First half production up at UK Coal
DAW Mill Colliery owner UK Coal has seen a rise in production in the first half of the year as it announced it has managed to counteract a chance of a dip in operations at the Warwickshire site.
Confirming its performance figures for the six months to June, the Doncaster-based coal firm produced 4.1m tonnes, up from 2.7m in the corresponding period last year.
Deep mine production in the half was 3.1m tonnes compared to 2.2m in 2010.
The group saw surface mine production reach 1m tonnes, which it said was “slightly ahead of management expectations with better than expected weather conditions assisting operations”.
UK Coal also saw a rise in its average realised selling price in the first half, saying the increase “reflects the stronger market price for coal prevailing throughout the period together with a reduction in deliveries under older legacy contracts”.
The group said it had put in place a plan to counteract the chance of production being down at Daw Mill Colliery in Warwickshire.
It said it has followed a “twin-track strategy” to reduce the risk of a face gap to avoid any change in the group’s expected production levels for the year.
In the period, net debt continued to be reduced and stood at £207m from £242m in 2010.
Property disposals generated around £37m of receipts in the period while generator loans/prepayments included in the net debt figures above were £97m.
- PEEL Environmental has struck up an agreement with UK Coal to build 11 energy from waste plants at UK Coal sites across the Midlands and North. The deal was approved by UK Coal’s shareholders yesterday but Peel Environmental director Myles Kitcher said they remained at an early stage, with no firm plans set as to which type of facility would be built within each location. He added that the firm hoped to announce “some exciting projects” within the near future.
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