The deal marks one of UK Coal’s biggest orders in a number of years. The three-year contract to supply 7-8million tonnes will provide a guaranteed market for about 20 per cent of UK Coal's reduced deep-mine output.
The agreement will take effect in January 2004 with the coal being utilised at EdF’s West Burton and Cottam power stations in the West Midlands.
All the coal will be transported by rail from UK COAL mines, principally Welbeck, Harworth and Thoresby in Nottinghamshire and local surface mines supplied through the Oxcroft disposal point in Derbyshire.
EDF Energy's West Burton and Cottam stations are both of 2000MW capacity, and are in the process of being equipped with flue gas desulphurisation (FGD) plant designed to remove around 90% of sulphur dioxide emissions from the coal combustion process.
"This is a significant contract with a major customer operating two power stations in the heart of our coalfields, and demonstrates the long term stability we can offer customers in the face of a highly volatile international market. This agreement will provide both security for our collieries and employees and for the power stations and their customers," said UK Coal CEO Gordon McPhie.
