Environmental Approvals Remain Key Risk Despite Santana’s Permit Win

A Major Regulatory Milestone

Santana Minerals Limited has achieved a significant breakthrough with the formal granting of a 25-year Mining Permit for its Bendigo-Ophir Gold Project (BOGP) in Central Otago, New Zealand. This permit, issued by New Zealand Petroleum & Minerals (NZPAM), is a key regulatory approval that confirms the company’s technical and economic capability to operate the project under the Crown Minerals Act 1991.

The permit grants Santana’s wholly owned subsidiary, Matakanui Gold Ltd, the legal rights to extract and process gold from the Rise & Shine deposit and surrounding areas within the project boundary. This development marks a pivotal step forward, enabling the project to transition smoothly from the permitting phase into construction, once environmental consents are secured.

Environmental Approvals and Project Timeline

While the mining permit unlocks the legal framework for extraction, Santana is still awaiting the final environmental and land-use consents under the Fast-track Approvals Act (FTA). The BOGP is listed as a Project of Regional and National Significance under this legislation, which aims to expedite approvals for projects deemed vital to New Zealand’s economy.

The company has submitted its FTA consent application, with expectations to receive approvals by mid-2026. Following this, construction is anticipated to commence promptly, with first gold production targeted approximately 15 months thereafter. This timeline underscores the project’s momentum and the government’s support for its development.

Economic Impact and Royalty Framework

The mining permit also establishes the royalty framework under which Matakanui Gold will operate. The company will pay the Crown the higher of a 2% net smelter return or 10% of accounting profits. Based on the updated prefeasibility study and prevailing gold prices, this translates to an estimated NZ$448 million in royalties over 14 years, averaging NZ$32 million annually. This figure represents a substantial increase; 2.5 times the Crown’s mineral royalties collected in 2024; highlighting the project’s significant economic contribution.

Beyond royalties, the project is expected to generate hundreds of jobs, foster local supply chains, and provide training opportunities, delivering long-term benefits to the Central Otago region. Santana’s CEO Damian Spring emphasized the responsible and sustainable approach the company intends to take, aligning with community and environmental expectations.

Looking Ahead

With the mining permit secured, Santana Minerals is positioned to advance the Bendigo-Ophir Gold Project into its next phase. The company’s focus will now be on navigating the remaining environmental approvals and preparing for construction. Given the project’s scale and significance, its progress will be closely watched by investors and stakeholders alike, as it promises to be a major contributor to New Zealand’s mining sector and regional economy.