Energy Minister, Brian Wilson, hosted a summit last week to thrash out a new aid package for the beleaguered industry.

 

The UK government previously provided £650 million for British Energy, the nuclear power generator, but has yet to confirm a replacement aid scheme for the coal industry. The previous aid scheme under which UK Coal received £75 million in aid to sustain operations, finished in December. Coalfield MPs are outraged.

 

“I do not have a big problem with the government’s rescue of the nuclear industry, because it has a duty to maintain the security and diversity of supply in this country,” said Doncaster North MP Kevin Hughes.

 

“However, I object to the hoops that the coal industry has to jump through to qualify for relatively small amounts of money compared to the sums available to the nuclear industry.”

 

The Financial Times reported that a government consultation paper proposed grants of up to 30% of the cost of opening up new coal reserves but only if the mines involved had a "demonstrably viable future". The proposed scheme was expected to cost about £65 million in the first year.

 

An independent report being prepared by IMC Group provides a pit-by-pit breakdown on the reserve base at all the remaining deep mines.

 

In related news last week, UK Coal - Britain's biggest mining company - threatened to cut jobs at Maltby Colliery along with a move to develop workable business plans for the company’s mines.

 

The move sparked off protests by mining unions, who said the job cuts were just the start and that Maltby could be shut altogether. It appears as if the 450-man pit will have to lose around 30 jobs to remain viable.

 

In a December edition of UK Coal publication, NewScene, chief executive Gordon McPhie said: “We have been reviewing operations at all our mines for several months now, and will continue to do so. The group’s focus remains on driving down unit costs operations to create a profitable business embracing coal production and property interests.”