Tunnelling equipment for the underground mine is now on site, including a purpose-built twin-boom jumbo drilling unit together with offices, workshops and support equipment. The tunnel is due to commence underground in September 2006, the company said.
Work is also progressing with the clearing of a 20-hectare area for the coal preparation plant, bathhouse and substation area located on Pike River-owned land.
NZOG said several significant tenders have been closed and preferred contractors selected, but some technical and commercial issues are still to be finalised ahead of awarding the contract.
“These tenders include the coal preparation plant [CPP], to be constructed on a build-own-operate basis, and the supply of two continuous miners and a roadheader for developing the mine’s roadways,” the company said.
“Work on the CPP will commence later this year for commissioning prior to first coal from the mine. Similarly, the mining equipment has long lead times and are being ordered to allow delivery prior to the tunnel intersecting the coal seam.”
The company said increased legal and disclosure requirements involved in having Pike River Coal floated on the Australian Stock Exchange, as well as the New Zealand Stock Exchange have contributed to the delayed ramp up of production at Pike River.
NZOG recently announced a surplus of $2.3 million for the year ended June 30, 2006, with total revenues reaching $7.5 million.
