ATH Resources (LSE:ATH)
Historical Stock Chart
5 Years : From Dec 2011 to Dec 2016
RNS Number : 5507Y
ATH Resources plc
02 March 2012
Press Release 2 March 2012
ATH Resources plc
("ATH Resources" or the "Group")
Re. CRC Energy Efficiency Scheme Order
ATH Resources plc (AIM:ATH), one of the UK's largest coal miners, reports that the Group has received notice from the Secretary of State for Energy and Climate Change that its Appeal against the enforcement notice issued by the Environment Agency on 8 February 2011 requiring ATH to register as a participant in the Carbon Reduction Commitment Scheme ("CRC") in terms of the CRC Energy Efficiency Scheme Order 2010 ("the Order") has been dismissed.
However, the Secretary of State did not reach any conclusion on the Group's position that the anticipated CRC Energy Efficiency Scheme (Allocation of Allowances for Payment) Regulations ("the Allocation Regulations") will be unlawful in that they will create a tax which will contravene EU Directive 2003/96 (the community framework for the taxation of energy products and electricity). The Group is advised that it can now refer that matter, and its wider challenge to any requirement that it participates in CRC, for judicial review at a moderate legal cost and this is something the Board will consider at the appropriate time.
If the anticipated Allocation Regulations come into force as currently drafted (expected to be April 2012), and if the Group is ultimately required to participate in CRC, the cost to the Group could be in the order of GBP1.4 million for each of the three years from April 2012 in respect of emissions generated in each preceding 12 month period, as announced at the time of the preliminary results in January.
The Group will be discussing the position with its legal advisers and will not be making any payments under the CRC Scheme until further clarity on the legality of the CRC Scheme is received. The Group will continue to update the market with any further developments regarding the CRC.
Alistair Black, Chief Executive of ATH commented;
"Whilst it is clearly disappointing that our Appeal has been dismissed by the Secretary of State at this stage, the outcome of ATH's contention that the entire CRC Scheme is contrary to EU law has yet to be determined. If the CRC Scheme is found to be in contravention of EU law it will have a major implication for the operation of the Scheme in its current form."
- Ends -
For further information:
ATH Resources plc
David Port, Executive Chairman Tel: +44 (0) 7836 693798
Alistair Black, Chief Executive Tel: +44 (0) 1302 760 462
Seymour Pierce Ltd
Sarah Jacobs / Stewart Dickson (Nominated Tel: +44 (0) 207 107 8000
Richard Redmayne / Katie Ratner
Joanne Shears / Mark Dixon Tel: +44 (0) 207 398 7729
Notes to Editors
ATH Resources was listed on the AIM market of the London Stock Exchange in June 2004 and operates four surface coal mines in Scotland; Skares Road and Netherton in East Ayrshire, Glenmuckloch in Dumfries and Galloway and Muir Dean in Fife. The Group is currently one of the largest producers of coal in the UK providing coal principally to the electricity supply industry and also the industrial and house coal markets. Coal is used to generate around a third of the UK's electricity and the Group holds coal supply contracts with four of the UK's main electricity generating companies.
Further information on ATH Resources can be found at www.ath.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange