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Thu April 15 2021

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Kier puts UK mining division up for sale

30 Jun 15 Kier is in talks with a potential buyer for its mining operations in Scotland.

Kier heavy plant in action at Greenburn
Kier heavy plant in action at Greenburn

In a trading update, Kier said that its construction division had seen “significant year-on-year organic growth” but it now wants out of UK mining.

It said that construction margins remain in line with management's expectations at approximately 2% and the order book of secured or probable work represents more than 80% of anticipated revenue for the year ending 30 June 2016.

The company added: “As a result of our ongoing approach to capital discipline, our mining operations at Greenburn in Scotland have been prepared for sale and discussions are ongoing with a potential buyer.”

Greenburn surface coal mine is in Ayrshire and is operated by Kier Construction. It has been in operation since 2004 and has shipped more than six million tonnes of coal to UK power stations.

However, Kier will still be involved in mining in Saudi Arabia, in partnership with local firm CMCI and Comedat of Jordan. The three parties formed the Saudi Comedat Company Ltd (SCCL) in 2007 to develop the Al Jalamid phosphate deposit on behalf of Ma'aden, the Saudi Arabian state-owned mining and mineral holding company.

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MPU

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