A high-country station in Central Otago made famous for being the home to Shrek the sheep could soon become a gold mine.
Australian-listed parent company Santana Minerals, which owns NZ company Matakanui Gold Limited, has bought 10% of Bendigo Station – roughly 800ha of land – from retired farmer John Perriam for $55 million.
The station is about an hour's drive from Queenstown.
For decades, the land has been known for its merino sheep stock of the Shrek kind, but it could return to a gold rush era.
The sale means the gold mine firm under the Bendigo-Ophir Project is one step closer to a submitted fast-track application to undertake both open cast and underground mines.
The purchase was also conditional under the Overseas Investment Office rules.
Santana Minerals chief executive Damian Spring told 1News the mine would lead to the creation of 351 direct jobs and roughly 600 indirect or induced jobs in the community. "That's through all the direct suppliers to the site as well as all those people who need to support all those workers and their families," he said.
But some in the community have fears over the possible future development, despite "drop-in" meetings being held across the district.
Advocacy group Sustainable Tarras is concerned about recent developments.
"It's disappointing to see that two landowners have decided it is best to sell their land," spokesperson Rob van der Mark said.
"If New Zealanders are concerned about what is coming to their beloved Central Otago, they need to act now, as so much of what we value about the place will be changed forever."
In a statement provided by Santana Minerals, Perriam said he had been "determined to keep control by leasing – not selling – the land to Santana".
"But seeing the benefits the Clyde Dam has brought to Cromwell and Central Otago, and the rigorous process that new age goldmines have to go through, I have decided to stand aside and put trust into the New Zealand Government process."
Perriam added: "The predicted benefits for our regional economy – estimated at over $5 billion – is something I didn’t feel I had the right to stand in the path of."
'Mana and magic will be lost'
The Bendigo-Ophir gold mine would be the biggest project in the region since the Clyde Dam construction. (Source: 1News)
Quartz Reef Wines founder and winemaker Rudi Bauer has run a vineyard at Bendigo Station since the '90s.
Bauer told 1News he was worried about the long-term impacts for the area.
"You're dismantling something which you can never, never bring back," he said.
"And from a tourism point of view, why would I be so interested to come to a region where in actual fact, there's a this black spot sitting in there?"
Tarras resident Billee Marsh said she was not surprised by the proposed sale but was disappointed.
"[The land] has mana and magic and now it will be lost with a gold mine there," Marsh said.
"There's nothing to prove that it's going to be $5 billion and there's nothing to say who gets that $5 billion."
She felt there was enough information available to give the community confidence the project was worth it.
However, Spring said he believed his team would do a "great job" to take on and "explain as best they can" to address the community's concerns.
He added that a poll found 90% of the community backed the mine.
"Plus, our 85% New Zealanders who make up our shareholding – we feel we've got great support."
With gold prices high now, Santana expected to mine around 120,000 oz of gold annually for 14 years if the fast-track application was granted.
Santana estimated the open pit would ultimately be 1000m long, 850m wide and 200m deep.
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