17 July 2012
Solid Energy completes purchase of Pike River assets
Solid Energy has completed its purchase of the assets of Pike River Coal Limited (in receivership) with the final $5
million tranche of the $7.5 million purchase price paid to the receivers today.
The company has assumed control of the Pike River facilities, the main site near Atarau in the Grey District and the
stockpile and rail loading facility at Ikamatua. Seven people who had been working for the receiver have accepted roles
at the Pike River site with Solid Energy.
In May this year Solid Energy completed due diligence on the former mining company’s assets and agreed a full but
conditional sale and purchase agreement with the receivers. The main conditions were for the successful transfer of
permits and land access agreements, and reaching agreement with the Government setting out responsibilities around
recovery of the bodies of the 29 men who were killed in the mine explosion in November 2010 and on a contribution to the
costs incurred by the Police following the explosion.
In recent meetings with the families of the 29 men, Solid Energy has explained that it can see no way to safely carry
out a standalone re-entry of the abandoned workings as part of a body recovery and believes the only way this could be
attempted would be as part of a wider commercial mining operation. It is likely to be several years at least before the
company would be in a position to say if it had a safe, technically feasible and commercially viable mining plan. That
is because a substantial exploration programme to better understand the resource and geology is needed before a safe and
economic mining plan could be proposed for development.
Solid Energy will now secure the site, commence planning for an exploration of the mine’s main entry drift and planning
to improve knowledge of the resource. The company will continue to keep the men’s families informed about its plans.
ENDS