UK Coal has reported a pre tax loss of EUR 20.56 million for the first 6 months ended June 30th 2012 compared to a profit of EUR 22.22 billion for the same period last year. The firm which employs 2,500 staff was rocked by problems at the Daw Mill mine near Coventry which contributed to 20% fall in production.
According to UK Coal, Daw Mill will close in early 2014 or earlier. The company produced 3.3 million tonnes during the half year period. The group’s three deep mines produced 2.4 million tonnes. Meanwhile, total group revenue declined by 23% to EUR 198.3 million as a result of significantly lower sales volumes.
Surface mining had a good H1 from the four producing sites when compared to the 6 sites in operation in the same period last year. H1 production was 0.9 million tonnes and production has begun at two further sites with an additional site expected to begin production in the last quarter of 2012.
Mr Jonson Cox chairman of UK Coal said that “Our H1 year results for 2012 show a disappointing performance, caused by the poor Daw Mill performance in Q1 and the weakening coal price seen in Q2. These factors were mitigated by an improved consistency of production in Q2. We have continued to progress with the recovery of Daw Mill’s 32s face and are in the process of re commissioning the face.”
Mr Cox said that the production problems and the risks of operating Daw Mill in its current structure, when combined with the pension deficit and the level of bank and generator debt led the board to conclude that a restructuring of the business was necessary to secure a stable platform for UK Coal and its stakeholders. We are pleased to report today that we have reached an agreement in principle with key economic stakeholders on the restructuring.
He said that the company operates three deep mines in the Midlands and Yorkshire and surface mines in the north east, the north west and the Midlands. Over 90% of the total annual output is sold to generate around 5 per cent of Britain’s electricity requirements.
Source - Newstatesman.com
(www.coalguru.com)
Policy, Steam, Other region
