12th Jun 2006 13:00
UK Coal PLC12 June 2006 UK COAL PLC 12 June, 2006 HARWORTH COLLIERY MOTHBALLING CONFIRMED UK COAL today confirms that it is to proceed with the mothballing of HarworthColliery as previously announced. The decision is a result of being unable to secure a sales contract to justifythe investment request to access further coal reserves at the Colliery. A statutory notice advising of redundancies following a 90-day consultationperiod is being issued. UK COAL will, however, continue to work towards acommercial solution within this period. At the time of the initial mothballing decision, the Group reported it hadretained fixed assets at the colliery with a value of £12 million. Since then afurther £3 million has been invested to develop access to further reserves.These asset values will be reviewed for impairment and dependent uponthe expected value of the remaining underground reserves, there may be a futurenon cash write off. UK COAL Chief Executive Gerry Spindler said: "Everyone has worked tirelessly tofind a solution. The performance and dedication of the workforce at Harworth hasbeen exemplary. We have all worked extremely hard to save the colliery at a timeof increasing demand for coal, and will continue to do so." MEDIA CONTACTS: Financial Gavin Anderson & Company 020 7554 1400 Ken CroninMichael Turner Operational Stuart Oliver 01525 381759 07774 231178 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Harworth Gp