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End of transport arrangements costs Pike River Coal $1.67m


Wednesday 27th February 2008

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The termination of previous proposed transport arrangements cost West Coast mine developer Pike River Coal $1.67 million.

The company today reported a net deficit of $1.58 million for the six months to the end of December.

That was related to one-off staff recruitment, relocation and related costs, together with the $1.67m cost related to termination of Pike River's coal transport arrangements with the West Coast Coal Co, the company said.

In November Pike River announced it was no longer planning to ship its coal from Greymouth to Port Taranaki for export, favouring instead a rail route to Lyttelton Port.

Pike River shares listed on the stock exchange in July after an initial public offering at an issue price of $1 raised $85m and left former parent New Zealand Oil & Gas with a 31% shareholding.

Pike River shares were trading at 99c around lunchtime today, up 1c from yesterday's close.

The company said it had invested a further $51.1m in the mine during the past half year.

Risks to the project had been significantly reduced with the mine access tunnel now 86% built, and key infrastructure either finished or well advanced.

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