Infrastructure update

RNS Number : 5029U

Bens Creek Group PLC

02 August 2022

 

Bens Creek Group plc

("Bens Creek" or the "Company")

Infrastructure update

Bens Creek Group plc (AIM: BEN), the owner of a metallurgical coal mine in North America supplying the steel industry, is able to provide an infrastructure update following the severe flooding in the Western part of the West Virginia and the Eastern Kentucky region since Wednesday 27 July 2022.

The Appalachian region of Western West Virginia and Eastern Kentucky experienced, from Wednesday 27 July through to Saturday 30 July, severe levels of rainfall and flooding not seen for decades, causing downed trees, power outages, disruption to the water system and road blockages. A state of emergency has been declared in certain parts of these areas, whilst several deaths have been reported in Eastern Kentucky. The areas adjacent to the Company's infrastructure in West Virginia which have been affected are Mingo County and Logan.

As a Company, our prayers and good wishes go out to all those people affected by the devastation.

During this particularly difficult time, our mining team, including our contractors, have been able to prioritise health and safety in order to achieve zero fatalities, injuries, and safety incidents and to provide invaluable assistance to the local community to prevent any further damage, caused by the flood waters.

The vast majority of the Company's infrastructure was unaffected by the unusual weather pattern other than the railway system, which did suffer some damage to railway ties along with the sheer volume of water having washed away ballast along several sections of the railway line. However, it is pleasing to report the railway track itself did not suffer any damage. The Company is also pleased to report that it was able to source replacement ballast to ensure the material washed away was replaced ahead of the imminent arrival of trains from Norfolk Southern.

The repairs to the railway line have been completed and passed an inspection undertaken by the rail operator on 1 August 2022.

With the imminent arrival of a train scheduled for the week commencing 1 August 2022, it was important for the Company to ensure the railway track was fully functional. Accordingly, the scheduling of the train for arrival at the Bens Creek site this coming week is expected to be unaffected.

The severe flooding has affected the logistical supply and transportation of metallurgical coal from West Virginia and Eastern Kentucky to the various ports linking to the Norfolk Southern railway system. This has resulted in Norfolk Southern, agreeing to supply three trains to the Bens Creek site over the next seven days to meet the backlog in supply.

Adam Wilson, Chief Executive Officer of Bens Creek, commented:

"Firstly, I need to thank each and every member of our team, who worked tirelessly round the clock from Wednesday night, often through the night on multiple nights in succession in very difficult conditions, both to allow the huge levels of water to flow down the Bens Creek mountain and into the Tug river, with minimal damage to property, and then to work around the clock again repairing the damage to our railway line so that we are able to accommodate additional trains into the Bens Creek site to help the logistical difficulties caused in the region.

It is normal for the CEO to thank his staff, but on this occasion, my staff went over and above what could have been expected, as well as maintaining and protecting the assets of the Company for the benefit of all shareholders. The staff at Bens Creek have also been active in the community trying to help where possible and to minimise any further damage and to prevent the loss of life.

It is also a testament to the quality of the remediation of the railway line in the first place that it largely withstood the severe flooding in the area."

For further information please contact:

Bens Creek Group plc Adam Wilson, CEO Raju Haldankar, Executive Director Murat Erden, CFO	[phone]
Allenby Capital Limited (Nominated Adviser and Joint Broker) Nick Athanas / Nick Naylor / George Payne (Corporate Finance) Kelly Gardiner (Sales and Corporate Broking)	[phone]
Optiva Securities Limited (Joint Broker) Christian Dennis / Mariela Jaho / Daniel Ingram	[phone]

 

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