Friday, November 19, 2010

Explosion leaves 1 dead, 36 missing at NZ coking coal mine


One miner is dead and 36 missing after an explosion at New Zealand coking coal producer Pike River Coal’s underground mine on Friday afternoon. At this stage there is no explanation for what caused the explosion at the mine, 50km northeast of Greymouth on New Zealand’s South Island.

New Zealand energy minister Gerry Brownlee said the blast occurred at 3.45pm local time and there had been no contact with any miners since 4.15pm, NZ media reported. About 150 people work at the mine.

The miner exported its first shipment of hard coking coal in February this year to India’s Gujurat NRE, with the second shipment leaving just days after the Christchurch earthquake in September. The shipment was delayed because of damage at Port Lyttleton caused by the earthquake.

Pike River can produce around 1m tonnes/year of high grade hard coking coal and had been expected to produce between 320-360,000 t for the 2011 financial year. Gujarat owns a 17% stake in the company with India’s Saurashtra Fuels owning 15%. The two Indian shareholders are set to take 55% of the coal produced at Pike River over the 18-year mine life. Wellington-based Pike River also has three-year contracts in place with Japanese mills for 22% of annual offtake, as Steel Business Briefing has reported.

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