An operation to re-enter the Pike River mine is on track to exceed its $36 million budget and require a taxpayer top-up.
Pike River Recovery Agency forecasts show the project running out of money mid-2020 – prompting the need for more cash from the Government to complete its work, expected to be finished by the end of November 2020.
I hear the blow out may be as much as $10 milion.
The Government originally budgeted $7.6m a year for three years, totalling $23m. It then topped up the budget to $36m.
So the within two years the costs look to be twice what the Government said.
If the cost gets over $40 million, then basically it is $1.5 million per family which could have been given direct to the families rather than on reentering the mine.