Listed mining company Pike River Coal says the completion of a major processing plant has brought it one step closer to mining near Greymouth.
The $19 million coal preparation plant, which separates coal from rock, will begin working once coal becomes available.
Pike River says its 2.3 km access tunnel is now less than 200 metres from the coal face.
Pike River mines general manager Peter Whittall says the operation will be restricted to a limited production until June 2009, after which the company expects to extract one million tonnes a year.