Newmont's Golden Link - The Martha Exploration Project and the Correnso Underground Proposal

• Martha Exploration Project - Brochure(757KB)
• Martha Exploration Project - Questions and Answers(180KB)
• Correnso - Brochure(646KB)
• Correnso - Questions and Answers(183KB)

1. We need to know as soon as possible whether Newmont will buy our homes
2. What if I want to sell my house? Will the Company make up any shortfall?

It is clear there have been mixed messages received by the community. A person who has attended the “Newmont shop” has said that Newmont will or may consider buying homes and 1 Newmont staff member has been quoted as saying Newmont will buy the homes of the most affected people. Can we please have a statement from NWG on this issue that we can distribute to the meeting either giving details or explaining where people can go to get these?

Can we please have a statement from NWG on the possible shortfall issue that we can distribute to the meeting on NWG’s intent in this area?

NWG: There will not be a quick answer to this question. We will not rush the process of formulating a property policy because it is important that all parties affected understand the proposals and then have a chance to have a fair say. Currently we are listening to opinions and suggestions and we have made personal visits to around 380 homes. It is also possible that some residents, whose initial response to the Correnso announcement is to sell up, may reconsider when they have had a chance to take in opportunities that will be brought up relating to enhancement of property value.

There are two aspects to this. Property sales and property values

Property sales - when we made our announcement in late August, Newmont Waihi Gold committed to working with the community to develop a property policy. We are aware that some houses in Waihi East were already for sale at the time of the Correnso announcement. Some home owners have said that as a result of the announcement they feel they must sell their property. Our objective is that in the long term the community should not be adversely affected as a result of our proposals. We will be working with these people to develop a policy. We acknowledge that potential property sellers may prefer to discuss these issues with us as a group instead of individually. The local real estate agencies are also very keen to work with us to help bring ideas to the table with a view to developing a fair, consistent and workable property policy. We have stated that there will be a policy in place by the time we lodge consent applications early next year. That policy will be based on suggestions received during the extensive individual and community consultation being carried out now and over the next few months. Consideration of any “top up” options (a top-up would ensure that a resident would receive market price for the property due to Newmont providing the shortfall between fair asking price and actual sale price) will be considered along with all of the other options and suggestions that are being made for the property policy.

Property values - from the discussions we have had, many people want to stay in their homes. For them, the core property issue is to sustain value and continue to have a choice as to whether they stay or go. We share the objective held by most people of developing practical options that encourage people to stay in Waihi and protect people’s investment in their homes and their properties. We believe that property values, particularly in the proposed Correnso area, can be maintained and improved. We have already started the process of gathering comments and suggestions for how we can do this and there are lots of good ideas coming through.

For many of the people we have talked to, there may be value in Newmont paying for annual value-adding property improvements, such as insulation or heating; or value-maintaining property services, such as maintenance. Others want to see projects that benefit the entire Correnso area. This could include community amenities - such as parks, landscaping and planting, better footpaths and lighting – that would improve property values across the board.

We are collecting feedback on property and community improvement suggestions until the end of October. We will produce a summary of suggestions received so far by the end of September so that residents are able to indicate preferences. A final summary of all property and community improvement suggestions will be produced in December. Newmont’s final property and community improvement policy will be published when we lodge consent applications early next year. We expect to be holding meetings with groups of residents or their representatives throughout this time. The key is that whatever the solution, it is something that benefits the majority of people rather than just a few, and that it benefits most those people closest to the proposed Correnso mine.

Property values in Waihi – now and when mining stops
Independent valuation reports show property values in Waihi hold up because of the large number of people who work for, or benefit from, the mine. Property prices in any location are affected by a number of factors but primarily by the number of homes available and the number of potential buyers. If there are few houses and a lot of demand, that will be a strong factor in driving prices up. There is healthy demand for Waihi houses because of the ongoing number of people who work directly for the mine or are in associated industries. If the mine were to close, there would likely be a large number of properties added to the market and potentially considerably less demand due to the loss of employment and this would likely impact negatively on property values across all of Waihi.

There are 350 direct and a further 350 indirect full-time-equivalent (FTE) jobs attributable to our mining operations - in Waihi and also further afield. In the last five years we have spent over $800 million on goods and services in and around Waihi. Of this, 32% is spent in Waihi and 82% is spent within New Zealand. This input stimulates the local, regional and national economy.

Please see Appendix 1 (11KB) for an indicative timeline for consultation with the community

3. Can the Company be more open about AEP programmes and what will be or could be available?

A clear priority for the majority attending the meeting was they wanted much more clarity about the AEP programme, the amounts involved and the basis for the payments. They wanted this information now rather than well into the consent process so they could plan sensibly. As per the above question can we please have a statement from NWG on this issue that we can distribute to the meeting either giving details or explaining where people can go to get them

NWG: We have provided a written explanation about the AEP for distribution at your meeting Appendix 2 (19KB)

The main point to note is that the payments are based on actual effects as monitored by NWG. We will be carrying out vibration testing in October and will be in a better position to make more accurate projections of likely AEP payments for residents in the Correnso area once our investigations are complete.

AEP payments are made six-monthly for the periods January to the end of June and then July to the end of December. Individual payments vary - the minimum is $250 to a maximum of $2,000 – $3,000 per six months.

The AEP was introduced in 2008. The initial payment made in January 2008 was for the 2007 full calendar year. The second payment made in July 2008 was for the six months January to end of June 2008. All subsequent payments have been for six month periods.

