First quarter production steady, says UK Coal

UK Coal plc has announced that production in the first quarter of 2011 was steady while its net debt was reduced.

Production in the period up until the end of March was in line with expectations, at 2.1 million tonnes. This was up from one million tonnes during the same period last year.

The total production figure comprised 1.6 million tonnes from deep mines – double last year’s figure of 0.8 million tonnes – and 0.5 million tonnes from surface mines, an increase from 0.2 million tonnes.

UK Coal said the installation of new faces at Kellingley, in North Yorkshire, and Thoresby, in Nottinghamshire, had been successful and both were now ready for use.

The mining and property group has also managed to reduce its net debt to £220.7 million thanks to £10.5 million received from property sales.

The group’s property business, Harworth Estates, sold 1,500 acres of surplus agricultural land, including estates at Stockley Hill, in Lancashire, and Sandy Lane, in Staffordshire.

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