Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

UK Coal To Restructure Business; Issues Daw Mill Mine Update - Quick Facts

UK Coal plc (UKC.L) intends to restructure the business and to start consultation over the future of its Daw Mill mine. The board anticipates that this restructuring would provide a stable platform in the medium term for the group's mining and property businesses and would achieve the best value in the group for its stakeholders.

The principal objectives of the restructuring plan are to ensure a financial framework that is capable of supporting ongoing investment in each deep mine over its remaining economic life and to address the risks and volatility inherent in the mining industry. The company added that the plan is intended to isolate the operating risk of each deep mine from the group as a whole and mitigate future financial uncertainty arising from operations at Daw Mill.

Today, the Company has begun consultation on the potential closure of Daw Mill by early 2014 at the point when current and largely-developed coal panels will have been mined. Also, UK Coal has suspended developments for exploitation beyond the end of 2013 but retains the option to resume developments, re-open the mine or extend its life, to exploit the mines considerable long-term resources, which would happen only under a lower risk operating model.

Though UK Coal's other mines are performing broadly in line with view, production at Daw Mill is nearly 175,000 tonnes behind budget. To achieve UK Coal's 2012 plans, Daw Mill needs safely to increase production to target levels on its 303s coalface by May and to recover and resume production on the 32s coalface.

Register
To receive FREE breaking news email alerts for UK Coal plc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Stocks moved sharply higher over the course of the trading day on Tuesday, extending the recovery from the sell-off seen in recent weeks. The Nasdaq and the S&P 500 closed higher for the fourth consecutive session but remain well off their mid-September highs. Despite indications that the spread of Ebola inside the U.S. has been contained, the results of a new Gallup poll show the deadly disease had made its debut on a list of the top 10 most important problems facing the country. In another hotly contested Senate race, the results of a new Suffolk University/Boston Herald poll show incumbent Sen. Jeanne Shaheen, D-N.H., clinging to a narrow lead over Republican challenger Scott Brown.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.