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Central Otago winemakers concerned at proposed gold mine

Winemakers in New Zealand's Central Otago region have expressed concerns about plans for a new open-pit gold mine in the Bendigo subregion.

Australian Securities Exchange-listed Santana Minerals said in June that it was pressing ahead with its NZ$4.4bn Bendigo-Ophir gold mine project, and would lodge an application under the New Zealand government’s new Fast Track Approvals Act.

The proposed site lies within an ‘outstanding natural landscape’, a designation intended to protect the unique environment and scenery that underpins one of the country’s flagship wine regions and tourism destinations.

The 2024 act allows ‘nationally significant’ projects to be fast-tracked through an expert panel, with final decisions made by ministers.

Critics of the fast-track law argue the new process could weaken scrutiny, sideline local voices and remove broader public input, potentially increasing environmental risks.

Central Otago Winegrowers Association (COWA) has written to New Zealand’s prime minister, Christopher Luxon, requesting it be included in the process as an affected party.

‘Central Otago has built a globally respected brand founded on premium wine production, authentic visitor experiences and environmental stewardship,’ said COWA.

‘These industries are long-term, value-generating investments. The risk of environmental degradation, reputational harm and disruption to this workforce must be weighed seriously.

‘The expected returns from the mine… stand in stark contrast to the enduring, compounding economic value provided by wine and tourism. This imbalance raises serious questions about the strategic benefit to New Zealand.’

The gold mine project’s scale is significant – an open pit nearly a kilometre wide and 200 metres deep, with additional pits and a tailings dam.

Santana insisted environmental safeguards will be robust. It said in June that several key ecological reports were in progress, and that environmental considerations and community engagement are central to its planning.

However, there has been local public opposition to the new gold mine project, led by groups such as Sustainable Tarras. Concerns range from possible contamination of water and long-term ecological harm to the impact on regional tourism and damage to the area’s fine wine identity.

The Central Otago District Council said in June that it would be challenging to adequately review the proposed project under the fast-track act’s compressed timeframes, reported local media outlet Wānaka App. It said the council had also warned Santana subsidiary Matakanui Gold over breaches to the district plan, although it added the firm was working with authorities to address the issues.

Santana said its Bendigo-Ophir gold mine plans will generate ‘an average of 364 direct jobs and about 500 indirect jobs during operations’, plus NZ$900m in taxes and royalties.

The group recently acquired 2,880 hectares (ha) of land for the project for NZ$25m, subject to Overseas Investment Office approval, with gold production targeted by late 2026.

Despite local concerns, Damian Spring, CEO of Santana Minerals, said in June, ‘For many of our team this is our home too, and our focus is on listening, refining and working together to build a project that Central Otago can be proud of for generations to come.’

Winegrowers have warned of the need for proper oversight and said they are determined to ensure the voices of Central Otago’s wine and wider community are not ignored. 


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