RNS No 7758d
CONSOLIDATED COAL PLC
1st July 1997

                      CONSOLIDATED COAL PLC
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THE BOARD OF CONSOLIDATED COAL ANNOUNCE THAT DUE TO CERTAIN
GEOLOGICAL PROBLEMS ENCOUNTERED AT THE ABERPERGWM MINE, DEVELOPMENT
HAS BEEN TEMPORARILY DEFERRED AND CURRENT PRODUCTION IS AT NEGLIGIBLE
LEVELS.  HOWEVER THE BOARD IS CONFIDENT THAT THESE PROBLEMS CAN BE
OVERCOME.  PRODUCTION AT THE OPENCAST SITE HAS BEEN INCREASED AND ALL
PRODUCTION IS BEING SOLD.

THE COMPANY WILL NOT BE PAYING ANY DIVIDENDS ON THE CONVERTIBLE
PREFERENCE SHARES IN RESPECT OF THE PERIOD ENDED 30TH JUNE 1997.

THE BOARD IS ALSO CONSIDERING CERTAIN STEPS TO STRENGTHEN THE
COMPANY'S BALANCE SHEET AND LIQUIDITY.  IT IS PROPOSED THAT MINERAL
RESERVES AND MINE DEVELOPMENT WHICH HAVE BEEN CARRIED AS CAPITALISED
ASSETS WILL BE WRITTEN-OFF TO MORE REALISTICALLY REPRESENT REALISABLE
VALUES AND FUTURE DEVELOPMENT WILL BE EXPENSED AS INCURRED.

THE COMPANY IS ALSO PROPOSING TO RAISE #1.8 MILLION, BEFORE EXPENSES,
BY WAY OF A FULLY UNDERWRITTEN RIGHTS ISSUE OF ORDINARY SHARES.
FURTHER DETAILS WILL BE SENT TO SHAREHOLDERS SHORTLY.

END