Pike River appoints receivers

Production and Markets

Publishing Date: 13 Dec 2010 10:21am GMT
Author: Mining Journal

Pike River Coal, owner of the eponymous mine in New Zealand where 29 miners died after methane explosions last month, has been placed in receivership.

Company chairman John Dow said the company was in a “precarious position financially” as a result of the events of the past three weeks.

He said: “The only prudent action we could take was to approach our major creditors and advise them we were unlikely to be able to repay our loans at the end of the standstill period”.

“The Pike River Coal board had a clear business plan for the next few months but unfortunately this has proved to be unachievable because of the explosions and subsequent coal fire.”

A blast rocked the mine on November 19, leaving the 29 men trapped underground. Despite rescue efforts, the miners were presumed dead after a second blast hit the mine on November 24. The disaster was the deadliest for 96 years at a mine in the country.

Pike River said it is focussed on making the mine safe, recovery of the bodies, co-operating with the inquiries, employee entitlements and preserving the value of the company's assets.