New seams aid UK Coal's output rise
Donnerstag, 26 August 2010
Coal mining business UK Coal said production has soared at two of the UK's biggest collieries after it began operating new seams.
The Doncaster-based firm said half-year volumes at Kellingley in Yorkshire were twice those seen a year earlier, with output at Thoresby in Nottinghamshire up 50%, following recent investment.
UK Coal expects to hit 7.6 million tonnes of output this year.
However, production was sharply lower in the first quarter due to a transition to more viable seams, resulting in interim losses widening to £93.2 million from £81.5 million a year earlier.
Net debt soared to £170.1 million from £114.3 million, the company reported.
Chairman David Jones said: "With the transition completed, production in the second quarter rose sharply and is now living up to our expectations and demonstrating the benefits of the substantial investments we have made."
Stronger coal prices and the replacement of legacy contracts with new long-term supply deals, including recently-signed agreements with the likes of Scottish & Southern Energy, have also boosted prospects.
The company, which is also one of the UK's top property developers, has estimated the worth of its estate in 2014, including land with planning consents currently in the pipeline, to be at £820 million.
Copyright © Press Association 2010