News Archive

06 November 2007

ATH wins appeal for Muir Dean site development

ATH Resources, one of the UK's largest coal producers, is delighted to announce that it has been successful in its appeal for the development of its Muir Dean project in Fife. The planning decision was made by the Scottish Executive following Fife Council's initial refusal of the Group's planning application. The development, which will commence in 2008, will occupy a total site area of about 181 hectares (447.26 acres) and will involve the working of approximately 2 million tonnes of coal at an extraction rate of 450,000 tonnes each year.

The site will have many positive benefits for the local community, most significantly creating 118 new jobs. ATH has commissioned several independent environmental surveys to describe the existing situation within the site and to identify and mitigate the potential sensitive environmental issues. ATH will work closely with leading experts to make sure that all necessary requirements are met to minimise the environmental impact on the site and to ensure that post production, the site is improved to meet its full potential.

Commenting on the announcement, Tom Allchurch, CEO of ATH Resources said:

"We are naturally delighted that the Scottish Executive has ruled in our favour, as we believe that the site will have many benefits for the local community. ATH has a proven track record in the successful operation and regeneration of coal sites and I am confident that Muir Dean will represent a huge success for the local community and environment."

Notes to Editors

ATH Resources is an AIM-listed operator of opencast coal mines in the UK with its current three operational mines, Skares Road, Grievehill and Garleffan, located 8km from New Cumnock, East Ayrshire in Scotland. The Company is currently the third largest producer of coal in the UK producing approximately 1.7 million tonnes per annum. Coal was used to generate 34 per cent of the UK's electricity in 2005 and the Company holds coal supply contracts with four of the UK's main electricity generating companies.

ATH Resources listed on the AIM market of the London Stock Exchange in June 2004. It acquired the rights to operate (and subsequently acquire) the Skares Road mine with support from The Alchemy Plan. Following ATH Resources' incorporation in October 2003, and backed by a follow on investment from The Alchemy Plan, the Company acquired the Garleffan mine in November 2003. In June 2005, having raised £18 million by way of an Open Offer, the Group acquired two additional opencast sites, Grievehill and Glenmuckloch in Scotland. The acquisition increased the Group's reserve base by 160% and provided longer term stability to the business.

In addition to its operating mines, the Company also has a number of other coal mining projects in Scotland and two through its French subsidiary, SRMMC, including a series of six existing coal concessions in south-central France, covering an area of 36km, 2 of which have an estimated resource of approximately 4.5 million tonnes of recoverable coal.

In May 2006, the Group acquired Doncaster-based A Ogden & Sons Limited (now ATH Regeneration), a successful coal recovery, land remediation and regeneration business with a particular focus on colliery spoil heap reclamation projects. ATH paid net £9.5 million for the business. The acquisition, which was earnings enhancing, allowed ATH to build on its skills as a regenerator of land, whilst developing strong relationships with key English planning authorities. The Company has been successfully integrated into the Group. The operational diversification that the acquisition brings to the Group will be a significant driver of ATH's organic growth going forward.

For the year ending 1 October 2006, the Group achieved turnover of £54.1 million, an increase of 38% on ATH's 2005 year end and EBITDA of £19.2 million, an increase of 68% on ATH's 2005 year end.

ATH Resources has always met with the highest environmental standards and these efforts were recognised in September 2006 when the Group was awarded an environmental award from the Coal Authority in recognition of its exceptional environmental work.

Further information on ATH Resources can be found at www.ath.co.uk.