Proactive Investors - Run By Investors For Investors

In The News - West Cumbria Mining

In The News -  West Cumbria Mining

FROM THE BROKING DESK
I’m sure many recipients of this e-mail are closet readers of The Daily Mail. Let’s face it, who doesn’t occasionally like to dip into the online edition for some celebrity gossip and fashion news? It also has a business section; as the paper shifts 1.2m print copies per day and its website is one of the most viewed in the world, it is considered the ‘holy grail’ for companies to get a write-up in. Well, yesterday there was a feature article on West Cumbria Mining***, a private company that RFC Ambrian is advising, which is developing a coking coal project in Whitehaven on the north-west coast of England.


Once you get through the slightly slushy stuff about CEO Mark Kirkbride, the article highlights the project’s ambitions and the long history of coal mining in the area. The aim is to start production of coking coal before the end of this decade to supply the European steel industry via the ports in Teesside. While this may seem ambitious given that the UK coal industry has been a story of managed decline since the 1980s (emphasised by the closure of the last deep pit mine at Kellingley in 2015), this was thermal coal; the economics at West Cumbria will be quite different. West Cumbria Mining’s project will be a low-cost, high-quality coking coal operation with significant freight and logistic advantages over North American and Australian competitors in terms of shipping product to the European market. It’s an exciting story.


After the success Sirius Minerals had in raising capital for its polyhalite mine in North Yorkshire, the UK mining industry is in something of a renaissance. The genesis of these projects pre-dates Brexit and the whole ‘Northern Powerhouse’ stuff, but there can be no doubt that the government is very supportive of what will represent large UK industrial projects over the years to come.

This content has been approved under section 21(1) of the FMSA 2000 by RFC Ambrian Limited ("RFC Ambrian") for communication only to eligible counterparties and professional clients as those terms are defined by the rules of Financial Conduct Authority. The contents are not directed at retail clients as RFC Ambrian does not provide investment advisory services to retail clients.  RFC Ambrian publishes this document as non-independent research which is a marketing communication under the Conduct of Business rules. It has not been prepared in accordance with the regulatory rules relating to independent research, nor is it subject to the prohibition on dealing ahead of the dissemination of investment research. It does not constitute a personal recommendation and does not constitute an offer or a solicitation to buy or sell any security. Neither RFC Ambrian nor any of its directors, officers, employees or agents shall have any liability, howsoever arising, for any error or incompleteness of fact or opinion in it or lack of care in its preparation or publication; provided that this shall not exclude liability to the extent that this is impermissible under the law relating to financial services. All statements and opinions are made as of the date on the face of this document and are not held out as applicable thereafter. This document is intended for distribution only in those jurisdictions where RFC Ambrian is permitted to distribute its research. In particular, it is not intended for distribution in and is not directed as persons in the United States.  On the date of this document, RFC Ambrian, RFC Ambrian's holding company, persons connected with it and their respective directors may have a long or short position in any of the investments mentioned in this document.
RFC Ambrian is a member of the London Stock Exchange and is regulated and authorised by the Financial Conduct Authority. RFC Ambrian is registered in England and Wales no. 4236075. Its registered office is at Level 5, Condor House, 10 St Paul’s Churchyard, London EC4M 8AL.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use