He said the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Bill would make the rules for taxing foreign superannuation simpler and fairer for New Zealanders returning after working overseas and for migrants who have contributed to overseas superannuation schemes before coming to New Zealand.

“The current rules for taxing New Zealand residents on their foreign superannuation are complex and can be difficult to understand.

“For example, a person with an interest in a foreign superannuation scheme might be taxed on accrual under the foreign investment fund rules, while someone else might be taxed upon receipt of a lump-sum payment.

“As a result, some people pay more tax than others depending on how the foreign scheme is structured. This bill provides a much simpler and more even-handed approach,” Mr Dunne said.

Under the proposed changes, the foreign investment fund rules will no longer apply to foreign superannuation schemes. Instead, lump sums from foreign superannuation schemes will be taxed when they are withdrawn or transferred to a New Zealand or Australian scheme.

The amount of tax will depend on how long a taxpayer has been New Zealand resident, using one of two calculation options.

Periodic pensions will not be taxed under either of these methods, but will be taxed in full on receipt, as most periodic pensions currently are.

Mr Dunne said the Government had also taken steps to ensure that transitional and practical matters arising from the proposed new rules were dealt with in the bill so taxpayers would not be disadvantaged. These include:

• Making it easier to meet tax obligations, with those transferring their foreign superannuation scheme interests into KiwiSaver being allowed to make a withdrawal from the KiwiSaver scheme to pay their tax bill.
• Those who complied with the foreign investment fund (FIF) income rules in relation to their foreign superannuation before the introduction of the bill today (20 May 2013) may choose to use the FIF rules in relation to that interest after 1 April 2014.
• In addition, those who have made a lump-sum withdrawal or a transfer to another superannuation scheme between 1 January 2000 and 31 March 2014, but did not comply with their tax obligations at the time, will have an option to pay tax on only 15 percent of the lump sum amount.

The proposed changes to the tax treatment of foreign superannuation are to come into effect from 1 April 2014.

Mr Dunne said these and other measures in the bill were “a continuation of Government’s work in rationalising the tax system”.

He said changes to the mineral mining rules would more closely align the tax treatment of miners of specified minerals such as gold, silver and iron sands with that of taxpayers more generally by removing immediate tax deductions, or in some cases tax deductions in advance, for expenditure that other taxpayers are required to capitalise and depreciate over the useful life of the asset.

“Mining is an important sector, but we must ensure that tax rules do not advantage one sector over another,” Mr Dunne said.

The proposed changes to mineral mining will apply from the beginning of the 2014–15 income year.

Other measures in the bill include:

• clarifying the minimum financial reporting requirements for certain companies
• changes to the tax rules relating to bad debt deductions for holders of debt, to make them fairer
• changes to the general and life insurance business tax rules to ensure they work as intended; and
• further improving the integrity of the Working for Families tax credit provisions.

More information on the changes is available on Inland Revenue’s tax policy website, www.taxpolicy.ird.govt.nz

Two papers – Reviewing the Royalties Regime for Minerals and Taxation of Specified Mineral Mining – have now been released for public consultation. The royalties paper sets out proposals related to Government revenue from minerals, not oil and gas. The tax paper also excludes oil and gas from its proposals, as well as coal.

“Minerals are important to New Zealand’s economy,” Mr Heatley said.

“New Zealanders are generally comfortable with mining so long as it’s done safely and responsibly, with a strong regulatory framework.

“And they know that the royalties and taxes the Crown gets from mining companies pay for hospitals, school and roads. There is real potential for that contribution to grow,” he said.

The royalties review recommends higher royalty rates for large and highly profitable mining operations. However, the new rates would only apply to new permits – existing permits and licences would retain the royalty rate that currently applies.

“The suggested rates in the royalty review would ensure that New Zealand receives a fair financial return from future development of its mineral estate, while keeping New Zealand’s royalty rates internationally competitive, particularly when compared to Australia,” Mr Heatley said.

