Directors of iwi mine step down

Two independent directors of an iwi-owned ironsand mining company have quit over concerns about the way it’s being run by a Wellington businessman.

Directors Mike Simm and Nigel Foster confirmed they had resigned from the board of Taharoa Ironsands, which took over the lease of the iron ore mining operation south of Ka¯whia Harbour from Australian company Bluescope last year.

Meanwhile, the Employment Relations Authority has ruled against the company in a case taken by the E Tu¯ union – saying that it should continue paying workers a $4.60 an hour allowance it had arbitrarily halted last year.

Taharoa Ironsands exports than $150 million worth of each year, mostly to Asia.

The company is a subsidiary of Taharoa Mining Investments, which is 60 per cent owned by descendants of Nga¯ti Mahuta through their landowning incorporation, Taharoa C Block.

The rest of the shares are held by Melrose Private Capital, owned by Wayne Coffey of Wellington, who is also C Block’s chief executive.

In an unusual deal, Bluescope paid $51m in cash for Taharoa Ironsands more sand to take the operation off its hands. In return, the company took on $76m of liabilities.

Soon after the mine changed ownership at least 16 workers were laid off, hitting the tiny community hard.

The Sunday Star-Times revealed in February how locals were upset at the treatment of workers, mining in wa¯hi tapu (sacred) areas and lack of information from the C Block committee.

They have accused Coffey of staging a takeover – he is managing director of Taharoa Ironsands and makes most of the decisions, while the committee has no say, even though it’s the majority owner.

Simm said treatment of workers was one of the factors behind his resignation and he had concerns over whether Taharoa C Block was being kept fully informed.

Coffey said in a statement that the incorporation had produced ‘‘record profits and dividends for its shareholders’’ in the past five years.

He claimed the incorporation and the mining business had ‘‘exceptionally strong cash reserves’’ but did not answer questions about the $76m of liabilities.

‘‘It seems that in the eyes of some the only thing worse than Ma¯ori business failure is Ma¯ori business success.’’