Southland District Council is asking the public whether it should hand Bathurst Coal Limited a fresh short-term lease over council land at Nightcaps, the western Southland coal town below the Takitimu Mountains.

Bathurst has held the lease since 2011 and the block was leased to others for many years before that. Today it carries the company's coal processing operation, its administration buildings and its mechanical workshops.

The previous lease has run out. Rather than walk away, Bathurst wants to keep processing coal on the land and then carry out the rehabilitation required under both the lease and its resource consents before it leaves for good.

To line the new tenancy up with the company's planned exit date and its consents, the council is proposing a lease of 3 years and 6 months, dated from 30 September 2026.

The paperwork is framed as a "re-grant", a mechanism provided for in the Overseas Investment Regulations 2005. A re-grant does not need a new Overseas Investment Office application, but the rules are tight: the terms must be essentially the same as the old lease, with only a new rental figure and any changes forced by legislation permitted.

The council says the area covered is exactly the same as under the previous lease.

Because the land is held under the Reserves Act 1977, the council treats the re-grant as a brand-new lease, which means it has to be publicly notified. That notification is now under way on the council's "Have your say" pages.

What happens to the land afterwards is spelt out in the consultation material. Once Bathurst has completed the rehabilitation required of it, the block is to revert to the council, which intends to put new grazing leases in place so the land earns income for the local community.

Anyone may make a submission or lodge an objection. Submissions can be made through the online form on the council website, posted to the chief executive at PO Box 903, Invercargill 9810, or emailed to contactproperty@southlanddc.govt.nz. Submitters are asked to say whether they want to speak in support of their submission.

The council has warned that submissions, including the submitter's name and views, will be published and provided to elected members, although other personal details will be withheld.

Submissions and objections must reach the council by 4pm on Monday 23 November 2026. After the closing date councillors will consider everything received and decide whether to go ahead with the proposed lease.