Matai Mining Limited v Morris Contractors Limited HC Christchurch CIV-2010-409-001949 [2011] NZHC 2025 (21 December 2011)

Last Updated: 11 February 2012

IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

_{CIV-2010-409-001949}

BETWEEN MATAI MINING LIMITED Plaintiff

AND MORRIS CONTRACTORS LIMITED Defendant

Hearing: On the Papers

Counsel: M J Wallace for Plaintiff

Judgment: 21 December 2011

_{FINAL JUDGMENT OF WHATA J}

Solicitors:

B Pengelly, 821 Mt Romas Road, RD 1 Rangiora 7174

Copy to:

M J Wallace, PO Box 13254, Christchurch 8141

MATAI MINING LIMITED V MORRIS CONTRACTORS LIMITED HC CHCH CIV-2010-409-001949 21

December 2011

Introduction

[1] In my judgment dated 10 October 2011, I granted judgment in favour of Matai Mining Ltd, but invited Matai to choose the basis upon which quantum is to be calculated.

[2] By way of background, Matai established before me an entitlement to gold or the value of gold obtained by Morris Contractors Ltd in breach of Matai’s contractural and/or proprietry interests. I was not entirely satisfied as to the value of that gold.

Evidence

[3] Matai has chosen to obtain independent evidence of the value of the gold extracted as at trial date of 8 September 2011. That evidence is given by Mr Colin Douch. He told a BSc (Hons) degree from Victoria University and an MSc from Imperial College, University of London. Prior to establishing Arcadia Resources Ltd he was senior minerals geologist and senior minerals industry advisor with Crown Minerals, Ministry of Economic Development. His main responsibilities there included providing sound technical and policy advice to the Minister of Energy. Other duties, among others, included providing regular updates on gold, coal and other minerals markets including advising his manage of global commodity price fluctuations as they were likely to affect New Zealand.

[4] He also had five years as principal economic geologist for the Directorate

General of Mineral Resources a Saudi Arabian government agency.

[5] I am satisfied that he may proffer expert opinion evidence on the value of the gold.

Value

[6] Mr Douch opines that West Coast alluvial gold typically has a fineness

(purity) of 0.96 so the market price for West Coast gold on 8 September 2011 would

have been about NZ$2,224.3980 x 0.96 = NZ$2,135.4220 for one troy ounce

(31.1035 grams).

[7] On that basis, as set out in the memorandum of Mr Wallace, that figure leads to a calculation of NZ$485.20 x NZ$2,135.422 = NZ$1,036,106.70.

[8] Given that evidence, I now enter judgment in the sum of $1,036,106.70 in favour of the plaintiff together with interest and costs in accordance with paragraphs

_{[19] and [20] of my judgment as to liability.}

Whata J