RJB Mining PLC
18 April 2000
RJB MINING PLC:
Welcoming Of Government Transitional Support Package
The Board of RJB Mining plc note the announcement yesterday by the Trade and
Industry Secretary of the changes to the energy policy, most particularly his
comments with regard to the coal industry:
Trade and Industry Secretary Stephen Byers yesterday announced that the
restrictions on the building of new gas fired power stations will be lifted in
October, once new electricity trading agreements come into effect.
The restrictions were introduced to provide a level playing field whilst
reforms were being put in place to end distortions in electricity market.
Stephen Byers also announced that the Government is exploring with the
European Commission how State aid might be offered to help the coal industry
through his period of transition.
Commenting on the DTI announcement Richard Budge, Chief Executive of RJB
Mining said, ' We welcome the announcement by Mr Byers of the changes to the
Energy policy and the proposed transitional support package for the coal
industry. The Governments action is a positive response to ensure Britain
maintains a secure low cost supply of energy.
In view of the Government's commitment to address the market distortions
created by the substantial subsidies paid to other European coal producers, we
are pleased to confirm that we intend to continue mining operations at both
Ellington and Clipstone collieries. As details of the support package become
clear, we will be in a position to finalise negotiations to supply AES, the
new owners of the Drax coal-fired station in the heart of our Selby coalfield,
with 25.5 million tonnes in the period extended to 2006.'
For further information please contact:
Gerald Gradwell / Fiona Grant Duff
Gavin Anderson & Co. Tel: 0207 457 2345
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