Gold standard: fast-track mining project must pass environmental audit
Comment: There's been a great deal of noise about the Fast-track Approvals Act 2024. Widely panned for lowering environmental standards, here's how it might roll for one big project. Though the scale of this gold mine is very large, the process will be very similar for all substantive applications under the act.
The Clutha River runs south through the Tarras Valley into Lake Dunstan near Cromwell. It's a wine and fruit-growing area boarded to the east by Bendigo Station, part of the South Island high country, notable for its wild, undeveloped landscapes. In those hills lies the site of the proposed Santana Minerals Ltd Bendigo Ophir project, an open-cast gold mine. Santana is an Australian company. The mine's open pit would be very large and deep. Some underground extraction is also proposed. A tailings pond would store toxic processing waste on site behind a dam. For ever.
Santana says it will be lodging its formal application this month for various consents under the fast-track process. These will include approvals under the Resource Management Act and under various conservation laws.
The process is complicated and fast.
Before even lodging its application, Santana must consult with entities listed in the act, including relevant local councils and iwi and hapū. That must be meaningful, which the Environmental Defence Society considers requires Santana to provide a full draft of its assessment of environmental effects.
It can then apply to the Environmental Protection Authority, which must publish the application without delay on the fast-track website. At this point the authority undertakes a 'completeness' assessment. Inadequate consultation or incomplete technical assessments would render an application incomplete and therefore should be returned to the applicant.
If complete, the authority passes the application to the Panel Convenors to set up an expert panel.
The panel then takes over the process and acts independently from the Environmental Protection Authority. It has broad discretion over how the application is considered and who will be heard. The Environmental Defence Society considers itself an affected party with respect to Santana's application given that it represents a relevant aspect of the public interest and has independent technical evidence to bring to bear. Key local community groups may also be heard.
Given the scale and complexity of Santana's project, and its highly sensitive ecological and landscape location, EDS expects that the panel would opt to hold a formal hearing with expert witnesses, cross-examination and expert conferencing. It should also commission its own independent peer reviews of key aspects of the proposal.
Each procedural decision made by the authority, panel convenors and panels, including the completeness assessment, the membership of the panel and who the panel asks to provide feedback, can be judicially reviewed in the High Court if there are valid grounds.
The key statutory test that the panel will undertake boils down to a proportionality assessment set out in section 85 of the act: are the adverse impacts of the mine sufficiently significant to be out of proportion to the project's regional or national benefits? It's novel wording, and the way it is interpreted by panels will undoubtedly be tested by the courts on appeal or review or both.
The starting point therefore requires an economic cost-benefit analysis and an assessment of environmental effects. No fast-track application should pass the completeness test without both included. An economic analysis is quite different from an assessment of the financial returns of a project. And under the act, those benefits must be found in New Zealand, not overseas.
The Environmental Defence Society engaged the New Zealand Institute of Economic Research to advise which questions should be addressed in Santana's economic analysis. Based on its advice, the list includes:
What are the direct and indirect economics impacts of the project on the local, regional and national economy?
What is the method used for the analysis?
What are the GDP, consumer spending, and employment impacts?
How will the workforce requirements of the project affect Central Otago, considering direct and indirect workers?
Where will they be sourced?
What are the expected impacts on businesses, wages, housing, infrastructure, healthcare, schools, and recreational amenities in Central Otago?
What are the competitive advantages of the project that make it the 'lowest cost gold mine' in Australasia, in comparison with other gold mines or a 'typical' Australasian gold mine?
What potential changes might Santana make to the project if projected profits fall to levels indicated in the sensitivity analysis, such as below $1 billion or below $500 million?
What are the economic valuations of the various environmental impacts (terrestrial ecology, freshwater ecology, freshwater availability, landscape, etc)?
How has the assessment accounted for the project's end-of-life costs?
What activities will be entailed in finishing the project, restoration and leaving the area?
If Santana were required to set aside a substantial contingency fund or long-term bond to fund long-term restoration of the site, what would be the effect on the economics of the project?
Specifically, what would be the effect of a substantial bond on total profits, the benefit-cost ratio, and the net benefit?
