DecisionConsent granted
Section 12(a) Overseas Investment Act 2005
Decision date28 April 2011
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of a freehold interest in 999.4218 hectares of land at 715 Hyde/Macraes Road, Otago.
Consideration$880,000
ApplicantOceana Gold (New Zealand) Limited
Canadian Public (49.87%)
Australian Public (46.17%)
New Zealand Public (3.13%)
Various, Various (0.83%)
VendorStephen Brian Holland, Margaret Michelle Holland and Brian Patrick Hailes as trustees of the Flat Stream Trust
Brian Patrick Hailes, New Zealand (34.0%)
Stephen Brian Holland, New Zealand (33.0%)
Margaret Michelle Holland, New Zealand (33.0%)
Background

The Applicant operates Macraes Mine. In order to operate the Macraes Mine processing plant the Applicant, pursuant to a water right, extracts water from the Taieri River via a pipeline that runs over several properties, including the property that is the subject of this application for consent. An ancilliary mining licence under the Mining Act 1971 provided the Applicant with a pipeline easement to convey water over those properties.

CONFIDENTIAL

In the short term the land will be leased out for farming. In the medium term, after the Applicant has upgraded the pipeline and created a registered easement to carry water the Applicant will be selling the property.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(i) – Creation/Retention of jobs
17(2)(a)(vi) – Increased processing of primary products

Overseas Investment Regulations 2005
28(a) – Consequential Benefits
28(e) – Previous investments
28(g) – Enhance the viability of other investments

More informationLesley Brook
Anderson Lloyd Lawyers (Dunedin)
Private Bag 1959
DUNEDIN 9016