March
2001 decisions
Carter Holt buys
Kawerau Pulp Mill from Norske Skogindustrier Rubicon buys Challenge Petroleum and Trees and Technology
from Fletchers Sky City buys Force Corporation QBE Insurance buys HIH’s New Zealand operation Juken Nissho buys more land for its Kaitaia mills Highland Timber, U.K., buys further 1,182 hectares in
Waikato and Waitomo Woollastons Estates buy more land in Nelson More land for Martha Mine, Waihi More land for Earnscleigh Gold Project, Otago U.K. resident buys land to expand Glentui Camp, Canterbury
Carter Holt buys Kawerau Pulp Mill from Norske SkogindustrierCarter Holt Harvey Ltd has approval to acquire the Tasman Pulp Mill at Kawerau, Bay of Plenty from Norske Skogindustrier ASA of Norway, for a suppressed amount (but see below). Norske Skogindustrier bought the Tasman mill when it took over Fletcher Paper in 2000 (see our commentary on the OIC’s May 2000 decisions). CHH is 51% owned by International Paper Company Ltd of the U.S.A., 5.12% by Franklin Resources Inc of the U.S.A., 5.11% by Dellaware International Advisors Ltd of the U.K., and 5% in small shareholdings in Australia. A further 13.77% is overseas owned, leaving only 20% of the shares owned in Aotearoa.
CHH applied for Commerce Commission approval for the purchase in January 2001. Announcing the application, the Commission proclaimed that the proposal involved “two of the world’s biggest forestry companies” – Norske Skog and International Paper (“Carter Holt Harvey applies for clearance to acquire Norske’s Tasman pulp mill”, Commerce Commission Media Release 2001/8). In its decision clearing the sale (decision number 424), the Commerce Commission noted:
CHH is New Zealand’s largest forest products company and its largest pulp and paper producer. CHH is listed on both the New Zealand and Australian Stock Exchanges and has substantial interests in forests, wood products, pulp and paper, tissue, packaging and building products. Its business groups include CHH Forests, CHH Pulp & Paper, CHH Wood Products, CHH Panels, CHH packaging, and CHH Tissue. CHH Pulp & Paper owns the Kinleith kraft pulp mill at Tokoroa. It also operates a paper mill at the Kinleith site, as well as a cartonboard plant at Whakatane and a paper recycling operation at Penrose.
It described Norske Skog as follows:
Norske is the second largest newsprint producer in the world. The company is based in Norway and is listed on the Oslo Stock Exchange. Norske operates 21 mills in Europe, Australasia, North America, South America, and Asia. Norske purchased Fletcher Challenge Paper in July 2000, now making it the leading supplier of newsprint in Asia, South America and Australasia. In New Zealand, in addition to the Tasman kraft pulp mill, Norske operates a mechanical pulp plant as part of its paper mill, which satisfies the majority of its pulp requirements. The paper mill supplies all of New Zealand’s newsprint.
As to the Kinleith and Tasman mills:
The Kinleith and Tasman kraft pulp mills are the two main suppliers of pulp, and the only suppliers of kraft pulp, in New Zealand. There are also a number of mechanical pulp mills, such as the Pan Pac pulp mill near Napier, the Winstone International pulp mill near Ohakune, and the CHH mechanical pulp mill at Kawerau (integrated with CHH Tissue). As noted above, Norske Skog also operates a mechanical pulp mill at Kawerau.
The purchase therefore gives CHH a monopoly over kraft pulp supply in Aotearoa, and domination of pulp supply in general. The Commission also notes there is very little pulp imported into Aotearoa (p.20), and most of the pulp production is exported. Even though imported kraft pulp would be more expensive than that manufactured in Aotearoa (and the two companies have raised their prices to this level!), and is rarely imported, the Commission concluded that imports provided sufficient competition:
Although there is no evidence of significant volumes of imported kraft pulp into New Zealand, domestic prices appear to have been set at or close to import parity, and this is likely to act as a competitive constraint on the combined entity.
The Commission looked at seven markets affected by the takeover: production and supply of · market kraft pulp (excluding fibre cement pulp) in New Zealand · market kraft fibre cement pulp in New Zealand · bulk liquid chlorine in New Zealand · hydrochloric acid in New Zealand · sodium hypochlorite in New Zealand · crude sulphate turpentine and crude tall oil in New Zealand and purchase of pulp fibre in the central North Island.
