Dunedin businessman Sir Ian Taylor is seeking answers from Minister for Resources Shane Jones regarding Santana Minerals’ proposed Bendigo-Ophir gold mine.
Several weeks ago, Shane Jones challenged me to debate the proposed Bendigo-Ophir gold mine. I accepted the challenge, but since then, there has been silence.
It is unfortunate that the opportunity for a calm public discussion through a debate was missed. This proposal warrants a careful examination, free from slogans and ideologies, focusing solely on the specific details of this one mine in one location.
Bendigo-Ophir. Gold. Central Otago.
My concern lies not with mining in general, as it has long been a part of New Zealand’s history. Rather, it is the long-lasting impact of this particular mine, particularly the tailings facility that will remain even after the mining operations cease.
The real question lies in the risk-reward balance.
While large export numbers are often used to justify expanding mining, the crucial number is what remains after all the costs are taken into account.
For instance, despite the significant value of minerals exported annually from New Zealand’s mining sector, the royalties returned to the country are relatively low. This disparity is even more pronounced when focusing on gold mining specifically.
With the economic return from gold mining being significantly less than the costs associated with major public projects, such as the new Dunedin hospital, it raises important questions about the economic viability of such ventures.
The debate that was to take place between Mr. Jones and myself was centered around the real return from one additional mine like Bendigo-Ophir, considering the limited royalties and taxes generated by the mining industry.
While supporters of the project highlight other economic benefits, such as company taxes and employment opportunities, these revenues are inherently tied to the lifespan of the mine and the number of jobs it provides.
Furthermore, the environmental and long-term management implications of tailings facilities, like the one proposed for Bendigo-Ophir, must also be carefully considered. The global standards for tailings management emphasize the importance of safe and sustainable practices, especially after the mine closes.
Location plays a crucial role in this discussion, especially when considering the potential impacts on the surrounding environment and communities, particularly in a seismically active region like Central Otago.
As we navigate the complexities of such proposals, it is essential to ensure that all stakeholders are heard, and that decisions are made with a clear understanding of the long-term implications.
Ultimately, the balance between short-term economic gains and long-term environmental and social responsibilities must be carefully weighed when evaluating projects like the Bendigo-Ophir gold mine.
It is imperative that we pause, listen to all perspectives, and strive to achieve a balance that safeguards both our economy and our environment for generations to come.
