Pike River plant to be marketed internationally

The remaining plant and infrastructure assets of the ill-fated Pike River Mine on the West Coast are being sold by international auction and might be exported..

The assets include a full coal preparation plant, extensive pumping systems and coal load-out facility at the Ikamatua Rail Load Out site, and a large quantity of spare parts at the mine site, in the rugged Paparoa Ranges.

In November 2010, as the mine progressed towards full operation, 29 men were killed underground following a series of four explosions.

No subsequent attempts were made to access the collapsed 2.3km main decline to attempt retrieval of the bodies.

Debt-ridden state-owned enterprise Solid Energy, which nearly collapsed, is this week again under a restructuring review, while neighbouring listed Bathurst Resources remains constrained to domestic South Island thermal coal production until specialist hard coking coal prices make exports commercially viable.

Australian auction company Hassalls, which specialises in the resource sector; mining, drilling, civil construction, quarrying/crushing and oil and gas, will be holding open days on-site for pre-registered, buyers, aiming to clear the site by June 30.

''The plant is in exceptional condition and will be attractive to smaller coal operators in Asia and West Africa,'' Hassalls general manager Steve Wall said.

Clearing by June 30 would allow for rehabilitation works to be done in preparation for returning the site to the Department of Conservation later in the year, Mr Wall said in a statement yesterday.

New Zealand Oil & Gas initially started Pike River, then spun off the coal mine developer in an initial public offering in May 2007, raising $85 million, while retaining a 29.4% majority stake.

About $290 million had been spent on mine development during the previous decade and, just a month before the explosions, it was facing potentially $50 million in extra costs. Following the 2010 explosions, Solid Energy purchased Pike in July 2012 for $7.5 million.

After calls for the site to become part of the Paparoa National Park, and a new Great Walk, it is now scheduled to come under Department of Conservation ownership.

simon.hartley@odt.co.nz

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