Tuesday, August 25, 2009

Pike River Delays Exports From NZ Coal Mine

The first 60 000-t export shipment from ASX-listed Pike River Coal’s new mine has been delayed until the January-March quarter in 2010.

The miner initially planned to export its first coal from the Pike River mine, in New Zealand in mid-November.

Pike River Coal stated on Monday that production of premium hard coking coal from its new mine has been running at lower-than-expected rates, owing mainly to early geological complexity and machinery difficulties, resulting in slower roadway development driveage.

“The first 60 000-t export shipment, scheduled for mid-November 2009, will unfortunately be further delayed while the pit-bottom development roadways are extended to the area where first coal will be mined by hydro-monitors,” the company said in a statement.

The first hydro coal was expected in the April-June 2010 quarter.

“The Pike River mine has overcome many challenges to get into operation, and while the current delay is frustrating for investors, customers and staff, it is an issue that many new mines have to face and work through. Most of the hard work has been done and investor patience is set to be repaid, with Pike River producing low-ash coal at a time of rising global demand,” said Pike River Coal CEO Gordon Ward.

The underground coal handling facilities at Pike River have been commissioned and pit-bottom is continuing to be developed with a combination of coal and stone drives. The three new coal cutting machines have been largely repaired and modified, with the remaining outstanding modifications being replacement of tracks on the two continuous miners by the German manufacturer.

Both 60-t machines were currently operational, but repairs, including track work, has resulted in considerable production downtime, during the past month.

Other main factors limiting production over the past month, have included the unavailability of some underground coal and rock haulage machines, owing to breakdowns, a greater level of roof support being required owing to the proximity of the Hawera fault, and the need to familiarise new staff with machinery and mining practices.

Pike River Coal stated that the countermeasures taken by the company included more intensive maintenance, intensified operator training, and changes to underground work practices following internal and third-party review.

“The mine is working two shifts, 24 hours a day, seven days a week in order to meet our production targets, and all Pike River’s management and staff are focussed and committed to this outcome,” Ward noted.

Source: Mining Weekly

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