3-AD006.00 SOCIAL IMPACT ASSESSMENT WAIHI NORTH PROJECT Oceana Gold New Zealand Limited WSP June 2022 68 6.5.1 IMPACT ON LAND VALUE AND FINANCIAL IMPLICATIONS A common fear that emerged through the engagement process was how mining was perceived to have a negative effect on land values and the future potential to develop land. Willows, Highland, Golden Valley and Trig Road residents as well as the GOP neighbours in Heath Road were concerned about the effect mining could have on their land value and the financial implications that may result if the development potential of their property was limited through either proximity to the mining activity or the effects of mining. Several owners were intending to develop their land to accommodate housing for family members (enabling children to gain access to the property ladder) or providing housing for elderly family members. This would be no longer be considered desirable because of mining or the change of amenity in the area. Negative impact on development potential was an issue raised by a Wharry Road resident, as Hauraki District Council in the Draft Growth Strategy identified land in Wharry Road be rezoned from rural to residential. The concern was HDC would either reconsider the proposed zone change in the light of tunnelling activities or if the zone change occurred whether developers and potential purchasers of sections would be deterred because of perceptions of a mining tunnel beneath their property. A Heath Road Resident was concerned that the perceived effects of mining (noise, dust, vibration from blasting) would have an adverse financial effect on the financial success of their equine business. A further fear was that property insurance would either be difficult to obtain because of mining activity or that insurance premiums would be higher because of the proximity to mining. At the open day at the Waihi Memorial Hall, a view was expressed that financial payment should be paid to Waihi residents to compensate for the “effects” of mining activities on the community. OGNZL has acknowledged the potential for WNP to have a minor short-term impact on the values of a small number of properties. Based on previous experience from earlier mining activities the financial impact is short term from the consenting period through to the start of the new project and beyond that a recovery is likely to occur. In the past, OceanaGold Waihi and its predecessors have successfully implemented a ‘Top Up’ management measure as a way of mitigating the impacts of mining activity on property values. The Top Up initiative is designed to avoid distortions in the property market due to any perceptions of adverse mining effects and encourages ongoing private ownership. It involves paying the purchaser of a property the difference between their offer and the market value of the purchased property. This ensures that the vendor gets market value from the sale. The Top Up programme is based on the concept of a fair price and a fair offer. OGNZL makes up the difference between the ‘fair price’ offered by a purchaser and the ‘fair market value’ sought by a vendor. OGNZL pays the purchaser a ‘top up’ to add to the purchase price already offered and that is then paid to the vendor.
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