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Critics told a public inquiry into a Sperrins mining project that projected billions in value and hundreds of jobs may not translate into meaningful local benefit.
A council representative said the economic benefits promised by the proposed Dalradian goldmine were “like candy floss”, as concerns mount over delays and a possible third postponement of the inquiry.
According to Dalradian’s most recent estimation, the mining project would be worth between £21 billion and £26 billion. It would create between 325 and 425 well-paid jobs, the company claims, for an area of west Tyrone where they have historically been scarce.
But Keith Burge, appearing at the inquiry on behalf of Fermanagh and Omagh District Council (FODC), was one among a number of opposition voices who raised concerns over these figures yesterday.
During the morning session, he said of the mining proposal: “It appears to be quite impressive and tastes sweet for those doing so, but it lacks substance…the economic benefits that are accruing locally are very much smaller [than overall ones]."
Conor Fegan, a barrister acting for the council, echoed this comment. Mr Fegan said a key concern for the council where these plans are concerned is “the absence of local benefit and the absence of benefit registering at the local level and, indeed, at Northern Ireland level”.
Their submissions were heard in Omagh by the Planning Appeals Commission (PAC), which will produce a report for Stormont decision-makers over Dalradian’s application to extract around 100 tonnes of gold from a site near the Greencastle parish.
The North American company would also seek to mine almost 50 tonnes of silver and 15,000 tonnes of copper from the Currinaghalt seam through a scheme with a project lifespan of between 20 and 25 years.
Price spikes
The inquiry heard this week that the project’s overall valuation had been inflated in part due to fluctuations in the price of gold.
These fluctuations have been driven by a series of geopolitical shocks since Dalradian first submitted its planning application for the mine in 2017.
The PAC was warned by FODC’s representatives not to place undue emphasis on Dalradian’s investment promises for west Tyrone, calculated largely through Gross Added Value (GVA), an economic metric measuring the value of goods and services produced in an area.
Instead, Mr Fegan argued, it should look at such figures “holistically”.
This was especially true, FODC’s representatives argued, since the GVA numbers had risen due to spikes in the price of gold following a series of geopolitical shocks, including the 2022 invasion of Ukraine and the US’s recent assault on Iran.
“A large part of the GVA increase is because of the increase in gold prices,” said Dalradian’s economist Andrew Hunt.
He added: “That’s not the entirety of the benefits – there’s 350 well-paid jobs. GVA is important because policy tells us it’s important. GVA is how we measure economic growth.
“It is an important policy aim of all levels of government to which the project will make an enormous contribution.”
FODC argued that the mining project’s benefits – including profits and targeted investment from foreign investors – would likely not accrue in the local area.
In response, Mr Hunt said “we have policies to promote Foreign Direct Investment”, adding “there isn’t a policy about repatriation of profits and where profits flow”.
Mr Burge told the PAC that Dalradian’s planning application “misrepresents the intent of policymakers” in terms of its economic arguments.
But Dalradian’s economic advisor said the mining project was, on the contrary, in line with Westminster policymakers’ objectives – in particular, its pledge to grow the overall economy.
"Policy is very clear,” Mr Hunt said. “Economic growth is a primary policy of the UK government.”
He highlighted that “the GVA is not the ‘be all and end all’ of our [economic] case. We’ve tested a wide range of gold prices to check the viability of the project.”
An inquiry Commissioner asked the Department of Infrastructure (DfI), which will make the ultimate call on Dalradian’s application, whether GVA would be “decisive” or not.
A representative for the department replied, saying: “I don’t think I can give a definitive answer on that now because DfI will come to a decision – I wouldn’t want to predetermine that now.”
Job creation
Another key question examined yesterday was that of Dalradian’s job creation claims.
FODC and third-party objectors challenged Dalradian’s job creation figures and questioned whether the project might negatively impact existing employers in the local area.
