Pike River ups budget

Pike River Coal increased its capital expenditure budget $23 million to a total of $246 million as it starts extracting hard coking coal from its West Coast mine after two years of tunnelling.

The additional costs related largely to the tunnel, and increased steel prices for hydro-mining equipment contracted during the September quarter, the company said in its activities report.

The increase in capital expenditure would be partially offset by higher coal sales revenues than previously forecast in the period through to March 2009.