‘Stop gambling with our water’ – council asked to oppose controversial gold mine

Environmental concerns have prompted a plea from Golden Bay residents for Tasman District Council to oppose a controversial gold mine.

However, the mining boss of the company currently exploring for gold has said the group’s claims are “scare tactics”.

Perth-based company Siren Gold is currently exploring for gold in the Sams Creek area.

Julie Downard, representing the Sams Creek Collective in a presentation to the council on Thursday, said the consequences of a mine failure are "catastrophic”.

She said her main concern was the amount of arsenic produced by the gold mining process in a location above the porous marble aquifer that feeds the tapu Te Waikoropupū Springs.

The aquifer is protected by a Water Conservation Order and supplies water to hundreds of residences, dozens of businesses, farms, and factories, as well as social facilities and schools.

“Any pollution threatens both our health and our economy.”

She highlighted the poor historic environmental record of mining, particularly across New Zealand and Canada, and the multi-million-dollar costs of remediating affected toxic areas.

It was still possible for accidents to occur despite modern environmental protections, she said.

Downard added that the risk was “magnified” by the coalition government’s fast-track consenting bill which would bypass typical resource management processes, and could disregard the Water Conservation Order.

She urged the council to oppose gold mining in the area.

“You don’t have to wait until it’s too late. We’re asking you to speak out against this mine, to oppose this mine, in every way you possibly can. Please tell the government to stop gambling with our water.”

Councillor Mark Greening described the presentation as “very compelling” and requested that council officers will follow up on the council’s options should it choose to submit against mining in the area.

But Mayor Tim King said that it would be a case of “submitting on what to whom”.

He wasn’t aware of any mining application that the council could submit on, and the council had already submitted on the Government’s fast-track bill where some of its concerns, such as ministerial discretion to approve projects, have been removed from the proposal.

King also highlighted that the council needed to “tread a fine line” between its role as representatives of the community and as the consenting authority.

“Staking out a position either in support or opposition to those activities comes with its own challenges.”

He added that the council needed to be “careful” in forming a position based on a single presentation from one group.

Siren Gold chief executive and managing director Victor Rajasooriar said the company gives a lot of weight to community concerns.

“We are exploring in your backyard,” he acknowledged. “If one day we end up mining, we want the community on our side.”

However, he said that Siren Gold’s environmental record was “perfect” and that claims the mine would result in ecological disaster were “scare tactics”.

He pointed to the company’s partner in Sams Creek, Oceana Gold, and its restoration and rehabilitation work at the Globe Progress mine near Reefton, which has received praise from Department of Conservation officials in the past.

“I have worked in the industry for 30-odd years and for juniors and major mining houses. Never have I had an environmental issue,” Rajasooriar said.

“The company is guided by an experienced board, and we don’t take shortcuts.”

Rajasooriar confirmed that Siren Gold had applied for a project in the fast-track consenting process, but said the Sams Creek Project was still only an exploration project.

The application hopes to shave a year off the typical 18-month wait to gain approval for further drilling, rather than for a mine.

There is currently estimated to be 824,000 ounces of gold at Sams Creek, but Siren Gold needs to find at least 1.5 million ounces to make a mining project financially viable, which is why it’s seeking approval for further drilling.

“Prior to a mine being built, resource consents have to be granted, environmental approvals have to be sought, iwi agreements have to be agreed upon, council approvals have to be in place.”

That all would then be followed by trying to acquire funding from banks, which would only be possible with environment, social, and governance requirements.

“We are not even close to defining a mine, a feasibility study has not been done, and no engineering works have been even carried out to detail.”