MARKETS

Pike River acquires Indian backer

INDIAN coke producer Gujarat NRE Coke has invested $NZ20 million in New Zealand Oil & Gas’ Pike River development, and will buy 40% of Pike River’s production at market prices for the life of mine.

Angie Tomlinson
Pike River acquires Indian backer

Gujarat will purchase equal quantities of Pike River’s two main products – low ash hard coking coal, differentiated primarily by sulphur content.

The number of Pike River shares acquired by Gujarat for its $20 million investment will be matched to the eventual initial public offering (IPO) share price when Pike River floats.

Gujarat’s investment is subject to regulatory approvals including Overseas Investment Commission consent.

The Pike River mine, located at the crest of the Paparoa Range north of Greymouth on New Zealand's South Island, will make Pike River Coal Company one of New Zealand's largest exporters of coal.

The mine will produce 1.3 million tonnes per annum by 2008 with first coal production scheduled by November 2006.

The proposed mine will use hydraulic (high pressure water) extraction and continuous mining.

Gujarat is the second major Indian investor to get on board the Pike River project. In September 2005 India's Saurashtra Fuels Private (SFL) acquired a 10.6% stake through investment of $NZ17 million.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions

editions

Mining Magazine Intelligence Exploration Report 2023 (feat. Opaxe data)

A comprehensive review of current exploration rates, trending exploration technologies, a ranking of top drill intercepts and a catalogue of 2022 Initial Resource Estimates and recent discovery successes.