News: Hargreaves sells Matby assets
Hargreaves Services plc, the owners of the Maltby Colliery site in Rotherham, has agreed the sale of certain coal mine methane (CMM) assets held at Maltby Colliery to Alkane Energy plc for up to £7.5m.
Underground operations ended in March at the Maltby site that occupies 500 acres and employed over 500 staff and contractors. It is the last coking coal mine left in the UK and produced both high quality coking coal and power station coal.
Without underground workings, Maltby will continue to trade with tiny coal particles called "fines" harvested and processed.
Hargreaves will receive an initial payment of £5.5m in cash on completion followed by up to a further £2m payable six months after the mine shafts have been filled and capped as part of Maltby's planned closure and restoration programme. It is anticipated that these tasks will be completed during the first half of 2014.
Mothballing of the underground operations at the 100 year old mine is expected to cost the company approximately £12.3m and with plant and equipment worth £34m, Hargreaves expects to realise £14m in its sale.
Gordon Banham, CEO of Hargreaves, commented: "We are pleased to announce this disposal. Alkane is well positioned to maximise the value of these assets and this has created the basis for a deal that is beneficial to both parties. This disposal constitutes an important step towards realising our asset disposal targets for Maltby, which we will seek to continue with the disposal of the underground assets in due course."
Maltby has reserves of an estimated 11.6 billion cubic feet of coal mine methane, which Alkane will use to generate electricity.
Neil O’Brien, Chief Executive Officer of Alkane, commented: “This latest acquisition consolidates Alkane’s market leading position in CMM and it adds significantly to the Group’s core CMM operating capacity and provides an opportunity to further develop our Power Response business."
Hargreaves website
Alkane website
Images: Hargreaves
Underground operations ended in March at the Maltby site that occupies 500 acres and employed over 500 staff and contractors. It is the last coking coal mine left in the UK and produced both high quality coking coal and power station coal.
Without underground workings, Maltby will continue to trade with tiny coal particles called "fines" harvested and processed.
Hargreaves will receive an initial payment of £5.5m in cash on completion followed by up to a further £2m payable six months after the mine shafts have been filled and capped as part of Maltby's planned closure and restoration programme. It is anticipated that these tasks will be completed during the first half of 2014.
Mothballing of the underground operations at the 100 year old mine is expected to cost the company approximately £12.3m and with plant and equipment worth £34m, Hargreaves expects to realise £14m in its sale.
Gordon Banham, CEO of Hargreaves, commented: "We are pleased to announce this disposal. Alkane is well positioned to maximise the value of these assets and this has created the basis for a deal that is beneficial to both parties. This disposal constitutes an important step towards realising our asset disposal targets for Maltby, which we will seek to continue with the disposal of the underground assets in due course."
Maltby has reserves of an estimated 11.6 billion cubic feet of coal mine methane, which Alkane will use to generate electricity.
Neil O’Brien, Chief Executive Officer of Alkane, commented: “This latest acquisition consolidates Alkane’s market leading position in CMM and it adds significantly to the Group’s core CMM operating capacity and provides an opportunity to further develop our Power Response business."
Hargreaves website
Alkane website
Images: Hargreaves
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