This item was published during the term of a previous administration that ended in April 2007
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Funding helps take freight off Scotland's roads
28/11/2006
Funding of £2.2 million to help the UK's third largest coal operator take more lorries off Scotland's roads was announced today.
The money will allow ATH Resources to build a seven mile conveyor belt linking its open cast coal mine to a rail terminal in Ayrshire.
Once completed, it will be the longest overland conveyor in Europe and will enable the company to transfer its coal by rail to Longannet power station and on to other power stations across the UK.
It is estimated that the project will remove 2 million lorry miles from Scotland's roads each year. If lined up nose to tail, the lorries involved would stretch from Stirling all the way to John O'Groats.
Transport Minister Tavish Scott said:
"This devolved government is committed to getting more freight off Scotland's roads and onto rail.
"This funding will take more lorries off our roads, meaning less congestion and less damage to the environment.
"ATH Resources are a key player in the UK coal industry and I am delighted that they have seized the opportunity to use our funding to switch so much of their heavy freight from road to rail.
"Since 1999, our freight grant schemes have allowed companies across the country make the move from road to rail. This is a great example of how our freight facilities grant scheme can make a real difference to Scotland's roads. Projects like this one are exactly why we have this funding in place, and I want to see more companies follow this lead.
"The number of lorries being removed from our roads in this project is equivalent to lorries being lined up nose to tail from Stirling all the way to John O'Groats.
"I will shortly launch a Freight Action Plan which will outline our strategy for Scotland's future. I would like to see more and more Scottish businesses think about their freight priorities. If they do, we will see great benefits for our environment and remove even more traffic from Scotland's congested roads."
Alistair Black, Managing Director of ATH Resources' mining subsidiary said:
"We are indebted to the Scottish Executive for this important part-funding of the overland conveyor, which we expect to become operational in the near future.
"It will enable the company to operate its coal handling movements more efficiently in this area of Scotland, and at the same time greatly reduce the impact of its operations on the environment and road network."
Background
A Freight Facilities Grant (FFG) award of £2.2 million will be given to ATH Resources for the provision of a conveyor belt linking the Glenmuckloch open cast coal mine to a railhead at Crowbandsgate near New Cumnock in Ayrshire for onward transfer of coal to Longannet power station and various power stations in the UK by rail.
The £2.2 million will fund 29% of the total capital costs of £7.592 million for the provision of the 7 mile conveyor belt.
The project will transfer 2.8 million tonnes of coal from road to rail between Glenmuckloch and Crowbandsgate, Ayr Harbour and Longannet and will remove over 2 million lorry miles from Scotland's roads each year.
Once completed, the conveyor will be the longest overland conveyor in Europe.
Awards of FFG are based on the environmental benefits which are generated by transferring freight from road to rail and water.
Since 1999, total funding of almost £73m has been given to various companies to switch freight from road to rail and water.
The FFG budget for 2006-07 is £12.9 million.
ATH Resources is an operator of opencast coal mines and is currently the third largest producer of coal in the UK. Through its operational sites situated in East Ayrshire and Dumfries and Galloway in Scotland. ATH provides coal principally to the electricity supply industry and also the industrial and house coal markets.
ATH Resources directly employs 250 in East Ayrshire and Dumfries and Galloway, which support the local economy and a further 300 jobs through the provision of goods and services.
Throughout the development and mining process, ATH focuses on the restoration and rehabilitation of the sites and land is returned to a number of uses including agriculture, forestry, nature conservation and other forms of development.
ATH Resources plc became a public company in June 2004 when it was listed on the Alternative investment Market (AIM).