Update on highwall miners

RNS Number : 2091Q

Bens Creek Group PLC

27 June 2022

 

Bens Creek Group plc

("Bens Creek" or the "Company")

Update on highwall miners

Bens Creek Group plc (AIM: BEN), the owner of a metallurgical coal mine in North America supplying the steel industry, is pleased to announce that following the Company's announcement on 29 October 2021 for the supply of contract mining services by Mega Highwall Mining LLC ("MHW") to the Company, which included the supply of a highwall miner and related highwall mining equipment, the Company has now exercised its right of first refusal on a further highwall miner and related equipment to be supplied by MHW. 

Whilst the Company's request to MHW has been accepted, it is anticipated the formal agreement with MHW for the supply of a second highwall miner will be completed during July 2022 on similar terms as the initial highwall miner supplied by MHW, including a production target of between 32,000 and 40,000 tons of metallurgical coal per month.  

The Company expects to receive, during July 2022, a permit for the area that is to be mined by MHW using the second highwall miner.

Accordingly, the purchase by the Company of its own Superior highwall miner and related mining equipment, as announced on 25 February 2022, will in due course, once renovations have been completed, enable the Company to have a backup highwall miner to ensure production is not affected by either any planned or unforeseen downtime which results from any of the machines operated by MHW being inoperable.

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

"We are delighted to have had the opportunity to exercise our option for MHW to operate a second highwall miner on our behalf and reinforces our strong relationship with our contract highwall miner. Highwall mining machines are generally in short supply and command a market premium. By operating two highwall miners simultaneously, this will enable an increase in our production capacity to up to 80,000 tons per month."

"With the addition of a further highwall miner on site, the recently acquired highwall miner will ensure that two highwall miners are operable at all times."

For further information please contact:

Bens Creek Group plc Adam Wilson, CEO Raju Haldankar, 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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