The second part of the assessment relates to environmental impacts. Santana's published material about the project lists some of its likely and potential impacts. The matters needing focused expert evidence include:
Mine design: has the pond and tailings dam design been peer reviewed by an independent international expert (common practice offshore)?
has the pond and tailings dam design been peer reviewed by an independent international expert (common practice offshore)? Terrestrial ecology: what indigenous plant and animal species inhabit the project site and are any threatened or at-risk; what habitats are located within the site and are any of significance; how will the RMA hierarchy (avoid, remedy, mitigate etc) be applied; are consents required to destroy protected wildlife; and what is the overall significance of the impacts on the ecological values in a regional and national context?
what indigenous plant and animal species inhabit the project site and are any threatened or at-risk; what habitats are located within the site and are any of significance; how will the RMA hierarchy (avoid, remedy, mitigate etc) be applied; are consents required to destroy protected wildlife; and what is the overall significance of the impacts on the ecological values in a regional and national context? Freshwater ecology (including streams, wetlands and aquifers ): what is the baseline state for freshwater health on, around and downstream of the site; what impacts are there on freshwater ecology and how will they be addressed; how will leakage from the tailings dam (if any) be prevented; and what effects cannot be avoided?
): what is the baseline state for freshwater health on, around and downstream of the site; what impacts are there on freshwater ecology and how will they be addressed; how will leakage from the tailings dam (if any) be prevented; and what effects cannot be avoided? Environmental hydrology and geochemistry: what will be the impact on ecosystems and groundwater users from groundwater drawdown related to the open pit and mine dewatering?
what will be the impact on ecosystems and groundwater users from groundwater drawdown related to the open pit and mine dewatering? Water use: what volumes of takes are required; where will the abstraction come from; what effects will that have on existing users and ecosystems; where will discharges be made; what are the chemical parameters of the discharges?
what volumes of takes are required; where will the abstraction come from; what effects will that have on existing users and ecosystems; where will discharges be made; what are the chemical parameters of the discharges? Landscape: what are the landscape values of the site; what are the likely effects; are any effects unable to be avoided; will there be remote view impacts; what about light impacts offsite and night; and are simulations provided?
what are the landscape values of the site; what are the likely effects; are any effects unable to be avoided; will there be remote view impacts; what about light impacts offsite and night; and are simulations provided? Cultural and heritage: what are the impacts and are they positive or negative?
what are the impacts and are they positive or negative? Local effects: what are the traffic, noise, dust, recreational use, amenity and energy impacts?
what are the traffic, noise, dust, recreational use, amenity and energy impacts? Performance bond: is there a long-term bond proposed to guarantee post-closure maintenance of the site that also covers any catastrophic failure of the tailings dam and if so is the quantum adequate?
is there a long-term bond proposed to guarantee post-closure maintenance of the site that also covers any catastrophic failure of the tailings dam and if so is the quantum adequate? Conservation covenants: what are the implications on the existing conservation covenants present over the subject property?
When the panel has completed its assessment, it must decide whether to decline or approve the application. If the latter, it would propose conditions, and there would be a chance for participants to comment on them. After the decision is made, there are limited opportunities for an appeal and wider ones for judicial review which must be filed within 20 working days.
EDS is engaging substantively in fast-track projects but is putting significant effort into Santana's application given its imminence, and potential environmental effects. We are waiting to see the full application and evaluate its merits with our experts. Because input is time-limited, that means we must invest resources well in advance of the full application being available. Notably, Santana has indicated it will not share its assessment of environmental effects before filing (after earlier indicating it would do so).
EDS believes this project needs rigorous testing through the limited opportunities available under the Fast-track Approvals Act 2024. This is a statutory process which must be conducted independently, fairly and reasonably and follow the legal pathway. Hyperbolic cheerleading by ministers about the alleged benefits of mining have no place here. Whether Santana passes the section 85 test remains to be seen.
