Pike River staff receive bonus
Pike River Coal will pay about 170 employees a $7,500 bonus for reaching the company's first hydro-mining commissioning milestone.Hydro-mining, the use of high-pressure water cannons to extract premium hard coking coal for export, will significantly incre
Mon, 11 Oct 2010
Pike River Coal will pay about 170 employees a $7,500 bonus for reaching the company’s first hydro-mining commissioning milestone.
Hydro-mining, the use of high-pressure water cannons to extract premium hard coking coal for export, will significantly increase production if successful, and is seen as a major step forward for Pike River’s West Coast mine.
The company last month negotiated a $25m short-term working capital facility with majority shareholder NZ Oil and Gas to cover the purchase of vital hydro-mining equipment.
The mine's hydro-monitor is now installed and working well, with a first 1,000 tonnes of hydro coal delivered in the first week of October.
Pike River’s original challenge to employees was to have the first 1,000 tonnes of hydro coal delivered by 24 September in exchange for a $10,000 bonus payment - a target hampered by power supply disruption and minor equipment glitches.
The company successfully achieved its second target of a further 790 metres of roadway development by 24 September.
“I am very pleased with the efforts of all staff who appreciated the importance of reaching our targets and worked very hard to achieve them,” new chief executive Peter Whittall said in a release today.
“As a result, the workforce will receive 75% of the target bonus - as well as the satisfaction of seeing coal flowing from the mine in increasing volumes.”
Pike River will release a market update on roadway advance and hydro-extraction performance compared to the current full-year forecast once commissioning of all equipment is achieved in the "coming weeks".
The company expects to dispatch at least one more shipment by December.
Pike River shares (NZX: PRC) last traded up 3.54% to $1.17.
Mon, 11 Oct 2010
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