CODC grants Bendigo mine access for $1.25 million a year

Mayor Tamah Alley: “This agreement ensures that if the project goes ahead, the Central Otago community receives tangible, long-term benefits, while maintaining transparency and public accountability.”
Sustainable Tarras: “We do not understand the urgency with which CODC has decided to conclude this agreement and it again excludes the public and local community impacted.”
Santana Minerals: Santana chief executive Damian Spring said the agreement marked a material step forward for the project.

The Central Otago District Council has revealed the terms they have negotiated for access to their roads and land for the $4.5 billion Bendigo mine project.

Here are the full statements from CODC, Sustainable Tarras and Santana Minerals.

From CODC.

“Following extensive negotiations, Central Otago District Council (CODC) has reached an agreement with Santana Minerals Limited to secure access to council-owned roads for the Bendigo-Ophir Gold Project.

The access agreement was approved by elected members at council’s first meeting of the year and relates solely to land access under the Crown Minerals Act.

It does not constitute approval of mining activity but addresses the land access requirements that form part of the project’s regulatory pathway.

The agreement covers Thomsons Gorge Road and the Shepherds Creek paper road, including a 20-metre strip on either side of those roads.

“As a landowner, the council is required to consider and, where appropriate, negotiate access arrangements under the Crown Minerals Act,” CODC Chief Executive Peter Kelly said.

“Approving this agreement provides clarity around access arrangements, but it does not predetermine whether the mine will proceed. That decision sits with the relevant consenting and regulatory processes.”

Any future road stopping will be subject to the full legislative process under the Public Works Act or the Local Government Act, and council will work through that process over the coming months.

If any roads are stopped, an alternative route will be constructed to ensure continued public access is maintained.

CODC Mayor Tamah Alley said the agreement provides the district with a clear and transparent financial return from the use of council land.

“This agreement ensures that if the project goes ahead, the Central Otago community receives tangible, long-term benefits, while maintaining transparency and public accountability,” she said.

Under the agreement, Santana Minerals has committed to a CPI indexed annual payment of NZD $1.25 million to the council, commencing once commercial gold production begins.

The funds will support the delivery of resilient, future proofed infrastructure to help the district manage growth, deliver enduring community and environmental benefit, and support initiatives that unlock wider economic development opportunities.

All allocations of these funds will be reported in the council’s annual accounts, ensuring the community can see how they are applied to priorities within the district.

Mayor Alley emphasised that council has not taken a position for or against the proposed mining project.

“We acknowledge our community holds a wide range of views. Our focus is on ensuring decisions are made objectively, lawfully, and with full consideration of the information available,” she said.

Council will continue updating the community as statutory processes advance and formal decisions are made.”

From Sustainable Tarras:

"This morning's announcement from CODC is disappointing, to say the least.

We've been in discussion with CODC on this very issue for well over six months. It's complex and has huge implications for the local community, including significant numbers of people who use these roads.

We believe there are considerable legal pitfalls to granting such access, and we have repeatedly pointed these out to CODC and cautioned them to take time to consult, consider the consequences and involve the wider community. Today, in announcing this behind-closed-doors decision, they've made it clear that community is secondary to their private negotiations with Santana.

We do not understand the urgency with which CODC has decided to conclude this agreement with Santana. From the information we have so far, it again excludes the public and local community impacted, and fails to take into account what Santana has clearly stated it will do with these roads.

Let's not forget that one road will end up under a 200 million tonne waste rock dump holding back a toxic tailings dam with 18 million cubic metres of toxic sludge, and the other will be carved away into two open pits. These mine impacts will be left to CODC to manage after Santana heads back to Australia in 15 years or more; and to manage forever. These are perpetual liabilities, and we know from other examples in New Zealand and around the world that they can come with eye-watering costs.

"Public excluded" says it all."

From Santana Minerals.

“Santana Minerals has finalised land access arrangements with the Central Otago District Council, settling a statutory requirement that has been under discussion for almost 12 months and clearing a key hurdle for its Bendigo-Ophir Gold Project as it advances through the Government’s fast-track approvals process.

The agreement secures access to council-owned road assets affected by the proposed project, meeting requirements under the Crown Minerals Act and bringing to a close a lengthy negotiation process that formed part of the project’s development pathway.

The arrangements cover access along Thomsons Gorge Road and the Shepherds Creek paper road, including a 20-metre corridor on either side. They set out how access would be managed if the project proceeds, including provisions to maintain public access and amenity, and how council assets would be compensated where impacted.

Any future road stopping would still require approval under the Public Works Act or Local Government Act. If any roads are stopped, replacement routes would be built to ensure continued public access.

Alongside access certainty, the agreement puts in place a long-term community benefits framework. If the project is consented and developed, Santana will make an indexed NZ$1.25 million per annum payment to the council, starting six months after commercial gold production begins. The funding will be ring-fenced, administered by the council, and reported on separately, providing transparency over how it is applied to the community and district priorities.

The agreement does not approve mining and does not indicate any view on whether consent will be granted. The access arrangements and community funding would only apply if the project is ultimately approved and developed.

Santana chief executive Damian Spring said the agreement marked a material step forward for the project.

“This raises the credibility, and durability, of any eventual decision.”

“This agreement resolves a long-standing statutory access requirement, provides durable clarity around roading and access arrangements, and establishes a transparent framework for long-term community benefit,” he said.

“It allows the project to progress in an orderly and disciplined way through the fast-track process, without pre-empting the outcome of that decision.”

Council representatives have emphasised that the agreement ensures the district receives a clear and accountable return from the use of council assets if the project proceeds, while maintaining appropriate safeguards, transparency and public oversight. For Santana, the agreement locks in foundational access and community arrangements, reinforcing momentum for the Bendigo-Ophir project as it moves toward a final regulatory decision.”