There seems to be no early respite for the Pike River coal company Chief Executive, Peter Whittall, who had been confronted by the Royal Commission inquiry into the Pike River mine disaster in November.
During the ninth day of the hearing in Greymouth, lawyer assisting the commission, Simon Mount, questioned Whittall about the emergency exit for the miners, backed by a 2009 report by the Mines Rescue Trust.
Major creditor and shareholder New Zealand Oil and Gas announced on Monday that on the request of Pike river coal Ltd., it had put the company under receivership, with substantial debts.
The company has debts which are more than its cash and other sources of funds. A series of explosions began on November 19, killing 29 men. The incident took place at West Coast mine near Greymouth.
Pike River Coal express that it is repeatedly amending features of its West Shore process for instance road ranking and mine plan to attain the finest result. Peter Whittall, Chief executive conveyed shareholders at the group's yearly gathering close to Greymouth today that troubles at the complicated mine site were annoying for equally shareholders and those functioning for the coal miner.
Pike River, the listed coal miner recently announced that it is going to reduce the coal production forecast. It was earlier producing 620,000 tonnes of coal and had earlier said that it will be producing close to that much again.
But later it said that the not more than 320,000 and 360,00 tonnes of coal can be produced during this while. The reduction in coal production forecasts have happened after the month of June.
Pike River Coal Ltd has traversed an unsafe loan provision of equal to $NZ25 million with its biggest shareholder New Zealand Oil & Gas Ltd to give quick-fix functioning capital whilst its mine on the West Coast slopes up.
The provision has its interest rate is 13 per cent and it can be paid back in complete by December 15 and the founding and other amounts of $600,000.