15th Oct 2007 07:01
UK Coal PLC15 October 2007 15 October 2007 UK COAL PLC Trading update for the nine months ended 30 September 2007 Continued good progress UK COAL PLC ('UK COAL' or the 'Group') today provides the following tradingupdate for the nine months ended 30 September 2007. Trading has been in line with expectations, and the Group has continued to makefurther good progress in all its businesses. Our focus remains on improvingperformance across our mining operations, realising the significant value in ourproperty portfolio and developing our renewable power generation business. Weremain confident of delivering further shareholder value growth for the fullyear and beyond. Property Harworth Estates continues to make strong progress, adding further value throughplanning consents and applications and through the development of our pipelineof 71 projects covering 3,326 acres. We have gained four planning consents since the half year - at our AdvancedManufacturing Park in South Yorkshire, at Gascoigne Wood in North Yorkshire, andat Arkwright and Tetron Point in Derbyshire. Three more are in the planningsystem awaiting determination, including planning consent expected in the fourthquarter at our Prince of Wales site in Pontefract, West Yorkshire, involving 913houses and 250,000 sq ft of commercial use. At Waverley, near Sheffield, we havecommenced development of the Highfield Commercial area, to be followed by amajor residential development. We have also completed decommissioning anddemolition at the former Rossington Colliery which will be a major mixed usedevelopment project in the medium term. Our business park proposals for the former mine at Gascoigne Wood near Selby,North Yorkshire, gained planning consent in August. This site is of strategicimportance on the rail network and is being actively marketed for both the railfacility and related distribution space. Also at Selby, we have agreed terms tolet half of our new business park at Riccall to one tenant since gainingplanning permission in June. At Asfordby Business Park, Leicestershire, we haveagreed a pre-let on a new 24,000 sq ft office and distribution building. Work on our Joint Venture initiatives advanced well in the quarter, receivingplanning consent with Strategic Sites Limited (SSL) to construct up to 100,000sq ft of commercial buildings on our Waverley Advanced Manufacturing Parkbetween Sheffield and Rotherham. A further JV application is being developedwith SSL for our Houghton Main site, near Barnsley, South Yorkshire, and we arecurrently finalising selection of a JV partner for a 100 acre rail-connectedscheme at Bennerley near Nottingham. We welcome the recent announcements by the Government on planning anddevelopment issues and particularly the significantly increased targets for newhousing in the Midlands and North of England. Deep mining Our four deep mines achieved their highest quarterly output this year of 1.93million tonnes, totalling 5.25 million tonnes for all deep mines for the ninemonths. Fourth quarter output is expected to be circa 1.7 million tonnes,allowing Daw Mill and Welbeck collieries to complete face changes, and both DawMill and Kellingley to work through geological faults. Kellingley output isexpected to continue at reduced levels into 2008 until higher quality reservesin the Beeston seam are accessed. Good progress is being made in this majordevelopment, scheduled to commence production in mid-2009. Surface mining Surface mining output has continued to grow, achieving 1.04 million tonnesoutput in the nine months to September across four sites. Third quarter outputreached 0.34 million tonnes despite exceptionally wet weather. Three more sites with the following estimated reserves are expected to commenceproduction in the fourth quarter, at Steadsburn, Northumberland (1.1 milliontonnes), Long Moor, Leicestershire (0.7 million tonnes), and Sharlston, WestYorkshire (0.36 million tonnes). Production is expected to commence in summer2008 at Lodge House, Derbyshire (1 million tonnes). Planning decisions are expected for Potland Burn, Northumberland (estimated 2million tonnes) in the fourth quarter, and for Park Wall North, County Durham(estimated 1.25 million tonnes) in Spring 2008. Planning submissions areexpected to be made over the next year for reserves estimated to exceed 4.9million tonnes. Coal market Coal forward market prices have continued to strengthen and we expect to secureimproved prices which more closely reflect international levels as we negotiatenew contracts, including our recently announced contract to supply E.ON with upto six million tonnes of coal to 2012. Ends Enquiries:Media:Financial: Citigate Dewe Rogerson Tel: 020 7638 9571Anthony Carlisle Mobile: 07973 611 888Laure Lagrange Mobile: 07768 698 731 Operations:Stuart Oliver Tel: 01525-381759, Mobile: 07774 231178 Analysts and investors:UK COAL PLC Tel: 01302-755012David Brocksom, Finance Director This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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