There are many fast-track applications pending and communities and councils will be watching with concern. Some projects will be positive, others not. This analysis will hopefully assist in better understanding the way the legislation is likely to operate. To further assist people to engage in other fast-track proposals, EDS has published a peer-reviewed, plain-language guide to the Fast-track Approvals Act 2024.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NZ Herald
15 hours ago
- NZ Herald
David Seymour: I went to Oxford to test my beliefs and learned a sad thing about NZ
Is it a prank? We think it's real. Okay, then, but we can't use taxpayer money. That conversation is how I ended up debating at Oxford Union. The question of the debate was that 'no one can be illegal on stolen land'. It was a clever moot, tapping into colonisation and immigration. What Government has the right to tell would-be migrants they can't come, when every inch of the planet has been fought over at some time? I went to test my beliefs that human rights are universal, that we should stop searching the past for reasons to doubt one another and focus more on where we're going than where we've been. I think those beliefs held up well, but I learned something sad about our country, too. Every Thursday in semester time, the Union invites guests to debate. Most people don't realise Lange was one of six or eight debaters. His speech, and the uranium line, obliterated the others. I had a student and a couple of American 'immigration enforcement experts' on my team. On the other side was the president of the Union, an Australian senator, an Oxford academic, and someone best described as Noam Chomsky's daughter. At the end of the debate, the audience divides, going through one door or another to register their vote for or against the motion, like Parliaments of old. The president of the Union opened, saying our team of white guys in tuxedos had 'something in common', that all borders are drawn in blood, and that New Zealand 'invites, exploits, then hunts' migrants. Since she came in an Alice in Wonderland dress with a two-metre hoop skirt, though, you can't help but like her. I think she was in on the joke. The Australian senator said 'white immigration' to Australia is unlawful, then described her own migration from India without explaining the difference. The academic wanted open immigration rights for anyone whose ancestors had been colonised, but it wasn't clear how far back this went. Chomsky promised to make seven points in her speech. I listened, but can only guess they were above my pay grade. My team agreed that, yes, history is filled with barbarism on all sides, but who decides where it stopped and started? Should we count Scottish victims of the Clearances as victims or villains? How about descendants of Māori who slaughtered other tribes in the musket wars? How do we account for people who, like the new Pope, have ancestors on both sides of conflict? We argued that grouping ourselves into victims and villains, based on ancestry, is exactly what leads to oppression and discrimination – seeing an individual as just another faceless member of a guilty group. Even if you could pick a time when land stopped being owned and started being stolen, you would create another problem, determinism. No wonder young people are depressed and anxious, being told they are either victims or villains in stories written before they were born. Building a better world, we said, needs a commitment to treat each person as a thinking and valuing being, deserving equal rights and dignity. I think the arguments for equal rights stood up well, but I learned something about New Zealand from how the events in Oxford were reported at home. What a depressing little country we can be. TVNZ based its coverage around an activist saying I shouldn't be able to speak because free speech is dangerous. The headline was me 'defending' speaking. What a contrast with the Oxford Union's commitment to free speech. Stuff's coverage announced, sneeringly, that I 'debated at Oxford, and lost'. Nowhere in the article does it explain how the debate is decided, or that my team, not I, lost by a margin of 54-46. It quotes a handful of audience members who disagreed with me, but didn't try to inform the reader of what I said or why nearly half voted for my team. Anyone reliant on these outlets would prove the adage that if you don't read the media, you're uninformed; if you do, then you're misinformed. I thank the Herald for its more balanced coverage and this right of reply. Thank you, Oxford Union, for the wonderful opportunity to freely debate controversial topics. Yes, all borders are drawn in blood, but if you want a better world, you need to ask not where we came from, but where we're going. Some in our media could learn from your spirit. David Seymour is the Deputy Prime Minister and Act Party leader
Otago Daily Times
a day ago
- Otago Daily Times
Australia suspends Iran embassy as conflict escalates
Australian Minister for Foreign Affairs Penny Wong. Australia said today it had suspended operations at its embassy in Tehran, citing "a deteriorating security environment" as Israel hit Iran's nuclear facilities again, and the week-old air war showed no sign yet of an exit strategy from either side. Israel launched a sweeping aerial campaign against Iran last Friday, calling it a preemptive strike to prevent Iran from developing nuclear weapons. Iran has denied any such plans and retaliated by launching counterstrikes on Israel. "The Australian government has directed the departure of all Australian officials and dependents ... based on advice about the deteriorating security environment in Iran," Foreign Minister Penny Wong said in a statement. Consular staff are being deployed to neighbouring Azerbaijan, including its border crossings, to support Australians departing Iran, Wong said. "We remain in close contact with other partner countries. At this stage, our ability to provide consular services is extremely limited due to the situation on the ground. The airspace remains closed," she added. Australia's ambassador to Iran, Ian McConville, would remain in the region to support the government's response, Wong said. More than 1500 Australians and their families in Iran have sought assistance to leave the country, official data showed.
