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The families of 29 men who died in New Zealand's worst modern mining disaster were Friday left with the prospect of negligible compensation despite winning damages from the company that was running the coal mine at the time.
Pike River Coal was fined 760,000 NZ dollars (593,657 U.S. dollars) and ordered to compensate 110,000 NZ dollars to each of the dead men's families and two miners who survived the disaster in November 2010.
The sentence was handed down in Greymouth District Court after Pike River Coal was convicted of nine charges of failing to ensure the safety of the 29 men who died, Radio New Zealand reported.
The company, which is in receivership, argued it had funds of just 156,000 NZ dollars.
However, Judge Jane Farish said the company's biggest secured shareholder, New Zealand Oil & Gas, was in a position to pay reparation to the families and the two survivors.
Judge Farish said she hoped the fine would provide a strong deterrent.
A statement from some of the families after the sentencing said that although the damages were exemplary and not compensatory, they would constitute some element of redress, but the company " appears a worthless defendant in such proceedings."
It suggested that given the New Zealand government ministers had apologized for regulatory failings before the disaster, a government compensation system was a possibility "not yet taken."
The opposition Green Party said it was "a travesty of justice" that the Pike River families could end up with as little as 5,000 NZ dollars each in compensation.
"Pike River directors and shareholders have escaped completely unpunished. They should have to top up the gap between the compensation awarded and the amount the company has to pay," Green Party Pike River spokesperson Kevin Hague said in a statement.
The Engineering, Print and Manufacturing Union (EPMU) said the sentencing showed the need for a corporate manslaughter law in New Zealand
"There is little justice in sentencing a shell company that is now in receivership," EPMU assistant national secretary Ged O' Connell said in a statement.
