RNS Number : 0006Y
UK Coal PLC
15 December 2010
15 December, 2010
UK COAL PLC ("UK COAL" or "the Group")
Production Resumed at Kellingley Colliery
On 30 November, 2010, UK COAL reported that production had necessarily been suspended at Kellingley Colliery. Operations re-commenced on the evening of Thursday 9 December, ahead of forecast, and the mine is this week producing at near normal levels. The loss of production at Kellingley remains in the range provided on 30 November 2010.
To mitigate the production shortfall, UK COAL also confirms that operations at Kellingley, and its other deep mines, will continue producing and dispatching coal throughout most of the Christmas period.
Sale of Agricultural Land
UK COAL has previously announced a programme to dispose of around 8,000 acres of the Group's surplus agricultural land. Contracts have been exchanged on 2,218 acres of agricultural land in Durham and Northumberland, together with associated buildings to Mr B Ashby, a private individual, for a cash consideration of £6.0 million payable on completion. Further consideration may become payable in the event that development of the land takes place subsequent to the disposal. The right to mine any potential coal in the ground has been retained where appropriate. These land holdings had an asset value of £7.4 million as at 26 December, 2009 and generated £0.1 million of net rental income for the year ended 26 December, 2009.
In total, to date, contracts have now been exchanged to a value of £23.3m with some further modest contracts expected to exchange before year end. The proceeds of land disposal will be used to reduce the Group's indebtedness and bank facilities.
Analysts and investors:
David Brocksom, Group Finance Director Tel: 01302 755 002
Citigate Dewe Rogerson
Anthony Carlisle Tel: 020 7638 9571. Mobile: 07973 611 888
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