ATH given the go-ahead to extract big coal reserves

COAL miner ATH Resources has received planning permission to mine 800,000 tonnes of coal reserves from its Duncanziemuir mine in Scotland.

The Doncaster-based group, one of the UK's biggest coal miners, said a number of matters need to be concluded before it can start work at the mine.

It is scheduled to begin production in 2011 and will continue for four years.

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The Duncanziemuir mine is an extension to the completed Laigh Glenmuir mine which finished producing coal last year.

ATH chief executive Tom Allchurch said: "This planning approval is part of ATH Resources' longer term coal production and employment plans in East Ayrshire, where we have been a major employer for 12 years.

"This mine, which will directly employ 36 people, is an important contributor to the future of the ATH business and the local economy."

In April, ATH said it had been hit by another planning hold-up, which will dent full-year trading.

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The group, which will announce its interim results on June 30, said delays to its spoil tip washing project at Langton in Nottinghamshire will set back this year's production target from the site by around 50,000 tonnes.

ATH has been dogged by planning delays in its bid to reclaim around 175,000 tonnes of coal annually over two and a half years at Langton.

Last year, Derbyshire County Council refused planning permission for the scheme, despite approval being received from neighbouring Nottinghamshire County Council.

The decision was approved on appeal in November, but the delays meant the group's tip washing arm ATH Regeneration delivered no revenues last year.

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ATH then hoped detailed planning would take four weeks, allowing for production to begin by May. In April it said the project has been delayed by another three months as detailed planning took longer than expected, meaning full-year trading will be "slightly lower" than market expectations.

ATH said the issues have now been resolved and construction has started. The company added the project has not fallen in value and it is in talks with a major electricity generator over a long-term contract for Langton's coal.

Analyst Charles Kernot said: "ATH Resources still has to run fast in order to stand still but, as the shares have fallen just below our target price, we upgrade to neutral ahead of the interims."

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