Gold Price Surge: Mining Consents Delay Gains

West Coast Goldminers Face Years-Long Delays in Resource Consent Approvals

The West Coast’s gold mining industry is increasingly frustrated by important delays in receiving resource consent approvals,prompting calls for urgent action from local officials. A regional council committee heard last week that the issue remains unresolved despite decades of alluvial mining activity in the region.

Decades of Alluvial Mining, Yet Complex Regulations Persist

Despite 50 years of alluvial gold mining on the West Coast, establishing a simplified set of consent conditions has proven elusive. “We’re not reinventing the wheel,” explained a veteran goldminer and councilor. “all we’re doing is washing the gravel and taking and discharging the water. We should be able to get it down to a very basic consent and get them issued. But they’re taking years and it’s not acceptable.”

Economic Impact of Delays

The delays are impacting the potential of a thriving industry, with one councilor highlighting the significant economic opportunity being lost. “We’ve got a major problem with consents being held up,” stated a council member, noting that one application had been pending for two years, while only 12 mining consents were processed in the last three months. With the current gold price exceeding $8000 an ounce, stakeholders argue the council is hindering economic growth on the Coast.

Working Group Efforts Stalled

The core of the problem appears to be difficulty in establishing a collaborative working group between the council and miners. According to the council’s chief executive, Darryl Lew, three attempts to convene such a group have failed. “We tried three times to pull together a group and three times it’s failed,” Lew told the meeting. He appealed to the councilor, known as an advocate for the industry, to assist in forming a productive working group.

Industry Rejects criticism of consultants

The council executive previously suggested issues with consultants used by miners to prepare consent applications, but this claim was refuted. A representative for the miners stated they were readily available to discuss the matter with the council at any time. Lew acknowledged previous attempts by the former council chair, Peter Haddock, to establish a working group had also been unsuccessful. He emphasized the council’s desire to collaborate with the industry, recognizing the miners’ expertise.

RMA Reforms and Future Conditions

Discussion also touched on the potential impact of upcoming Resource Management Act (RMA) reforms. While details remain unclear, officials anticipate that basic environmental considerations – such as dust, noise, and water discharge – will still require resource consent. “There’s nothing we’re seeing…to say we’re just going to make all that permitted,” Lew clarified, adding that a pragmatic approach is essential.

Balancing Efficiency with environmental Protection

The new Te Tai Poutini Plan, with its designated mining precincts, is seen as a positive step, but officials recognize the diverse scale and complexity of alluvial mining operations. Standardized conditions will need to accommodate this variability. The newly appointed council chair, Colin Smith, expressed support for a collaborative approach, drawing on his legal experience. “it’s only by working together that we’re going to solve this issue, which appears to be a continuing one,” he said.

Ensuring Industry Portrayal

Another council member cautioned against a working group dominated by disgruntled miners, emphasizing the need for broad industry representation. He noted that the West Coast Regional Council’s resource consent fees are the lowest in the country, and competitive with those in the Central Otago region.

Path Forward: Industry-Led Guidance

The council approved a proposal to task Minerals West Coast manager Patrick Phelps with organizing a group of alluvial miners and consultants to provide guidance and ensure industry buy-in. If this effort fails to yield progress, the issue will be escalated to the full council. One councilor, self-described as an “Agony Aunt” for the industry, confirmed miners are eager to participate, regularly voicing their concerns about the current process.