current governments contentious fast track legislation. Surely it is stating the obvious that in terms of open cast mining and sustainable tourism, this is a case of one or the other, but not both.
Cover image: Macraes Gold Mine, near Palmerston, Otago – also a sizeable open cast mine – taken from the air during Summer 2024.
Transcript
Australian gold mining company Santana Minerals plans to explore and develop a gold field in the Bendigo-Ophir districts of Central Otago which it has said may contain more than 2.4 million ounces of gold and possible net profits of more than $1.1 billion. Santana Minerals was encouraged by the current New Zealand government to apply for fast-track consents, under the new Fast Track Approvals Bill and is now underway with pre-feasibility studies. Next year it plans to lodge a resource consent application which it expects to be successful under new Fast Track Approvals legislation. If so, it will be a case of shovels in the ground in the second half of 2026.
It comes as little surprise that local opposition has been strong. Some Central Otago residents are mobilising against the proposed gold mine which they think will destroy the iconic landscapes of the region and impact local lifestyles and landscape values. A community meeting held in Cromwell on Tuesday night last week was organised by advocacy group Sustainable Tarras. It attracted and audience of more than 120 residents including some who were curious, others who were concerned and some who were staunchly opposed. The meeting included an expert panel that presented their views and took questions from members of the audience.
The panellists included a Resource Management Act barrister, a local archaeologist and a member of Sustainable Tarras, Rob van der Mark who accused Santana Minerals of refusing to release detailed visualisations of how the mine would appear for local residents, while ignoring local community concerns.
One of the key issues addressed in the Q&A session was whether or not a fast-tracked development proposal would accommodate any opportunity for community residents to express their concerns about the proposal, and if any consent approved under the current government could be reversed by a change in government.
Sustainable Tarras chairperson Suze Keith expressed the need for local residents to be able to express their views freely because – in her words, the implications of an open cast mine are “…forever implications”. Of acute concerns were the destruction of the unique Central Otago landscape and the 13 million tonnes of toxic tailings that would be a by-product of the mine.
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Central Otago is arguably the most important tourism region in Aotearoa New Zealand. Tourism in the region is not only critically important to the regional economy but also to the national economy. The alpine and high country landscapes and lakes of the Queenstown Lakes and Central Otago regions are iconic in terms of natural beauty, uniqueness, heritage and culture. I was asked to contribute a pre-recorded contribution to the Cromwell meeting, in which I wanted to make several important points:
1. Lifestyle values
Firstly, I started by addressing lifestyle values. A recent comprehensive study of Central Otago residents identified that the qualities of life that residents most valued were derived from ‘Landscapes’ and undisturbed ‘Natural beauty’. Residents’ responses were clear and consistent, right throughout Central Otago. The sample included a statistically significant cohort of people from Cromwell, Clyde, Alexandra, Pisa Moorings, Tarras and Queensbury, and in fact all significant communities throughout the region.
People consistently described the importance of stunning open spaces, the largely untamed nature of the region, distinctive schist landscapes, undisturbed mountains, lakes, blue skies during the day and dark skies at night, peacefulness, tranquility, remoteness, the fresh mountain air and the inspiring natural environment.
All of these qualities of life that are most valued by Central Otago residents were cited as the key reasons most people live in the region. And these qualities are all threatened by extractive industries, none more so than open cast mining.
2. Destination image
Turning to those who visit Central Otago, open cast mining is entirely incompatible with 100% Pure New Zealand tourism. The reputational risks associated with the destruction of unique landscapes and the storage of toxic waste that threatens lakes and rivers are significant, and should be taken very seriously. These and the wider potential human health impacts associated with mining pose a significant reputational risk to tourism in the region. And this is New Zealand’s busiest, most attractive, most sought after tourism region.
3. Visual impacts
Open cast mining in Central Otago will have significant, permanent visual impacts for those travelling by both road and air. The physical impacts of open cast mining, in this case, will be highly visible along tourist mobility corridors including civil airline approach routes into Queenstown and surface transportation through Maniototo and Central Otago between Cromwell and Wānaka.
There are also significant risks to other transport-based tourist businesses serving cycle tours, film tours that take visitors to unique landscapes (e.g., LOTR film sites), hiking, hunting and scenic flights. The overall visual degradation caused by open cast mining in the region would be very significant.
4. Reversibility
Extractive industries are associated with long term environmental impacts that vary considerably in terms of long-term recovery and environmental health. As I mentioned in a recent podcast, commercial whale hunting reduced some humpback whale populations by an estimated 99.3% – only ending when they reached the brink of extinction in the early 1970s. It has taken those stocks approximately 50-55 years to recover to pre-hunting population baseline estimates. The extraction of Kauri in the forests of the Far North took place from the 1870s prior to Kauri becoming protected a century later in 1973. Efforts to restore those forests will take thousands of years to come to fruition and many millennia to restore the ecological complexity of Kauri forests.
By contrast, the environmental impacts associated with the open cast mining of unique Central Otago landscapes are irreversible. Restoration measures would merely skirt around the edges. But the major impacts cannot be undone, ever. The architects of the proposed mine will be answerable to future generations who will live with the irreversible consequences of this proposal should it proceed. Not only the visual impacts and the destruction of iconic landscapes, but the permanent storage of vast quantities of toxic waste in the catchments of pristine waterways… Seriously? What could possibly go wrong?
