Pike River Coal
| Company type | Public |
|---|---|
| Industry | Mining |
| Founded | July 20, 2007 |
| Defunct | 2012 |
| Headquarters | New Zealand |
Key people | Peter W Whittall (CEO from 2 October 2010), Gordon Ward (Managing Director and CEO until 1 October 2010) |
| Products | Coal (bituminous coal from the Brunner seam) |
| Parent | Solid Energy (from 2012) |
Pike River Coal Ltd was a mining enterprise publicly traded on both the New Zealand (NZX) and Australian (ASX) stock markets. Its chief asset was the Pike River Mine, which became the site of a catastrophic incident on 19 November 2010, resulting in the loss of 29 lives.
The company commenced trading on the New Zealand Exchange on 20 July 2007. After the tragedy, the company requested suspension of its shares and options trading, which took effect on 22 November 2010. Subsequently, Pike River Coal was placed into receivership on 12 December 2010.
Situated 46 km east of Greymouth within New Zealand's West Coast Region, Pike River Mine focused on extracting coal from the Brunner seam—a bituminous coal layer noted for its low ash content and variable sulphur levels.
Company management
Peter W Whittall, who brought nearly three decades of experience in mining leadership, was appointed as CEO on 2 October 2010, just weeks prior to the Pike River Mine disaster. Having previously served as General Manager Mines, he managed onsite construction, mine development efforts, and recruitment activities at Pike River. During the disaster aftermath, he acted as the company's public representative.
Before Whittall, Gordon Ward held the positions of managing director and CEO from May 2007 until 1 October 2010. He guided Pike River Mine through its initial fourteen years, starting from conceptual design stages.
History
In 2007, Pike River Coal secured NZ$85 million to facilitate expansion of the Pike River Mine, with investments surpassing NZ$100 million by August that year. By mid-2010, total capital infusion had reached $288 million. The company reported net operating losses amounting to $39 million for the fiscal year ending June 2010, an increase from $13 million recorded in 2009.
Prior to the disaster, Pike River Coal's market value was approximately NZD400 million. Early significant investors included New Zealand Oil & Gas holding 29% plus options and bonds; Gujarat NRE Coke Limited with a 17% stake; and Saurashtra Fuels Private Limited owning 15%. The latter two intended to purchase nearly half of the mine’s coal output. Post-IPO ownership distribution evolved to NZ Oil & Gas at 31%, Gujarat NRE Coke at 10%, Saurashtra Fuels at 8.5%, private minority shareholders at 7.9%, and public investors accounting for 42.5%.
On 12 December 2010, New Zealand Oil & Gas initiated receivership proceedings for Pike River Coal; PricewaterhouseCoopers were appointed as receivers on the following day.
In 2012, Solid Energy acquired Pike River Coal while governmental bodies maintained oversight for investigation and mine re-entry operations.
By July 2013, Pike River Coal was ordered to compensate each victim’s family with $110,000 and fined $760,000 in total; however, citing financial difficulties, only $5,000 per family was actually paid. In November that year, Labour Party leader David Cunliffe committed that a Labour administration would ensure full compensation for affected families.
Pike River Disaster
On 19 November, an explosion within the Pike River mine trapped 31 workers underground and caused loss of power and communication systems. Daniel Rockhouse and Russell Smith were the sole survivors who managed to escape despite suffering carbon monoxide poisoning. The remaining 29 miners perished due to the blast or exposure to toxic gases.
Security camera footage captured a pressure wave along with debris ejected from the mine entrance. Aerial surveys identified damage to the backup ventilation fan and surrounding plant life.
In the days following, efforts to re-enter the mine were delayed by limited technical expertise and safety hazards. Subsequent explosions occurred on 24, 26, and 28 November, confirming ongoing dangerous conditions that ultimately led to sealing off the mine to protect safety.
See also
External links
- Coal companies of New Zealand
- Coal mines in New Zealand
- Grey District
- Underground mines in New Zealand
- Companies listed on the New Zealand Exchange
- Energy companies established in 2007
- New Zealand companies established in 2007
- 2012 disestablishments in New Zealand
- Energy companies disestablished in 2012
- Defunct energy companies of New Zealand
- Pike River Mine disaster