Mr Burge argued that other local employers could see their workers “poached”. The alternative, he said, is that Dalradian would seek to recruit workers from “elsewhere, including beyond Northern Ireland”.
Mr Hunt told the inquiry that Dalradian’s “policy is to create jobs” and that the mining scheme “will not be disruptive”, adding: “This is a single project with relatively high wages but this represents less than 1% of existing jobs within” the council area.
A number of third-party objectors pointed to what they said was Dalradian’s shifting job creation claims, questioning the widely-cited 1,000 total figure which includes jobs indirectly created by its proposed mine.
One such objector, Pat Haughey, told the inquiry Dalradian’s job creation claims were a “mov[eable] feast”.
Mr Haughey claimed that another gold mining firm in Omagh, Galantas, has struggled to recruit local workers for its extraction scheme. He said Galantas’ project was “a small mine, compared to what’s happening over here.”
But Dalradian told the PAC that considerable planning had been carried out into the employment dimensions of the proposed mine and that there was an appetite for the jobs tied to its scheme.
“There’s a huge amount of work that’s gone into workforce planning and into how the vacancies can and will be filled,” Mr Hunt said. “We’ve had some 5,000 expressions of interest”.
A DfI official interjected at this point, saying the figure was “closer to 4,300”. Mr Hunt pushed back against the official, saying it’s now “closer to 5,000”.
Dalradian did not contest the estimation that around 80% of the more technical “specialist” technical jobs will require workers from elsewhere.
Mr Hunt told the inquiry jobs and economic value “will not leak out of the area”. He said that “the wages will go to people living in the area”, which includes those moving to the area to work at the proposed mine. “The spending will happen in the area.”
He also said Dalradian would be investing in training, highlighting that there would be a “higher [degree of] training” at the outset of the project’s lifespan “that will decline over time”.
But local resident Fidelma O’Kane argued that “the majority of the training cost falls onto the public purse”.
She said that Dalradian’s training would likely be “outsourced” to the South West College, where she said she was formerly a lecturer.
Further collapse
The session concluded with the voicing of concerns over the ongoing absence of clear scheduling of the public inquiry.
A number of parties opposed to Dalradian’s mining plans told the inquiry a lack of a timetable has created significant barriers to public participation and may mean a further postponement is required.
The inquiry has already collapsed twice owing to Stormont departments’ administrative shortcomings, which have included the failure to consult with relevant authorities in the Republic of Ireland about the proposed mine’s cross-border impacts.
It is currently expected to run for around 10 weeks, although Commissioners noted yesterday that proceedings are currently running behind schedule.
The inquiry has now entered its fifth week. But, with no clear timetable for proceeding having been provided, a number of interested parties threatened to apply for a further postponement, citing alleged procedural unfairness, an alleged drain on public resources and concerns that further delays may impact the public’s ability to take part meaningfully in the inquiry.
Mr Fegan told the inquiry: “It does have implications as to the fairness of these proceedings and it certainly has implications as to the [expenditure of] public resources and to third parties [participation]. And the longer the delay is occasioned, the greater the impact it’s having."
"For the council, it’s having very significant, real and prejudicial implications”, he added.
He said that certain witnesses were being "left in abeyance" and risked being unable to attend the inquiry.
Although the adjournment application would be a "last resort" option for the council, Mr Fegan said “It’s looking increasingly likely that that’s where we may end up if this is not resolved as a matter of urgency”.
A third-party objector Mr Haughey told the Commissioner that the lack of a timetable may impact his ability to continue taking part if it means proceedings run into late June or even July.
Another third-party objector, Martin Tracey, meanwhile said there were “explosives specialists” whose attendance may be impacted by the delays and the lack of clear scheduling.
The issue of explosives handling and wider policing at the Currinaghalt site have already been subject to some public controversy.
These issues are due to be considered at some length during a later stage of the inquiry.
The inquiry continues.
Tommy Greene is an investigative reporter