Pike River Development Update
Wednesday 4 July 2007, 10:51AM
By Mediacom
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The Pike River coal mine development continues to progress well with the following operational highlights achieved since the last project update on 30 April 2007:
Tunnel at 917 metres – 40% complete
$19m coal preparation plant contract signed
Port Taranaki to underwrite $20m Greymouth port redevelopment
Tunnelling Progress
The tunnel to access the coal deposit was advanced another 276 metres in the period from 23 April -1 July 2007 to a total of 917 metres – 40% of the 2,300 metre eventual length. This progress was achieved notwithstanding a 20 day halt in tunnelling during that period whilst contractors installed a conveyor system. The conveyor is being used to move the blasted rock from the tunnel face to a hopper positioned outside the tunnel entrance, where trucks can self load and remove the rock. Installation of the conveyor delivered immediate results with daily and weekly records being set for tunnel advance. Progress in the past week was 66 metres compared to the previous best prior to commissioning the conveyor, of 44 metres. Rates of tunnel advance will continue to vary as is usual for projects of this nature. The conveyor will remain in the tunnel until the coal slurry pipeline transport system is installed soon after coal production has commenced.
Infrastructure
In other on-site activities, the mine’s administrative and engineering buildings are close to completion. Work has commenced on the stores and workshop buildings at a small amenities area about 1.2 kilometres from the tunnel entrance. When power, water and telecommunications are completed in August 2007, the Pike River project team will move from their current offices in Greymouth to the new mine site buildings.
Pike River has also recently announced the signing of a $19 million contract with Brightwater-PEAT Limited for the construction of the coal preparation plant (CPP) to be located at the entrance to the Pike valley. This plant will receive the raw coal from the mine via the 10.6 kilometre slurry pipeline and “wash†the coal to remove diluting rocks and deliver a clean, dewatered product into stockpiles for haulage to the port at Greymouth.
Transport
On 22 June 2007, Port Westland Limited announced details of the planned redevelopment of the Greymouth port for Pike River coal transport. The Greymouth port will be developed jointly between Port Westland (100% owned by Grey District Council) and Port Taranaki Limited, (100% owned by Taranaki Regional Council). A terminal company will be created to develop the cargo port in a $20 million venture with financing underwritten by Port Taranaki Limited.
During May 2007, the Environment Court confirmed the conditions of its December 2006 interim decision allowing Pike River to transport up to 1.3 million tonnes of coal per year by truck to the Greymouth port.
West Coast Coal Company Limited (WCCC), the consortium responsible for transporting Pike River coal, continue to evaluate various interim shipping solutions pending delivery of the first coastal vessel expected about September 2008. Up to 50,000 tonnes of Pike River coking coal is likely to be shipped using an interim solution prior to arrival of WCCC's new coastal vessel, the “PRC Brunnerâ€Â.
The WCCC consortium includes international shipping line Jebsens and Port Taranaki Limited. Jebsens and Port Taranaki have made good progress in financing the coastal ships and port development costs respectively. Long lead items for the first coastal ship were placed some months ago and a shipbuilding contract signed by Jebsens with a Chinese shipyard. Jebsens are in China this week arranging a bank refund guarantee to support the ship financing. WCCC and Pike River have extended the contractual date to conclude ship and port development financing.
Carbon Dioxide Emissions
Pike River notes comments in recent days by Ms Jeanette Fitzsimons on behalf of the Green Party, which incorrectly alleged that the Pike River mine will generate 6.8 million tonnes of carbon dioxide equivalent (CO2e) emissions from fugitive methane gas over its life.
Pike River estimates from its drilling and sampling of the Brunner seam that the mine may generate 1.4 million tonnes of CO2e over its life, as the gas content in the coal seam is significantly lower than the figure assumed by Ms Fitzsimons. Further, a future option open to Pike River (depending on the economics and regulatory environment at the time) is to further reduce such gas emissions to as low as 184,000 tonnes of CO2e (if all methane gas is captured) by burning methane gas to generate electricity or by flaring in a self-enclosed vent.
