Newmont allocates $1bn of funds to Correnso mine in New Zealand

4 August 2014 (Last Updated August 4th, 2014 18:30)

Newmont Waihi Gold has secured $1bn of funding to operate the Correnso underground mine at Waihi in the Hauraki District of New Zealand.

NWG

Newmont Waihi Gold has secured $1bn of funding to operate the Correnso underground mine at Waihi in the Hauraki District of New Zealand.

The company aims to start mining operations later this year or early next year.

Newmont Waihi Gold general manager Glen Grindlay said: "The continuation of mining in the town will provide on-going employment for our underground staff when Trio closes in a few months.

"It will also mean that we will continue to be a significant employer in the region after our Martha open pit closes in early 2016.

"The first phase of Correnso will be completed by late 2017, by which time we will have produced 300,000oz of gold. Exploration drilling for phase two is already underway."

"The Correnso mining project is being opposed by local residents as it is located underneath 45 homes."

The Correnso mining project is being opposed by local residents as it is located underneath 45 homes. The residents appealed to the Environment Court, which ruled in favour of the company and awarded it a 12-year approval last year.

Newmont was allowed to dig and construct tunnels to confirm the extent and grade of gold deposit.

The company is currently negotiating with the homeowners to purchase the $4m property.

Waihi Distressed Residents Action Team spokesperson Collette Spalding was quoted by Radio New Zealand News as saying that the compensation package excludes homeowners who live right next to, but not directly above, the mine.

Newmont also operates Favona mine in the region.


Image: Tunnel work underway at Correnso underground mine in Waihi, New Zealand. Photo: courtesy of Newmont Mining Corporation.

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