Hargreaves has sold all of its speciality coal held at its two UK stockholding sites to its German joint venture Hargreaves Raw Material Services. As part of the deal, Hargreaves will now act as a sales agency for HRMS, and will market and sell the speciality coal on a commission basis. The deal is a major step for Hargreaves, which historically focused on the coal industry but has been diversifying into other areas over the last few years. It ceased its coal mining operations in July and now operates in the property, land, logistics, and environmental services sectors. Hargreaves remaining coal stocks are made up of heavy industry coal, which it expects to sell by the end of the financial year. By May 31 2021 the business expects to have no material coal inventory.
Hargreaves chairman Mr Roger McDowell said “The board is delighted to have unlocked the capital from its coal business, which was a key strategic goal, whilst supporting the growth of HRMS to deliver future shareholder value. This transaction represents a significant stride away from our legacy in coal as the group looks to build sustainable growth across our remaining revenue streams.”