In a statement yesterday, Pike River refuted claims by Fitzsimons that the Pike River mine would generate 6.8 million tonnes of carbon emissions from fugitive methane gas over its life.

Pike River’s drilling and sampling of the Brunner seam had estimated the mine may produce about 1.4Mt of carbon emissions, a sixth of what Fitzsimons has alleged.

Fitzsimons complained to the Advertising Standards Complaints Board, Securities Commission and the Commerce Commission because she believes the low environmental impact claims in a pamphlet were misleading and deceptive.

“We believe Pike River Coal Company should warn potential investors that they are likely to be liable for a multi-million dollar bill for greenhouse gas emissions released during the mining process,” Fitzsimons said.

“The Government has made it clear that it plans to introduce an across the board carbon price and this means Ma and Pa investors face additional financial risk.

“However, nowhere in Pike River’s advertising for its current share offer, which closes on July 10, does it disclose this. In fact the advertising pamphlet describes the operation as having ‘low environmental impact’.”

The development of the Pike River Coal mine is progressing well, with 40% of the 2300m eventual length of the tunnel completed.

A $NZ19 million contract with Brightwater PEAT signed last month will also see a coal preparation plant built at the entrance to Pike River.

The Pike River project team plans to relocate to the new minesite buildings at Pike River once power, water and telecommunications are completed next month.

The company also announced it will ship 50,000 tonnes of its coal using “interim shipping solutions” pending delivery of West Coast Coal Company’s first coastal vessel expected about September 2008.