AUG.L Regulatory News (AUG)

3 Mar 2005 07:01

Augean Plc03 March 2005 03-03-05 Augean PLC Licence Extension and Royalty Acquisition at Augean North, Port Clarence Site Augean PLC ("Augean" or "the Company"), the UK's leading hazardous wastebusiness, is pleased to announce a hazardous waste licence extension from100,000 tonnes per annum to 500,000 tonnes per annum at Augean North's PortClarence site. In addition, Augean has purchased the royalty agreement on thesite. Augean North - Port Clarence licence extension The Environment Agency has agreed through the issue of a licence extension, toincrease the annual hazardous waste tonnage inputs from 100,000 tonnes to500,000 tonnes at the Port Clarence site. Total space at the Port Clarence sitecomprises 103 hectares; this licence extension demonstrates management'scommitment to enhance the value of the assets in a timely manner. Augean North - royalty acquisition In addition, the Company has taken the opportunity of acquiring the royaltyrights payable to the former owners of the site, based on volumes. Thisagreement has been acquired so that going forward, no royalties are due at anylevel of tonnage intake at any date in the future. Had this acquisition not beenmade, substantial royalties would have become payable once volumes had reachedover 250,000 tonnes. John Huntington, Chief Executive of Augean PLC said: "This licence extension and acquisition of royalty rights at Port Clarence isexcellent news for the future growth potential of the business. Importantly,this extension and the royalty acquisition are unlikely to have an immediateimpact on the financial performance of the business, however, as volumes pick upin the years ahead, this investment will make an important contribution to theCompany." Ends For further information, please contact: Jonathon Brill/Billy Clegg, Financial Dynamics020 7831 3113 Notes to editors About Augean plc Augean plc listed on AIM on 10 September 2004, as an acquisition vehicledesigned to acquire businesses within the exciting and fast growing hazardouswaste market. In November 2004, the Company raised £100m in an institutionalplacing to fund the acquisition of Atlantic Waste Holdings based nearPeterborough, which Augean bought for £80,000,000 and is now called Augean Southand Zero Waste, based near Middlesbrough, bought for £26,000,000 which is nowcalled Augean North. Augean is the UK's market leader in hazardous waste. Augean is run by John Huntington, CEO, Gary Downey, FD and David Williams,non-executive Chairman. John Huntington and David Williams were previouslyinvolved with Waste Recycling Group plc. The hazardous waste market Since the implementation into UK law of the EU Landfill Directive on 16 July2004, what was 'special waste' has been re-classified as 'hazardous waste'.Approximately 5 million tonnes of hazardous waste are produced per annum in theUK. Prior to the new legislation, over 250 landfill sites accepted hazardous waste,operated under a system of co-disposal. Since the EU Landfill Directive wasimplemented into UK law, there are less than 10 dedicated landfill sitescurrently accepting hazardous waste, representing just over 1 million tonnes ofcapacity. The resulting supply and demand dynamic has resulted in a sharpincrease in prices. This information is provided by RNS The company news service from the London Stock Exchange