The largest shareholder in the Pike River coal mine, New Zealand Oil & Gas, has committed a further $5 million to help meet mine stabilisation costs after the receivers warned they had exhausted their working capital.
That's on top of the $12 million NZOG agreed to advance to Pike immediately after the November 19 explosion that killed 29 miners and led to the mine's closure and receivership.
The $12 million unsecured advance, which has since ballooned out to $15.3 million with interest and other expensives, was the second tranche of a $25 million facility that was to have helped the mine reach full production.
Instead, NZOG let the advance go ahead out of moral obligation to assist in the aftermath of the disaster.
As a loan to the receivers, accounting firm PwC, the latest $5 million credit line ranks ahead of other secured and unsecured debt, and at this stage, only $4.3 million has been drawn down.