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Pike River Awards Coal Trucking Contract

18 June 2008

Pike River Awards Coal Trucking Contract

Pike River Coal Limited (Pike River) announces it has signed a long term road transport agreement with TNL Group Limited (TNL) to truck its high quality coking coal to the point of loading on rail.

The 18 year transport contract is for trucking up to 1.3 million tonnes of coal 22 kilometres to a new rail loading facility being constructed at Ikamatua in the Grey Valley, West Coast, South Island.

At mine production averaging approximately 1 million tonnes per annum from mid 2009, ten truck and trailer units carrying 30 tonnes of coal will be operating each day between 6am and midnight under terms set by existing resource consents. All loads will be covered to ensure coal dust is contained.

Pike River evaluated two main alternatives for trucking coal; a northern route 22 kilometres to Ikamatua, and a southern route 41 kilometres to an existing rail loading facility at Stillwater. The capacity, environmental and commercial advantages of a much shorter trucking route to Ikamatua determined the decision on the final location. Carbon emissions for the trucking leg will be halved, and whilst the rail leg is now slightly longer, this transport mode has significantly less carbon emissions compared to trucking. From Ikamatua the coal will be railed to the Port of Lyttelton for export.

Pike River’s Chief Executive Gordon Ward says “We are pleased to secure a very competitive haulage rate with an experienced and highly regarded trucking contractor”. The trucking rates negotiated with TNL are within Pike River’s estimates for that component of the transport costs, prior to adjustment for increased fuel prices. The trucking costs comprise part of a total cost of NZ$41* per tonne, using current fuel prices, to transport coal from Pike River’s coal preparation plant to loading onto export vessels at Lyttelton.

Mr Ward says that Nelson-based TNL has worked extremely hard to ensure their transport services will be best practice in terms of efficiency, environmental compliance, and road safety.


The Pike River mine, about 50 kilometres northeast of Greymouth, is opening up New Zealand’s largest known deposit of hard coking coal. The underground mine is expected to produce an average of one million tonnes a year for at least 18 years once hydro-mining commences in mid 2009.

* Note: The total transport cost estimated in November 2007 was NZ$38 per tonne before the current rise in fuel prices.

Pike River shares are quoted on the NZSX and the ASX under the code “PRC”

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