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Pike River up for sale

PIKE River Coal's receivers will start seeking formal expressions of interest for the company's a...

Blair Price
Pike River up for sale

Advertising is booked to start next week, and the accounting giant has more than 100 industry contacts to chase up from past associations, which include its work with share offerings.

Unsolicited expressions of interest have been made from Australia, Asia and America-based coal companies so far, while dominant New Zealand coal producer Solid Energy has already announced its intentions to bid for the assets.

The aim is to ink a sales agreement by the end of June, but the receivers are yet to finalise a timetable which will cover key deadlines such as the final date for binding bids.

Given all the difficulties at the troubled New Zealand coal mine, Fisk said any purchaser could need to “factor” in recovery operations, depending on how the mine stabilisation plan and associated process pans out over the next three months.

At least some of the families of the 29 men killed in the mining disaster last year are growing more frustrated with delays to possibly recover the bodies, according to recent media reports.

On whether a purchaser will need to attempt efforts to recover remains, Fisk said it would depend on whether access was possible, to the areas that might contain them.

He indicated it was likely that a sales agreement would contain conditions to involve the New Zealand Police, “if there was a recovery exercise, or the opportunity to have a recovery exercise”.

A borehole designed to intersect the pit bottom area of the underground mine is expected to be completed at the weekend.

While the opportunity to put a camera down the hole was previously expected to take place this Wednesday, Fisk said there might be some delays.

Mine specialists suspect a roof fall has taken place underground, blocking off areas deeper into the mine.

Efforts to pump inert nitrogen throughout the whole mine have been unsuccessful.

“The atmospheric condition in the portal is about 95 per cent nitrogen,” Fisk told ILN.

“But in the main part of the mine it is about 95 per cent methane.”

A remote-operated tunnel inspection vehicle provided by Western Australia’s Water Corporation remains stuck in a ditch about 1600 metres into the main access drift.

Hopes of finding more survivors from the mine ended after the second underground explosion on November 24.

Damage from subsequent methane explosions and a fire underground further complicated the recovery effort.

A hydro-mining operation, the Pike River mine produced premium hard coking coal and held 58.5Mt of resources in the ground before the first explosion last year.

Pike owes around $NZ64 million ($A46.6 million) in loans to its biggest shareholder, New Zealand Oil & Gas.

The receivers were appointed on December 13, with Pike holding a $NZ10.9 million cash position at the time.

PwC has previously said it does not expect the $31.9 million of unsecured creditors to have their claims met, with unsecured trade creditors totalling $15.4 million.

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