ATH Resources, the opencast coal miner with extensive operations in Scotland, yesterday announced that applications to mine up to 1.7 million tonnes of coal reserves at Rigg and Glenmuckloch have been approved by the local planning authority in Dumfries and Galloway.

ATH Resources, the opencast coal miner with extensive operations in Scotland, yesterday announced that applications to mine up to 1.7 million tonnes of coal reserves at Rigg and Glenmuckloch have been approved by the local planning authority in Dumfries and Galloway.

The approvals include a new mine at Rigg, with estimated reserves of up to one million tonnes and two extensions to the existing Glenmuckloch site, totalling a further 700,000 tonnes.

The news pushed up the company's shares price by 6p to 184.5p in London dealing.

The planning processes required environmental assessments for each site and the Scottish Government planning department will, therefore, review both planning decisions before digging can begin.

The Rigg site is approximately 1.5km from the Glenmuckloch mine. The company said its existing conveyor network will be extended to Rigg, enabling coal to be transported from the site with minimal impact on the environment or local community. Production is expected to commence in 2009.

Steven Beaumont, ATH's finance director, said: "We are delighted to have received local approval for working the new mine at Rigg and the extensions to the Glenmuckloch site. These represent a further significant step in delivering our coal production plan over the next three to four years, allowing us to benefit from the exceptionally strong market price for coal. We look forward to commencing operations in 2009."

Beaumont told The Herald the project will also "secure" about 50 jobs in the area.

ATH, which is based in Doncaster, south Yorkshire, claims to be the third largest producer of coal in the UK and is listed on London's Alternative Investment Market.

It operates four mines in production in East Ayrshire and Dumfries and Galloway and one major reclamation project in Yorkshire. ATH said in a statement last year that 75% of its output goes to power companies but they were showing "resistance" to paying international coal prices to indigenous producers.

Despite this, the company posted a 27% rise in pre-tax profits to £10.3m for the year to September 30, 2007.

In addition to operating mines, the group also has a number of other projects in Scotland and also operates a French subsidiary, SRMMC, with a series of coal concessions in south-central France, covering an area of 36km.