Revenue Minister Peter Dunne said it was also important that mining companies paid an appropriate level of tax.

The taxation paper suggests more closely aligning the current concessionary tax regime for certain minerals with general tax principles that apply to other forms of investment.

Specifically, the review suggests removing immediate tax deductions, or in some cases tax deductions in advance, for expenditure that would normally be capitalised and depreciated over the useful life of the asset.

“This approach is in line with the Government’s continuing focus on ensuring that everyone pays their fair share of tax,” Mr Dunne said.

“The mining sector is important but we must ensure that the tax rules do not give the sector an unfair advantage over other investments which may have higher pre-tax rates of return.”

The Reviewing the Royalties Regime for Minerals paper focuses on the royalty rates applied to coal, gold, silver, platinum group elements, ironsands, phosphates and seafloor massive sulphides.

The Taxation of Specified Mineral Mining focuses on the tax rules that apply to miners of specified minerals, including gold, silver and ironsands.

Both sets of proposals aim to enhance economic efficiency by ensuring that scarce resources are directed to economic activities that provide the highest returns before the imposition of tax and royalties.

Submissions on the proposals close on December 7.

For more information on the Reviewing the Royalties Regime for Minerals paper go to http://www.med.govt.nz/sectors-industries/natural-resources/oil-and-gas/review-of-the-crown-minerals-act-regime/consultation-on-proposed-changes/consultation-royalty-regime-minerals

For more information on the Taxation of Specified Mineral Mining paper go to www.taxpolicy.ird.govt.nz

“Tui Mine poses real safety and environmental risks for the Te Aroha Community. The $15.2 million contribution from the Government, in tight financial times, is the largest ever for a clean up. It shows the Government’s commitment to improving management of the environment,” Dr Smith said.

“Geotechnical reports show that a modest earthquake or severe storm could put lives at risk and cause damage of up to $168 million from the tailings dam failing.

The clean up work involves stabilising the dam by pumping and mixing cement and lime to depths of five metres with a modified excavator to strengthen the 160,000 tonnes of soil and lock in the heavy metal contaminants.”

The work to clean up the site is also being funded by a contribution of $800,000 from Waikato Regional Council and $200,000 from the Matamata-Piako District Council.

“The clean up of Tui Mine is part of the memorandum of understanding between the Government and the Green Party. We share a common ambition to reduce the risks and harm from contaminated waste and this clean up is one of the positive outcomes,” Dr Smith said.

“I’m also pleased to announce a new national environmental standard to protect human health, while enabling development on contaminated land.

“Only 14 of 73 district plans have rules to manage problems of contaminated land. This isn’t good enough. The Government has approved this national environmental standard to provide greater certainty on which sites pose a health risk and need containment or clean up.”

Contamination of land can come from many sources such as mining or past use of industrial or agricultural chemicals.

“If land is found to be contaminated, steps must be taken to cleanse the soil or contain the contamination, to make it safe for human use prior to development,” Dr Smith said.

The new national environmental standard applies to developments – including proposed subdivisions, changes of land use, and major earthworks – on land that has been used for certain hazardous activities or industries.

“This initiative is part of the Government’s broader programme of providing stronger national direction on the Resource Management Act. It is far more efficient to have one nationwide standard for managing contaminated sites rather than requiring each district and city council to develop their own,” Dr Smith said.

The new National Environmental Standard for Assessing and Managing Contaminants in Soil to Protect Human Health will take effect from 1 January 2012.

Solid Energy Chief Operating Officer, Barry Bragg, noted that Solid Energy has a natural interest in Pike River Coal given its long history and experience of coal mining on the West Coast.

Bragg said he believes Solid Energy has the knowledge, experience and track record to mine the resource safely and economically.

According to Bragg, through Solid Energy’s long-term agreements with KiwiRail and Lyttelton Port of Christchurch, the Company has the capability to transport the coal from the West Coast to the port for export.

