Prime Minister John Key says New Zealand is a "nation in mourning" following the deaths of 29 miners at the Piker River mine in Greymouth.
Families of the miners were told in Greymouth on Wednesday afternoon there was an explosion at 2.37pm, bigger than last Friday's, and all hope was now
lost.
Pike River CEO Peter Whittall said he personally delivered the news to the families.
Mr Key said at a press conference the "29 names and faces we have come to know will not walk amongst us again." He said to lose "this many brothers at once" struck an "agonising blow."
The Prime Minister said Cabinet would confirm a Commission of Inquiry on Monday that would run alongside any other inquiries. "Questions must now be asked about how such a tragedy was able to occur and how we can prevent another happening in the future," he said.
The Coroner's Office has announced its investigation will begin Thursday.
Mr Key said he would travel to Greymouth on Thursday to express condolences to the families and to meet the rescue crews. He said all flags on government buildings will fly at half mast as a mark of respect for the miners.
"At this time of national pain, let us not lose sight of what truly makes New Zealand great. We are a tough and resilient little country. We care deeply about our fellow countrymen and women.
"We are a series of communities knitted together by a series of values and principles that have guided us together through good times and bad. This is the spirit that will see us through." he said.
Mr Key also acknowledged Australia, South Africa and the United Kingdom also lost nationals in the explosion.