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Pike signs trucking contract

Wednesday 18th June 2008

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Pike River Coal has signed a long term road transport agreement with TNL Group to truck its coking coal to the point of loading on rail.

The 18 year contract is for trucking up to 1.3 million tonnes of coal 22 kilometres to a new rail loading facility being constructed at Ikamatua in the Grey Valley.

Pike River evaluated two main alternatives for trucking coal; a northern route 22 kilometres to Ikamatua, and a southern route 41 kilometres to an existing rail loading facility at Stillwater.

The capacity, environmental and commercial advantages of a much shorter trucking route to Ikamatua determined the decision on the final location. Pike River's chief executive Gordon Ward says the costs of trucking the coal have increased, but "are within Pike River's estimates for that component of the transport costs, prior to adjustment for increased fuel prices. "

The total transport cost estimated in November 2007 was $38 per tonne before the current rise in fuel prices.

From mid-2009 around one million tonnesof coal will be trucked each day. This equates to 10 truck and trailer units carrying 30 tonnes of coal. The movement comes within the terms of the existing resource consents.

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