Coromandel Watchdog are publicly questioning Newmont Mining Corporation's intentions to sell off its Waihi gold mining operations.

Newmont announced this week it has signed a non-binding ‘Letter of Intent' to sell its operations to multinational company OceanaGold Corporation for $132 million.

Anti-mining group Coromandel Watchdog. Photo: Sylvie Boutelje-Chasteau

But Coromandel Watchdog spokesperson Ruby Powell says Newmont's intention highlights the uncertainty of the gold mining industry.

'One day Newmont is trying to convince everyone that they are a part of our community,” says Ruby, 'and the next they are selling up and leaving behind thousands of tons of toxic waste and an unsure future for the town.

'Whilst business will continue as normal, initially there is no guarantee whether OceanaGold will restructure the company in the future, whether jobs will be cut or how the affected members of our community will be treated.”

OceanaGold would acquire the business by purchasing Waihi Gold Mining Company Limited, which is the New Zealand holding company for Newmont's Waihi operations.

The sale will be subject to approval under the Overseas Investment Act 2005 and a decision is expected to take between 60 and 90 days. Once obtained, completion of the sale will most likely occur after July 2015.

Newmont Waihi Gold general manager Glen Grindlay says employees would continue to be employed by the same company, Waihi Gold Company Ltd, but with new owners.

'All of our current existing New Zealand contracts will be transferred directly to the new owners of the company,” he explains.

'This includes the smaller contracts we have with local businesses and the large contracts we have with companies such as Macmahon, Leighton and Boart Longyear.”

All consent conditions would remain the same, while closure bonds and conditions set by local regulators would also remain in place.

Coromandel Watchdog remains sceptical of what the sale will mean for the environment and the community.

'I guess what is on everyone's mind here is will the devil we don't know be any better than the devil we do?” asks Ruby.