Perspective with Andrew Dickens: Are the economic effects of Waihi's mining worth the environmental damage?

The government has approved OceanaGold’s Waihi North mining project, extending gold and silver extraction in the Waihi area until 2043, delighting the pro-mining crowd.

It's a decision I agree with.

Waihi has already been extensively mined and the environment beaten up.

The decision will keep the town alive and provide hundreds of jobs. But make no mistake, this will not be an El Dorado for the whole country.

The royalties are still at the excruciatingly low level they've always been at.

Waihi North will generate $5.2 billion in additional gold and silver exports over its 18-year lifespan — averaging $286 million per year.

Meanwhile, Crown revenue from corporate tax, PAYE, and royalties is expected to total a net present value of $422m over the life of the project.

That's not an economy-saving sum, and it represents an 8 per cent yield on the output.

But a deal is a deal.

What concerns me is thoughts of new claims — the area behind Pauanui and Tairua on the Coromandel. Or the new work proposed for Bendigo.

Until the whole nation truly benefits from the work that damages our land, is it worth it?

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Right. Oh well, the government has approved Ocean Gold's Yhi
North mining project, extending gold and silver extraction in the
Wahi area until twenty forty three, delighting the pro mining
crowd and Martua Shane Jones. It is a decision I
agree with. Why he has already been extensively mined, The
environment has already beaten up. This will keep the town

(00:22):
alive and will provide hundreds of jobs. But make no mistake,
this is not going to be an El Dorado for
the whole country. The royalties are still at the excruciatingly
low level they've always been at. So why He North
will generate five point two billion dollars in additional gold
and silver exports over its eighteen year lifespan. Five point
two billion. That's about two hundred and eighty six million

(00:44):
a year Crown revenue from corporate tax paye and royalties
expected to net a president bat value of four hundred
and twenty two million. They mine five point two billion,
we get four hundred and twenty two million over the
life of the project. Now that is not an economy
saving sun. It represents about an eight percent healed on

(01:05):
the output, so it's not nothing, but it's not an
economy saving sum. But remember a deal is a deal,
and they were given the license to mind why he,
and they're just continuing to mind why he. But what
really concerns me his thoughts about new claims, the area
behind Poha Nui and Taiua on the Corimandel, or the
new work proposed for Bendigo, Because until the whole nation

(01:28):
truly benefits from the work, until the royalties are increased,
are we prepared to damage our land for that money?
Is it worth it?

Speaker 2 (01:40):
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