The Central Otago farmer who sold his land to an Australian mining company is now advertising the same land for sale.
In a stock market announcement on July 3, Santana said it had a “binding agreement” with landowners Bruce and Linda Jolly to buy Ardgour Station for $25 million subject to fast-track approval of the mine. It also announced that most of the mine infrastructure would sit on the land.
However, a Trade Me advertisement, dated a week ago, says the sheep and beef farm has a “stocking capacity” for 9700 and also “horticultural development potential”.
The ad says the north-facing land offers “breathtaking elevated views of the Lindis Crossing and Pisa Range” and opportunities to buy a high-country station at the heart of Central Otago are “extremely rare”.
Santana’s announcement in July had said its purchase was subject to approval from the Overseas Investment Office (OIO), but did not mention a rule requiring land to be advertised to New Zealand buyers first.
An OIO information sheet says anyone selling farm land “must ensure it is offered for sale to New Zealanders on the open market before entering into an agreement with an overseas buyer”.
Overseas buyers cannot submit applications to the OIO for consent to buy if land has not been offered for sale on the open market.
Despite the sale agreement more than two months ago, a Land Information New Zealand spokesperson said no applications had been lodged with the OIO by an overseas purchaser for either consent to buy Ardgour Station or for an exemption from advertising farmland for sale, although it was “aware of the potential sale”.
However, an exemption from advertising can be sought, including after a contract has been signed, at the discretion of ministers if “necessary, appropriate or desirable” and if the contract is conditional on overseas investment consent.
It is believed that the back-to-front advertising is likely a tactical move initiated by Santana in case it fails to get an advertising exemption.
The OIO says advertising farm land is a “criterion for consent [to buy land if an overseas buyer] which cannot be satisfied after an application is submitted if the farm land exemption is declined”.
Inquiries about the Trade Me ad are being directed to Anderson Lloyd, the law firm representing the Jollys. Partner Robert Huse said he understood Santana was “working with the OIO on the exemption and consent, including the advertising process”.
Anyone who inquired about the land was being told it was subject to contract and OIO consent “in the interests of transparency”.
Helmores Lawyers partner Rob Anderson, representing Santana Minerals, said the company had been working “closely” with the OIO for months.
The OIO was “well aware of present circumstances”, he said.
Parts of Bendigo Station, where Santana also wants to have its mine and which are next door to Ardgour Station, are also up for sale on Trade Me.
Sustainable Tarras spokesman Rob van der Mark said the retrospective advertising of Ardgour, on top of recent unconsented Santana activity that led to Central Otago District Council enforcement action, was “cavalier” behaviour by Santana that was likely “either due to an ignorance of rules or wilful misintent to put off other prospective buyers and fly under the radar”.
The Jollys, who will receive $5m in Santana shares as part-payment for the land, were invited to comment through their lawyer. A response was not received by deadline.