Economics and Employment
What’s in it for us?
Does mining have any positive economic impact in Waihi?
And what is the broader economic impact of mining in New Zealand? There has been a lot of speculation. We can’t speak for the whole mining industry but we can speak to our own accounts, and in doing so can clearly demonstrate that popular myths around mining’s economic impact are precisely that – myths.
Six popular myths are discussed here:
Myth 1: WG spends no money in New Zealand
Myth 2: WG pays no tax in New Zealand
Myth 3: The money that WG spends in Waihi benefits only its foreign workers and not locals
Myth 4: Mining is a boom and bust industry
Myth 5: Waihi Gold’s donations programme is simply a way of bribing the community to keep quiet
Myth 6: Mining is only profitable because it leaves behind long-term environmental liabilities
Modern mining has been operating in Waihi for a long time. With the recent announcements of our Martha Exploration Project and the proposed Correnso underground mine we hope to be here a lot longer. And that simply isn’t possible if there is nothing in it for the local community.
Level of investment
Since the reopening of the Martha Mine in the late 1980s, Waihi Gold and the previous owners of Waihi Gold Company have invested almost $830 million (in 2010 NZ dollars) of capital into the Martha and Favona mining projects. With the addition of Trio, an additional $47 million will be invested in capital expenditure.
For further information:
Economist Dr Brent Wheeler produced an economic report and economic evidence for the hearing to support Waihi Gold’s application for land use consents for the Trio Mine in 2010.
NZIER, a specialist consulting firm, uses applied economic research and analysis to provide a wide range of strategic advice to clients in the public and private sectors throughout New Zealand and Australia, and further afield.