Minerals expert defends valuation of Glen Ding sand and gravel reserves
Roadstone extracted 5m tonnes of the 8.43m tonnes of minerals from the Glen Ding lands — although the company received planning permission for only 10% of the total 145-acre site, the Moriarty Tribunal was told.
John Barnett, a chartered minerals consultant, described how he and chartered civil engineer Kiaran O’Malley were hired by the Department of Energy to prepare a report on the property before its sale.
He said the area they earmarked for potential extraction amounted to 83 acres. He estimated the value of the minerals — with planning permission — at £1.25m.
Department witnesses have described how they put an asking price of £1.5m (€1.9m) on the property without planning permission, after Roadstone initially offered £1.1m (€1.4m) — subject to receiving planning permission.
Mr Barnett estimated the property — without planning — was valued at £400,000 (€508,000) but felt Roadstone, which was working its own sand and gravel deposits on an adjoining property, would probably give £600,000 (€762,000) on that basis.
Rival bidder Brendan Johnston described the price paid by Roadstone as “a steal,” given the volume of minerals. He would have paid “20 times more” if given the opportunity and claimed the giant firm was given preferential treatment.
The tribunal is investigating if any link exists between the sale to Roadstone and payments to former Taoiseach Charles Haughey. Des Traynor, who was non-executive chairman of Roadstone holding company CRH, carried on a secretive private banking system that helped fund Mr Haughey’s lifestyle.
Evidence was given that the department would not take bids that were conditional on the land getting planning permission.
British minerals consultant Christopher Lockwood, who was hired by the tribunal and issued his report in March 2006, has said: “In my opinion the price achieved for the asset was in the right order.”
But he said he would not have recommended dealing solely with Roadstone as you could not be sure of achieving market value.
