Britain's biggest coal producer moved a step closer to securing its future but said one of its largest mines remains under threat.

UK Coal slumped to a loss of EUR 20.6 million in the 6 months to June 30th 2012 as a poor performance at its Daw Mill mine near Coventry contributed to a 20% fall in production.

The group, which employs 2,500 people has reached an initial agreement with pension trustees and power generation customers that will see them extend a support package worth EUR 90 million up to the end of 2015.

However, the group warned it was unlikely that Daw Mill which employs 800 staff would continue to operate beyond early 2014. This was after workers rejected new shift patterns in a ballot although chairman Mr Jonson Cox remained hopeful an agreement could be reached.

More than 90% of the total annual output is sold to generate about five per cent of Britain's electricity requirements. The company's other deep mines are at Thoresby in Nottinghamshire and Kellingley in North Yorkshire.

The company owes its customers and banks EUR 138.3 million and has a pension funds deficit of approximately EUR 430 million. Under a highly complex plan its mining business would be left free of bank debt and with an affordable pension deficit reduction scheme.

Source - Thisisnottingham.co.uk

(www.coalguru.com)