In summary, while the Commission acknowledged that “the proposal would leave CHH with large market shares in all seven markets”,
However, after extensive interviews with 13 major companies in the markets, independent sawmills and downstream users including users of packaging materials, the Commission concluded that, in this case, large market share would not equate to dominance. Pulp products are traded internationally in large quantities. In general terms, the factors preventing dominance in New Zealand markets are the ability of CHH customers to import products, the ability of CHH suppliers to export products and, in some markets, the countervailing power of customers or suppliers.
Late in March, CHH announced it had bought the Tasman mill for $311 million. It aimed to extract $20 million in savings from operating the two mills, which are only 80 km apart as the crow flies, without job losses. Norske Skog will still own and operate the paper making operation at the mill. (Press, 27/3/01, “CHH sees savings in Tasman mill buy”, p.12.) Rubicon buys Challenge Petroleum and Trees and Technology from FletchersRubicon Ltd, the technology (or perhaps more accurately, leftovers) child of the breakup of the Fletcher Challenge group, has approval to acquire a number of the assets it was bequeathed. That it requires approval is interesting in itself: like the Fletcher empire at its end, Rubicon is largely overseas owned. Indeed its shares have been issued to existing Fletcher Challenge Energy shareholders. Only 37% of Rubicon’s shareholding remains in Aotearoa. The rest is made up 39% in the U.S.A., 10% in Australia, 9% in the U.K., and 5% in Singapore.
First, it is acquiring Challenge Petroleum Ltd, the competitor to the major oil companies in Aotearoa. A competitor perhaps, but not a New Zealand one. The price is “to be advised”. Rubicon is acquiring it from the new owner of most of the old Fletcher Energy, Shell Corporation Ltd, B.V, which bought Fletcher Energy in a joint bid with Apache Corporation. Shell owns these assets through Energy International Holdings Ltd which is 60% owned by Royal Dutch Petroleum Company (N.V. Koninklijke Nederlansche Petroleum Maatschappij) of the Netherlands, and 40% by Shell Transport and Trading Company of the U.K. Challenge owns 2.8 hectares of land at Omata Tank Farm, Centennial Drive, New Plymouth, Taranaki and 2.2 hectares of leasehold land at Timaru Tank Farm, corner of Dawson and Hayman Streets, Timaru, Canterbury. For details of the sale of Fletcher Energy, see our commentary on the October 2000 decisions.
Despite claiming to the OIC that the acquisition of Challenge Petroleum will produce exceptional results such as that it
(a) is likely to achieve cost efficiencies and other synergies within the Challenge retail business; (b) allow a strong shareholding interest to generate significant confidence in the Challenge brand to continue to compete in the retail petrol stations and related fuel terminals; (c) enable financially viable investment in the petroleum retail sector in general; and (d) provision of continued consumer choice and improved customer service with the backing of Rubicon’s knowledge-based technologies;
in fact Rubicon quickly put it on the market. In June, the Commerce Commission approved its sale to Caltex, the smallest (by local market share) of the four major oil transnationals in Aotearoa. It was sold for about $50 million. Rubicon had paid $20 million for both it and a Brisbane fuels terminal – which it had earlier sold for $23 million (Press, “Sale boosts Rubicon”, 29/6/01, p.14).
Second, Rubicon is acquiring the Tree and Technology business of Fletcher Challenge Forests Ltd (FCF), again for a sum “to be advised”. This includes
·
122 hectares of freehold land and 26 hectares of leasehold in the Bay
of Plenty; and
·
12 hectares of freehold and 34 hectares of leasehold in the Wairau
Valley, Marlborough.
Rubicon is also acquiring the following assets from FCF, which include genetic engineering projects: FCF’s
· 31.61% interest in ArboGen LLC, a forest bio-technology joint venture with International Paper and Westvaco; · Radiata and Eucalyptus clonal development business; · 2.95% shareholding in the Genesis Research and Development Corporation, a New Zealand publicly listed company (which engages in medical and pharmaceutical research and development); · South American forests and operations.
