ATH Resources gets green light for pit expansion

COAL miner ATH Resources yesterday revealed that it had received planning permission from Fife Council to extend work at its Annfield pit at Crossgates, near Dunfermline.

The Aim-quoted company, which is based in Doncaster but has all five of its mines in Scotland, said it will take 350,000 tonnes of coal from the open-cast colliery.

Work is expected to begin towards the end of the year, with the neighbouring Muir Dean mine due to finish production next year.

Alistair Black, chief executive of ATH Resources, said: “This planning approval provides continued employment for 70 direct employees in the area and is an important contributor to the future of the ATH business as well as the local economy in this part of Fife.”

Last week the group revealed that takeover talks, which had been announced in July, had been terminated.

Asa Bridle, an analyst at stockbroker Seymour Pierce, which acts as a market maker for the miner, said: “The stock has fallen by 25.7 per cent since the possible bid for the company was announced and the shares are currently trading at a 38 per cent discount to our conservative net present value of 67p.

“With the recent bid indicating industry interest in the stock and the removal of the low-priced legacy contracts to begin in the next financial year [beginning 1 October], we believe current levels offer investors a good opportunity.”