Auckland, Jan 21, 2009 AEST (ABN Newswire) - Few would have imagined when we launched the prospectus for Pike River Coal's (NZE:PRC) initial public offering, just over a year ago, that the price of premium hard coking coal would have tripled to US$300 per tonne by the time production begins. Furthermore white-hot coking coal markets, driven by strong demand from China and India, are likely to keep coking coal prices higher than earlier forecasts over the next few years.
Development of the Pike River mine site is now approaching completion and the access tunnel is just metres away from the Brunner Seam after two years of tunnelling under the Paparoa Ranges. This has been more difficult than we had anticipated, but the important task of developing working faces in the coal seam is to commence very soon. We expect to have coal on its way to our customers in the first quarter of 2009. As we approach commercial operations I would like to pay tribute to the professionalism and commitment of Pike River staff and our construction contractors for achieving mine construction completion without serious incident or mishap. Pike River has set itself high standards for safety and the safety record during construction has been commendable.
Pike River's coal reserves are located in a challenging environmental setting because the mine is under Crown conservation land. Particular effort has been made by Pike River to deliver a positive environmental outcome through effective environmental management at the mine site. We enjoy good working relationships with the Department of Conservation, local iwi and the regional and local authorities who are all important stakeholders in Pike River's business.
When the company sought the support of New Zealand and Australian investors during the public offering last year, I remarked that Pike River provided a unique opportunity to invest in the only New Zealand-based listed coal mining and export company. We are about to begin delivering on that investment opportunity.
John Dow
Chairman
Pike River Coal Limited
Contact
Gordon Ward
Chief Executive and Managing Director
TEL: +64 4 494 0190
Peter Whittall
General Manager, Mines
TEL: +64 3 769 8400
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