The company said the delay was due to early geological complexity and machinery difficulties.
Unlike most coal producers, Pike plans to use hydro mining, but will now start blasting the coal with high-pressure water cannons in the June quarter next year instead of this November.
On a more positive note, Pike said the underground coal-handling facilities had been commissioned and the pit bottom was continuing to be developed with a combination of coal and stone drives.
While Pike was counting on having its two continuous miners and its roadheader operating this month, the machines all had commissioning problems.
“The three new machines have now largely been repaired and modified, with the remaining outstanding modification being replacement of tracks on the two continuous miners by the German manufacturer at their cost,” Pike said.
“Both 60-tonne machines are currently operational, but repairs including track work, has resulted in considerable production down time during the past month.”
Other hindrances included breakdowns in haulage machines, greater roof support required than expected due to geology near the Hawera fault and the need for the workforce to become familiar with the machinery and mining procedures.
“The geological faulting complexity encountered so far is expected to reduce as mining moves to the west away from the Hawera fault, and in-seam drilling is in progress to assist with mine planning,” Pike said.
The emerging coal producer expects to have all three coal-cutting machines up and running in September.
Pike chief executive Gordon Ward said the mine was working two shifts, 24 hours per day, seven days a week in order to meet production targets.
“The Pike River mine has overcome many challenges to get into operation and whilst the current delay is frustrating for investors, customers and staff, it is an issue that many new mines have to face and work through,” he said.
“Most of the hard work has been done and investors’ patience is set to be repaid, with Pike River producing low ash coal at a time of rising global demand.”
Ward noted that rising demand over the past months from China and India have driven spot coking coal prices to over $US160 a tonne, eclipsing the $US128/t benchmark price from this year’s annual negotiations.
Pike ended the recent financial year with a $13 million loss, as its namesake mine remained in preproduction status after a rockfall in February caused delays to its main ventilation shaft.
The company also had a $6.2 million unrealised exchange loss to currency movements on its US dollar-denominated convertible bond, a $2.1 million depreciation charge and expense of $3.5 million from paid interest.
At the end of June, Pike had cash of $21.7 million and $26 million available from undrawn debt facilities.
Shares in Pike closed up 2c to 95c on the Australian Securities Exchange yesterday.