NZ Herald
2 days ago
- NZ Herald
Red meat in demand worldwide
China, US appetite for NZ red meat called 'buoyant' by CEO. The Markets is a monthly segment on The Country where a guest takes a closer look at the red meat export markets. Recently, host Jamie Mackay spoke with Silver Fern Farms chief executive Dan Boulton about strong demand in China and the US, and the Plate to Pasture Farmer Conference coming up in July. Red meat prospects in the China and US markets are 'very buoyant', says Silver Fern Farms chief executive Dan Boulton. Boulton was in Toronto when he caught up with The Country's Jamie Mackay and had been in China the week before with the Silver Fern Farms board in Shanghai and Xi'an. 'It was great connecting with our customers,' he said. 'There's an improvement in confidence in the China market, and we're seeing that reflected in pricing across beef, lamb, and venison.' Boulton said that, while China wasn't leading global pricing, it was still 'definitely competitive'. 'That's what we want to see coming out of one of our big markets.' As for the US, demand for beef was very strong, which was causing a supply issue. 'That's off the back of reduced beef numbers in the US, but right now in New Zealand, our kill numbers are down as we move into winter,' Boulton said. While that created some domestic challenges that processors were having to navigate, Boulton says that it also creates the upside of some healthy price tension in the markets. 'That creates some really healthy price tension in the markets as well, which we enjoy.' Boulton said the 10% tariff from US President Donald Trump hadn't had much effect. 'We've managed to pass most of the tariffs on into markets, so that's a good outcome,' he said. 'There's clearly a lack of confidence that's in the market in North America at the moment, and I guess uncertainty is quite high. 'But again, the demand for red meat, particularly our grass-fed red meat, is really strong.' Boulton said consumer confidence was waning in mid to low-level casual dining, but fine dining was 'absolutely pumping'. 'People are trading down and eating at home, but our retail business up in North America is going extremely well.' The Lamb Company, a joint in-market venture owned by Silver Fern Farms, Anzco, and Alliance, is another Kiwi success story in America. Including Australian partners, WAMMCO and Southern Meats, The Lamb Company has been the leading North American supplier of lamb and other premium, naturally raised proteins for over 50 years. Boulton said it had turned over $1 billion in revenue across the North American market this year, with growth in retail, food service and e-commerce. This growth meant the company could invest in three state-of-the-art processing facilities. 'We've got one in Toronto, we've got one in New Jersey, and one in Los Angeles, and they're distributing to almost every state in the US and Canada, twice a week.' Boulton said teamwork was a big part of the company's success. 'We've got a team of 50 people representing our lamb out in the market up here, and about another 450 people working across those processing facilities. 'So really, really good collaboration and it's just gone from strength to strength.' Back home, Silver Fern Farms is getting ready for its Plate to Pasture Farmer Conference. The conference is from July 15 to 17 and is held at the Claudelands event centre in Hamilton. Free to attend and open to all Silver Fern Farms' suppliers, shareholders and teams, it's a chance to get off-farm, network, and re-focus for the season ahead. This year was about celebrating 'Creating Goodness Together', and Boulton was keen for young people to attend. 'We've got a particular focus on that next generation to come and understand and connect with other farmers and get some fresh insight around what's happening in the sector.' There's an impressive line-up of industry leaders and expert speakers, and the conference is jam-packed with activities, including a barbecue, national boning competition finals, butchery and cooking classes, and a farm tour. There's also the Plate to Pasture Awards to look forward to. 'You talk to people that have been to our conferences previously, and it's a really, really positive few days,' Boulton said. He encouraged those interested to register. 'Spots will fill up fast, but there's a lot of great content that we're going to be sharing.'
