Operations

Mining

The opencast coal industry in the UK commenced in the 1940s. With the privatisation of British Coal in the mid 1990s, the industry became open to competition and a number of operators developed larger mines, which, prior to privatisation, had largely been the preserve of British Coal. The opencast coal industry produced approximately 10.4 million tonnes of coal in 2005; approximately 7.8 million tonnes of this production was from Scotland and comprised 28 per cent of total UK coal production.

Surface mining utilises some of Britains largest hydraulic excavators to remove the material that overlies the coal. This material is transported by large off-road dump trucks into the previously worked out area to effect continuous restoration.

Once exposed, the coal is won using smaller equipment and transported to an on-site processing facility.

At the processing facility the coal is washed, sized and blended prior to despatch to market.

The majority of the coal is used in power generation and is transported by rail either from ATHs rail loading facility at New Cumnock or via third party railheads. A significant proportion of coal is also processed for sale to the domestic and industrial markets making the Group one of the largest producers of house coal in Britain.

The Group has three operational mines in Ayrshire, Skares Road Opencast Coal Site, Laigh Glenmuir Opencast Coal Site and Grievehill Opencast Coal Site and one in Dumfries and Galloway, Glenmuckloch Opencast Coal Site. You can find out more about all of the locations on our locations page.

ATH Regeneration

The legacy left by the contraction of the deep mine industry is the redundant and derelict sites left behind which range from large black colliery spoil heaps, some of which are contaminated with clinical residues following coal processing, to the large expanse of pit heads. Today these sites are owned by the Local Authority and or Regional Development Agencies for the most part with public monies being required to fund site reclamation.

ATH Regeneration has over 25 years experience of dealing with brownfield sites emanating from the Coal Industry. This experience and expertise enables ATH Regeneration to reclaim such sites and recover any mineral deposited to contribute to the cost of a full site restoration to a high standard.

Following detailed in-house site investigations, the coal content and potential contamination is identified and an action plan for the individual sites is made.

A typical reclamation project will involve the installation of a large hybrid washing plant on site through which all surface material is processed after excavation and transported by shovel and truck. The process of washing the spoil deposits on site enables any coal present to be recovered which removes the potential for spontaneous combustion in the future. The excavation of all materials on site is also the only effective way of proving the extent of and dealing with any contaminated materials within the site.

The coal recovered from the process is sold direct to the power generators, the revenue from which can contribute to the cost of restoration. The sites are cleaned and restored to a high standard in line with the clients requirements which can range from development land to community woodlands and parks.

Markets

The total market for coal in the UK at around 60 million tonnes per annum, coal is a major energy source in the UK. Around 80% is used in the production of electricity and the remaining 20% is supplied to industrial and domestic users.

ATH Resources supplies all three of these markets as detailed below:

Electricity Supply Industry (ESI)

Around a third of the electricity produced in the UK is generated from coal. This market accounts for some 50 million tonnes per year and shows no sign of diminishing in the coming years as our appetite for electrical energy continues to grow.

With the reduction in coal production from UK sources in recent years, principally from underground mine closures, over 50% of Britains coal requirement is imported from overseas producers such as Russia, Columbia, South Africa and Australia.

ATH Resources supplies coal to power stations fitted with flue gas desulphurisation equipment (FDG) which extracts the sulphur from flue gases and so reduces the impact upon the environment. The ESI market accounts for some 75% of our production.

The Group has supply agreements with Drax Power, E.ON UK plc and EdF. These supply agreements are for varying periods, but typically the Group contracts the majority of coal production from a site.

Due to the flexibility of coal fired electricity generation, the ESI coal burn is higher in winter with coal fired generation meeting peak demands. Despite this seasonality, our supplies to the generators tend to be flat throughout the year to facilitate power stations stock build for the winter.

The coal is supplied to the power station by rail with each train carrying over 1,200 tonnes.

Industrial

Around 15% of the Groups coal production is supplied to industrial customers. The fuel is used by cement works and sugar processors in their production process and by schools and hospitals to produce steam and hot water.

The requirements of the cement manufacturers are not seasonal whereas sugar processors have a processing season following the sugar beat harvest during the autumn and winter.

Domestic

The domestic market for house coal remains a very important market. The Group supplies coal to factors and wholesalers who then sell on to coal merchants. The market requires a consistent and high quality product and the Group has always focused tremendous effort on ensuring that it supplies a premium product that is well respected in the market place.

The market for domestic coal is to an extent seasonal and follows the weather with an increased demand during winter. However, as with the ESI market, coal wholesalers tend to require supplies throughout the year to ensure that they have the stocks available to meet the high winter demand.

Statistics on coal and the ESI market may be obtained from the Dti website.