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A rare native moth species may put the brakes on a major mining expansion near Macraes Flat, Otago.

OceanaGold’s proposed Macraes Phase Four expansion of the Macraes Gold Mine has drawn opposition from environmental groups and iwi over its potential to destroy critical habitat, including for the moth Orocrambus sophistes.

The nationally vulnerable species is endemic to New Zealand and is only found in inland parts of Otago. It has been recorded in the Golden Bar area of the Macraes project footprint.

The rare moth is only found in parts of Otago. Photo / Ross Setford

In a submission to the Otago Regional Council, Forest & Bird condemned the application in full, citing “significant adverse effects on indigenous vegetation, fauna habitat, wetlands and freshwater ecosystems”.

The group argued the expansion would violate key statutory frameworks, including the National Policy Statement for Indigenous Biodiversity (NPS-IB), the National Policy Statement for Freshwater Management and the Resource Management Act.

“The reliance on offsetting and compensation is not appropriate in the case of effects on the threatened moth species Orocrambus sophistes,” the submission reads.

“The moth species is threatened, therefore, biodiversity compensation is not appropriate under the NPS-IB and the activity itself should be avoided.”

In response, OceanaGold announced via legal memorandum on May 21 that it now “proposes to no longer pursue the Golden Bar element as part of the Macraes Phase 4 Project”.

The company said it made this decision after receiving submissions and a Cultural Impact Assessment (CIA) from Kā Rūnaka.

The presence of the rare Orocrambus sophistes moth may halt the expansion of an Otago gold mine.

The CIA and the Department of Conservation both raised alarms over the project’s impact on biodiversity, particularly the moth.

Counsel for OceanaGold, Pip Walker, said some of the potential biodiversity impacts of the project could be avoided by removing the Golden Bar element from the scope of MP4.

Yet the company has not formally withdrawn that part of the project.

Instead, it has reserved the right to change its stance depending on how the council reports and hearings unfold.

“OGNZL [OceanaGold] reserves its position not to pursue Golden Bar at the hearing based in part on the outcome of the section 42A report,” the memorandum says.

Forest & Bird also warned of serious impacts on wetlands, indigenous birds including the New Zealand falcon and pipit, and lizard populations potentially in the “high thousands”.

In response to questions from the Herald, OceanaGold senior vice-president, legal and public affairs Alison Paul said any decisions on proposed amendments to address any identified issues will be made after the councils release its full decision in June.

“The Cultural Impacts Assessment and public submissions which closed earlier this month are expected to inform that report and include a particular focus on Golden Bar, which is just one element of a much larger project,” Paul said.

“It is not unusual for an applicant to respond to the technical assessments, council reports and public submissions as part of the resource consenting process.”

Hearings are scheduled to begin on July 22.