big made up numbers

The mining lobby throw many big numbers around. So big, hardly anyone can check them. Luckily we have people like Coromandel Watchdog spokesman Denis Tegg on the case.

From JEFF NEEMS - Waikato Times

This was the assertion

"The document includes references to a 2008 GNS Science report, which estimated the value of minerals in the wider Coromandel at $54 billion. The discussion paper also says mineral production from the open pit mine at Newmont's Martha Hill Waihi is "valued" at $225 million per annum."

Okay - and the truth

"Denis Tegg said with the average life of a modern mine at about 10 years, the value of total production per open pit mine would be $2.25 billion.

Mr Tegg argued that to extract the purported $54 billion worth of minerals from the Coromandel, 24 open pit mines would be needed – eight of those in land currently covered by Schedule 4.

Prime Minister John Key has ruled out open pit mines in the Coromandel, implying only underground mining methods would be used.

Mr Tegg said if that was the case, and based on his calculations, more than 600 underground mines would be needed to extract the Coromandel's $54 billion in minerals.

The Government discussion paper also noted that after 66 years of intense mining, the Thames goldfield produced just $3.6 billion of gold at today's prices.

"If Government figures are to be believed, those old miners completely missed finding another $54 billion bonanza just waiting to be dug up in the next few years," Mr Tegg said.

So anyway you cut it - it is just made up. And what does brownlee say about these calculations?

"Responding to Times questions, Energy and Resources Minister Gerry Brownlee dismissed Mr Tegg's calculations as "fanciful and misleading".

 
Oh dear - back to school for you gerry