Since July 2002, production on the main face in the 5m Warwickshire Thick seam at Daw Mill has been severely affected by difficult geological conditions which reduced output to around 5,000 tonnes a week.

"We continue to make steady progress at Daw Mill and while there are likely to be further geological challenges in the panel that we are working, we are cautiously optimistic that we are through the worst of the geologically disturbed area," Gordon McPhie, UK Coal chief executive, commented.

Headquartered in South Yorkshire, UK Coal operates 12 collieries in the Midlands, Yorkshire and the North East.