History
The company raised NZ$85 million in additional capital for expanding the Pike River Mine in 2007.[7] As of August 2007, over NZ$100 million had already been invested into developing the mine.[8] By June 2010, Pike River Coal had invested a total of $288 million in developing the mine. Pike River Coal reported net operating losses of $39 million in the year to June 2010, and $13 million in 2009.[9]
Prior to the mine disaster, Pike River Coal Ltd had a market capitalisation varying around NZD400 million. Pike River Coal was initially held by New Zealand Oil & Gas (29% stake plus options and bonds)[10] as well as the two Indian companies; Gujarat NRE Coke Limited, (17% share), and Saurashtra Fuels Private Limited, (15% share), with the two latter companies intending to buy about half the running production of the mine's coal.[11] After the initial public offering, the percentages changed to NZ Oil and Gas 31%, Gujarat NRE Coke 10%, Saurashtra Fuels 8.5%, private minority shareholders had 7.9% and the remaining 42.5% was sold to the public.[12]
On 12 December 2010, New Zealand Oil & Gas released a statement saying that it had decided to put Pike River Coal into receivership.[13] On 13 December 2010, New Zealand Oil And Gas stated that Pricewaterhouse Coopers had been appointed receivers.[14]
The company was purchased by Solid Energy in 2012, although the government is responsible for investigation and re-entry into the mine.
In July 2013 the company was ordered to pay $110,000 to each of the victims' families and fined $760,000,[15] but in the end didn't pay the fine and only paid $5000 to each family, saying it didn't have the money.[16][17] In November 2013 Labour Party leader David Cunliffe said if elected, Labour would ensure the families receive the payouts they were awarded.[18][19]
