Newmont unveils Golden Link plan
Reaction has been mixed to Newmont Waihi Gold’s proposal of a new programme of underground exploration and possible mining at Waihi, says Newmont Waihi Gold external affairs manager Sefton Darby. “There are those that are pleased the proposal will extend the life of the mine, but obviously mining underneath residential properties causes concern,” Darby says.
“We are extremely confident that if the programme goes ahead that residents will not feel anything of greater magnitude than what is currently occurring. “But obviously it is not just technical evidence, there is a psychological aspect, so it’s about making people feel comfortable about what will happen.”
The proposal named Golden Link, which could extend gold and silver mining operations to at least 2020, comprises two parts. The Martha Exploration Project is a small underground exploration programme located within the existing Martha mining licence area and the pit rim. If it goes ahead the programme will require a variation to the existing Martha mining licence.
The other part of the proposal called Correnso is a potential underground mine in Waihi East which, if it proceeds, would replace the existing underground Favona and Trio mines. This will require consents under the Resource Management Act to go ahead. The Martha Exploration Project involves the construction of an underground exploration decline (tunnel) within the north wall of the pit with two portals (entrances).
The project is expected to operate until the end of 2014 and will determine the feasibility of an underground mine at Martha. Should the Correnso proposal proceed, underground mining would occur at considerable depth below some properties in Waihi East.
The mining would occur in blocks starting at the bottom of the ore body, which is 350 metres below the surface, and working up to the top of the ore body, at approximately 130 metres below the surface. Newmont Waihi Gold General Manager Glen Grindlay says the Golden Link programme may be daunting for some residents but modern underground mining techniques meant there would be little environmental effect.
“Newmont Waihi Gold has an excellent track record and our performance is closely monitored by independent agencies. “We have successfully operated an underground mine near residential areas in Waihi for seven years and have in place a number of programmes to minimise and mitigate any adverse effects.”
Darby says that the type of modern mining that would be used involves mining from the bottom up. Mined-out areas (stopes) are then filled before the next level is accessed. “Filling provides lasting stability and means no large holes are left behind. There is no potential for ground surface instability,” says Darby.
Newmont Waihi Gold is currently talking to the people of Waihi East and close to the northern perimeter of the Martha open pit about the proposals. It has opened an information office in Waihi to provide residents with information about the project including discussing ways the company can support the community during any mining activity with a focus on giving people choices and maintaining property values in the area.
Darby says that Newmont Waihi Gold would also continue to offer its Amenity Effect Programme (AEP) payments to support people in the areas closest to the operations. “The AEP was voluntarily set up by Newmont Waihi Gold in recognition that, although the company operates within strict consent limits, some residents close to the mines may, from time to time, still experience some effects from the operations. Last year qualifying residents received payments ranging from $250 to $3000 for a six-month period.”
Darby says the benefits to the local community are many; 350 people are directly employed by the mine and another 350 people employed indirectly. During 2006-2011 Newmont Waihi Gold has spent a total of $825m in terms of combined capital and operational expenditure. Of that figure 82% remains within New Zealand and 32% stays in Waihi or within 30km equating to $264m.
Following a period of consultation and further investigation, Newmont Waihi Gold expects to lodge Resource Management Act applications for the Correnso mine with the Hauraki District Council and Waikato Regional Council early next year 2012. If approved, construction of the Correnso Mine is expected to start in mid-2013.
“We’ve announced our intentions early,” says Darby. “It’s an incredibly open consultation process. This will mean it will be a longer process but hopefully this means that whatever happens it will have a lot of buy in from the community.
“We have basically taken a blank sheet of paper and gone to the community and asked them to tell us what they would like to see in terms of property and community improvement policies in Waihi. “In the past we have bought properties or offered cash payments as compensation. But this time there has to be some investment that will outlast the mine. It’s not just about getting through the consent process. It’s about when people walk down the street in 20 years’ time what tangible benefits will they see.”
