News Archive

14 August 2007

Application for Planning Permission to extract 1.3 million tonnes of coal from Rigg site

ATH Resources (AIM:ATH) today announces that it has applied for planning permission to extract 1.3 million tonnes of coal from its Rigg site which is 2km west of Kirkconnel in Dumfries and Galloway.   The mine will have a likely production life of 2.4 years, with a further 2 years for restoration, and will create 100 new jobs.  All coal produced from the site will be transported by extending the Group's conveyor network between Glenmuckloch and the Crowbandsgate Rail Loading facility to Rigg, eliminating the need for road transportation. It is intended that, on completion of mining, the site will be restored to a mixture of forestry, marshy grassland, agricultural grazing and fishing ponds with an emphasis on providing enhanced habitat for local wildlife, particularly birds.

Tom Allchurch, Chief Executive, of ATH Resources said "We are pleased to be able to propose another sensitively planned scheme in the area close to our existing Glenmuckloch site which, if permitted, will further increase our coal production and employment in the area, with over 100 local jobs being created. This application is a further step towards increasing the Group's reserve base as production continues to grow."

ATH Resources is an AIM-listed operator of opencast coal mines in the UK with its current four operational mines, Skares Road, Grievehill, Glenmuckloch and Laigh Glenmuir in 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 38 per cent of the UK’s electricity in 2006 and the Company holds coal supply contracts with three of the UK’s main electricity generating companies.

The management team has been in place since 1998. 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. Garleffan is currently being restored having finished coaling in June 2006. ATH Resources listed on the AIM market of the London Stock Exchange in June 2004.

In June 2005, having raised £18 million by way of an Open Offer, the Group acquired two new 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, two with 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 Ltd, 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 brought to the Group should 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 its 2005 year end, while EBITDA was up 68% to £19.2 million for the same period.

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