News Archive

20 November 2007

ATH Resources gains planning approval for Grievehill site extension

ATH Resources plc (AIM:ATH), one of the UK's largest coal producers, is pleased to announce that the Group's application for a one million tonne extension to its Grievehill site has been approved by the local planning authority. Given that the planning process required an environmental assessment, the Scottish Executive Planning Department ("SEPD") will review the planning decision prior to operations commencing. The mining of the extension is planned to commence in early 2008 and the Directors are confident that confirmation of the SEPD's decision will be received within the necessary timeframe for the Group to meet its production plans in 2007/8.

The 25 hectare site is situated adjacent to the existing Grievehill site, located approximately 8 km south east of the town of Cumnock, Ayrshire. The extension will operate through the existing infrastructure and site facilities at Grievehill, whilst coal will be extracted from the same sequence of coal seams that occur throughout the original site. Coal production from the extension will replace that currently extracted from the original Grievehill site, which will cease production later this month.

Commenting on the planning approval, CEO Tom Allchurch said, "We are delighted to have received approval to mine the extension at Grievehill and await the result of the SEPD review. The development of the extension will support our growth in production and maintain important local employment. This is an extremely positive step as we continue to further strengthen our pipeline of coal reserves."

 

For further information:
ATH Resources
Tom Allchurch, Chief Executive	Tel: +44 (0) 1302 760 462
tom.allchurch@ath.co.uk	www.ath.co.uk
Seymour Pierce
Nicola Marrin	Tel: +44 (0) 20 7107 8000

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 37 per cent of the UK's electricity in 2006 and the Company holds coal supply contracts with four 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. 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, 2 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 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.

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

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