The future home of the Oamaru-based New Zealand Malt Whisky Company - purchased out of receivership last year - remains undecided.
While chances appear good the company will remain in Otago, the sticking point to the company staying in Oamaru's historic precinct has been a new interpretation of Department of Labour rules governing the storage of hazardous substances - in this case, 450 barrels of whisky.
The Malt Whisky Company assets were bought by an international syndicate of nine investors led by Tasmanian businessman Greg Ramsay last October.
Mr Ramsay and Tasmanian whisky distiller Bill Lark were in Dunedin this week and reported "encouraging" and "positive" talks with the Department of Labour and the Dunedin City Council on resolving the whisky barrel storage issue.
Mr Ramsay said that under Environmental Risk Management Authority hazardous substances guidelines, barrelled whisky was treated like barrelled ethanol, essentially being "management of a fire risk".
"Talks have been encouraging and are working their way toward resolving the issue," Mr Ramsay said.
He predicted a base could be announced within about two months, saying it was now "much less likely" the 450 barrels would have to be sent to Melbourne to be used in the whisky sector there.
The 450 barrels comprise about 225 barrels of single malt about 18 to 24 years old, which were branded Lammerlaw in the past, and 225 barrels of the former Wilsons brand, which are at least 12 years old.
Mr Ramsay said both Oamaru and Dunedin were still in the running as a base, with a "prominent city landmark" in Dunedin a possible site. Local Oamaru businesses, the council and politicians all want the company to stay in Oamaru.
Mr Ramsay's plans for expansion of the business might include a whisky distillery, with potentially more than $1 million invested in building a large boutique distillery, he said.
• The international syndicate paid an undisclosed sum for the assets of the New Zealand Malt Whisky Company, which had been placed in receivership in February 2010 by South Canterbury Finance, owing an estimated $3 million.
The 450 barrels of whisky remain stored in the Loan and Mercantile building, owned by the Oamaru Whitestone Civic Trust, in the Oamaru historic precinct.
The New Zealand Malt Whisky Company and associated company Preston Associates ran the Whisky Cafe and Bar in the historic Loan and Mercantile building. The business was evicted from the building last February owing $70,000 in rent.
