PwC media release re Pike River Coal (In Receivership)

PwC latest media release re Pike River Coal (In Receivership)

Monday 17 January 2011

Receivers of Pike River Coal Limited (In Receivership) presents mine stabilisation plan to the Commissioner of Police

On 13 January 2011, the New Zealand Police wrote to the Receivers – John Fisk, David Bridgman and Malcolm Hollis, partners from PricewaterhouseCoopers - requesting Pike River Coal Limited (PRC's) plans with regard to the mine following cessation of the recovery operation.

Accordingly, the Receivers have today written to the New Zealand Police setting out a proposed Mine Stabilisation Plan. If the mine is able to be stabilised, considerable additional analysis will be required to determine future plans, including whether it is able to be entered or further developed.

The Plan is directed at establishing a stable state within the mine atmosphere. It does not allow for recovery of the deceased miners or guarantee the future of the mine.

The receivers agree with the Police that, based on the extensive work undertaken to date, it appears that a recovery of the deceased miners is very unlikely.

Key points in the Plan are: Over the next five to eight weeks work will continue to achieve a sustainable inert atmosphere in the mine, with no evidence of underground heat sources that pose risk of further explosion. This work will be funded by PRC and will be undertaken under the Company’s control. The Receivers also note that there are a number of other matters that need to be discussed before the Company can resume full control of the mine.

The aim of the plan is to achieve managed stability of the mine. If expert advice obtained in the course of implementing the plan indicates that this is not achievable then alternative options will need to be developed.

ENDS

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