UK Coal fraught but fighting

UK Coal’s five deep mines returned to profitability in the three months up to November, and the coal producer expects a significant turnaround to profitability for its remaining operations in the new year – a first for UK Coal in nearly a decade.
UK Coal fraught but fighting UK Coal fraught but fighting UK Coal fraught but fighting UK Coal fraught but fighting UK Coal fraught but fighting

Daw Mill mine, courtesy UK Coal

Donna Schmidt

The company said the mines would return to profitability if favourable mining conditions continued.

It said “good progress” was being made to operational projects it hoped would help keep production on an upswing. These efforts included restructured wages and working schedules as well as an adjusted maintenance schedule.

UK Coal reported an increased net debt of ₤105 million at the end of November compared to the company’s June total of ₤85 million.

However, coal stocks were up 103,000 tonnes since mid-year, an operational flexibility option the company exercised that allowed for a total of 472,000t at November’s end.

The company announced this year it would close two of its facilities, Harworth and Rossington in South Yorkshire, by early next year.

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