ATH sells regeneration business

COAL miner ATH Resources has sold its regeneration business to a newly formed company RecyCoal, headed up by ATH's chief executive Tom Allchurch.

By The Newsroom

Published 30th Jul 2010, 10:50 BST

Updated 30th Jul 2010, 10:51 BST

Doncaster-based ATH said proceeds from the disposal could total some 17m over a seven year period.

The shareholders of RecyCoal, who include Mr Allchurch and finance director Steven Beaumont, have committed 40m to the development of the new firm.

The company also said it expected a further 2.5m from the sale of retained land and buildings adjacent to its Langton site in Nottinghamshire once the regeneration project is completed in 2013.

"The disposal of the ATH Regeneration assets will reduce debt and allow the group to focus on its surface mining business," said chairman David Port.

For the year to October 4, ATH Regeneration had no sales and made an operating pretax loss of 2.4m.

ATH shares were up 2.3 per cent at 66.5p earlier this morning.

Doncaster