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Pike River to sell first year’s coal at US$300 a tonne
3 July 2008, Source: Pike River Coal and Lindsay Clark - West Coast coking coal mining company Pike River Coal Ltd has settled the sales price for four buyers at US$300 per tonne for deliveries in the year ended March 2009.
Pike River chief executive Gordon Ward said the company was pleased to sell its first coal at record prices which are in line with price settlements announced by Australia’s major hard coking coal producers for their premium quality hard coking coal.
The sales agreement premium hard coking coal had been made with two Japanese steel mills and its Pike Rivers two Indian shareholders (Gujarat NRE Coke Ltd and Saurashtra Fuels Private Ltd.)
First shipments of Pike River premium hard coking coal to Japan and India are expected in the first quarter of 2009.
Meanwhile Pike River has been given the go-ahead to fill the two last gaps in the transport chain - a trucking contract to move coal to the nearest rail line, and a new $12 million rail loading facility near Ikamatua where coal will be railed to the port of Lyttelton.
Pike said it has signed an 18 year agreement with Nelson-based TNL Group Ltd to truck up to 1.3 million tonnes of coal the 22 km to a new rail loading facility being constructed near Ikamatua in the Grey Valley.
With mine production likely to average approximately 1 million tonnes per annum from mid 2009, 10 truck and trailer units each carrying 30 tonnes of coal will be operating every day between 6am and midnight under terms set by existing resource consents.
The loading facility, including a rail loop and coal conveyor, is due for completion in December 2008.
While first coal production is due to begin in July this year, it will take some months before sizeable amounts of coal are available for transport.
When the mine’s full production is underway from mid 2009, one or two trains will be loaded at Ikamatua per day.