$60m judgement no threat

WEST Coast coal miner Bathurst says a recent court judgement ordering it to pay $60 million does not threaten the company’s viability.

Bathurst is appealing the ruling. L & M Coal Holdings announced last Monday it had won a $US40 million ($NZ60.4 million) lawsuit against Bathurst subsidiary Buller Coal, which owns coal permits on the Denniston Plateau and 65% of the Stockton opencast mine.

The lawsuit relates to the Escarpment Mine which after lengthy legal battles won consent only to be mothballed when the international coal price plummeted.

Bathurst chief executive Richard Tacon was asked if the judgement threatened the viability of the mining company.

‘‘Bathurst is generating cash and has no debt outside the US bonds; we can make any calls that may be required,’’ Mr Tacon said.

‘‘We feel the decision is legally wrong and we will appeal.’’

Asked if there was any chance of the Escarpment Mine being ramped up, he said the development of its Denniston assets, including Escarpment, were ongoing.

Drilling had just been completed on the Escarpment block in the past two months.

The company’s June update said it wanted to combine BT Mining assets at Stockton with Bathurst’s existing Buller Plateau assets.

BT Mining is a joint venture between Bathurst Resources and Talley’s Fisheries. — Greymouth Star