Overseas Investment Office spotlight on Bathurst Coal after discharge conviction

Sunday, 26 January 2020

Bathurst is the largest specialist coal company in New Zealand.

A coal mining company is being scrutinised by the agency that vets land purchases by overseas companies after it was convicted of an environmental offence.

Bathurst Coal, a subsidiary of mining giant Bathurst Resources Ltd, was convicted and fined $18,000 in November for an unauthorised discharge from its mine in Coalgate, Canterbury, into a nearby stream.

The unintentional discharge breached the terms of its resource consent and resulted in sediment-laden stormwater running into Bush Gully Stream, which forms part of the habitat of the threatened Canterbury mudfish, or kōwaro.

Notes from the sentencing show the company – which pleaded guilty to the charge – sought to be discharged without conviction, arguing a conviction might affect its ability to get Overseas Investment Office (OIO) approval for future sensitive land purchase.

* Bathurst Coal buys land to expand mining for dairy factories

* The coal mine and the endangered mudfish**

The critically endangered Canterbury mudfish is restricted to small number of streams in the region.

The OIO considers a good character requirement as part of its decision-making process. Bathurst Coal, which is majority overseas owned, submitted the condition was an ongoing requirement, and if it was not complied with the company might be required to sell property.

In a statement, a spokesman said the OIO was aware Bathurst Coal had been convicted and fined for breaching the Resource Management Act.

'We are considering the implications of the conviction and sentence. We cannot say anything further at this stage.'

Environmental group Forest & Bird has called for the OIO to intervene and take action against Bathurst, which has been issued with 27 infringement notices in the past.

There was 'no question' Bathurst had failed good character test and 'should be shown the door', Forest & Bird Canterbury and West Coast regional manager Nicky Snoyink said.

Bathurst Resources chief executive Richard Tacon said the company had gone through an alternative justice process with Environment Canterbury at a cost of $40,000.

The impact of coal mining at Canterbury Mine was discharges to freshwater of small quantities of sediment runoff, he said. 'We consider their effects on kōwaro to be no more than minor.'

While the prosecution was taking place, Bathurst Coal applied for and received consent from the OIO to purchase a 31 hectare property with Bush Gully Stream running through it near the mine. The OIO was kept fully informed of the prosecution, Tacon said. The company planned to initially use the land for infrastructure such as offices and a laboratory.

Bathurst Coal expected to complete the purchase of the property in March 2020, and as part of the OIO process it had offered to fence off the stream and replant the area with natives. The company also agreed not to mine within 20 metres of the mid-point of the stream, to covenant the area in perpetuity and provide for public access.

Tacon said Bathurst Coal would carry out stream monitoring every three months and provide the results to the OIO.

He did not respond to questions about what potential impact the conviction could have on future OIO approvals, or current land-holdings. While there were other landowners in the area, Tacon claimed Bathurst Coal had received by far the most scrutiny about their impacts on the mudfish habitat.

'We have gone to great lengths, and will do what we reasonably can in future, under regulation and voluntarily, to protect and enhance kōwaro habitat. We are proud to be able to contribute. We welcome others to join us in this important kaupapa.'