UK Coal PLC
20 November 2007
20th November, 2007
UK COAL PLC ('UK COAL')
UK COAL AND EDF ENERGY AGREE TERMS FOR POWER STATION COAL SUPPLIES
UK COAL PLC, the UK'S biggest producer of coal and the developer of one of
Britain's largest brownfield property estates, today announces it has agreed
terms for the supply of coal to power generator EDF Energy over the next two
years. This new agreement comes into immediate effect and supplements an
existing contract. Taken together, these contracts will account for all power
station coal anticipated from the current mining plans from UK COAL Welbeck
Colliery in North Nottinghamshire.
EDF Energy is a long standing core customer of UK COAL. All the coal will be
supplied by rail to EDF Energy's Cottam and West Burton power stations.
Jon Lloyd, UK COAL Chief Executive, said: 'This Welbeck contract secures the
continued delivery of coal at improved prices, reflecting the delivered cost of
internationally traded coal which has almost doubled in price over the past 12
months.
'This contract is a significant advance towards us achieving the current market
value for our coal whilst giving the customer a reliable guaranteed supply right
on its doorstep.'
The EDF Energy contract follows an agreement last month for the supply of almost
six million tonnes of coal to E.ON over the next five years. Most of that coal
will be supplied from UK COAL's Daw Mill Colliery in the West Midlands
UK COAL is also planning market priced 'spot sales' for coal produced across its
portfolio of deep and surface mines.
ENQUIRIES:
Analysts and Investors:
David Brocksom Tel : 01302 755005
Group Finance Director, UK COAL PLC
Media:
Citigate Dewe Rogerson Tel : 020 7638 9571
Anthony Carlisle Mobile : 07973 611 888
Laure Lagrange Mobile : 07768 698 731
Operations:
Stuart Oliver Tel : 01525 381759
UK COAL PLC Mob : 07774 231 178
BACKGROUND NOTE:
UK COAL is a mining, property and power company employing 3,100 people with its
headquarters at Harworth Park, Harworth, near Doncaster, South Yorkshire.
Britain's biggest producer of coal, UK COAL operates four deep mines in the
Midlands and Yorkshire, and four surface mines in the North East, the North
West, and the Midlands. Over 90% of UK COAL's annual output of almost nine
million tonnes is sold to generate around 5% of Britain's electricity
requirements.
Welbeck Colliery, with a history dating back to 1912, employs almost 400 people.
It has limited recoverable reserves, with production there expected to cease in
2009 under current mining plans.
The property division, managed by Harworth Estates, owns around 47,500 acres of
land and other property. With a RICS valuation of £398m, the Company estimates
the 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
been identified for development, creating opportunities for building around
20,000 homes 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 the
development of wind farms on 10 or more sites, mainly in the North East and the
Midlands.
For more information, please go to www.ukcoal.com
This information is provided by RNS
The company news service from the London Stock Exchange
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