ATH to postpone extension to mine

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ATH Resources, one of the UK’s largest coal producers, is to postpone an extension to its Glenmuckloch mine in Scotland.

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

The group also warned 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 at 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, volumes will fall by 500,000 tonnes over the subsequent two years.

Shares closed last night down 3p at 10.25p.