ATH hurt by falling coal prices

The Doncaster-based miner blamed a further fall in the international price of coal for the decision.

The group also warned that lower coal prices are hitting margins and this will result in further reductions to its trading performance.

ATH said that while demand for coal generally remains strong, international coal prices have fallen significantly over the past nine months and in particular over the past few months.

The board said it will review the investment case to either proceed or begin final restoration of the current Glenmuckloch site towards the end of this calendar year.

It added that the deferment will have little impact on production levels in the current financial year, but warned that if it decides not to proceed with the site at all, volumes will fall by 500,000 tonnes in total over the subsequent two years.

The company said it will update the market more fully on the impact of the fall in the price of coal, together with any mitigating actions it is taking, in its interim statement in late June.