In its quarterly report, the New Zealand coal hopeful said its mining performance continued to improve during September with modifications to its roadway development machines allowing for more reliable performance.

Underground operations since June this year have been focused on completing roadways and finalising installation of coal handling and transport infrastructure in the pit-bottom area.

Pike said the pit-bottom roadways had largely been completed and installation of ventilation structures, extension of the coal slurry flumes, and start of installation of the first of the main underground fans would take place over the coming months.

Roadways are being developed in coal to the south of the pit-bottom area for storage of clean water for hydro-mining and mining of saleable coal.

Stone driveage towards the hydro-mining areas to the northwest has also begun.

The company said replacement tracks for its continuous mining machines had been constructed and delivered at the German manufacturer’s cost and were being fitted.

While the fitting takes place, Pike has temporarily made engineering modifications to the tracks of one continuous miner so it can work with a roadheader underground.

Availability of underground coal/rock haulage machines greatly improved during September and additional machines have been leased for the next six months due to the amount of rock haulage required. These will arrive in the current quarter.

“Further improvements are needed in roadway advance rates during the October-December 2009 quarter and a number of operational steps have been taken to achieve this,” Pike said.

While the company has been dealing with issues with its development machines, it has found success with the in-seam drilling unit which has been drilling ahead of planned roadways in the pit-bottom area and towards the first hydro-mining panels.

Pike currently has a 14,000-tonne stockpile and will make its first shipment of 20,000-30,000t in January to March next year.

First hydro-mining is planned for April to June next year with the hydro monitor pumps and electrical systems already delivered.

Pike said all other hydro-mining equipment had been delivered or was on schedule.

The monitors are in Australia and the total system of monitor, crawler-mounted mobile roof support and coal receiver/crusher is due to be delivered later this year.

With first coal dates pushed back due to development problems, Pike said it would need $NZ20 million in new funds to meet spend in the first half of 2010.

It was contemplating a long-term coal offtake agreement or a share placement.

Pike River closed up 5.56% yesterday at A95c.