Skip to content

OceanaGold’s Macraes Mine extended for seven years

OceanaGold’s Macraes Mine extended for seven years

Navigation for News Categories

Australian owned gold miner OceanaGold has extended the life of its Macraes Mine in Otago by at least seven years, as it expects new underground and open cast mining to produce substantially more gold.

Oceana Gold's open pit mine at Macraes.

OceanaGold’s open pit mine at Macraes.

The company has extended the mine’s life at least until 2028, and increased the estimate of reserves.

“Macraes continues to be the mine that keeps on giving,” OceanaGold chief executive Michael Holmes said.

He said the mine’s commercial life and output is being extended by further underground mining and opening up of more open cast operations.

Holmes said the mine’s proven and probable gold reserves had been increased by 240,000 ounces, and it expected to produce about 1.1 million ounces at an average cost of $US1,025 an ounce. It has produced more than 5-million ounces during its lifetime.

World gold prices have surged during the pandemic as investors have sought the metal as a safe haven during the economic downturn and market volatility, hitting a record high of $US2,072 in August.

“The updated Macraes Technical Report … together with the progress at Waihi, makes for an economically robust New Zealand business that we expect will generate significant free cash flows while still retaining considerable exploration potential,” he said.

Macraes also operates a gold mine in Waihi, which has been at the centre of a battle with conservationists, and exposed divisions within the government.

The High Court this week cleared the sale of 178 hectares of land to be used by the company as a waste dump, after an initial rejection by Land Information Minister Eugenie Sage was overturned by Labour ministers Grant Robertson and David Parkers on economic benefits to the country.

Environmental group Coromandel Watchdog unsuccessfully challenged the decision in the High Court.

OceanaGold has clashed with conservationists over a permit to explore for gold in Coromandel.

Get the RNZ app

for ad-free news and current affairs
Download from Apple App StoreDownload from Google Play Store

XL subscribe to our newsletter banner

Get the latest news and advice on COVID-19, direct from the experts in your inbox. Join hundreds of thousands who trust experts by subscribing to our newsletter.

Send your news and stories to us or and WhatsApp: +447747873668.

Before you go...

Democratic norms are being stress-tested all over the world, and the past few years have thrown up all kinds of questions we didn't know needed clarifying – how long is too long for a parliamentary prorogation? How far should politicians be allowed to intervene in court cases? To monitor these issues as closely as we have in the past we need your support, so please consider donating to The Climax News Room.

Privacy Policy Designed using Unos Premium. Powered by WordPress.

Live Updates COVID-19 CASES