logo
Share SHARE
FONT-SIZE Plus   Neg

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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
General Motors (GM) luxury brand is offering 400 dealers as it reshapes the brand's image to better compete with rivals, according to media reports. The Detroit auto maker will provide as much as $180,000 in "transition assistance" to U.S. Cadillac dealers unwilling to invest in a set of new standards... Hotwire of Expedia Inc. cautioned customers about a fake fax memo. The memo, offering deep travel discounts, has an old corporate Hotwire logo in it to falsely imply a connection with Hotwire. It carries phone numbers which are not related to travel booking site. A Singapore-based music start-up has acquired a 49 percent stake in the iconic music and pop culture-focused magazine Rolling Stone, becoming the first outsider investor in the magazine. Financial terms of the deal, which will enable Rolling Magazine to expand its international reach, were not disclosed.
comments powered by Disqus
Follow RTT