8 Apr 2015

Macraes mine may receive reprieve

4:06 pm on 8 April 2015

The Waitaki mayor is welcoming news OceanaGold may keep its Macraes mine in north Otago open for another ten years, and start mining tungsten deposits.

The company was planning to shut the mine down in 2017 because of the slump in international gold prices.

The company has declined to be interviewed but a spokesperson says low oil prices and the falling New Zealand dollar against the US currency, now makes the mine more viable, along with its recent exploration success both at surface and underground.

OceanaGold said it hoped to continue mining gold at the site for as much as five more years, at a similar production level to today's.

It said that Macraes had quite significant amounts of tungsten, and that it is conducting a feasibility study, as well as talking to several tungsten buyers.

The Waitaki District mayor, Gary Kircher, said as well as the indirect benefits of well-paid jobs, the mine directly contributed to the region.

Mr Kircher said the company pays five percent of the district's roading budget, and pays rates on the land it owns on top of that.

Shares in Oceana Gold remain unchanged at $2.70.

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