Known as standing consent, Oji Fibre Solutions and Nelson Forests can both buy up to 15,000ha of sensitive land up to a maximum single purchase of 2500ha of land that is exclusively or nearly exclusively in forestry.
The approval also allows the two companies to buy a maximum of 500ha of land per transaction that is not currently in forestry.
The permission is capped at 25 transactions, excludes residential land and expires on 30 September 2023.
The Overseas Investment Office (OIO) must be notified when the transaction is settled.
The decision to grant standing consent was made by the ministers responsible in the previous government, Grant Robertson (finance) and Eugenie Sage (Land Information).
Oji Fibre Solution, a company 86% jointly-owned by Japanese interests, owns and operates the Kinleith Mill at Tokoroa and Tasman Mill at Kawerau and sought the consent to secure supplies of wood fibre.
“The Applicant submits that securing long-term fibre supply will combat uncertainties in the fibre market and help ensure viability of its mills, which provide a livelihood for its employees,” the OIO decision states.
Oji is restricted to land purchases in proximity to its Central North Island mills.
Nelson Forests is wholly owned by Australian company OneFortyOne Plantations Holding, which owns the Kaituna Sawmill near Renwick in Marlborough.
The OIO decision says it requires standing consent to secure wood supplies to grow its Trans-Tasman forestry and forest product’s business.
“The Applicant submits that having a larger estate will enable it to increase its wood supply, allowing greater commitment and long-term security to domestic suppliers,” it said.
In a report released on its performance, the OIO between July 1 and September 30 this year approved 11 sensitive land transactions and declined one, with a further three withdrawn.
Four applications lodged under the special forestry test were approved, none declined and one was withdrawn.
