News Archive

26 August 2008

Approval received for new mine at Rigg and Glenmuckloch extension

ATH Resources plc (AIM:ATH), one of the UK's largest coal producers, is pleased to announce that applications to mine up to 1.7 million tonnes of coal reserves at Rigg and Glenmuckloch have been approved by the local planning authority.

The approvals include a new mine at Rigg, with estimated reserves of up to 1 million tonnes and two extensions to the existing Glenmuckloch site, totalling a further 700,000 tonnes.

The planning processes required environmental assessments for each site and the Scottish Executive Planning Department will therefore review both planning decisions prior to operations commencing.

The Rigg site is approximately 1.5km from the Glenmuckloch mine. The Group's existing conveyor network will be extended to Rigg, enabling coal to be transported from the site with minimal impact on the environment or the local community. Production is expected to commence in 2009.

Commenting on the approvals, Steven Beaumont, Group Finance Director, said "We are delighted to have received local approval for working the new mine at Rigg and the extensions to the Glenmuckloch site. These represent a further significant step forward in delivering our coal production plan over the next three to four years, allowing us to benefit from the exceptionally strong market price for coal. We look forward to commencing operations in 2009, which will also secure a significant number of jobs in the locality."  

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Notes to Editors

ATH Resources is an AIM-listed operator of surface coal mines in the UK with five operational mines in Scotland; Skares Road, Grievehill and Laigh Glenmuir in East Ayrshire, Glenmuckloch in Dumfries and Galloway and Muir Dean in Fife. The Company is currently the third largest producer of coal in the UK producing approximately 2 million tonnes per annum. Coal is used to generate around a third of the UK's electricity 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%. 

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 36km2, with an estimated resource of approximately 4.5 million tonnes of recoverable coal.

In May 2006, the Group acquired ATH Regeneration a successful coal recovery, land remediation and regeneration business with a particular focus on colliery spoil heap reclamation projects. 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 both in the UK and overseas.

For the year ending 30 September 2007, the Group achieved turnover of £70.5 million, an increase of 30% on its 2006 year end, while EBITDA was up 31% to £25.1 million for the same period.

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