Otago land deal: Australian gold mine company Santana Minerals’ $25m Bendigo-Ophir land purchase

Some Tarras locals have been vocal in their opposition to the mine. Photo / NZME

A $25 million land acquisition by Australian mining company Santana Minerals has reignited community concerns over the proposed Bendigo-Ophir Gold Project in Central Otago.

Santana Minerals, through its subsidiary Matakanui Gold Limited, announced last week it had entered into a binding agreement to purchase the Ardgour Station.

The 2880ha property covers the proposed location of the mine’s process plant and much of the infrastructure for the project.

The company hailed the deal as a significant milestone.

“We are pleased to have completed a respectful and mutually beneficial transaction with the owners of Ardgour Station,” Santana CEO Damian Spring said.

“This secures our development rights for the majority of the Bendigo-Ophir Gold Project infrastructure and uncomplicates competing land uses when the project proceeds.”

The Dunstan Mountains could be home to a large gold mine between Bendigo and Ophir. Photo / Simon Williams, Santana Minerals

Spring said the landowners had opted to take part of their payment in Santana shares, a sign of shared confidence in the project’s potential.

“We are also very pleased that the owners have joined themselves at the hip with us in sharing the tremendous benefits and upside the development can have for all its stakeholders,” he said.

But local resident and Sustainable Tarras chairperson Suze Keith said the announcement came as no surprise – and no comfort.

The Bendigo-Ophir project is Australian mining company Santana Mineral's core focus.

She said locals were only made aware of the company’s moves through the media or announcements on the stock exchange, which she said is “unfortunately the usual way we tend to receive information from the miner”.

“It’s business as usual when it comes to the developer’s interaction, or lack thereof, with the local community.”

Suze Keith, spokeswoman for Sustainable Tarras.

While Santana framed the land purchase as removing obstacles to development, Keith stressed it was far from a green light.

“It’s obviously highly contingent on them actually getting consent to develop the mine. That’s where our focus is,” she said.

“Just because they now own the land doesn’t mean it’s going to be any easier for them to gain the necessary consents.”

The transaction is subject to Overseas Investment Office (OIO) approval and depends on the project receiving consent under the new Fast-track Approvals Act.

Tarras is a small Central Otago community on the way to Wānaka and Cromwell. Photo / NZME

Santana has until December 19 to satisfy those conditions or extend the deadline, with a 2% annual interest rate applied to any outstanding funds.

Keith said many hurdles remain.

“They don’t have the consents, they don’t have a mining permit and they don’t yet have Overseas Investment Office approval to purchase the land,” she said.

“There are still many steps before they can do anything beyond what they’re already doing.”

Santana has stated it is well-funded, with about A$50m ($54m) in cash as of June 30.

Keith said the community will not be backing down.

“As a small community, we’ve done well to raise awareness of the development. People understand what’s at stake because of our efforts,” she said.

“It’s very much a David and Goliath situation, especially with the fast-track legislation that’s designed to sideline local voices.”

Keith also pointed to heritage concerns, citing historic gold mining remnants on the land.

“Regardless of the fast-track process, there’s still an expectation that developers will consult formally with the community. And so far, we’ve seen very little of that.”

Ben Tomsett is a multimedia journalist based in Dunedin. He joined the Herald in 2023.