Changes

The [[L&M Group]] is made up of a number of companies with interests in the minerals and energy sectors. The “L&M” dates back to the original company founded in 1935, “Lime & Marble Ltd”. Since then the company has been through various iterations involving mineral, coal, gold and petroleum exploration and mining.<ref>L&M Group,[http://www.lmgroup.net.nz/page7f10.html "L&M Group website"], accessed April 2012.</ref>In 2005 L&M restructured and Group Limited became incorporated as a NZ Limited Company (no 467639) on 26 Sep 2013. Archibald Geoffrey Loudon is the group then comprised six operating companies: L&M Mining Ltd, L&M Lignite Ltd, L&M Coal Ltd, L&M Coal Seam Gas Ltd, L&M Petroleum Ltd, sole owner and Mintago Investments Ltd. All were owned by Hong Kong based company, Auriferous Mining Ltd.<ref>Coal Association of NZ, [http://www.coalassociation.org/publications/e-News/Coal%20e-news%20Nodirector.%2011%20%28final%29.pdf?page=1013 "Coal e-newsletter, September 2005"], accessed December 2012</ref> The present companies in the Group are almost wholly overseas owned and hold prospecting rights over thousands Ministry of square kilometres of the New Zealand mainland. In a presentation to the 2012 conference “Excellence in Oil & Gas”Business, L&M Energy gave reasons for New Zealand exploration that included a supportive government Innovation and a favourable royalty regime.<ref>L&M GroupEmployment, [httphttps://www.lmenergybusiness.cogovt.nz/download@@fb-searchlite/companydetails/LME_Oil&Gas_2012.pdf?inline 4672639 "2012 Excellence in Oil and Gas, page 5NZ Companies"], accessed December 2012October 2014</ref>

'''Archibald Geoffrey (Geoff) Loudon''', is an experienced mining professional who has had interests in dozens of New Zealand and overseas companies. He is the New Zealand Chairman and Director of Hong Kong based Auriferous Mining, and is or was a major shareholder in the company (he owned one-third of the shares in December 2009), . He has a key role in the L&M Group. Among other positions, he holds and is or has been the chairmanship of the L&M Group and of L&M Energyowner, and is usually the sole director , of L&M Mining (Sep 2012).<ref>almost 20 NZ Companies Office, [http://www.business.govt.nz/companies/app/ui/pages/companies/search?q=L%26M+Energy+Limited&entityTypes=ALL&entityStatusGroups=ALL&incorpFrom=&incorpTo=&addressTypes=ALL&addressKeyword=&start=0&limit=15&sf=&sd=&advancedPanel=false&mode=standard#results "Search the Register"], accessed December 2012</ref> In addition he is the sole director of each of the five New Zealand registered companies (such as L&M Lignite Mataura Limited) owned by L&M Southland Lignite Holdings Ltd, which is itself registered with interests in Belizecoal mining. Mr Loudon had a pivotal role in gold mining in Papua New Guinea and in 2006 was described as having, “broad ambitions for his New Zealand investments which take in a billion-dollar plan to be a large-scale producer of synthetic fuels from lignite, coal-seam methane and coal, plus a petroleum exploration float and a possible revival of alluvial gold mining on the South Island.”[6] From 2006 to 2016 he served as the Chairman of Canadian company Nautilus Minerals Inc. Nautilus was the first company to explore the ocean floor for massive sulphide deposits of copper, gold and silver. In October 2016 he registered yet another NZ company, L&M Waikato Limited, whose intended role in the L&M Group is unknown.<ref>Mining Journal September 2006.com, 22 May 2016, [http://www.mining-journal.com/focusweb/loudonnautilus-embarksminerals-onchairman-more-big-picture-projects "Loudon embarks on more big picture projects"retires/ “Nautilus Mineral chairman retires”], accessed February 2017</ref><ref>Companies Office, [https://www.companiesoffice.govt.nz/companies/ “Search the NZ Companies Register”], accessed December 2012February 2017</ref>

