News: Hargreaves provide update on Maltby
Hargreaves Services plc, the UK's leading supplier of solid fuels, has provided an update on the unusual geological conditions at Maltby Colliery in Rotherham.
Work was underway to mine a new panel where coal is expected to be approximately 25% thicker. However conditions never before encountered at the 100 year old mine meant that further development was abandoned.
The current panel is expected to be completed in October 2012 and the group is estimating a gap in production of between 12 and 16 weeks until the new panel is ready.
The group estimated in June that the likely adverse impact on profit in the year ending 31 May 2013 will be between £12m and £16m.
In a trading statement for the year ended 31 May 2012, Hargreaves reported that the revised development programme to complete the new panel is progressing in line with expectations.
On the main gate, a boring machine has been pulled back and turned and development has just commenced on the first of two passes to create the face line.
The group stated that these were "encouraging milestones in the development process" and added that further updates will be provided with the preliminary results in September.
On the current coal face at Maltby, production and financial performance improved in the second half.
The statement concluded: "Although the recent developments at Maltby were disappointing, Hargreaves is a diversified group focussed on a broad range of activities associated with the supply of solid fuel and the Board remains confident about the medium and long term prospects for the group."
Maltby occupies a site of 500 acres and employs over 500 staff and contractors. It is the last coking coal mine left in the UK and produces both high quality coking coal and power station coal. The colliery produces more than 1 million tonnes of coal per year.
Hargreaves website
Work was underway to mine a new panel where coal is expected to be approximately 25% thicker. However conditions never before encountered at the 100 year old mine meant that further development was abandoned.
The current panel is expected to be completed in October 2012 and the group is estimating a gap in production of between 12 and 16 weeks until the new panel is ready.
The group estimated in June that the likely adverse impact on profit in the year ending 31 May 2013 will be between £12m and £16m.
In a trading statement for the year ended 31 May 2012, Hargreaves reported that the revised development programme to complete the new panel is progressing in line with expectations.
On the main gate, a boring machine has been pulled back and turned and development has just commenced on the first of two passes to create the face line.
The group stated that these were "encouraging milestones in the development process" and added that further updates will be provided with the preliminary results in September.
On the current coal face at Maltby, production and financial performance improved in the second half.
The statement concluded: "Although the recent developments at Maltby were disappointing, Hargreaves is a diversified group focussed on a broad range of activities associated with the supply of solid fuel and the Board remains confident about the medium and long term prospects for the group."
Maltby occupies a site of 500 acres and employs over 500 staff and contractors. It is the last coking coal mine left in the UK and produces both high quality coking coal and power station coal. The colliery produces more than 1 million tonnes of coal per year.
Hargreaves website
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