Hargreaves Serv Regulatory News (HSP)

17 Mar 2006 07:01

UK Coal PLC17 March 2006 UK COAL PLC JOINT VENTURE AGREEMENT UK COAL Plc and Hargreaves Services plc today announce the intended formation ofa 50:50 joint venture company, Coal 4 Energy Ltd. The new company will market and distribute coal products to the domestic andlight industrial markets. Planned to commence trading on 1st April 2006, the newcompany will have an annual turnover in the region of £50 million. UK COAL, Britain's biggest coal producer, already has a long term traderelationship with Hargreaves who have the largest bulk delivery fleet in the UK,and are the largest independent importers of domestic and industrial coal. The combination of UK COAL and Hargreaves in this joint venture brings togetherkey producers and suppliers of domestic and industrial coal in the UnitedKingdom. The new venture will be located at Kellingley Colliery in WestYorkshire, currently a major source of coal for the industrial and domesticmarkets. The productive capacity of UK COAL, together with the logistical and marketingskills of Hargreaves, will enable both parties through Coal 4 Energy Ltd, tomeet market demand in a more efficient and cost effective way, which will be ofbenefit to the consumer. For further information: UK COAL Financial Ken Cronin Tel: 0207 554 1400 Mob: 07887 591 499 Operational Stuart Oliver Tel: 01525 381759 Mob: 07774 231178 HARGREAVES Gordon Banham Tel: 0191 373 4485 Peter Dillon Tel: 0191 373 4485 Buchanan Communications Diane Stewart Tel: 0207 466 5121 Bergmans PR Consultants Robin Ashby Tel: 0191 232 1332 Background notes: UK COAL: With its headquarters at Harworth, near Doncaster, UK COAL is Britain'sbiggest coal producer, with output last year of 10 million tonnes. The companyoperates seven deep mines and produces a range of power station, industrial anddomestic coal. HARGREAVES: Based in County Durham, Hargreaves have a long association with UKCOAL and in June last year, acquired the Monckton Coke & Chemical Company whichhad been owned by UK COAL for over a decade. The UK's largest independentproducer and distributor of coke products, Hargreaves now employs more than 600people. ENDS This information is provided by RNS The company news service from the London Stock Exchange