NZOG receives $5 million from Pike Rive Coal receivers
Aug. 10 (BusinessDesk) - New Zealand Oil & Gas will receive a $5 million payment from the receivers of Pike Rive Coal after it was sold to Solid Energy in May.
A further payment of up to $2.5 million is expected before the end of the year.
Solid Energy will also pay a further $25 million by installments if and when extraction from the mine permit area
reaches over 250,000 tonnes over a 12-month period or total extraction over any period reaches 1.25 million tonnes,
whichever occurs first. Once the trigger date is reached, the state-owned mine company will pay $2.5 million annually
until the amount has been paid in full.
Christchurch-based Solid Energy has entered into an agreement with the government outlining the role each will play in
recovering the bodies of the 29 miners, which still remain trapped in the mine, following a series of explosions in
2010. The explosions forced the closure of the operation, leading to a Royal Commission of Inquiry and NZX-listed Pike
River Coal was pushed into receivership.
(BusinessDesk)