DecisionConsent granted
Section 12(a) Overseas Investment Act 2005
Decision Date26 July 2017
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of freehold and leasehold interests in approximately 4,337.9433 hectares of land (Land) as follows:
  • a freehold or a leasehold interest in approximately 63.0210 hectares of land at Huntly West;
  • a freehold interest in approximately 15.3892 hectares of land, a leasehold interest in approximately 130 hectares of land and a freehold or a leasehold interest in approximately 230.6255 hectares of land at Maramarua;
  • a freehold interest in approximately 28.2611 hectares of land, a leasehold interest in approximately 9.89 hectares of land and a freehold or a leasehold interest in approximately 901.659 hectares of land at Rotowaro;
  • a freehold interest in approximately 2,349.0978 hectares of land and a leasehold interest in approximately 0.8774 hectares of land at Stockton;
  • a leasehold interest in approximately 378.6321 hectares of land at Tapp Road, Waikokowai; and
  • a leasehold interest in approximately 230.4852 hectares of land at Waikokowai.
Consideration$96,000,000
ApplicantBT Mining Limited
Talley's Group Limited, New Zealand (35.0%)
Singapore Public (19.9485%)
New Zealand Public (14.3%)
Republic Investment Management Pte Limited, Singapore (12.935%)
Australian Public (12.35%)
Asian Dragon Acquisitions Limited, Singapore (4.745%)
Various overseas persons (0.7215%)
VendorSolid Energy New Zealand Limited
New Zealand Government, New Zealand (100%)
Background

The Applicant is a joint venture between Bathurst Resources Limited (Bathurst) and New Zealand-owned Talley’s Energy Limited. Bathurst is the second largest coal producer in New Zealand and currently owns the Buller Coal Project on the Denniston Plateau.

Development of the Buller Coal Project was suspended in 2016 because of poor conditions in the metallurgical coal market. We consider that the Investment (and, in particular, the Stockton Plateau assets) will increase the viability of the Buller Coal Project and increase the likelihood of it proceeding.

The benefits to New Zealand include:

  • increasing the viability of the Buller Coal Project;
  • advancing the Government’s Regional Growth Programme;
  • significant New Zealand participation, including via Talley’s Energy Limited and Bathurst’s New Zealand shareholders; and
  • providing the Vendor’s suppliers, customers and employees with certainty and the ability to plan beyond the immediate future.

Bathurst has previously undertaken investments that have been of benefit to New Zealand, including the creation or retention of jobs and significant expenditure for development purposes.

More informationSam Nelson
Lane Neave
P O Box 701
Queenstown