Since the first payment was made in 2008, 480 properties have received AEP payments (they may not have received a payment every time but this is the number of enrolments we have). In the last round of AEP payments there were 332 qualifying addresses that received a cheque.

Since its inception the AEP has paid out a total of $962,500 (to July 2011). This ranges between $110,000 and $309,000 a year.

Eligibility to join the AEP is based on measurements, with payment made wherever pre-determined vibration magnitude and blast number are exceeded or noise levels over a set limit are experienced. The payment is made to the householder, whether they own the property or not.

4. Will this affect the property being used as security for bank loans?
5. Could this affect our insurance premiums or our ability to get cover?

The above two questions were of concern to all at the meeting, including all those who may be planning to stay in the area. We would like Newmont to arrange appropriate briefings for Insurance Companies and Banks and reporting back on theses briefings assuring people that it would not affect premiums or bank security for lending.

NWG: There should be no reason whatsoever for these sectors to refuse a mortgage or insurance cover or to charge higher premiums for Waihi people as a result of mining. There are no documented cases we know of where people have been refused a mortgage or insurance cover in Waihi due to our mining operations, but we have contacted, and in September will be meeting, both banks and insurance companies to clearly explain that there is no physical threat posed to the structural integrity of people’s properties. It is notable, however, that insurance premiums right throughout New Zealand are increasing due to the huge losses felt by insurers in the past 12 months.

We have operated a modern underground mine here in Waihi for seven years. While blasting vibrations will be detectable at some properties the current consent limits for blast vibration are significantly below the lowest levels of vibration known to cause cosmetic or structural damage to property. Our current underground operations have blast vibration limits of 6mm/s (Monday to Saturday, daytime) and 1mm/s at other times. Vibration limits at Correnso would be no greater than this. We expect that production blasting (used to mine ore) will take place once every two to three days, with smaller development blasts (used to construct tunnels) occurring more frequently. This would result in approximately 30 seconds of blasting per day (e.g.,10 seconds 3 times per day) the vast majority of which would be at very low levels.

Some residents have asked about the possibility of another subsidence event such as the 2001 Barry Road collapse. Subsidence will not occur with modern mining. Because Newmont will backfill all of the mined-out voids with rock, there will be no large voids that could initiate a collapse. Newmont’s mining method means that it works on top of the backfill all of the time and therefore has to progressively back-fill all voids.

6. Will Council help affected people to approach Newmont to buy their homes?

This is for Council to answer. Council is happy to advocate for those affected parties and meet property owners and the Company to try to facilitate a satisfactory outcome to all issues raised.

7. If the company improves our area, will that improve our home values?

Can the Company get any advice from a reputable valuer/s that we could take to the meeting on this matter?

NWG: We have already started the process of gathering comments and suggestions for how we can collectively achieve the development of the new programme and there are lots of good ideas coming through. We will continue to seek professional advice on which household and community improvements are most likely to increase property values and we will make that advice available at the same time as we present the summary of feedback on property options to residents. We do have available, and attach here as Appendix 3 (113KB), a report from Boffa Miskell that summarises in general a range of improvements and the percentage increase in property values these improvements can make.

We know that one of the key issues of concern to many people is maintaining and improving property values, particularly in the proposed Correnso area. Our objective from the outset is that the community should not be adversely affected in the long-term. We share the objective held by most people of developing practical options that encourage people to stay in Waihi and protect people’s investment in their homes and their properties.

When we made our announcement in late August, Newmont Waihi Gold committed to working with the community to develop a new programme to maintain and improve property values in Waihi East. This is in addition to offering the existing Amenity Effect Programme (AEP).

8. Will this affect my ability to get an approved subdivisions or building consent?

This is a question for the Council. The Council can assure those potentially affected by the proposed mine that the proposal and the access/exploration tunnels will have no bearing on any decision relating to building consents and resource consents for properties above or in proximity to these proposed works.

9. Will we get any structural bench marking undertaken so future damage can be identified?

Council can answer this generally by referring to the TRIO conditions and the conditions the Commissioners imposed in that Consent. The Commissioners required a structural review of houses prior to the commencement of the consent. The structural assessment has to be undertaken by independent experts qualified and experienced in domestic building, construction and design.
Property owners had to agree to the proposal and the results are kept in confidence.

For the TRIO mine the Company used the Building Research Association of New Zealand (BRANZ) to undertake the assessments

Council’s planners are likely to recommend a similar condition on any application to mine the Correnso vein.

NWG: Recent consents have required us to complete independent building surveys for selected properties close to our projects before blasting begins. We are expecting to do the same for Correnso.

There is no physical threat posed to the structural integrity of people’s properties by mining. Vibration at Correnso would be no greater than that already felt by residents closest to Favona.

While blasting vibrations will be detectable at some properties the current consent limits for blast vibration are significantly below the lowest levels of vibration known to cause cosmetic or structural damage to property.


We continually monitor vibration and the results are available in real time to the Hauraki District Council. The Council also carries out independent monitoring of our performance.

We have evidence that shows clearly that normal road traffic generates greater and more sustained vibration levels at residential properties at all hours of the day and night. Please see Appendix 4 (110KB) for a graph illustrating this comparison

There are a number of factors than can have a bearing on the condition of a property. These include age, construction quality and materials, temperature, wind loads, moisture content and maintenance.