Opencast mining firm ATH Resources goes into administration

ATH Resources' Glenmuckloch facility (picture courtesy of Kath Jones) ATH had received council backing to expand its Glenmuckloch mine, but in May it announced that it was deferring the plans

Related Stories

One of Scotland's main opencast coal mining companies has gone into administration.

ATH Resources, which is the holding company for operators in Ayrshire, Fife and Dumfries and Galloway, was forced out of business on Wednesday.

Its main lender had responded to the company's financial difficulties by demanding immediate repayment of its debt.

Scotland's coal industry has been under pressure by cheaper imported coal.

The subsidiaries of ATH Resources employ around 300 people.

In May, ATH Resources deferred plans to expand an opencast coalmine in the south of Scotland.

The expansion plans at its Glenmuckloch facility had received the backing of Dumfries and Galloway Council, which ATH Resources said would safeguard 90 jobs.

'Dropped expansion'

But the firm blamed the decision to defer on the falling international price of coal.

It said its board would review the case to take forward or drop the expansion plans entirely by the end of this year.

A statement on the company's website said: "The Directors of ATH Resources plc one of the UK's largest coal producers, announce that its lender, BECAP Capital Coal Limited has today demanded repayment of the Group's facilities, in full, with immediate effect.

"The company cannot satisfy the full repayment of the facility and consequently, the lender has today appointed administrators to ATH Resources plc under powers contained in the security held by it."

It said William Wright, Brian Green and Allan Graham of KPMG had been appointed administrators.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Scotland business stories



  • A painting of the White House on fire by Tom FreemanFinders keepers

    The odd objects looted by the British from Washington in 1814

  • Chris and Regina Catrambone with their daughter Maria LuisaSOS

    The millionaires who rescue people at sea

  • Plane7 days quiz

    What unusual offence got a Frenchman thrown off a plane?

  • Children testing a bridge at a model-making summer school in Crawley, West SussexSeeding science Watch

    The retired professor who turned village children into engineers

  • Krouwa Erick, the doctor in Sipilou town at the border of Ivory Coast and Guinea - 27 August 2014Bad trip

    The Ebola journey no-one in Ivory Coast wants to take

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.