Big gold producers are making plans to wind down some operations in different parts of the country while keeping a close eye on the price of the precious metal, almost a third down on its highs this decade.
In Waihi, Newmont Gold is on course to quit mining at its open pit early next year and the lifespan of its new underground mine beneath the town will be determined by gold prices which have fallen sharply during the past three years.
In the South Island NZX-listed Oceana Gold is winding down some West Coast and Otago production.
For the first time since 1998, gold posted back-to-back yearly declines by the end of 2014. Although it has edged up in the past fortnight, and was further boosted by turmoil from the Swiss franc move, the current price of US$1276 ($1638) an ounce is well down on its most recent high of just over US$1900 in 2011.
Craigs Investment Partners broker Peter McIntyre said any interest rate increases in the United States pushed up the value of the greenback, the currency would be an increasingly attractive haven for investors at the expense of gold. The metal was traditionally a hedge against inflation so deflation in some parts of the world was also negative for gold, he said.