The High Court has rapped Solid Energy for an anti-competitive attempt to corner coal-handling facilities vital to the Pike River mine's viability, just as receivers were preparing the damaged but potentially valuable mine for sale.
The Pike River receivers accused the state-owned coal miner of trying to undermine the price for the whole development by making it attractive only to Solid Energy as a buyer, and sought relief in the High Court.
They said Solid Energy did this by securing the reassignment of 25-year leases held by Pike River on farmland near Greymouth, where $10.5 million had been spent on the only "long train" coal-loading facility on the West Coast.
Two farming families were to be paid a total of $78,000 a year in lease fees for the big side-loop at Ikamatua.
In a series of transactions in March, both family farming businesses received non-refundable "incentive payments" of $15,000 each from Solid Energy for agreeing to cancel with Pike and reassign to Solid Energy. This, in effect, broke Pike River's route for coal for export.
Judge Joe Williams found in the receivers' favour, allowing them to attempt to extract the best price from an unknown range of bidders, of whom Solid Energy is the only one identified, and is likely to include potential foreign owners.
"I am well satisfied that Ikamatua is a core strategic asset to Pike River and that its loss would materially devalue Pike River's purchaser access for anti-competitive reasons."
"The application has been granted, largely on terms we proposed, so we are pleased with the decision," a spokesman for the receivers said. BusinessDesk