The makeup of the L&M Group changes frequently and there are significant overlaps of shareholders and directors. In the past, the L&M Group has focused on gold-mining but on its website (apparently last updated in 2010) it states that it has, “downsized our gold operations and, recognising the increasing demand and value in the energy markets, changed our focus to energy resources.” [Although it was announced in November 2012 that Geoff Loudon would take a 50% stake of the rights in a gold and silver prospect near the Martha Hill mine in the Coromandel]<ref>Scoop Business 20 November 2012, [http://www.scoop.co.nz/stories/BU1211/S00761/glass-earth-shares-up-22-on-option-to-buy-coromandel-mine.htm "Glass Earth shares up 22 on option to buy Coromandel mine"], accessed December Scoop Business 20 November 2012.</ref> “We have identified and obtained mineral exploration permits, and have begun exploration of a number of coal, [[coal seam gas ]] (CSG) and lignite leads.”<ref>L&M Group , [http://www.lmgroup.net.nz/page7f10.html "L&M Group website"], accessed December 2012.</ref> The company’s aim is to “become one of New Zealand’s primary energy resource producers and exporters"<ref>L&M Group , [http://www.lmgroup.net.nz/page7f10.html "L&M Group website"], accessed December 2012.</ref> but in 2012 there was little evidence that any commercial extraction of resources was actually being carried out by L&M companies. In June 2012, for example, the Director’s report stated that although work had continued on the Ohai Coal Seam Gas (CSG) pilot project, the results had been “disappointing” and commercial rates of gas flow had not been achieved.<ref>L&M Group, [http://www.lmenergy.co.nz/download/30%20June%202012%20Interim%20financial%20statements.pdf?inline "30 June 2012 Interim Financial Statements"], accessed December 2012.</ref> L&M Energy’s 6 month financial report (30 June 2012) reported an overall loss of $2.1 million. Historically L&M has obtained permits, explored, prospected and drilled, prepared prospects for commercialisation and then sold them – as it did with the Denniston Escarpment site that was sold to Bathurst Resources. Consequently, there must be a strong incentive to present an optimistic view of the company’s activities and L&M Energy’s website continues to do this when describing the prospects for commercialization of CSG, electricity generation and liquefied natural gas projects.<ref>L&M Energy, [http://www.lmenergy.co.nz/pep38220-ohai-pilot "PEP38220: Ohai Pilot Project"], accessed December 2012</ref> A 2009 article on the Ministry of Economic Development’s website stated that L&M Coal Seam Gas’s total potential in-ground gas resources in its New Zealand permits (given as 1.2 trillion cubic feet of gas) were the largest resource figure published by any CSG explorer.<ref>Ministry of Economic Development, [http://www.nzpam.govt.nz/cms/news_media/2009/l-m-coal-seam-gas-flows-pilot-test-gas-wells-at-kaitangata-field?searchterm=L&M%20Coal%20seam%20gas "L&M Coal Seam Gas flows pilot test gas wells at Kaitangata field"], accessed December 2012</ref>

In 2010 there was a merger between Historically L&M Petroleum (which held three joint-venture has obtained permits in the Taranaki Basin plus South Island exploration permits including one in the Te Anau basin<ref>Energy News Premium, 26 June 2006explored, prospected and drilled, prepared prospects for commercialisation and then sold them – as it did with the Denniston Escarpment site that was sold to [[http://wwwBathurst Resources]].energynewspremium.net/storyview.asp?storyid=60898&sectionsource= "L & M explores remote South Island"]Consequently, accessed December 2012</ref> and L&M Coal Seam Gas, forming there must be a new company, L&M Energy. Geoffrey Loudon and Gregory Ross Hogan are the only significant New Zealand based shareholders in the company; approximately 73% strong incentive to present an optimistic view of the shares are held by overseas investors. The formation of company’s activities and L&M Energy was intended Energy’s website continues to “underpin an aggressive more than year-long drilling programme targeting coal seam do this when describing the prospects for commercialization of CSG, electricity generation and liquefied natural gas in Otago and Southlandprojects.”