Pike families' trust money safe - trustee

File photo / Simon Baker

The trustee of the Pike River miners' relief fund today dismissed fears the $1.5 million put aside for those who lost loved ones in the coal mine disaster would end up in the hands of the receivers.

Paul Foley said the money, made up of $500,000 from Pike River Coal, $500,000 from NZ Oil and Gas and about $500,000 from donations nationwide, was safe and the "receivers cannot get their hands on it".

Grey District mayor Tony Kokshoorn said he feared the money would not get to the families after Pike River Coal was handed over to receivers.

Money donated by Pike River Coal sat in an entirely separate account which the receivers could not touch, Mr Foley told Radio New Zealand.

"And I can confirm I have in that account the $500,000 [donated by Pike River Coal]," he said.

The fund was set up to merge with a separate fund set up by the Grey District Council which had about $4.5 million in it.

A separate fund set up by the Engineering, Printing and Manufacturing Union has about $220,000 in it.

It is yet to be decided how the money will be distributed to the families.

Pike River Coal receiver John Fisk said the operation to recover the bodies of the 29 men trapped in the mine had so far cost between $4 million and $5 million and estimated it would cost $10 million by Christmas.

He said that the GAG machine being used to reduce the risk of fire in the mine alone cost something like $10,000 an hour.

"And that's running constantly at the moment so Pike River Coal is not in the position to meet those sort of costs," he told Radio New Zealand.

"But obviously we're keen to explore getting access to the mine if that's possible and we're working with those government departments to see if a plan can be put together to achieve that," he said.

Pike River Coal was put into receivership on Monday.

Police have so far been in charge of the operation to retrieve the bodies but are in the process of handing over responsibility to Pike River Coal.

- NZPA