Is Waihi losing its golden glow?

Newmont external affairs co-ordinator Kit Wilson is unsure what the future holds for Waihi's open-pit mine. Photo / Andrew Warner

The little town with a golden heart has been left in limbo with mining at Martha Mine stopping indefinitely and more than 50 people out of work. But locals say they have weathered worse and are planning for the day the gold dries up. Reporter Michele Hunter talked to the Waihi community about the uncertain future of a mine many local families have come to rely on.

A land slide brought open-pit mining to an abrupt and unexpected halt in Waihi this year, just months before Martha Mine was due to be handed over to new owners OceanaGold.

All hope of the mine operating again under Newmont Waihi Gold's ownership was lost late last month when the company told 50 miners from Macmahon Contractors they had lost their jobs.

Newmont external affairs co-ordinator Kit Wilson said Martha Mine was already scheduled to close in March 2016, but admitted he had delivered news of such a closure three times in previous years.

"There was always the hope that there would be something else."

However, the open-pit mine was reaching the end of its natural life. "You can't go any deeper without going wider," he told the Bay of Plenty Times Weekend. "We'd need to get more consent to do any more."

The first minor slip on the pit's northern wall happened about 5am on April 2, prompting the evacuation of a drilling crew working in the pit. A major slip then followed about 7am.

Geo-technical investigations since have revealed a sheer zone made up of carbon material between layers of rock caused the slip, and that there are solutions to the problem. However, none are worthwhile for Newmont, given OceanaGold is scheduled to take ownership of the Waihi mining operation on July 1.

"None are quick or cheap, therefore it's not appropriate for Newmont to do that," Mr Wilson said.

When asked about its plans for Martha Mine, a spokesman from Oceanagold said it was too early to say.

"Our first priority is to complete the acquisition which is still subject to regulatory approval in New Zealand."

Once the mine was transferred to OceanaGold, the company would meet employees, contractors and community members.

"Any decision regarding future direction would only be considered after we have gained a comprehensive understanding of the Waihi operation," the spokesman said.

Mr Wilson could not say how many of the Macmahon contractors had since found work but feedback from a job fair, held in Waihi on Tuesday, had been "overwhelmingly positive" from employers and employees.

"Many are going for interviews next week as a result, with some booking in two and even three interviews.

"These are people who are keen to work, have a tremendous health and safety ethos, they're drug-free, they're the sort of people that we can vouch for because, for us, they're like family, we're as keen as possible to have them move into employment. Miners are a really close-knit community. You know everybody."

Other sub-contractors, who relied heavily on work in the open pit, had also been affected by the mine ceasing operations and a total of 70 job seekers attended the fair.

"Prior to the job fair, we contacted as many as we could and invited them to send any affected staff along," Mr Wilson said.

He strongly disputes that mining lives up to its "boom or bust" reputation. The average New Zealand business had a life-span of five years or less and mining had been in Waihi since 1878 with only a 30-year break, he said.

"Chook" Fowler has owned a clothing store - now a surf shop called The Chook House - in Waihi for 42 years and said there were always rumours going around that the mine was shutting.

'Chook' Fowler is the owner of The Chook House surf shop in Waihi. Photo / Andrew Warner

"The town was built around the mine in the first place and it's always going to be that way. It's a hiccup but life will go on," he said.

"As long as the gold price stays up, it will keep going."

Mr Fowler said lay-offs had been a part of life in the small Hauraki town.

"We're just used to people getting laid off and companies folding," he said.

"I guess it's a mining town, it's a bit boom or bust but it keeps on plugging."

He suspected the miners would be on $100,000 salaries. "That's a $5 million pay packet going out of town."

But Waihi had weathered worse when the Philips New Zealand factory closed in 1982 and 405 jobs were lost.

"It knocked the town around but it recovered," he said. "It's always been an optimistic place, Waihi. We always look forward, no point in looking backwards. History's good but the future's more important."

While some of his customers were local miners, a lot came from out of town.

"I think some of the industrial guys will be affected a lot more than we [retailers] are."

He also had faith the miners would find work nearby.

"Good workers will always find work, it's bloody hard to find good staff and, let's face it, the new company's going to be reopening again soon and they're going to have to re-employ."

Former Aucklander Eddie Morrow is firmly entrenched in Waihi, despite being a self-confessed newcomer.

"I'm only new to town, I've only been here 15 years or something," he said.

Since 2006, he has been involved in turning the community's dream of a tourist attraction celebrating the town's gold mining story into a reality. The Gold Discovery Centre, opposite the relocated pumphouse on Seddon St, opened in September last year and was recently named Best Museum Visitor Experience at the New Zealand Museum Awards 2015.

Mr Morrow is also the inaugural chief executive of Vision Waihi Trust, which was established through the Waihi Community Consultation Committee made up of 23 community group representatives.

The trust was formed following a community consultation process, also involving Newmont and Hauraki District Council, to establish what Waihi might look like after mining.

A 20/20 vision document was created and at least nine of the projects have already been implemented.

Nicki Skelton tells the story of gold at the Gold Discovery Centre. Photo / Andrew Warner

One of these projects, the relocation of the pumphouse, had restored the town's icon, Mr Morrow said.

Even the "naysayers" who were against the move now saw the benefit.

"It gave the town back its icon. It was a really significant social event for Waihi as well."

Personally, Mr Morrow thinks the temporary closure of the mine has put the town in limbo.

"It's kind of hurry up and wait," he said. "I think there's probably some nervousness around but I don't know how you solve the unknown."

Hauraki District Mayor John Tregidga said the council would support any efforts to help the miners find work.

"The last thing we want is our people being without work, or having to leave the district to find it."

The council had an aggressive economic strategy to stimulate activity, he said.

Last May, Chinese-based Allied Faxi Food announced it would build a $10 million ice-cream factory at Kerepehi, creating 40 to 50 jobs. The council had actively pursued that investment, visiting China to seal the deal.

"That's progressing very well but start-up is a way off yet. We have got one or two other initiatives of a smaller scale on the books so we're certainly not sitting back doing nothing," Mr Tregidga said.

Third-generation Waihi resident Murray Elliott said the loss of 50 jobs was a blow to the small town.

The miners represented 50 families with children at local schools and sports clubs, who contributed to the town. "We don't want to lose people," he said.

Residents had come to know Newmont, since their arrival in 2002, and were apprehensive about a new company.

"Waihi's used to the things that they [Newmont] do. They didn't expect Newmont to sell," he said.

The town now had to consider life after the mine, by looking at other businesses and opportunities. "It's a bit of a surprise."

There was some comfort in the fact OceanaGold had two other mines in New Zealand. "They're based in New Zealand already so they know what the New Zealand way of doing things is," he said.

The branch manager at Waihi Professionals real estate office, Peter Sherman, said it was too early to tell what the future held but said the job losses would have a huge effect on the town. "It's a big chunk out of our working population. The effect will ripple through town as well. Long term, it's really too early to tell."