New Zealand Mine Blast Inquiry for Industry May Determine Future

The future of underground mining in New Zealand is likely to be determined by a Royal Commission to investigate the cause of the deadly explosions in the mine at Pike River Coal Co., Prime Minister John Key, he said.

"Ultimately, the future of Pike River and actually underground coal mining in New Zealand is based on this," he told TV New Zealand quality assurance today. "We can not put people in environments that are dangerous."

The first explosion at the mine in Wellington, based in Pike River on the west coast of South Island took place on November 19, followed by a larger explosion on 24 November that led the police to say that none of 29 workers missing had survived. Rescuers could not enter the mine due to toxic fumes and potential explosions. The mine will not restart until you understand what caused the accumulation of methane and explosions, Key said in the interview.

"You can not reopen until at least get answers to those questions and the Royal Commission could take would be the body that determines that" he said. The proposal for a three-person panel to conduct the research will be taken to Cabinet tomorrow, he added.

A fourth explosion occurred at the mine before two pm local time today, police in New Zealand, said in a statement. No one was injured and people working near the entrance to the mine left the area, the statement said. The third blast was on 26 November.

The deaths this month were the country's worst mining disaster in 96 years.

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The investigation of fatal explosions are also expected to consider the answer later and that "hopefully" take less than a year to complete, Key said Q A.

"It is the quality of responses received and the questions asked and the responses, compared with a specific time period," he said.

New Zealand West Coast has 13 coal mines, including four underground operations, the Ministry of Economic Development website. Mining employs about 6,000 people, according to www.beehive.govt.nz government website. The industry earned about NZ $ 1100000000 ($ 820 million) in export earnings in 2009.

Pike River had agreed sales contracts with international customers up to 90 percent of production for the life of the mine, CEO Peter Whittall, said in a filing this month. The company is partly owned by India's Gujarat NRE Coke Ltd and Saurashtra Fuels SA. New Zealand Oil & Gas Ltd. is the largest investor with a stake of 30 percent.

The mine is forecast to produce 320,000 to 360,000 tons of coal in the year to June, the company said Oct. 19. Almost half an April forecast due to delays with the drilling and road construction.