Coal miner and bulk materials group Hargreaves Services shrugged off concerns over coke markets to hail the impact of its move for opencast sites in Scotland.
The County Durham group, which took on assets from both Scottish Coal and ATH Resources after they slumped into administration this year, said the acquisitions had allowed it to “make good progress” in its surface mining business.
It said work had restarted at six sites, with a further two expected to open during the coming weeks.
The return to production will bring Hargreaves’ activities “in line with plan” following delays, and are expected to contribute to what directors now expect will be a “good second half performance”.
Work has begun at St Ninians, near Kelty, where restoration will be funded by the proceeds from the extraction of coal remaining at the site.
Hargreaves says it will also help ensure the delivery of “as much as possible” of the large-scale land art project designed by Charles Jencks.
Operations have also recommenced at Muir Dean, by Crossgates, where a 27-month project to restore and make the site safe will also be part-funded by the mining of the remaining coal resource.
Dozens of jobs are expected to be created at the site.
A pre-close trading update for the six months to the end of November also highlighted volatility in domestic steel production, which has affected Hargreaves’ coke production site at Monckton, near Barnsley.
Contract discussions are ongoing but the firm disclosed that steelmakers are seeking to reduce orders and introduce more flexibility through the use of quarterly deals.
“Although risks continue around coke markets, particularly for Monckton, the group is pleased with the strong performance in coal trading and the progress in its surface mining operations,” the firm said.
“The board considers that the group is well placed going into the second half of the year and is optimistic of achieving its targets for the full year.”
German coke markets are also uncertain but Hargreaves said it was in a strong position given contracted commitments.
It also trumpeted a completed restructure of European operations, which caps prospective liabilities and reduces total group debts by around £10m to £95.6m.
Hargreaves plans to reveal its figures for the six months to November in February.
Last year’s interim results revealed a pre-tax loss of £9m on half year revenues of £385m.
But performance accelerated in the following six months, allowing the group to post full-year pre-tax profits of £43m on revenues of £843m.
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