Idea to float coal licence holder

Press, 5 December 1985, Page 63

Idea to float coal licence holder

PA Auckland United Resources Investment Holdings, Ltd, intends to float Pike River Coal Company, Ltd, a fully owned subsidiary, as a separate public company. ’’ However, the listing of Pike River is not imminent. Mr P. Liddle, secretary of United Resources, said that the listing of Pike River was a “long term prospect.” Pike River’s main asset is its licence interests over the Pike River coalfield in Westland. Renewal of the licence is being sought under the Mining Act. Some opposition has been encountered as a result of proposals to establish a national park in the area. Mr T. E. Bates, the general manager of Pike River, said a

very large high-quality coal resource had been identified. If a mine were to be established it would be aimed at the export market. The type of coal was in short supply world wide so there would be ready markets. Mr Bates said if a mine were established it would produce about a million tonnes a year. To operate on that scale, Pike River would have to look at setting up a joint venture, probably with an overseas partner, Mr Bates said. The establishment of a mine would be determined by the renewal of the licence and availability of funds. Mining activity would be underground rather than open cast. A decision to go ahead could be made within two years of the licence being renewed.

Accounts for Pike River v ’ n Coal for the June 30 year - liappear as a separate item in •*>'« the United Resources annual-

report. yua The account show Pikev River has a paid-up capital of . just $lOO, made up of 20O3„„ ordinary 50c shares. It has accumulated profits of $102,346, which together the capital make total share-t—G holders’ funds $102,446. In the • 1984 year shareholders' funds -5 showed a deficit of $44,M3. w ~., In the June year the com- .. ,_ pany incurred net operatiag - expenditure before extra-“J 31 ordinary items of $445,912. An extraordinary profit of $467,184 - froift the sale of petroleum exploration rights resulted in q net profit after extraordinaries,,.. m of $21,272 compared with a - $444,771 loss the previous year. “J; After adjusting for tenements relinquished ($83,294) and capitalisation of exploretion expenditure and acquisi- ,* tion costs ($209,131) the operating profit for the year was - $147,109. That compared with a lost of $36,349 the previous year. *.