Fletcher Challenge Forests, which is all that is left of the Fletcher Group, is owned 37% in Aotearoa 27% by the Credit Suisse Group of Switzerland 20.7% in small holdings in the U.S.A. 7.9% in the Xylem Fund II, L.P. of the U.S.A. 4.1% in small holdings in the U.K. 2.2% in Australia 1% in Japan 0.1% in Canada Sky City buys Force CorporationIn an expansion and diversification of its entertainment interests, Sky City Ltd has approval to purchase one of New Zealand’s two main cinema owners, Force Corporation Ltd. The price is recorded by the OIC as “51.19% for $19,531,061”. However the percentage is probably a misprint for 50.19% because in fact Sky City only purchased the 50.19% owned by the Francis Family Trust, the holding company for Force’s principal, Peter Francis. Of the remaining shares, 15.01% are owned by the Disney Family of the U.S.A. through Shamrock Holdings, the Californian company which tried to take control of Brierley Investments in 1998. Shamrock is controlled by the family of Roy E. Disney, a nephew of Walt Disney (Press, 20/7/99, “Shamrock buys into Force”, p.27). The remaining shares are in small shareholdings, with AXA, the next biggest shareholder, owning about 6% (Press, 21/3/01, “Force Corp’s sales not from market stand”, p.31).
Force owns the Force Entertainment Centre on 0.46 hectares of land at 291-297 Queen Street, Auckland, just two blocks from Sky’s Auckland casino. It is part of Village Force, a joint venture between Force Corporation Ltd and Village Roadshow Ltd of Australia, which owns and operates 12 cinema complexes in Aotearoa including 72 screens (Press, 15/2/01, “Sky City bid for Force a shock”, p.10). Its main rival is the Kerry Packer controlled Hoyts (with which it tried to form a joint venture in 1999-2000), and together they control about 70% of the New Zealand market. Force has been in financial trouble, with its cinemas in Aotearoa, Argentina and Fiji having continuing problems. An attempt to merge with Internet provider ihug failed in 2000. Force also had problems with the commercial authorities, including a court case taken by the Commerce Commission over its joint venture with Hoyts, and an investigation by the Securities Commission into insider trading. See our commentary on the September 2000 OIC decisions for details.
In contrast, Sky City has what one commentator called a “river of cash”, though it is heavily in debt as a result of its purchase of Adelaide casino (see below) with negative shareholders’ funds (Press, 20/2/01, “Record $33.2m half for Sky City”, p.12). In its 2000 financial year, “Sky City’s 2000 EBITDA [Earnings Before Interest, Tax, Depreciation and Amortisation] ratio of 48% was significantly higher than was achieved by the listed Australian casino companies which were in the 20% - 30% range.” It gives its shareholders the option of receiving their dividends in shares, making even more funds available for expansion. It has expanded with increasing rapidity.
In 2000, its subsidiary, Sky City Australia Pty Ltd, was the successful bidder for the Adelaide Casino. Sky City is in a joint venture with Skyline Enterprises of Queenstown (Sky City 60%, Skyline 40%) in Queenstown Casinos Ltd which opened the small (9 gaming tables, 70 gaming machines) Sky Alpine Queenstown Casino in December 2000. Sky City is also a 55% owner of Riverside Casino Limited with Hamilton company Perry Developments Limited (30%) and Tainui Development Limited (15%), owned by Waikato iwi Tainui. The controversial 20 gaming table, 300 gaming machine Hamilton casino is expected by Sky to open in July-August 2002, after protracted court battles by locals to stop it. In January 2001, Sky City took a 33% shareholding in the Australian on-line betting company, Canbet Ltd. In March it sought Casino Control Authority approval to expand its Auckland casino. And now Force’s cinemas (see http://www.skycity.co.nz/corporate/8-1_corporate.html).
