Glenmuckloch Eastern extension deferred

ATH to review plans for opencast site extension following falls in the international price of coal

ATH Resources plc have announced that following a further fall in the international price of coal, they have decided to defer commencement of their planned Glenmuckloch Eastern extension.

While demand for coal generally remains strong, international coal prices have fallen significantly over the past nine months and in particular over the past few months.

As a result, the board will now review the investment case to either proceed with the extension or begin final restoration of the current site towards the end of this calendar year.

According to ATH, the deferment will have little impact on production levels in the current financial year, but if ultimately a decision is made not to proceed with the extension, volumes would be reduced by approximately 500,000 tonnes in total over the subsequent two years.

Reduced coal prices are also continuing to impact on the company’s margins, resulting in further reductions to the board’s expectations of trading performance.

ATH will update the market more fully on the impact of the continuing fall in the international price of coal, together with any mitigating actions they are taking, in their Interim statement scheduled for release in late June.