Auckland, Mar 31, 2009 AEST (ABN Newswire) - Pike River Coal Limited's (NZE:PRC)(PINK:PKRRF) has made significant strides towards becoming a coal exporter during the half year ended 31 December 2008.
All the surface infrastructure needed for mining has been completed including a $20 million coal preparation plant and a $12 million rail loadout facility. All the heavy underground mining machinery has been delivered and the breakthrough to coal was made in October 2008.
The only setback has been an unexpected rock fall in the lower portion of the ventilation shaft. The event was unfortunate as it halted mining in February just as Pike River was about to commence ramping up coal production.
The three month delay to coal production led Pike River to announce a fully underwritten $45 million capital raising to shareholders in March 2009 to cover delayed income from first export sales and $7 million to restore the shaft. Once the ventilation shaft is reinstated the Company will work through a ramp-up period to achieve full production in the quarter to 31 December 2009.
All the construction challenges to date have been handled with commitment by Pike River's skilled staff and the contract staff of the award-winning McConnell Dowell construction company. Throughout this process the Pike River mine has maintained a good safety record, with no significant injuries or safety issues above or below ground.
Pike River has also been commended by the Government for its efforts in protecting
an outstanding scenic environment as it builds a commercial coal mine in the
Paparoa Ranges.
On the international front, the hard coking coal market appears to be in reasonable
shape despite the international downturn in demand. Self-restraint exercised by major coal producers in cutting back production and signs of recovery in China are expected to support coal prices at levels significantly higher than were forecast at the time of Pike River's 2007 initial public offer.
Once the shaft is restored, the stage should be set for a successful long term mining operation, with a strong revenue stream from exports of a high quality product.
For the full Interim Report for 2009 Please follow the link below:
Link: http://www.abnnewswire.net/media/en/docs/60404-ASX-PRC-315960.pdf
Contact
Gordon Ward
Chief Executive and Managing Director
TEL: +64-4-494-0190
Brian Roulston
Company Secretary
TEL: +64-9-377-3517
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