The price Sky paid for Francis’ shareholding – 25 cents a share – reflected Force’s desperate situation. Sky’s offer was to all shareholders (valuing the company at $38.7m), but was below Force’s pre-offer share price. Force’s independent directors recommended against accepting the offer, anticipating a counter-offer – which never arrived. Francis preferred the Sky City offer anyway and sold his shares, obviously keen to get out (Press, 7/3/01, “Lukewarm answer to Force bid”, p.33; 10/3/01, “Control of Force goes to Sky City”, p.23). Sky continued its 25 cent offer to other shareholders, but there were no takers with sharemarket prices still at 26-27 cents and shareholders apparently happy to see Francis depart (Press, 21/3/01, “Force Corp’s sales not from market stand”, p.31).
According to the OIC, Sky is owned as follows:
QBE Insurance buys HIH’s New Zealand operationIn a product of the spectacular failure and provisional liquidation of HIH Insurance Ltd of Australia, its rival, QBE Insurance of Australia, is buying its operations in Aotearoa and merging them with its own. The price is “to be advised”.
Two approvals are given. In one, QBE Insurance (International) Ltd, a subsidiary of QBE Insurance Group Ltd of Australia, has approval to acquire the operations and assets in Aotearoa of HIH Casualty and General Insurance (NZ) Ltd and HIH Premium Funding (NZ) Ltd, and to acquire HIH Workable Ltd. In the second, a joint venture, QBE Trade Indemnity Ltd, which is 60% owned by QBE Insurance Group Ltd and 40% by HIH Insurance Ltd, has approval to acquire the operations and assets in Aotearoa of the QBE group from QBE Investments (New Zealand) Ltd.
However, events moved too fast. The joint venture was announced in early March (e.g. Press, 8/3/01, “Insurance venture”, p.13) after HIH was suspended from the Australian Stock Exchange on 27 February because it was unable to state the size of its second-half loss (Press, 14/3/01, “HIH to seek sell approval”, p.26). But HIH formally collapsed on 16 March. A day after it received OIC approval for the joint venture (26/3/01), QBE announced that it was pulling out of the deal and taking over HIH’s whole operation in Aotearoa, but only its travel liabilities in Australia (Press, 28/2/01, “QBE pulls out of HIH deal”, p.27). This makes QBE the fourth largest insurer in Aotearoa (Press, 19/5/01, “HIH NZ to QBE Insurance”, p.22).
New Zealand is fortunate to miss the HIH spectacle that Australians are experiencing. Bruce Baskett in the Press (21/5/01, “Cleaning up the HIH mess”, p.20) described it as follows:
“In the annals of corporate disasters, the collapse of HIH Insurance is the big one in this part of the world… The mess is overwhelming, and the ramifications for the insurance industry, the regulators, the Government, and eventually the taxpayer are still not fully known, but it is a Grade 1 disaster.”
He estimated losses totalling $A4-6 billion. HIH was the second largest insurance company in Australia, and focussed (as it did here) on the corporate and professional indemnity markets. “Houses are being left half-finished, lawyers are pulling out of cases for fear they will not get paid, and surgeons are postponing operations until their position is clear.”
HIH was the result of a merger and takeover binge which was probably fatal. Though HIH reported a 112% increase in first-half earnings in 2000 and nearly $1 billion in assets, there were concerns that it had not enough capital to meet regulatory requirements, and the provisional liquidator has found the state to be considerably worse. Australian State and Federal governments are busy bailing out the company’s policy holders.
“Apart from end-of-year parties for staff that were among the most lavish in Australia’s corporate world, HIH was a generous donor to the Liberal Party, and the FAI group [which HIH took over in 1998], through its chief executive, Rodney Adler, was also a big donor.”
It is surprising that HIH has not tried to lay some blame on the New Zealand Government. HIH was a major and enthusiastic participant in the privatisation of workers’ compensation (ACC) under the previous National government, and lost business when ACC was returned to public ownership by the new government. But the continued profitability of HIH’s business in Aotearoa would make that a difficult barrow to push. Instead we should be particularly thankful that the renationalisation of ACC occurred before HIH crashed. Without QBE’s intervention, it was inevitable that its profligate ways would have hit us one way or another – and bring into question the competence of its operation here. Juken Nissho buys more land for its Kaitaia millsJuken Nissho Ltd, which is owned 85% by Juken Sangyo Company Ltd and 15% by Nissho Iwai Corporation, both of Japan, has approval to acquire a further block of land to expand its mills in Kaitaia. It is 15 hectares at Donald Road, Kaitaia, Northland, being purchased for $281,250.