Solid has an agreement in place to rail coal from the Pike River mine to Lyttelton, which was put on hold following the explosion at the mine last November.

Solid Energy recently leased the land at the Pike River rail lead-out at Ikamatua to complement its development projects in the Reefton and Greymouth area (as it is the only site locally which can quickly load longer trains and provide additional stockpile capacity).

Mr Bragg reiterated his believe that Solid Energy is uniquely positioned to develop and implement a sound mine management plan that would allow the mine to be successfully operated. According to Bragg, there is no short term fix to get the mine up and running again.

However, it will take a long-term commitment of considerable resources and capital over several years, as well as working with key parties including the families of those who died in the mine and the West Coast community, noted Bragg.

Bragg further indicated that Solid Energy remains committed to recovering the bodies of the 29 miners, if possible, and to address the situation of the unsecured West Coast creditors. The company expects that any company seeking to acquire the assets should be held to the same expectations.

The worst that could happen for the families and the West Coast is that a speculator acquires the assets and banks them in their resource portfolio. That really would be the worst possible outcome for everyone, said Mr Bragg.

While Solid Energy is keen to acquire the Pike River assets, the firm is cautious about the prospect as it doesn’t believe the resource and its quality are characterized, or the geology understood, to anywhere near the level required in these types of challenging conditions, even in the areas that have been mined, noted Bragg.

There has been rising speculation that Bathurst may be interested in buying New Zealand’s Pike River Coal mine. However, Bohannan said Bathurst had no interest in Pike River Coal Mine. Bohannan further noted that something will come out of the woodwork, possibly tomorrow morning.

According to the Herald, expressions of interest for the Pike River Coal Mine are due Friday with the receiver John Fisk of PricewaterhouseCoopers. The Pike River mine has been placed on the market following a tragic explosion last November than claimed 29 lives and has closed the underground mine indefinitely.

State-owned coal miner Solid Energy has expressed interest in the development. Pike Coal Mine receiver Fisk said there would be an update at the end of the week. Bohannan said Bathurst has lodged applications with the Department of Conservation for access rights to its proposed Escarpment mining project.

According to Herald, Bohannan expected access arrangements to be granted “in due course”, with the most outstanding barrier to starting mining now being the granting of resource consents, hearings for which are due in June. Bathurst hopes to be starting mining operations at the Escarpment project, inland from Westport, by the end of this calendar year.

Bathurst has embarked aggressively on an acquisition timetable that has left skeptics in doubt over its ability. Bathurst shares rose 11.6 per cent in the last week to trade last at $1.64, still below their $1.74 high-point, reached since the company listed on the NZX at 92 cents a share last December.

Bathurst Resources Limited is an Australian and New Zealand listed company focused on becoming a producer of high quality coking and thermal coal to niche export markets.

Bathurst is developing a highly prospective, high quality hard coking coal project located in the Buller Coalfield in the South Island of New Zealand. The company has also recently acquired Eastern Resources Group, with assets including two operating mines and a development block adjacent to the Buller project.

Bathurst Resources has recently completed a strategic realignment to position itself as a New Zealand-focused coal mining company with over 10,000 hectares of prospective tenure in the Buller Coalfield, located in the South Island.

According to receivers, there have been a number of unsolicited expressions of interest in acquiring the mine. However, in an announcement Monday, Solid Energy, with operations in several West Coast mines including the nearby Spring Creek Coal Mine, said it was amongst firms keen on buying the rights to extract the $6 billion of coal still at Pike River through a mixture of opencast and underground mining.

Don Elder, Solid Energy Chief executive said the principal concern of the firm’s proposal will be the recovery of the 29 bodies still inside the mine. However, Elder reiterated that Solid Energy is committed to addressing the challenge of turning the mine economically viable while respecting the wishes of the families of the dead. He further stated that the firm would prioritize the wishes of the families and the unsecured creditors on the West Coast. According to Elder, any solution geared at investing in the mine and turning it operational again must address the two as top priority, reported the Herald.

