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.
And the reduction has happened since the coal miner has recently commissioned a hydro-mining system in their underground mines.
These mines are situated near Greymouth. In these places high water pressure is used to cut large quantities of coal.
The reduction is the outcome of slower than expected progress in development of underground roadways which is also happening as the result of delays in machinery upgrades. Said the CEO of Rike River Peter Whittall that projectional delays are the major factors for which the company is suffering.
He also said that next month the company will be announcing what are going to be its funding requirements for the new project and also how is it planning to repay its loan from New Zealand Oil and Gas.