Update on Maltby Colliery

RNS Number : 5258Q

Hargreaves Services PLC

07 November 2012

 



For immediate release

7 November 2012

Hargreaves Services plc

("Hargreaves" or the "Company")

Update on Maltby Colliery

Hargreaves Services plc (AIM: HSP), the UK's leading supplier of solid fuel and bulk materials logistics, provides an update on Maltby Colliery ("Maltby"). Since the commencement of collective consultation on 8^th October 2012 geological reports have been received which indicate that the risks associated with mining the T125 panel have not significantly reduced.

It is therefore, with regret, in the opinion of the Board of Maltby Colliery Limited ("the Board") the T125 panel is not viable on health & safety, geological, and financial grounds. Consequently the Board is proposing that T125 will not be mined and that the mine will be mothballed. The Board of Hargreaves Services PLC have reviewed and considered the position and support the proposals of the Board of Maltby Colliery Limited.

Regrettably, the Board's proposal inevitably means that all employees working at Maltby Colliery continue to be at risk of redundancy. In the event that redundancies are necessary, the Company remains committed to exploring alternative employment opportunities for staff.

The Board will continue to consult with employees and trade union representatives regarding its proposals.  The Board has considered alternative mining plans and options. Although no viable alternative strategic options have been identified by the Board at this time, as part of this ongoing consultation process the Board will offer the opportunity to employees and trade union representatives to table alternative proposals. The Board will continue to make information regarding the health and safety hazards, geological risks and the financial data available to trade union representatives. Management remain committed to conducting a fair and meaningful consultation and will continue to make themselves available to meet with trade union representatives to further discuss any proposals.

The Board requires that any alternative proposals are tabled by Friday 30^th November 2012, at which time they will be considered by the Board.

The Company will update the market accordingly at the conclusion of the process.

For further details:

Hargreaves Services	Tel: [phone]
Gordon Banham, CEO
Iain Cockburn, Finance Director
Buchanan	Tel: [phone]
Tim Anderson / Mark Court / Fiona Henson / Sophie Cowles
N+1 Singer (Nomad & Joint Broker)	Tel: [phone]
Sandy Fraser / Nick Owen
Jefferies Hoare Govett (Joint Broker)	Tel: [phone]
Sara Hale / Harry Nicholas

 

END

 

 

MSCKDLBBLFFLFBE