Performance Update

RNS Number : 8941L

UK Coal PLC

10 September 2012

 



10 September 2012

UK COAL PLC

("UK COAL")

Performance update

Following the Company's announcement on 22^nd June 2012 about the potential disposal of the Group's interest in the Harworth Power generation business, the Company expects shortly to issue the circular, which is required to obtain the approval of shareholders.

UK Coal also announces that Doncaster Borough Council has resolved to grant planning consent for 1200 new homes on Harworth Estates' Rossington Colliery site. Work is due to commence as soon as the new airport to M18 link road opens in 2014. This project is set to be a significant development for the region.

The Company continues to make progress putting into effect the Heads of Terms for the proposed restructuring outlined in our Interim Statement on 10 August 2012. We are now in the process of drawing up detailed implementation documentation and approvals. The Board believes it to be necessary to conclude the restructuring work in the period to the end of December 2012 and expects to do so.

In relation to the mining business, following the recovery of Daw Mill's 32s panel, the mine has been able to recommence mining operations on this panel although at lower than expected production levels. The difficult geological conditions experienced on both 32s and the 303s panels, coupled with the difficulty of operating two coal faces in this mine, have led the Board to decide that the safest option is to concentrate current mining operations on 303s panel, which will also mitigate the loss of production. 32s panel will be put into safe salvage as soon as practicable. This will enable more consistent production in 2012 but is likely to add four weeks to an expected interruption to production  in 2013 between the end of the 303 and the start of the 33s panel.

- END -

Enquiries

Analysts and investors

Jonson Cox                                                         Chairman, UK Coal                                          Tel: [phone]

David Brocksom                                               Group Finance Director, UK Coal              Tel: [phone]

Media

Anthony Cardew / Emma Crawshaw        Cardew Group                                                  Tel: [phone]

Notes to Editors

UK COAL is a mining, property and power company employing c2,500 people with its headquarters at Harworth Park, Harworth, near Doncaster, South Yorkshire.

Britain's biggest producer of coal, UK Coal operates three deep mines in the Midlands and Yorkshire, and surface mines in the North East, the North West and the Midlands.  Over 90% of the total annual output is sold to generate around 5% of Britain's electricity requirements.

Harworth Estates, the property division of UK Coal, is one of the largest landowners in the UK.  With access to over 30,000 acres of land, Harworth Estates create and develop new opportunities across all sectors of the UK property market.

Harworth Estates is committed to environmental best practice, creating new sustainable communities, thousands of new homes and new business space across Yorkshire, the Midlands and the North.

For more information, please go to:  www.ukcoal.com

 

END

 

 

MSCEAFNEFALAEFF