New Zealand media reported that Chinese state owned Shanxi Coal is understood to be in the running to buy Pike River Coal as part of a joint bid with New Zealand coal company Solid Energy.

Bids closed a week ago, with four players making offers.

One Indian company earlier interested in making an offer had pulled out, but another Indian company was still understood to be in the running. There has also been interest from an unnamed Australian company, but it remained unclear if it made a final bid.

Rumours have been around for a couple of weeks that a Chinese government agency was involved in a joint bid with Solid Energy for Pike. Another industry source said if Shanxi joined Solid Energy as a partner in Pike River it could provide the financial muscle to reopen the mine and be a large customer, with Solid Energy providing the local expertise. China has a huge appetite for coal, which has been a key driver of its economic growth.

However, another source said a joint venture would not necessarily give Shanxi any advantage if part of Solid Energy were up for sale. Solid Energy already has a joint venture with international coal company Cargill, which bought 49% of the Spring Creek underground coalmine near Greymouth four years ago.

Solid Energy has said it is interested in Pike, but it has refused to confirm or deny suggestions it will make a joint bid with a Chinese coal company.

Pike River collapsed into receivership almost a year ago, after a mine explosion that killed 29 men. It is expected the sale of the assets could take at least until Christmas to confirm, with foreign buyers facing Overseas Investment Office and other government approvals.

(Sourced from stuff.co.nz)