UK Coal supplies around 7% of Britain’s energy needs for electricity through four deep mines and seven active surface mines producing around 1.5 million tonnes of coal a year.

The total surface mining coal reserves, including projects being worked and those in planning, are in excess of 90Mt.

UK Coal’s outlook for 2008 is positive with the second half expected to benefit from a higher sales price and a higher volume of production.

UK Coal’s revenues were in line with expectations with a higher than expected sale price for the first half anticipated to be £1.79 per gigajoule offsetting lower than expected production of 3.7Mt, mainly due to a face change at its Kellingley project.

The first half of the year saw continuing increases in market prices for energy.

With the market price for coal and the company's contractual commitments, it expects to get an average selling price of £1.95–2.00/GJ during the second half of the year.

In a trading statement UK Coal said the rise in energy prices was very positive for its outlook and it was looking into reopening its Harworth mine to access its remaining coal reserves.

However, the company said it was acutely aware of increased energy costs which would impact its operating costs, particularly the cost of diesel which accounts for 40% of surface mine costs.