Overseas investment decision for case 201810058 - Graymont (NZ) Limited

The Applicant’s parent company is based in Canada and is a large worldwide producer of lime and limestone products.  The Applicant currently operates four lime and limestone-based facilities in New Zealand.  

The land being acquired is located adjacent to the Applicant’s Oparure Quarry in Te Kuiti, and is required in order to extend the viability of the Applicant’s existing limestone quarry operations.  

The land contains chemical grade limestone that is accessible near the land’s surface (i.e. reducing the cost and environmental impact of removing large amounts of overburden).  Limestone from the land is intended to be processed into quicklime at the Applicant’s plants in Otorohanga and Te Kuiti.  

The land will enable the Applicant to extend the viability of its business for 20+ years, continue to supply New Zealand businesses over the long-term, increase exports, and create more certainty for its New Zealand employees.   

The land is currently used to graze sheep and cattle. The Applicant’s arrangements with the vendors also provide for the vendors to be able to continue grazing stock on parts of the land not immediately required by the Applicant.  

Likely benefits for New Zealand of the proposed investment include: 

• enhanced viability of the Applicant’s existing operations by extending the quarry’s reserve life by 20+ years;
• retention of existing jobs for New Zealanders, and creation of new jobs due to the Applicant’s plans to grow its business;
• increased export receipts for limestone products;
• increased processing of primary products;
• protection for and enhancement of indigenous vegetation and habitats of indigenous fauna, including the Applicant establishing QEII covenants over 6.5 hectares of significant natural area and the entrance to the Guildford cave; 
• New Zealand industries having increased security of supply of limestone products from a domestic source (e.g. for steel production, pulp and paper production, and water treatment); and
• previous investments that have been or are of benefit to New Zealand.

Once the quarrying is finished, the Applicant’s plans are for the quarry area to be returned to productive farmland with some areas of native planting.