<ref>Otago Daily Times, 18 December 2009L&M Energy, [http://www.odtlmenergy.co.nz/news/business/86491/lampm-group-subsidiaries039pep38220-mergerohai-and-listing-likely pilot "L&M Group subsidiaries' merger and listing likelyPEP38220: Ohai Pilot Project"], accessed December 2012.</ref> (Other sources refer to L&M Energy’s acquisition A 2009 article on the Ministry of Economic Development’s website stated that L&M Coal Seam Gas, rather than to a mergerGas’s total potential in-ground gas resources in its New Zealand permits (given as 1.2 trillion cubic feet of gas)were the largest resource figure published by any CSG explorer.<ref>National Business Review, 22 February 2010Ministry of Economic Development, [http://www.nbrnzpam.cogovt.nz/articlecms/news_media/2009/lml-energym-shareholderscoal-approveseam-acquisitiongas-118921 flows-pilot-test-gas-wells-at-kaitangata-field?searchterm=L&M%20Coal%20seam%20gas "L&M Energy shareholders approve acquisition 118921Coal Seam Gas flows pilot test gas wells at Kaitangata field"], accessed December 2012</ref>

Also In 2010 there was a merger between L&M Petroleum (which held three joint-venture permits in the Taranaki Basin plus South Island exploration permits including one in 2010the Te Anau basin<ref>[http://www.energynewspremium.net/storyview.asp?storyid=60898&sectionsource= "L & M explores remote South Island"], Energy News Premium, Bathurst Resources Limited acquired 26 June 2006.</ref> and L&M Coal LimitedSeam Gas, forming a new company, L&M Energy. Geoffrey Loudon and Gregory Ross Hogan are the only significant New Zealand based shareholders in the company; approximately 73% of the shares are held by overseas investors. The formation of L&M Coal Limited Energy was renamed Buller Coal Holdings Limited which was a wholly owned subsidiary of Bathurstintended to “underpin an aggressive more than year-long drilling programme targeting coal seam gas in Otago and Southland.”<ref>[http://www.odt.co. In February 2011nz/news/business/86491/lampm-group-subsidiaries039-merger-and-listing-likely "L&M Group subsidiaries' merger and listing likely"], ''Otago Daily Time''s, Buller 18 December 2009.</ref> (Other sources refer to L&M Energy’s acquisition of L&M Coal Holdings Limited was renamed Buller Coal LimitedSeam Gas, rather than to a merger.)<ref>West Coast Regional Council, [http://www.wcrcnbr.govtco.nz/escarpmentarticle/index.htm lm-energy-shareholders-approve-acquisition-118921 "Escarpment mine project - Change of Company nameL&M Energy shareholders approve acquisition 118921"], accessed December 2012''National Business Review'', 22 February 2010.</ref>

Also in 2010, Bathurst Resources Limited, L&M’s joint venture partner, acquired L&M Coal Limited from L&M Coal Holdings. L&M companies have significant investments Coal Limited, which held a 18,740 ha exploration permit in lignite and hold rights over about the Buller coal field, was renamed Buller Coal Holdings Limited, a third wholly owned subsidiary of Southland and Otago lignite depositsBathurst. In February 2011, Buller Coal Holdings Limited was renamed Buller Coal Limited. [16] In Dec 2016 L&M Coal Holdings announced that it would file legal proceedings to recover US$40 million (State-owned Solid Energy has rights over another third NZ53.7m) of the performance payment as Bathurst had reached the trigger of 25,000 tonnes of coal product. Bathurst stated that it would fight any legal action, claiming that because it had made the relevant royalty payments, its failure to make the due performance payment was not a breach of the depositsagreement with L&M.) L&M Group has exploration permits covering more than 20,000 ha over Coal Holdings is no longer listed on the HawkdunNZ Companies Register and its current ownership is uncertain. The Otago Daily Times reported that it was understood, Benharbut not confirmed, Mataura, Edendale, and Ashers depositsthat L&M Coal Holdings had been sold about a year previously to a Hong Kong-based company.