In March 2000, Juken Nissho received approval to acquire 148 hectares of land at North Road, Kaitaia. This adjoined its existing manufacturing operation and was to be used to build a veneer mill and solid wood mill and was to be used to expand its processing capacity. “Due to various resource management consent issues relating to the proposed development of the processing facilities, it has become necessary to acquire the property the subject of this application.” Highland Timber, U.K., buys further 1,182 hectares in Waikato and WaitomoHighland Timber Plc of the U.K. has approval to acquire 1,182 hectares in Waitomo and Waikato from Pacific Pine Forests Ltd of Aotearoa for $3,656,250 for forestry. Some of the land is in native bush. Highland sees this as a further step towards acquiring 40,000 hectares of freehold land or forestry rights in Aotearoa. It already has 1,820 hectares of forests in the North Island and “has the intention to invest in a processing plant in the area once its economies of scale have been achieved”.
Highland has been buying forestry land since 1997. In December 1997 it bought 212 hectares at Wanganui, and 452 hectares at Te Haroto Napier, Hawkes Bay, from Fletcher Challenge Forests Ltd. In May 1998 it bought 259 hectares at Kinleith from Carter Holt Harvey Ltd’s subsidiary New Zealand Forest Products Ltd. Then in September 1998 Highland purchased assets from three companies in receivership. It bought 172 hectares of forestry cutting rights in the Rangitumau Forest, Wairarapa, and three blocks in Manawatu: 86 hectares of forestry cutting rights in Shannon Forest, 208 hectares of forestry cutting rights in Aokautere Forest, the 143 hectare Lake Alice Forest, and the 378 hectare Matauri Mara Forest. In September 2000 the company acquired 134 hectares at Shannon Forest, Horowhenua District, Manawatu for forestry, for $348,750. As with the present purchase, some of the land was in native bush. Other land for forestry· Te Puna Investments Ltd, owned 50% by Ms Laurie Pearson of Aotearoa and 50% by Mr Adam Reynolds of Australia, has approval to acquire 29 hectares at Dolphin Lookout, Purerua Road, Kerikeri, Northland for $900,000 for a lifestyle property and forestry. “Ms Pearson, a New Zealand citizen, could purchase the property in her own name without the need for consent. However, for financial planning reasons it has been decided to use the Applicant to purchase the property. Ms Pearson and Mr Reynolds are the sole shareholders of the company.” · In five approvals, blocks of land at State Highway 22, Te Akau Road, near Ngaruawahia, Waikato, are being purchased by investors from Taiwan from the New Zealand Forestry Group Ltd, which is owned 76% by Wesley Garratt of Aotearoa, and 24% by J. Hong of Taiwan. All purchasers are members of the Brooklands Forest Group, which has “entered into an arrangement with New Zealand Forestry Group to develop approximately 1,200 hectares of land at Ngaruawahia. Currently 138 hectares of land has been afforested”. The sale is like many in this and other regions organised by New Zealand Forestry Group, the last such sale being in January 2001, also in Ngaruawahia, with investors in the Ruakiwi Forest group. The investors provide the money, while New Zealand Forestry Group manages the development of the forestry operation. The investors in this case are:
·
Yung-Fa Lao, acquiring 16.6 hectares for $106,240;
·
Hui-Tien Lai and Yu-Tsu Chang, acquiring 22.8 hectares for $145,920;
·
Chyuan-An Partnership, acquiring 24.7 hectares for $158,080;
·
Wang and Cheng Family Trust, acquiring 18 hectares for $115,200; and
·
Wen-Hao Yu, acquiring 19.8 hectares for $126,720. Woollastons Estates buy more land in NelsonWoollaston Estates Ltd, owned 80% by Glenn Schaeffer of the U.S.A. and 20% by Philip T.E. Woollaston and Carol D. Woollaston of Aotearoa, has approval to acquire a further 8.7 hectares of land at School Road, Mahana, Nelson for viticulture, for $410,635. In January 2001 we reported the same company buying three blocks of land totalling 42 hectares at Mahana and in Upper Moutere, Nelson.
