ATH Resources, one of the UK's largest coal producers, is to buy £25.3 million worth of new mining equipment from Cannock-based Finning (UK), the national Caterpillar dealer.
The equipment will be used on the existing Skares Road and Garleffan mines, near New Cumnock, East Ayrshire, and at the recently acquired Grievehill and Glenmuckloch mines, also in Scotland.
Tom Allchurch, chief executive of ATH Resources, said: "This purchase will replace some of our existing plant and provide new equipment for our recently acquired mines, maximising efficiencies at each location. We have chosen one supplier to reduce costs and ensure consistency in servicing." Neil Dickinson, managing director of Finning (UK), said: "We are extremely pleased to be selected as the supplier to ATH Resources. We look forward to an excellent partnership."
ATH Resources is an AIM-listed operator of opencast coal mines in the UK.
It is currently the third largest producer of coal in the UK producing approximately 1.6 million tonnes per year.
The company holds coal supply contracts with four of the UK's main electricity generating companies.
In addition to its operating mines, the firm also has a number of other coal mining projects in Scotland and two through its French subsidiary, SRMMC including a series of six coal concessions in south-central France.