WA IHI NORTH PROJ ECT ECONOMI C IMPACTS For New Zealand consenting purposes only. Forward looking information must not be relied on for investment purposes. 5 3. Economic impacts The Waihi mine is already a substantial economic entity. The benefits are most pronounced in the local economy. We quantify the current economic contribution first, and then we show that with WNP, the economic contribution will be even larger and over a longer period of time (an additional 6 years). Economic contribution of Waihi mine now The Waihi mine makes a significant economic contribution to the local and national economy. In 2019, before the Covid-19 pandemic disruptions, the Waihi mine contributed $103m to the local and national economy. To put this in context, it contributed 35% of the Waihi Ward economy, 14% of the Hauraki District economy, 0.4% of the Waikato region economy and 0.03% of the national economy. The economic contribution locally is most visible in well paid jobs. Around 400 FTE including subcontractors were employed by the Waihi mine in 2021, of 7046 jobs in the Hauraki district. The Waihi mine directly created around 145 new jobs in 2021, and a further 160 indirectly in suppliers and contractors. In the remainder of the Hauraki District economy, jobs fell by 263. The scale of reduction in non-mining jobs is consistent with neighbouring regions, which have been affected by the Covid-19 pandemic. The Waihi mine has provided a positive offsetting influence. Table 1 summarises the key metrics that we look at to describe the Waihi mine’s economic contribution in 2019, before Covid-19 pandemic disruptions. • Exports: The easiest economic contribution to measure is exports, which was $150m in 2019 (0.3% of all New Zealand’s exports). All gold and silver produced by OGNZL is exported. • Direct employment: The operation, mining, processing, and distribution employed 268 people in 2019. This has increased to 387 in 2021 as the development of Martha Underground continues to ramp up. o The average income at OGNZL is over $100,000 per year, compared to the national average of $67,000 and $55,000 in the Hauraki District. o Mine workers tend to live and commute from various parts around the mine, meaning the benefits of highly paid jobs are dispersed across a wider area, rather than just where the mine is located. o At the margin, this increases local consumption and demand for products. Half of the Waihi mine workers live in the Waihi township, about a quarter in Waihi Beach and Katikati, and the remaining quarter spread around the wider region. • Indirect employment: The mine purchases goods and services from suppliers. This indirectly supports employment in various parts of the economy.
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