“The Woollastons … are established vineyard proprietors operating the Wai-iti River Vineyard at Brightwater, Nelson. They produce wines under the Wai-iti River Vineyard label. It is proposed that the Applicant [Woollaston Estates Ltd] will become a premium wine grower and estate bottler in the Nelson area. The Applicant intends to compete in the export market for fine wines, principally in the United States.”
For further details and background on Philip Woollaston and Schaeffer, see our commentary on the January 2001 decision. Other land for viticulture· Linden Estates 2000 Ltd, owned by Brenda Lynne Cha of Canada, has approval to acquire three blocks of land at Esk Valley, Napier, Hawkes Bay, connected with the Linden Estate: · 10.7 hectares of leasehold from Linden Estate Ltd of Aotearoa, for $1,350,000 including the “viticulture and winery business” of the company;
·
7.5 hectares of freehold from Van Der Linden Family Trust of Aotearoa
for $350,000; and
·
5.2 hectares of freehold from Linden Estate Trust of Aotearoa for $850,000. Cha intends to expand the current vineyard and winery operation, and build a restaurant for tourists. She also “intends to increase the volume of export sales by establishing contacts with Canadian and American wine brokers, restaurants, and private clubs”. · Nobilo Wines Ltd, owned by BRL Hardy Ltd of Australia, has approval to acquire two adjoining blocks of land at Maraekakaho Road, State Highway 50, Hastings, Hawkes Bay for development into a vineyard in order to expand its grape supply in the region. The price is suppressed in both cases. One of 103 hectares freehold, is being acquired from Ngaruroro Farm of Aotearoa; the other of 19 hectares leasehold is being acquired from the Hawkes Bay Regional Council. · Negociants New Zealand Ltd, owned by Samuel Smith and Sons Pty Ltd of Australia, has approval to acquire two adjoining blocks of land at Rapaura Road, Blenheim, Marlborough, for development into a vineyard. Negociants also has its own “facility” and a contracted winery in Rapaura Road. The two blocks are: · 8.5 hectares for $558,329, from C. D. Broadbridge Ltd; and · 6.9 hectares for $559,466, from O.K. and C.T. Neal.
·
Ross Trustees Ltd, owned by the Tusher Family Limited Partnership of the U.S.A.
has approval to acquire “28.0106 hectares of freehold comprising
12.9 hectares situated at Lowburn, Cromwell, Otago”
(sic) for $930,000 from Amisfield Farm Ltd. Amisfield
Farm Ltd is owned 33% by the same Tusher Family Limited Partnership,
25% each by R.J. hay and J.G. Darby of Aotearoa,
and 8.5% each by West Block Ltd and Karearea Trust
of Aotearoa. The OIC states:
In October 1999, a 50/50 joint venture between the Tusher Family Limited Partnership and R J Hay and J G Darby was granted approval to acquire Amisfield Farm Limited. Subsequently, in October 2000 the Tusher Family Limited Partnership sold 17% of its shareholding in Amisfield to New Zealand interests. Amisfield owned 499 hectares of land north of Cromwell. It was intended to develop the property into a viticultural estate. As part of the development, it was proposed to subdivide the property and market the viticultural blocks to the general public. The property has now been subdivided into seven lots with potential for a further seven lot subdivision. The Applicant [Ross Trustees Ltd] proposes to acquire three of the subdivided lots. The Applicant intends to continue the development of the property into a vineyard that has already been commenced by Amisfield. This is to be achieved by contracting out the vineyard establishment and management work to Lake Hayes Vineyards Limited. It is envisaged that the land will be used for growing grapes for the production of premium methode champenoise. The Applicant also intends to enter into a premium grape supply contract with Lake Hayes Vineyard Limited (“Lake Hayes”) under which it agrees to supply the grapes produced on the property.”
In the October 1999 decision, the Tushers bought their half of Amisfield through their company, Cabo Ltd. The land acquired through Amisfield, for $1,310,000, was described as 499 hectares at “Wakefield District, north of Cromwell, Otago”. They said that “long term grape contracts will be offered to Chard Farm Ltd, a New Zealand company. It is also the intention that Chard Farm Ltd will manage the vineyards on behalf of individual owners of the subdivided blocks”.
