The battle rages over water in Orange

I drove around the mine site with Greens local councilor Jeremy Buckingham who for years has been sounding the warning bell on the water conflict created by the Cadia owners Newcrest.

This gold mining multinational has a controversial record in low-income countries. Accusations of human rights violations  and breaches of environmental law have dogged its operations at the Toguraci gold mine in Halmahera, Indonesia. The company is now moving into Papua New Guinea.

Back at Cadia, the Newcrest operations are also coming in for more criticism. With Orange on level five water restrictions securing the mines future could well jeopardise town water security and that of surrounding landowners.

These issues and Newcrests plans to open up a third gold mine, Cadia East, were taken up at a public meeting organised by the Environmentally Concerned Citizens of Orange group last Wednesday night. It was an exciting meeting. Nearly 100 people attended.

Commenting to the ABC after the meeting ECCO President Neil Jones said "I don't think anyone came away feeling comfortable with the assurances that were being given by the staff of Cadia Valley Operations about the way in which they would be mitigating against the draw down on local bores."

The Environmental Assessment for the Cadia East Mine project is on display at the moment and the closing date for submissions is July 24.

At the meeting local farmers spoke of the impact current mining operations have had on their farms. They have seen bore levels drop and creeks dry up.

Concerns were also raised about what Newcrest will try and extract from the Orange City Council to get its new mine, Cadia East, up and running. In May 2007 Orange City Council agreed to sell the company up to 450 megalitres of water from two storages used for recreational purposes.

Back in 1998 the company gained a very lucrative deal with the Council winning the right to receive local treated effluent for free to use in its water-intensive mine operations. A decade later locals realise that this treated effluent is a valuable resource.

Councillor Buckingham is a prominent voice for not extending the agreement between Newcrest and Orange City Council to the new mine, Cadia East.

When this issue came up at the public meeting last week the Newcrest representatives were less than forthcoming. One line of argument from the company to retain this much needed water source is to make out that Cadia East is just an expansion of the existing mine so agreements that cover current operations will just continue.

Understandably many locals do not see it that way. The Council has not ruled out http://www.centralwesterndaily.com.au/news/local/news/general/stink-over-effluent/1557992.aspx taking Newcrest's local company, Cadia Valley Operations, to court over the issue. It is understood that legal representatives for both sides are currently in negotiations over the 1998 deal that gave the mine free access to 13 megalitres of Oranges treated effluent each day.

Considering the stance taken by Council in standing up to the Cadia owners it was rather odd that after my visit last week five of the councilors of Labor, Liberal and independent persuasions publicly complained about me speaking about this issue when I was in Orange.

Considering we are all on the same page about the need to protect Oranges water supply it is interesting to contemplate their logic.

The major justification for this mine over the years has been the jobs growth it offers to the central west. While new job opportunities are a top priority for this region the Greens remain concerned that the Newcrest operation does not represent sustainable growth.

The modern day legacy of gold mining is water loss, pollution, degraded farming land and native wildlife habitat.

And the jobs claims rarely live up to the promises. At the public meeting one of the Newcrest representatives let it slip that the Cadia East mine will be fully automated with the mines operation room situated in Orange. Automation is the current industry buzzword for very few jobs to be created here, sorry.

Experts in the field have said to me that jobs growth in the gold industry around Orange will be minimal as Newcrest's automation plan will see job losses in the existing two mines and few people employed at Cadia East.

The Cadia controversy is not about to go away. Newcrest representatives are working hard to secure water for the mine. They have their eye on new sources from the Belubula River and the Carcoar Dam. Meanwhile Orange missed out on recent rain.

And it is worth remembering that while water issues dog the Cadia mine Newcrests profit's have continued to rise. Last August the company listed its profits for the year ended June 30 at $494 million up from $191 million. Their cash flow from operations totaled $1.02 billion, up from $387 million in fiscal 2007.

It is difficult for the company to justify a free water deal in this context.