Oceana Gold invested $11.25 million in Hyde land to grow its Macraes gold mine, encompassing both open-pit and underground operations.
Toitū Te Whenua Land Information New Zealand has confirmed approval under the Overseas Investment Act, allowing the company to purchase a freehold interest in 2,039.774 hectares on Four Mile Rd for the said amount.
The company plans to use part of the land to expand the adjacent mine while leasing the rest back to local farmers.
Oceana Gold is pursuing a major mine expansion through the fast-track process, with its application detailing phased growth of the existing open-pit and underground operations to reach an annual output of about 130,000 ounces through 2036.
The decision highlights key benefits to New Zealand from the land acquisition, including economic gains from capital spending, numerous permanent jobs, higher export revenues, and boosted tax and royalty income.
The investment aligns with government policy by advancing New Zealand’s “Minerals Strategy for 2040,” launched last year to grow the minerals sector.
Consent was approved because the applicant satisfied the investor test, and the investment is expected to benefit New Zealand.
Oceana Gold recently released its quarterly and full-year results for the period ended December 31.
President and chief executive Gerard Bond called it a “stellar year” marked by record financial results and shareholder returns.
Full-year gold production hit 497,600 ounces, surpassing the midpoint of guidance.
In the fourth quarter, Oceana Gold produced 157,400 ounces of gold and 3,200 tonnes of copper, with gold output rising 52% from the previous quarter.
The quarter saw record revenue of $US652 million ($NZ1.09 billion) at an all-time high average realised gold price of $US4227 ($NZ7110) per ounce.