5. Strain on regional infrastructure
Extractive industries such as mining place very heavy industry demands on regional infrastructure, including roads and bridges, and regional superstructure including rural hospitals, schools and housing. The roads and single-lane bridges in the region are not intended for the movement of heavy vehicles.
These infrastructure demands compromise the safety and convenience of visitors travelling through these regions. The same demands also contribute to the urbanisation of communities that are valued by tourists for their rural character and regional qualities. And of course, they also place additional pressure on a regional population already suffering significant infrastructure strain.
6. Impact on established industries
The proposed gold mine will severely impact the tourism industry and devastate the special and spectacular natural environment. Furthermore mining operations would create noise pollution, light pollution and traffic on rural roads and bridges that are not designed to support heavy industry.
Of great concern is the fact that open cast mining does not fit within the context of the existing sustainable business approaches of local vineyards for example. At the meeting, Central Otago Winegrowers Association board member Donald van der Westhuizen said Bendigo was prime vineyard land with strong organic production. The build-up of toxic wastes and risks of heavy metals such as arsenic leaching into the Mata Au Clutha River runs contrary to the natural beauty and reputation for sustainability that attracts visitors to Central Otago – clearly industries such as wine growing and tourism will be at particular risk but also horticulture and creative sectors such as the film industry. Any one of the millions of tourists that are inspired by visiting Lord of the Rings film sites in the region will be appalled by the prospect of landscape destruction caused by open cast mining.
7. Opportunity costs
International studies have confirmed that national parks and protected natural landscapes drive wide-ranging tourism economic development and local employment opportunities. Unique landscapes support outdoor recreation industries including skiing in winter, hiking and mountain biking year-round, which are cornerstone activities for residents and visitors, and significant sources of direct and indirect employment in Central Otago.
The opportunity costs of extractive industries compromise these opportunities. Just as on the West Coast, milling native forests in South Westland is incompatible with nature conservation and the protection of critically endangered species which are critical to tourism.
I remember my PhD supervisor conducting a piece of research on the potential impact of damming Central Otago rivers in the upper Clutha catchment and the loss of wild rivers. Damming rivers such as the Shotover and Kawarau might have been good for local power generation but destroying wild rivers would have been catastrophic for industries that depend on wild canyons and white water, such as rafting, jetboating and bungy jumping. Imagine tourism in Tāhuna Queenstown without these iconic adventure activities. These are the opportunities costs that must be considered by these development pathways are mutually exclusive. The same opportunity cost arise as serious issues with large scale open cast mining.
The opportunities driven by thriving national parks and unique landscapes must be protected through decision-making that recognises trade-offs and opportunities costs. Where mutually exclusive opportunity costs arise it is also important to consider the economics of different options. Tourism tends to be comprised of many diverse and locally owned businesses and supports many other businesses in the regional and national economy indirectly; whereas mining is owned and operated by international companies with their own external profit priorities, resulting in profits being lost to local and regional economies.
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In my recorded presentation I touched on these key issues, all of which should be explored at significant depth, with reference to the significant amounts of available data and international, peer reviewed research on these topics. It is inconceivable to me that Ministers of the Crown with different portfolios would not recognise the complexities of the issues at stake.
Minister of Tourism Lousie Upston has outlined growth targets of 5 million international visitors by 2034, most of whom will seek to visit the outstanding natural landscapes of the Queenstown Lakes and Central Otago districts. Meanwhile her colleague and Minister for Regional Economic Development Shane Jones is advancing a proposal that will destroy the very landscapes that visitors seek to experience and actively enjoy. Either these minister know little about protecting priceless landscapes that are critical to tourism, or they don’t care.
A decision to open Central Otago up to sizeable, open-pit mines is a very big decision with very significant, wide-ranging and irreversible implications now and for all future generations. It is absolutely imperative that the science is not ignored and that decisions are fully informed by the costs and consequences of different development pathways. Here in lies the folly of fast track legislation which serves to completely sidestep local community consultation and actively avoid these key planning considerations.
A sustainable development pathway must be achieved to protect the iconic and unique landscapes of Central Otago which are so valued by residents and visitors alike. If this is the chosen pathway then open cast mining must be off the agenda because when it comes to open cast mining and sustainable tourism – I’m sorry – you can’t have your cake and eat it too.
References
Radio New Zealand (2025). Otago locals range from curious to staunchly opposed on giant gold mine. 27 August 2025. https://www.rnz.co.nz/news/business/571161/otago-locals-range-from-curious-to-staunchly-opposed-on-giant-gold-mine
Radio New Zealand (2025). Australian company to develop gold field in central Otago. 25 August 2025. https://www.rnz.co.nz/news/business/523108/australian-company-to-develop-gold-field-in-central-otago
Radio New Zealand (2025). Proposed gold mine risks ‘already established significant industries’ – locals. 25 September 2024. https://www.rnz.co.nz/news/national/528947/proposed-gold-mine-risks-already-established-significant-industries-locals
