Department of Conservation Reverses Stance on Otago Mine Permit Amid Job Concerns

After initially rejecting a permit application, the Department of Conservation has now agreed to reconsider its decision, which could have jeopardized 700 jobs at the Macraes gold mine in Otago.

The Department of Conservation (DoC) has reversed its decision to reject a permit application for the Macraes gold mine, owned by Canadian-Australian firm Oceana Gold. The original application, submitted in 2023, sought permission to use additional land for tailings, a byproduct of gold extraction. This would have required the relocation of lizards and the killing of between 8,000 to 10,000 of them over the next decade, as part of the mine’s expansion plans.

The DoC initially rejected the application on May 30, citing insufficient detail in the lizard management plan. However, the mine operator, Oceana Gold, warned that the timing of the decision was critical. The only window for relocating lizards is between October and April, and failure to secure a permit by October 1 would have put the mine’s future operations at risk.

Oceana Gold emphasized the economic significance of the mine, which is expected to contribute $700 million in exports this year and employs 700 people directly, along with 200 contractors. A complete shutdown would have led to widespread job losses and limited redeployment options for the affected workforce.

Resources Minister Shane Jones criticized the DoC’s initial decision, stating it would have undermined the government’s growth agenda. He accused the public service of acting as a barrier to economic development and highlighted the need for a more streamlined regulatory process.

Conservation Minister Tama Potaka confirmed that the DoC had received feedback and acknowledged that the initial communication with Oceana Gold was not clear enough. As a result, the department will now work closely with the company to expedite the application process.

While the DoC has not confirmed whether the previously rejected application will be reopened, Oceana Gold has submitted a new, pared-down version of the permit request that covers less than 10% of the original area. The company has expressed concerns about the slow processing and lack of communication from the department.

Local union representatives have supported the mine, noting its environmental track record and the high wages it offers. Maurice Davis of the Amalgamated Workers Union emphasized the importance of balancing environmental protection with economic development, arguing that New Zealanders should not have to choose between a beautiful landscape and a living wage.

Alison Paul, senior vice-president of Oceana Gold, stated the company remains committed to engaging with the DoC to resolve delays in the permit process. She stressed that timely regulatory responses are crucial for the mine’s continued operations.

The reversal highlights the delicate balance between conservation and economic growth, and the need for a more collaborative approach between industry and regulators.