<ref>Parliamentary Commissioner for the EnvironmentNZ Herald, 22 December 2016, [http://www.pcenzherald.parliamentco.nz/assetsbusiness/Uploadsnews/PCE-Lignitearticle.pdf cfm?c_id=3&objectid=11771767 "Lignite and climate change: The high cost of low grade coalBathurst Resources sued for US$40m by L&M Coal Holdings"], accessed February 2017</ref><ref>Otago Daily Times, 20 December 20122016, [https://www.odt.co.nz/business/bathurst-denies-breaching-lm-agreement “Bathurst denies breaching L&M agreement”], accessed February 2017</ref>

L&M companies have significant investments in lignite and hold rights over about a third of Southland and Otago lignite deposits. (State-owned [[Solid Energy]] has rights over another third of the deposits.) L&M Group has exploration permits covering more than 20,000 ha over the Hawkdun, Benhar, Mataura, Edendale, and Ashers deposits.<ref>Parliamentary Commissioner for the Environment, [http://www.pce.parliament.nz/assets/Uploads/PCE-Lignite.pdf "Lignite and climate change: The high cost of low grade coal"], November 2010.</ref>  Yet another L&M Group venture is the formation in 2012 of Chatham Phosphate Ltd of which it owns 90%. The permit is for seafloor phosphate exploration near the Chatham Islands east of Christchurch.<ref>Chatham Phosphate, [ http://rockphosphate.co.nz/news/archives/2012/02/07/lm-group-in-new-chatham-rise-phosphate-quest/ "L&M Group in new Chatham Rise phosphate quest"], accessed December 2012</ref> ==Changes to L&M Companies 2014–2016==<ref>Companies Office, [https://www.companiesoffice.govt.nz/companies/ “Search the NZ Companies Register”], accessed February 2017</ref>  '''24 Feb 2014'''<br>L&M Mining Limited went into liquidation and was struck off the register. '''27 March 2014'''<br>Notice was given that the following L&M companies had gone into liquidation and would be removed from the New Zealand Companies Register:[19]Kiwi Phosphate Limited<br>- Lime & Marble Limited<br>L&M Coal Mangapehi Limited<br>- 
L&M Coal Maramarua Limited<br>- 
L&M Lignite Edendale Limited<br>- 
L&M Lignite Hawkdun Limited<br>- 
L&M Lignite Mataura Limited<br>- 
L&M Offshore Northland Limited<br>- 
L&M Offshore Otago Limited<br> '''09 March 2015'''<br>Ownership of New Brighton Collieries (Company number 2239106 Inc 08 May 2009) was transferred to Bathurst Resources Limited and the director became Richard Tacon. New Brighton Collieries holds Exploration Permit no 40625 over an area of 658.370ha in Ohai, Southland. The permit runs from 03 Sep 2004 – 02 Sep 2017.<ref>NZ Petroleum & Minerals, [https://permits.nzpam.govt.nz/aca/ “Online permitting system”], accessed February 2017</ref> '''10 June 2016'''<br> The following L&M Companies went into liquidation:L & M Earnscleugh Limited<br> L&M Coal Mount Somers Limited (197680 Formerly L&M Exploration Limited)<br>Pukemiro Coal Limited (4162738) <br>Mintago Investments Limited<br> '''17 Oct 2016'''<br>L&M Waikato Limited (6132628) was incorporated. ==L&M Companies Jan 2017==<ref>Companies Office, [https://www.companiesoffice.govt.nz/companies/ “Search the NZ Companies Register”], accessed February 2017</ref><ref>NZ Petroleum & Minerals, [https://permits.nzpam.govt.nz/aca/ “Online permitting system”], accessed February 2017</ref> L&M Group no longer has a website and it is difficult to obtain information about the structure, management and financial position of the group. The permits held by the removed coal and lignite mining companies had either been previously surrendered or were about to expire. ''L&M Group Limited''<br>Company number: 4672639<br>Incorporation date: 26 Sep 2013<br>Director: Archibald Geoffrey LOUDON<br>Shareholding: Archibald Geoffrey LOUDON<br>Minerals permits: None<br> ''L&M Energy Limited'' (Formerly L&M Energy Ltd and Kenham Holdings Ltd)<br>Company number: 847177<br>Incorporation date: 04 March 1997<br>Director: Archibald Geoffrey LOUDON<br> Bruce