Hundreds of jobs at Otago gold mine in doubt over ‘business critical permit’

Hundreds of workers are at risk of being laid off after a decision by the Department of Conservation to reject an application by the country’s largest gold mine owner.

Macraes gold mine in the central Otago region, owned by Canadian company OceanaGold, recently applied for a permit under the Wildlife Act to clear grass and vegetation on its current site in order to expand its operation.

Last month the Department of Conservation (DOC) declined it, citing insufficient information about how the company would manage the relocation of lizards.

A letter from DOC dated June 5, seen by 1News, said “the application for a concession has been declined”.

The department noted that an “updated Lizard Management Plan” was to be submitted prior to a “joint hui with Tangata Whenua”.

A request was made by the mining company to place the processing of the application on hold but DOC did not agree.

In a statement to 1News, DOC said it had already delayed the application a number of times, so went ahead with a decision.

The situation has drawn the ire of Resources Minister Shane Jones.

“My fear is that the programme of our Government to boost investment, generate jobs, is being corroded by people who place a higher importance on dead moths, lizards and iwi consultation,” Jones said.

OceanaGold said Macraes is currently on track to contribute over $700 million in exports in 2025.

Jones said there was a need for “balance”.

“I've always had the view that DOC land should be run for the purposes of economic development as well as conservation outcomes," he said.

“As is the case with our natural fishery resource, where the commercial fishing industry decisions have to be a balance between environmental criteria and economic exploitation."

Forest and Bird CEO Nicola Toki said that environmental rules were there for a reason.

“We are a country that loves our native wildlife and wild places,” Toki said.

“We are also a country that has the highest proportion of threatened species in the world.”

Maurice Davis, the national secretary for the Amalgamated Workers Union, which represents the mine workers at Macraes, called the situation concerning "not just for the workers directly but for the community".

“The jobs in Central Otago are actually very well-paid and it’s been hard work to get there, but those workers earn it. Every day they go out there, it’s a dangerous, high-risk industry," he said.

Following the decision, it’s understood OceanaGold sent a letter to the Director-General of DOC as well as several ministers.

In the letter, the mining company asked for its permits to be "urgently processed" as they were “business critical”.

“The impacts of not securing permits and having them in hand by October 1, 2025 would be enormous,” the letter read.

"A complete stoppage of processing would suspend the work of over 700 direct staff and over 200 contractors along with their staff, leading to layoffs."

OceanaGold said between October and November is a “seasonal lizard salvage window” and that if it could not secure the permits, then operations would grind to a halt.

But DOC told 1News the company's plans could result in the death of up to 10,000 lizards.

Davis said it was “concerning” with hundreds of jobs potentially on the line.

“I’d be concerned as a community if that place was facing the threat of closure,” he said.

“They make a difference to our GDP and that's why I go back. We've got to be progressive about how we get our economy going and at the same time, trying to maintain our environment.”

Jones said the public needed to have a conversation about its priorities.

“A thousand jobs could be at stake because of some dead moth or ideological interpretation of wildlife concerns,” he said.

It comes as the Otago Regional Council suggests a further expansion at Macraes be "declined in full". That debate will go to a public hearing in December.

“It can't be a free-for-all,” Toki said.

“We have to have environmental controls in place to protect these things that define us.”

Jones said he intended to raise the issue of permits with cabinet when Parliament resumes next week

“We run the show – not obscure bureaucrats, not regional councils, lizards or dead moths,” Jones said.