Global miner offered permit near Hamilton

A global mining giant has been granted an exploration permit near Te Aroha in the Waikato.

Newmont Mining Corporation is the world's largest gold producer with significant operations on five continents.

It already operates the open pit Martha Mine at Waihi and is developing the nearby underground Favona Mine.

Matamata-Piako Mayor Hugh Vercoe today said he was comfortable Newmont would not be able to mine in designated conservation areas -- including Mt Te Aroha -- if exploration in the new permit area revealed gold or silver.

Crown Minerals said Newmont had been granted a permit -- in the name of subsidiary Waihi Gold Company -- to explore 9585ha in an area approximately 15km long on the eastern outskirts of Te Aroha.

A map of the area shows it takes in Mt Te Aroha, site of the defunct Tui Mine, the second most contaminated site in the country.

Mr Vercoe described the permit as "low impact", allowing the company to prospect. But it would have to apply for a resource consent if it wanted to mine.

"Because our district plan says that mining in the conservation zone is prohibited, we believe a resource consent would not go any further if they tried to mine in that conservation area."

Mr Vercoe said if Newmont found gold in flat lands "then, yes, they could apply for a resource consent and, depending on the normal conditions, it may proceed".

The Crown Minerals website said the permit work programme at Te Aroha required a minimum of 2000m of reconnaissance drilling within three years. The permit means Newmont had now acquired 10 gold and silver exploration permits in the southern Coromandel area, Crown Minerals said.

- NZPA