10th Oct 2007 07:01
UK Coal PLC10 October 2007 10th October, 2007 UK COAL PLC ("UK COAL") NEW FIVE YEAR COAL SUPPLY CONTRACT AGREED WITH E.ON UK COAL, the UK's largest producer of coal and the developer of one of Britain'slargest brownfield property estates, today announces it has agreed terms for thesupply of almost six million tonnes of coal to electricity and power generatorE.ON over the next five years. E.ON is a long standing, core customer of UK COAL. About 75 per cent of the coalwill be supplied from UK COAL's Daw Mill Colliery in the West Midlands, with theremainder being supplied from surface mine sites in Leicestershire andDerbyshire. All the coal will be supplied to E.on's Ratcliffe power station,near Nottingham, with the deep mined coal being delivered by rail and theremainder from the two surface mine sites in the area being delivered by road. The contract, which comes into immediate effect and runs to January 2012,secures the continued delivery of coal at improved prices, more closelyreflecting the price of internationally traded coal and including annualinflation rate increases from 2009. Says UK COAL Chief Executive Jon Lloyd: "This contract extends supply of coal toone of our key customers at improved prices and will account for a significantelement of our Daw Mill mine's annual production." UK COAL is currently discussing term contract supply arrangements with otherpower generators and is also planning market priced tonnage-based "spot sales"for coal produced at Daw Mill and other units. ENQUIRIES Financial:Citigate Dewe RogersonAnthony CarlisleTel: 020 7638 9571Mob: 07973 611 888 Laure LagrangeTel: 020 7638 9571Mob: 07768 698 731 Operations:UK COALStuart OliverTel: 01525 381759Mob: 07774 231 178 BACKGROUND NOTE: UK COAL is a mining, property and power company employing 3,100 people andheadquartered at Harworth Park, Harworth, near Doncaster, South Yorkshire. Britain's biggest producer of coal, UK COAL operates four deep mines in theMidlands and Yorkshire, and four surface mines in the North East, the NorthWest, and the Midlands. Over 90% of UK COAL's annual output of almost ninemillion tonnes is sold to generate around 5% of Britain's electricityrequirements. The property division, managed by Harworth Estates, owns around 47,500 acres ofland and other property. With a RICS valuation of £398m, the Company estimatesthe portfolio land value in 2012 with the benefit of planning consents to be£900m. Over 70 sites, covering a developable area of over 3,300 acres have beenidentified for development, creating opportunities for building around 20,000homes and 29 million square feet of employment space over the next six years. The power business, Harworth Power, includes the generation of electricity using engines to burn methane extracted from collieries for safety reasons, and thedevelopment of wind farms on 10 or more sites, mainly in the North East and theMidlands. For more information, please go to www.ukcoal.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Harworth Gp