Monday, 24th July 2006 (3116 views)

The gold industry is set to give the New Zealand town of Reefton a much-needed economic boost.

According to local people the community has had a hard time recently, TVNZ reports. But the recent increase in the price of gold and the opening of the Globe Hill gold mine, together with a new coal mine, is set to give the area a shot in the arm.

"The town has been waiting for a long time for this project and it's a good time to start, with gold prices high," said Gareth Thomas of operator Oceangold.

Gold was originally discovered in a quartz reef located near Reefton in 1866, resulting in a brief gold rush, which eventually tailed off.

Now the mining developments are bringing new jobs to the area, as well as leading to a small-scale building boom that has seen a spate of new houses built so far this year. House prices are also on the up.

"Old houses that were selling for $30,000 two years ago are $130,000 now," said local councillor Bert Waghorn.

 

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