Nicholson MCGREGOR<br>Shareholding: New Dawn Energy Limited<br>Minerals permits: None<br> ''Lignite Ashers Waituna Limited'' (Formerly L&M Southland Lignite Limited)<br>Company no 1534444 Inc 06 Aug 2004<br>Director: Archibald Geoffrey LOUDON<br>Shareholding: Archibald Geoffrey LOUDON<br>Minerals permits: None<br> ''L&M Coal Kaitangata Limited'' (Formerly L&M Lignite Kaitangata Limited)<br> Company no 1848031 Inc 15 Aug 2006<br>Director: Archibald Geoffrey LOUDON<br>Shareholding: Archibald Geoffrey LOUDON<br>Minerals permits: Exploration permit 40626 11 Jan 2005 – 10 Jan 2018<br> Southland 1583 ha <br> ''L&M Coal Whitecliffs Limited''<br>Company number 3197886 Inc 17 Nov 2010<br>Director: Archibald Geoffrey LOUDON<br>Shareholding: Archibald Geoffrey LOUDON<br>Minerals permits:- Exploration permit no 53158 09 Jul 2012 – 08 Jul 2017<br> - Canterbury 3029.360 ha Status: Active<br>  ''L&M Coal Seam Gas Limited''<br>Company no 1555755 Inc 01 Oct 2014<br>Directors: Archibald Geoffrey Loudon<br> Bruce Nicholson McGregor<br>Shareholding: L&M Energy Limited<br>Ultimate holding company: New Dawn Energy Limited<br>Minerals permits: Has held 16 permits in the past, all of which are either expired or have been surrendered. Does not appear to hold any current permits.<br> ''New Dawn Energy Limited''<br>Company no 4037599 Inc 28 Sep 2012<br>Directors: Archibald Geoffrey LOUDON<br> Bruce Nicholson MCGREGOR<br>Shareholding: Archibald Geoffrey Loudon <br>Minerals permits: None<br> ''L&M Waikato Limited''<br>Company no 6132628 Inc 17 Oct 2016<br>Director: Archibald Geoffrey LOUDON<br>Shareholding: Archibald Geoffrey LOUDON<br>Minerals permits: None<br>

In June 2012 the Director’s report for L&M Energy stated that there had been a loss of $2.1 million during the preceding six months. Chairman and major shareholder, Geoff Loudon, provided a loan of A$5 million to ensure that the company could meet its current commitments. L&M stated that it would be giving up two of its prospecting licences, but did not indicate which onesone in South Canterbury (PEP52605) and Kaitangata (PEP38219).<ref>L&M Group, [http://www.lmenergy.co.nz/download/30%20June%202012%20Interim%20financial%20statements.pdf?inline "30 June 2012 Interim Financial Statements"], September 2012, page 30. </ref> The Group appeared to face an uncertain future as on p13 of the report it is stated that, “the nature of the Group’s business is such that there is material uncertainty around the ability of the Group to obtain further funding which may cast significant doubts on the Group’s ability to continue as a growing concern.”<ref>L&M Group, [http://www.lmenergy.co.nz/download/30%20June%202012%20Interim%20financial%20statements.pdf?inline "30 June 2012 Interim Financial Statements"], accessed December September 2012, page 13.</ref>  A new player then entered the game when New Dawn Energy (NDE) launched a takeover bid for L&M Energy. NDE, however, is wholly owned by Geoff Loudon, who also owns a 28 per cent stake in L&M Energy.<ref>Stuff Business, 23 October 2012, [http://www.stuff.co.nz/business/industries/7850806/New-Dawn-launches-bid-for-L-M-Energy "New Dawn launches bid for L&M Energy"], accessed December Stuff Business, 23 October 2012.</ref> He planned to delist L&M from the ASX and NZX if the takeover bid was successful.<ref>National Business Review, 23 October 2012, [http://www.nbr.co.nz/article/l-and-m-energy-chairman-loudon-makes-takeover-bid-oil-and-gas-explorer-bd-131069 "L&N Energy Chairman Loudon makes takeover bid for oil and gas explorer"], accessed December ''National Business Review'', 23 October 2012.</ref> By the end of 2012, NDE had acquired more than 82% of the shares in L&M Energy whose chief executive, Kent Anson (appointed 2010), had decided to return to Australia “for personal and family reasons”.<ref>SharetraderL&M Energy, [http://www.sharetraderlmenergy.co.nz/showthreaddownload/December%2019%202012_Update.phppdf?8452-L-amp-M-Energy-to-Spud-Free-Carried-Taranaki-Well&p=388752 inline "Anson to leave L&M EnergyUpdate Report"], accessed Media Release, December 19, 2012.</ref>

