Applicant
Spring Creek Holdings Pte Limited
Case number(s)
200710048
Decision date
Type
Decision
Decision number200710048
Application number200710039
Date11 May 2007
Offeror/applicantSpring Creek Holdings Pte Limited of United States of America
Ultimate applicant beneficial ownership100 percent - United States of America
Beneficial overseas ownership 
- Asset current0 percent
- Asset proposed100 percent
- Share current0 percent
- Share proposed49 percent
Offeree(s)/seller(s)Solid Energy New Zealand Limited
100 percent - New Zealand, The Crown.
Business activitiesMining - Coal
Details of land involved61.3745 hectares of freehold situated at Spring Creek Mine, State Highway 6, Greymouth. being CTs WS5A/533, 223622, WS5C/1229, WS5C/1230, WS8C/1296, WS2C/52, WS5D/573 and WS5D/1246 (Westland Registry). 18.535 hectares of leasehold situated at Seven Mile Creek Road and Part Rewanui Branch Railway, Greymouth being CTs WS8C/1260 and Parts of Block III Cobden Survey District and Blocks 1 and V Mawheranui Survey District.
Regions involvedWest Coast
Total considerationCONFIDENTIAL
Consent soughtTo acquire an indirect interest in land which, either alone or together with any associated land of that type, is or includes non-urban land and exceeds 5 hectares in area. To acquire 49 percent of the share capital of Spring Creek Mining Company.
Rationale

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

Background
Cargill Asia is a holding company for the business activities for the Cargill Group in the Asia Pacific Region. Its principal activities relate to investment holding, and assisting in identifying investment and trading opportunities for the Cargill Group in the region. The acquisition of the shares and therefore the interests in land is an expansion of the Cargill Group's coal trading business.

Outline of Proposed Investment
The Applicant intends to acquire 49% of the share capital of Spring Creek Mining Company (SCMC) and accordingly will result in the Applicant indirectly owning or controlling interests in sensitive land. Spring Creek Mine Holdings Limited, a wholly owned subsidiary of Solid Energy New Zealand (SENZ) will transfer the capital assets of the mine to SCMC.

Rationale for Proposed Investment
The coal produced by the Mine is of exceptional quality, with rare physical characteristics that make it valuable on the international coal market and will make a strong enhancement to the collection of coal products offered by the Applicant.

With SENZ's considerable experience in coal mining and in marketing New Zealand coal, combined with the Cargill Group's global coal trading experience and connections in related markets, the partnership is seen as appropriate and a necessary move forward for the operation of the business.

ContactDave Trueman
Simpson Grierson
PO Box 2402
WELLINGTON