Tunnel at 917 metres – 40% complete
$19m coal preparation plant contract signed
Port Taranaki to underwrite $20m Greymouth port redevelopment
Tunnelling Progress
The tunnel to access the coal deposit was advanced another 276 metres in the period from 23 April -1 July 2007 to a total of 917 metres – 40% of the 2,300 metre eventual length. This progress was achieved notwithstanding a 20 day halt in tunnelling during that period whilst contractors installed a conveyor system. The conveyor is being used to move the blasted rock from the tunnel face to a hopper positioned outside the tunnel entrance, where trucks can self load and remove the rock. Installation of the conveyor delivered immediate results with daily and weekly records being set for tunnel advance. Progress in the past week was 66 metres compared to the previous best prior to commissioning the conveyor, of 44 metres. Rates of tunnel advance will continue to vary as is usual for projects of this nature. The conveyor will remain in the tunnel until the coal slurry pipeline transport system is installed soon after coal production has commenced.
Infrastructure
In other on-site activities, the mine’s administrative and engineering buildings are close to completion. Work has commenced on the stores and workshop buildings at a small amenities area about 1.2 kilometres from the tunnel entrance. When power, water and telecommunications are completed in August 2007, the Pike River project team will move from their current offices in Greymouth to the new mine site buildings.
Pike River has also recently announced the signing of a $19 million contract with Brightwater-PEAT Limited for the construction of the coal preparation plant (CPP) to be located at the entrance to the Pike valley. This plant will receive the raw coal from the mine via the 10.6 kilometre slurry pipeline and “wash†the coal to remove diluting rocks and deliver a clean, dewatered product into stockpiles for haulage to the port at Greymouth.
Transport
On 22 June 2007, Port Westland Limited announced details of the planned redevelopment of the Greymouth port for Pike River coal transport. The Greymouth port will be developed jointly between Port Westland (100% owned by Grey District Council) and Port Taranaki Limited, (100% owned by Taranaki Regional Council). A terminal company will be created to develop the cargo port in a $20 million venture with financing underwritten by Port Taranaki Limited.
During May 2007, the Environment Court confirmed the conditions of its December 2006 interim decision allowing Pike River to transport up to 1.3 million tonnes of coal per year by truck to the Greymouth port.
West Coast Coal Company Limited (WCCC), the consortium responsible for transporting Pike River coal, continue to evaluate various interim shipping solutions pending delivery of the first coastal vessel expected about September 2008. Up to 50,000 tonnes of Pike River coking coal is likely to be shipped using an interim solution prior to arrival of WCCC's new coastal vessel, the “PRC Brunnerâ€Â.
The WCCC consortium includes international shipping line Jebsens and Port Taranaki Limited. Jebsens and Port Taranaki have made good progress in financing the coastal ships and port development costs respectively. Long lead items for the first coastal ship were placed some months ago and a shipbuilding contract signed by Jebsens with a Chinese shipyard. Jebsens are in China this week arranging a bank refund guarantee to support the ship financing. WCCC and Pike River have extended the contractual date to conclude ship and port development financing.
Carbon Dioxide Emissions
Pike River notes comments in recent days by Ms Jeanette Fitzsimons on behalf of the Green Party, which incorrectly alleged that the Pike River mine will generate 6.8 million tonnes of carbon dioxide equivalent (CO2e) emissions from fugitive methane gas over its life.
Pike River estimates from its drilling and sampling of the Brunner seam that the mine may generate 1.4 million tonnes of CO2e over its life, as the gas content in the coal seam is significantly lower than the figure assumed by Ms Fitzsimons. Further, a future option open to Pike River (depending on the economics and regulatory environment at the time) is to further reduce such gas emissions to as low as 184,000 tonnes of CO2e (if all methane gas is captured) by burning methane gas to generate electricity or by flaring in a self-enclosed vent.