Pike coal price endorsed

The price Pike River Coal sells coal to shareholders at has been endorsed by outside consultants.

MinAxis found that the price payable under coal offtake contracts for the Japanese fiscal year to March 31, 2010, with shareholders Gujarat NRE Coal (NSW) and Saurashtra Fuels Private had terms which are fair and reasonable to all contract parties.

The price levels reflect typical levels for contract prices settled at arm's length between major parties for internationally traded premium grade hard coking coal.

Pike River announced on July 21 that it had sold premium hard coking coal for the current Japanese fiscal year at US$128 a tonne.

Coal sales prices agreed to with Gujarat NRE Coal and Saurashtra Fuels are subject to receipt of an NZX waiver or shareholder approval.