Crown loan a $10m gem for West Coast mining
The Crown has given a US company a $10 million loan to mine garnet on the West Coast.
A prospector previously ruled out garnet mining because transport costs were deemed uneconomical, and a 2010 GNS science report suggested the garnet was of little economic value.
But the prospector – Duncan Hardie of Hardie Resources – has now entered into a partnership with Barton New Zealand, part of the US firm Barton Mines which has been mining garnet globally for 140 years and is hoping to kickstart a mining operation in Ruatapu, just south of Hokitika, with the help of a $10 million loan from Regional Economic Development Minister Shane Jones’ Provincial Growth Fund.
The loan is dependent on resource consent and Overseas Investment Office approval, but Jones said the Ruatapu Garnet Project would create up to ‘‘50 high-paying jobs’’ and boost regional transport and trade industries. Alluvial garnet is mainly used as an industrial abrasive – such as water jet cutting or in products like sandpaper. Garnet price and demand has risen in recent years as it’s the only viable abrasive alternative to silica, which can cause silicosis or lung damage.
Hardie explored Ruatapu and found ‘‘quite a concentration’’ of garnet about eight years ago – now he says Barton has taken over his exploration license
Former Westland Milk Products chairman, West Coast farmer Ian Robb said the company – of which he’s a director – was preparing its Overseas Investment Office and resource consent applications for the mine which would have a life-span of 40 years. ‘‘They’ve done enough testing to know it’s good garnet. They’re pretty happy otherwise they wouldn’t be doing it,’’ he said.