CADIA Valley Operations and Orange City Council are locked in high-level negotiations as both parties disagree over a proposed new agreement forcing the mine to pay top dollar for the city’s treated effluent.

For the last ten years the mine has taken up to eight mega litres of effluent each day at minimal charge as part of a decade-old agreement reached when the mine first set up in Orange.

While the 1998 agreement was seen at the time as a sensible solution for both parties, the effluent has since grown in value due to water shortages in the region.

It could be sold for as much as $300 per mega litre.

Based on current usage levels, a new deal could give Orange ratepayers a financial windfall of almost $1 million each year.

However the Central Western Daily understands mine management has disputed the original agreement terms and is unwilling to pay for the treated effluent.

The original 1998 contract specified Orange council give the effluent free for the “lifetime of the Cadia Hill Goldmine”, estimated at the time to be 12 years.

Under those conditions Cadia would only get the treated effluent free until 2010.

However, it is understood Cadia believes the contract covers the lifetime of the entire Cadia Valley operation.

The mine argues the water should continue to free potentially for a further 30 years beyond 2010.

Council staff on Friday confirmed negotiations were taking place but were unwilling to comment any further on the negotiations.

Mayor John Davis broke the silence on Friday saying it was a case of “playing hardball”.

“Well, the mine is probably playing hardball as they can, which is fine, but we (Orange City Council) will play the game just as good too,” Cr Davis said.

“I do firmly believe we will certainly be able to come up with a successful outcome suitable to both parties.”

Cr Chris Gryllis also confirmed discussions were underway but did not expect council would instigate a major stoush with the city’s biggest employer.

“I’m not aware of the fine print of the agreement but I would say agreements are signed not as autographs but as official documents that both parties should adhere to.

“Though saying that, I am quite confident the situation will be resolved without a dispute between council and Cadia.”

The mine’s community relations manager, Nedra Burns, on Friday gave the CWD a brief comment confirming negotiations were taking place.

“Preliminary discussions between Cadia and Orange City Council have taken place and we have both gone away to seek advice on the terms of the agreement and are looking at further discussion in the future,” she said.

“We are certain the situation will be resolved in the best interests of both parties.”

l Have your say - Should Cadia mines pay for Orange’s treated effluent beyond 2010? Email bevan.shields@ruralpress.com with your thoughts.