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

Editors Pick
In what could be a delectable offering, something is cooking in the brewing industry. Belgian brewer Anheuser-Busch Inbev, which in itself is an outcome of many mergers in the past, has made advances to U.K.'s SABMiller. If AB InBev succeeds in its pursuit, the heady combination of the two could create one of the world's largest brewers. Large U.S. companies are holding trillions of dollars overseas in an effort to avoid U.S. taxes, with big-name firms like Apple (AAPL), Pfizer (PFE) and PepsiCo (PEP) named as notable examples. This is the claim made by a pair of non-profit groups, who released a study based on the firms' financial statements. Software maker Adobe Systems Inc. (ADBE) Tuesday detailed an outlook for the full year 2016 indicated to miss Wall Street estimates, sending its shares down 8 percent in after-hours trading. Adobe expects full-year 2016 revenues of about $5.7 billion and an adjusted earnings of $2.70 per share. Analysts...
comments powered by Disqus
Follow RTT