Government ministers alerted to Bendigo mine land purchase challenge

There’s been a legal challenge, from a New Zealand land buyer, against Santana Minerals plans acquire land that they need for their $4.5 billion Bendigo mine project.

Even though Santana says agreement has been reached with land owners, those transactions still have to be approved by the Overseas Investment Office.

Now official documents have been released under the Official Information Act by Land Information New Zealand (LINZ) after an Auckland law firm, representing an unnamed NZ buyer, challenged Santana’s proposed land purchase as NZ buyers (including their client) had (they claim) not been given first option - as required by special farmland sale legislation.

The law firm forwarded their Overseas Investment Office legal challenge to David Seymour, Deputy Minister of Finance and Shane Jones, Minister for Resources specifically referring to Ardgour station.

Ardgour station owners Linda and Bruce Jolly - offered $25 million by Santana Minerals. Image: Hortinvest.

Now a potentially messy and heated legal exchange is underway that could threaten Santana’s Bendigo mine project.

The law firm includes in their challenge to the Overseas Investment Office and Ministers Seymour and Jones, specific legal claims against Santana’s proposed purchase.

The dispute is likely to be complicated by certain, limited exemptions to the farm land advertising requirement.

Crux has approached Santana Minerals and the Auckland law firm for comment.

Mine opposition group Sustainable Tarras, released the following statement after reviewing the Offical Information Act documents published on the LINZ website.

“The move by Santana and the station owners to block discussion with a proposed New Zealand based buyer is not putting New Zealand first.

“Santana claims to be acting in the interests of New Zealanders but at the same time it is an Australian company which is denying a 100% NZ owned company the opportunity to discuss a sale or even a collaboration.

“This would yet again put New Zealand in the position of losing a significant land asset and missing out on potential tax revenue to an overseas company. And it puts into question what other backroom deals and secretive discussions are taking place. It smacks of predetermination and flies in the face of democracy.

“If this fast-track mine goes ahead, the long-term, intergenerational consequences will sit with ratepayers and taxpayers - at huge social and financial cost. So it’s incredibly important that everything is discussed, negotiated and decided transparently.

“The fast-track process should not be a rubber-stamping exercise. And it should certainly not be characterised by secret arrangements, redacted documents, back-room deals and public excluded discussions.”

The Overseas Investment Office has not yet decided whether to give Santana a green light for their NZ operations and land purchases - and the decision stands independent from the Government’s Fast Track consent process.