3-AD006.00 SOCIAL IMPACT ASSESSMENT WAIHI NORTH PROJECT Oceana Gold New Zealand Limited WSP June 2022 12 Deprivation index The New Zealand Deprivation Index (NZDI) is an area-based measure of socio-economic deprivation in New Zealand which uses a scale of 1 (least deprived) to 10 (most deprived). The aim of the NZDI index is to support and inform applications for funding and health and related social services research. In addition, the index provides community groups and community-based service providers with the basis to advocate for resources for community services. Waihi town scores an NZDI of 8.5, which is significantly higher than the local area score of 6.9 and the New Zealand score of 5.7. The index combines census data relating to income, home ownership, employment, qualifications, family structure, housing, access to transport and communications to generate a score. There may be several factors that result in a somewhat skewed scoring, such as the high elderly population, and therefore lower percentage of population employed. However, we know from the review of other data that unemployment is relatively high, as is the lack of qualifications. Using the NZDI as an absolute measure of socio-economic health is cautioned against, though Waihi’s high score highlights the need to look closely at some of the key socio-economic factors that may be relevant in the context of the WNP. Qualifications and skills Waihi and the local area have lower levels of education and qualifications attainment compared to the regional and national averages. Waihi and the local area have a significantly higher population with no qualification, and lower proportion of people that have gone on to study further after school. An increase in OGNZL’s current workforce is required to support the project. The distribution of qualifications provides context to the consideration of whether the skills required to support the WNP are likely to be available locally. Waihi town and the local area have a relatively high unskilled working age population that could support the project in unskilled roles, and with targeted skills development and training potentially meet some of the projects’ more skilled role requirements. The availability of a local workforce will determine the extent to which mining employee requirements will need to be resourced from outside the local area, and therefore a determinant of the extent of population influx that may occur. 3.4.2 ECONOMICS Mining represents the largest individual contributor to economic growth in the Hauraki District. Of OGNZL’s total expenditure in 2020, 44% was spent locally at a value of $67 million. OGNZL has over 200 suppliers providing support services to the Waihi mining operations. Based on the 2020 SIMP monitoring data, the local supplier sales totalled $28.1 million and regional supplier sales totalled $21.9million. OGNZL’s operation results in direct local benefits as a result of overall expenditure and the use of local service providers. This does not appear to translate into widespread direct economic benefit within Waihi town and local area, probably because Waihi town and the local area’s lower median personal income is likely to be a result of the age profile of the population (i.e., the higher percentage of retired members of the community) and higher than average unemployment and Not in Employment, Education or Training (NEET) rate. On average, mining jobs pay well above the New Zealand norm and an increase in local employment in the mining sector will have a benefit at a local level.
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