister Simon Upton has come up with a report to
the panel and it's issued a stark warning about the mine.
He reckons that if the fast Track Panel can't receive
independent assurance that the project's environmental risks can be mitigated,
he says the application should be declined. Simon's submission to

(01:39):
the panel, which was reported by the way by Mike
White in the Post yesterday, arrives just of course, as
the debate intensifies. And we've all heard about Sam Neil,
the actor. He gave an interview to The Guardian over
the weekend and that's given the whole thing a whole
international profile. So's it's all on. So what is Simon
really worried about. Simon's primary concerns are water and earthquakes.

(02:06):
This proposed tailing storage facility, which I told you is
two kilometres long, would hold what he describes as large
quantities of potentially hazardous mining residues in the headwaters of
one of New Zealand's largest river systems and in an
area which is very susceptible to very large earthquakes. He's

(02:30):
worried about the seepage into the groundwater, and he noted
that Santana Mineral's own experts could not give certain assurances
that any leakage could be entirely prevented, and he says
the leech eate coming out of the tailing's facility could
continue for decades, in even centuries after the mine closure.

(02:55):
Simon was also troubled by all the imprecise language in
Santana's application, citing the objective that contamination caused by the
operation is appropriately remeetated or managed, and he says, well,
that's a bit airy fairy, isn't it. What does appropriately
mean in this context? He said, that's anyone's guess. He says,

(03:15):
the risks of acid mine drainage and tailing's failures are
arguably greater in New Zealand than elsewhere, given the country
seismic exposure, and he's not wrong. There was a map
actually published the other day of all the seismic events
around the world, and the two most seizemically active places

(03:36):
in the entire globe is New Zealand and Japan. Little
red dots everywhere we shake an awful lot. And Simon says,
if what happens if things do not go to plan,
that is my concern, and he says we have only
one opportunity to get it right, and in his opinion,
we shouldn't give the Bendigo Ophea mine near Cromwell fast

(03:58):
track approval. And then of course there's Sam Neil. Sir Sam.
We know he doesn't want it. So he gave an
interview to The Guardian over the weekend and he was
very careful to come across not as an anti mining zealot.
His quote was, I'm not against mining, I'm just against
this mine. Of course, he's a wine maker. He's grown

(04:20):
pino in his two Paddocks label in the region for
thirty years. His family has been in Central Otago for
one hundred and fifty years. He has global influence because
he's a global actor. He's His concern also extends beyond
just this mine, because he says Santana hold permits over
a vast surrounding area and this could set off a

(04:42):
chain reaction. He says they'll be mining all around us.
He's even made a little documentary on the issue. It's
called Into the Dunstan Machine, Sorry, Into the Dunstan Mountains,
and you can find that on YouTube if you want
to watch it. So this Santana project, well, it's created
deep divisions in the community. However there's a lot of support.
Supporters are represented by a Facebook group. Their Facebook group

(05:05):
has eight and a half thousand people as part of it.
And they say, look at the economic relief. Look at
those jobs or three hundred and fifty seven direct ones
and all the subsequent jobs from money that flows through
through the region. And they say, our region is under
financial pressure. We need the jobs and we need a
little bit of ding coming through the economy. But opponents

(05:27):
like Sam and former Prime Minister Helen Clark warn that
the fast track law has little regard for the environment
and they're concerned this mine will destroy threatened plants, sca
a unique landscape and pollute the land and water. And
they say New Zealand will not get all the economic

(05:48):
benefits because Santana is an Australian company, so the profits
go there. The royalties are low. But yes, there will
be jobs and we'll get the GST and the tax
from that. But is it enough to stick in four
four big mines, a couple of big dams and putting
a tailings dam that's a kilometer long, that's full of

(06:08):
all sorts of poisonous minerals in a seismic area where
if there was a big quake and the dam burst,
the water would float straight down into Lake Dunstan and
then of course into the Kluther and then all over
Otago Southend. Wow, there's good arguments on both sides. Don't
you think which side do you stand on?

Speaker 1 (06:29):
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