But even so, a statement from the state miner reiterated that the firm would not necessarily use existing Pike River Coal Ltd assets and equipment for future mining. Instead, Solid Energy will leave only the coal permit and access agreements as primary assets. However, Elder further added that Solid’s plan for the mine would include open casting parts of the mine, noting that it would be a difficult and challenging opencast operation that would probably take years’ of planning.

According to Elder, if the value in the mine’s total coal resource is to be realized, it will only be through a very carefully planned and developed long-term integration of underground and opencast mining. Anything other than this will risk sterilizing a significant part of this valuable coal resource, said Elder.

The West Coast of New Zealand is the most difficult coal mining environment in New Zealand, by far, noted Elder. However, Solid Energy has the experience to tackle the challenge, unlike any other firms, he added.

The company said the termination was a result of ‘a key condition precedent of the agreement could not be fulfilled. The relevant condition precedent under the Agreement relating to its appointed geologists certifying that there is 8 million tonnes of recoverable reserves, was not satisfied, the company said.

Adventus said it is taking steps to recover the deposit of US$1 million placed with the lawyers for the seller. The acquisition was introduced by Allan Tan, an Independent Director of Adventus. It was brokered by Zulu Capital Limited whose principal is an ex-colleague of Mr Tan. Adventus Holdings Limited said on Thursday that its subsidiary, Adventus NZ Limited, has agreed to buy a coal mine in New Zealand for US$8.60 million.

Adventus NZ had planned to buy from Medha International Limited the mining permits, access agreement, resource consents over Crown Land issued by the New Zealand Government, private mining and access rights over privately owned land granted by the private land owners, certain plant and equipment and stock in the coal mine located at Boatmans’ Creek, Town of Capleston, New Zealand.

The proposed acquisition would have marked the commencement of the company’s first venture into the Resource Development Business, Adventus said. It added that Allan Tan, an Independent Director, introduced this acquisition to the company. The acquisition was brokered by Zulu Capital Limited whose principal is an ex-colleague of Mr. Tan.

Adventus Holdings Limited (Adventus), formerly SNF Corporation Limited, is an investment holding company. The Company’s telecommunication and media segment relates to trading in telecommunication and media products. Its Commodities and Mineral Resources segment relates to trading in commodities and mineral resources. On March 23, 2010, the Company incorporated a wholly owned subsidiary, Adventus Australia Ltd. On August 24, 2009, the Company acquired Synergy Technologies (Asia) Limited.

In March 2009, the Company disposed of its interest in Max Quality (S) Pte Ltd and Eroad International Pte Ltd. In November 2009, the Company disposed of its interest in Intraco Technology Pte Ltd. In May 2009, the Company disposed of its interest in Watson Plastics Industries Pte Ltd.

The existing business in Waihi has been crucial in the provision of skilled labor to the mining industry for the past decade. AWF plans to improve the services being provided at the firm’s existing operations while at the same time developing the business to create the core of the Hauraki/Coromandel expanse operation. Allied Work Force Group chief executive officer, Mike Huddleston said the firm will be acquiring a 75 per cent stake in what he termed a “strong and profitable domestic operation in Waihi.”

From the Waihi operations, Allied Work Force Group is hopeful it will get opportunities for its national expertise in the further development of the business. In addition, AWF stands to gain lots from reinforcing its operations in the burgeoning mining industry, he said. According to Huddleston, the retailer, David Croker, boasts of excellent skills and expertise that it can use in the new business whereas AWF will be crucial in developing the current relationships and expanding the business.

As it is, the business offers real opportunity for AWF to enhance employment opportunities for quality domestic labor within and outside the mining industry in the region. The acquisition will be concluded on the 30th of September and is expected to be accretive to earnings immediately, said AWF. Current trading conditions mean AWF continues on track to achieve a result more than twice the result achieved for the same period last year, as was indicated by managing director, Simon Hull at the annual meeting.

