Australian Mining Company Acquires $25M Land for Gold Project in Central Otago

A $25 million land acquisition by Australian mining company Santana Minerals has reignited community concerns over the proposed Bendigo-Ophir Gold Project in Central Otago. The company, through its subsidiary Matakanui Gold Limited, announced the purchase of the 2880-hectare Ardgour Station, which covers the proposed location of the mine’s process plant and much of the infrastructure for the project.

CEO Comments

Santana Minerals CEO Damian Spring described the deal as a significant milestone, highlighting the mutual benefits of the transaction. "We are pleased to have completed a respectful and mutually beneficial transaction with the owners of Ardgour Station," Spring said. He added that the landowners have chosen to receive part of their payment in Santana shares, which he sees as a sign of confidence in the project’s potential.

Community Response

Local resident and Sustainable Tarras chairperson Suze Keith expressed disappointment, noting that the announcement came as no surprise and offered no comfort to the community. Keith criticized the lack of direct communication between the company and local residents, stating that information is often received through media or stock exchange announcements.

"It’s business as usual when it comes to the developer’s interaction, or lack thereof, with the local community," Keith said. She emphasized that the land purchase does not equate to a green light for the project, as it still requires necessary consents and approvals.

Regulatory Hurdles

The transaction is subject to approval from the Overseas Investment Office (OIO) and depends on the project receiving consent under the new Fast-track Approvals Act. Santana has until December 19 to meet these conditions or extend the deadline, with a 2% annual interest rate applied to any outstanding funds.

Keith highlighted that the company still needs mining permits and OIO approval to proceed. "There are still many steps before they can do anything beyond what they’re already doing," she said.

Community Concerns

Keith also raised concerns about the heritage value of the land, citing historic gold mining remnants. She stressed the importance of formal community consultation, which she claims has been lacking. "Regardless of the fast-track process, there’s still an expectation that developers will consult formally with the community. And so far, we’ve seen very little of that," she said.

Financial Standing

Santana Minerals has stated it is well-funded, with about A$50 million ($54 million) in cash as of June 30. Despite this, Keith remains optimistic about the community’s ability to raise awareness and resist the project. "As a small community, we’ve done well to raise awareness of the development. People understand what’s at stake because of our efforts," she said.

She described the situation as a "David and Goliath" scenario, particularly in light of the fast-track legislation that she believes sidelines local voices. "It’s very much a David and Goliath situation, especially with the fast-track legislation that’s designed to sideline local voices," Keith said.