UPDATE 12.44pm: Pike River's receivers, PriceWaterhouseCoopers, have told a Greymouth press conference that 114 staff will be laid off. Each miner will receive a maximum pay-out of $18,700 for wages, holiday pay and redundancy.The redundancies take effect
UPDATE 12.44pm: Pike River's receivers, PriceWaterhouseCoopers, have told a Greymouth press conference that 114 staff will be laid off.
Each miner will receive a maximum pay-out of $18,700 for wages, holiday pay and redundancy.
The redundancies take effect immediately.
Receivers will make the payments before Christmas.
Around 190 miners are employed by Pike River (including the 29 who died in the tragedy), although some are contract staff.
Only 27 staff will remain.
Speaking for PriceWaterhouse, receiver John Fisk said that nobody's job was safe, including that of chief executive Peter Whittall.
The receivers had $9 million available to handle the redundancy payments, but this sum could diminish if Pike is required to takeover some of the recovery operation currently being handled, and paid for, by police.
Pike River was put into receivership yesterday by secured creditor and 29% shareholder NZ Oil & Gas.
NZOG is second in line to receive any Pike payouts following staff affected by the redundancy.
The announcement of two further Royal Commissioners and terms of reference for the Pike River Royal Commission signals the beginning of the mine tragedy inquiry, the commission chairman said today.
The inquiry will examine the cause of the explosion, the subsequent deaths of 29 men, rescue operations and safety regulations.
Prime Minister John Key yesterday announced Queensland Commissioner for Mine Safety and Health Stewart Bell and former Electoral Commission chief executive David Henry to assist commission chairman Justice Graeme Panckhurst.
Mr Key said he had met Mr Bell in Wellington last week.
Mr Key said Mr Henry, a former commissioner of Inland Revenue, brought years of experience as well as an inquiring mind to the commission.
Governor-General Anand Satyan and officially appointed the commissioners yesterday and signed off the final terms of reference for the inquiry.
Justice Panckhurst, a Christchurch-based High Court judge, welcomed the latest appointments and said he would consult with fellow commissioners as soon as possible.
The commission would establish a website to keep both the public and the media aware of developments, said Justice Panckhurst.
"We are most conscious of the significant and keen public interest in the Pike River Mine tragedy. The website will provide an important public face for our work," he said.
Mr Key said the report back date would be no later than March 31, 2012.
NZX considers options for Pike shareholders
Meanwhile, following yesterday’s announcement of the receivership of Pike River Coal, Skellerup Holdings is set to join the NZX 50 index on the share market.
Shares in the rubber goods and milking equipment group rose 5.1% to $1.04 on the news, and have gained 92% in value so far this year.
Pike shares, which have been in a trading halt since the accident on November 19, were yesterday suspended on the NZX.
NZX said it would conduct a targeted consultation with the market today as to how best to determine the price at which PRC exits the NZX 50 Index.
The basic options include the last traded price of 88c; a theoretical price based on an assessment of depth in the PRC order book after the halt on the major PRC shareholder, NZOG, was lifted, (being 21c); or writing off the value completely, reflecting the probability that the stock will not trade again on the market.