This permit (EP 40–359) is described as current on L&M Lignite’s website but appears to have expired on 24 January 2008. It was transferred from Kenham Holdings Ltd to L&M Lignite Ltd in March 2005 and covered 4,900 ha (49.0 sq km) in eastern Southland, 20 km east of Invercargill with a resource of 880 MT of lignite B. L&M drilled over 90 exploration holes, carried out coal quality assessments and commenced feasibility studies into liquid fuel and petrochemical production.<ref>L&M Lignite, [http://www.lmlignite.net.nz/pageb17c.html?pri=24&sec=657&tpl=1 "Ashers Waituna summary fact sheet"], accessed December 2012.</ref> An L&M report indicated that the coal quality was highly suitable for gasification and proposed a mine to feed a plant producing low-sulfur naptha and diesel using the Fisher-Tropsch process. A ''Southland Times'' article stated that the permit had expired in the previous January but that L&M Lignite Ashers-Waituna (formerly named L&M Southland Lignite Limited, formerly named L&M Lignite Limited, formerly named L&M Petroleum (Waiau) Limited),<ref>Companies Office, [http://www.business.govt.nz/companies/app/ui/pages/companies/1534444/16525362/entityFilingRequirement], accessed December 2012</ref> had applied for an extension. L&M exploration director, David Manhire, was reported as saying that plans for a lignite mine and diesel conversion plant hadn’t been abandoned but that it was a large project, still in the evaluation phase.<ref>Alex Fensome, [http://www.stuff.co.nz/southland-times/business/7119258/Lignite-diesel-plant-not-ruled-out-L-M "Lignite-diesel plant not ruled out"], ''Southland Times'', June 18, 2012.</ref> A 1998 Department of Conservation publication stated, “There is the possibility that large scale open cast mining in the Waituna-Ashers area could occur. A large lignite deposit has been identified. Lignite mining activity would be likely to have a significant impact on the lands administered by the Department in the area, particularly the Waituna Wetlands Scientific Reserve and Seaward Moss Conservation Land.”<ref>Department of Conservation, [http://www.doc.govt.nz/documents/about-doc/role/policies-and-plans/southland-mainland-cms/southland-cms-6.8-waituna.pdf "Mainland Southland/West Otago CMS: Waituna"], July 1998, page 231"], accessed December 2012.</ref> An L&M Lignite report, ''Ashers-Waituna and Hawkdun lignite deposits: their resources and use potential'', acknowledged that, “The environmental cost is similar to that of higher ranked coals in all respects other than the CO2 emissions which, due to the low conversion efficiency as a "result of having to dry the coal, is high.”<ref>NZPAMD.A.J. Manhire and A.M. Sherwood, [http://www.nzpam.govt.nz/cms/pdf-library/minerals/conferences-1/020_papers_25.pdf "Ashers-Waituna and Hawkdun lignite deposits:their resources and use potential"], accessed December 2012NZPAM, March 2007, page 26.</ref> There are other significant environmental concerns about proposals to mine in this area, as stated in a 2005 presentation by director, David Manhire, in which he makes reference to concerns about the impact on Waituna lagoon (which is part of a RAMSAR protected site) and on ground water. He also stated that it was planned for Stage 1 of the plant to become operational by mid-2010, and that after a 22 year mine life there would be a 200 ha “final void”.<ref>L&M Lignite,[http://www.lmgroup.net.nz/page9449.html?pri=24&sec=691&tpl=1 "Presentation at 2005 Minerals Conference"], accessed December 2012</ref> In an address to a 2008 mining conference, L&M Group chairman told the meeting that if the southern deposits were mined over which L&M has permits, then the rehabilitation would be recreational lakes.<ref>Otago Daily Times,3 September 2008, [http://www.odt.co.nz/news/business/20649/untapped-gas-fields-beckon "Untapped gas fields beckon"], accessed December 2012''Otago Daily Times'', September 3, 2008.</ref>