Cabo Ltd also owns a 60% share of the 12,173 hectare Wyuna Station at Glenorchy, Queenstown, Otago (of which 30 hectares is freehold and 11,942 hectares is in pastoral lease, though they intended to subdivide some of it), whose acquisition was approved in March 2000, and may also be owners of 20 hectares of land in Blanket Bay on Lake Wakatipu, Queenstown, Glenorchy District, Otago (approved in July 1996). In September 2000, their joint venture sold 20 hectares at Lowburn to Quidnet Ventures Ltd of the U.S.A. for $264,375. Quidnet intended to plant grapes on the land for wine production, under a management agreement with Lake Hayes Vineyard Ltd, which was to carry out all vineyard operations. More land for Martha Mine, WaihiWaihi
Gold Company Nominees Ltd has approval
to acquire a further block of land in Waihi,
Coromandel as a buffer to the extension of its gold mine. It is
0.0831 hectares at 23 Grey Street, Waihi, for $122,500.
Waihi Gold is owned 67.06% by Normandy Mining Ltd, listed in Australia, and 32.94% by AUAG Resources Limited. The OIC shows AUAG owned 54% in Aotearoa, 41% in Australia, 4% in the U.K., 0.5% in France, and 0.4% in the U.S.A. The last such acquisition was in October 2000.
“Waihi Gold Company Nominees Ltd is proceeding with an extension to the Martha Mine that will have the effect of extending the life of the mine for about an additional seven years. This extension involves enabling access to be obtained to ore below the level of the currently licensed pit. To reach this ore it is necessary to bench back (or extend) the perimeter of the existing pit, and the additional land is required for this, and to provide a sufficient buffer between the extended mine and surrounding residential uses. Previous consents have been granted by the Commission for the acquisition of such land. The land the subject of this application is covered by an exploration permit 40-428 held by the joint venture parties and is required to provide a buffer for that area.” More land for Earnscleigh Gold Project, OtagoMintago Investments Ltd, owned 33.34% by Kwok Wai Chiu of Hong Kong, 33.3% by Werner Muller of Switzerland and 33.3% by Geoff London of the U.K., has approval to acquire 19 hectares at Earnscleugh Road, Alexandra, Otago for a suppressed amount. The land will be used to expand the Earnscleugh Gold Project and the company will mine the entire property, requiring removal of an existing building. Mintago is owned by L & M Mining Ltd. The land adjoins the land involved when the OIC approved L. & M. Mining Ltd acquiring the Earnscleugh Gold Project, in November 1999. It achieved this by buying Perilya Mines (NZ) Ltd including 2,608 hectares of land at Earnscleugh,. It bought further land in December 1999. For other purchases by L. & M., see the September 1999 decisions.
For background on Earnscleugh and Perilya, see our commentary on the April and November 1998 and November 1999 decisions. The ownership is actually more complex than the OIC states: L & M/Mintago is owned by Auriferous Mining Ltd. Auriferous is incorporated in the tax-haven, the British Virgin Islands, and is owned equally by three companies. They are Tangent International Ltd whose major shareholder is Werner Muller, Campanie International Holdings Inc whose major shareholder is Kwok Wai Chiu, and Rysaffe Trustee Company (CI) Ltd as trustee for Geoff London. U.K. resident buys land to expand Glentui Camp, CanterburyWilliam Meadows of the U.K. has approval to acquire 28 hectares of land at the corner of Glentui Bush Road and Ashley Gorge Road, Glentui, Oxford, Canterbury for $101,250. According to the OIC,
In 1999, the Applicant [Meadows] purchased the Glentui Camp and Conference Centre in Glentui Bush Road, near Oxford from the Salvation Army. Glentui operates as a conference, accommodation and outdoor education facility. The Applicant advises that the camp was closed several years ago and was in a run down state as the Salvation Army considered it could not be operated in a viable manner. Since acquiring Glentui, the Applicant has expended capital on upgrading the facilities. Glentui has now reached the stage where it can be expanded to pro-vide greater recreational choice. Mr Meadows sees the purchase of the additional land, which is across the road from the existing camp site as assisting the future development of Glentui, and in particular, providing a greater choice of recreational activities available to camp visitors.
We have no record of the 1999 purchase.
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