Allied Work Force is a public company listed on the New Zealand Stock Exchange and is the leading specialist provider of on-hire labor to industry and commerce. It was begun slightly more than two decades ago. With over 20 year’s industry experience and a national footprint of branches from Kaitaia in the north, to Invercargill in the south, the firm offers solution to various employment needs. Allied Work Force has grown to be one of the largest employers in New Zealand.

Should Bathurst push ahead with the listing; it would become the second coal mining company listed in NZX after Pike River Coal got listed. Pike River Coal, situated in Perth, has been listed on the ASX since 2007 and recently announced that it had raised $19 million for initial spending on the project, including research meant to confirm additional coal resources. In the investment deal, L&M will sell its subsidiary, L&M Coal to Bathurst but will retain a 5% share.

According to Bathurst, the investment project is fully funded and it will not go back to the market for now, till it has concluded the purchase of the Buller project that requires an investment sum of US$35 million. Hamish Bohannan, the company’s managing director, said he expects the New Zealand listing to be relatively easy because many of the Australian stock exchange requirements were common to New Zealand as well.

If the deal goes through, Bathurst could create over 200 jobs, with the mine expected to have a life of over 30 years, and the company expecting to be in production by end of 2011, producing over two million tones of coal yearly, said the managing director. An initial 7.3 million tones of coal were reported by Bathurst as initial proven resource for the first stage of the project.

With the new investment in New Zealand, the company said it would now end its American mining operations in Kentucky, adding that this investment would be the company’s flagship. The company plans to list in NZX and relocate its operations to Christchurch, Bohannan said. Almost 80% of the production will be higher value coking coal that is employed in firing furnaces used in the production of steel. The capital spending, according to Bathurst, is high but regardless, the company would set up a wash plant, a pipeline to channel coal off the escarpment and there is a possibility it would institute modifications to the Westport port. Even though the company has not finalized its transport options, it could opt for taking the coal by barge to New Plymouth for export or by rail to Lyttelton.

According to the company, the raised capital is intended for use to pay a US$5 million deposit on the Buller Coal Project, financing the Definitive Feasibility Study and continued drilling on the project, in addition to being working capital. For the Placement, Helmsec Global Capital Limited acted as the lead manager.

The investment is expected to see the Regent Pacific Group Limited, a Hong Kong Stock Listed company, become a 19.7% shareholder in Bathurst. Regent Pacific, a diversified mining group, mainly bases its operations in the Asian Pacific Region with investments in Australia such as a 16% shareholding in BC Iron and 13% shareholding in Venturex Resources, all stock listed companies in the country.

Accordingly, Bathurst announced that it was currently fully funded and would not be raising more capital till it seeks to finish the takeover of the Buller project through paying an additional US$35 million. On the contrary, Bathurst expects to finish the acquisition of the Buller project and the accompanying estimated funding of US$60 million capital expenditure in the third or fourth quarter of this year. This falls in line with its aim of having ongoing production operations in the fourth quarter of 2011.

The affirmation of the operating and the capital cost assumptions utilized in the DFS, mining and environmental approvals, and off take arrangements being advanced with end users and/or trading houses, will be crucial in the determination of the right time for the raising. Even so, Bathurst said that its main business in the coming three months will be to advance satisfactory sales arrangements of off take agreements.

The agreement terms are in line with the agreed terms in the L&M letter of intent that was announced on the 24th of February this year and the announcement made to the market on the 24th of May as well. Meanwhile, Bathurst also reconfirmed its intention to list on the New Zealand stock exchange by the end of this year. Its shares will remain in voluntary suspension pending settlement of the placement, to ensure that the placement is consistent with the terms of the shareholder approval obtained on 23 April 2010.