Maltby colliery’s prospects could improve significantly, according to parent group Hargreaves Services.
Hargreaves, which specialises in supplying, moving and managing mineral resources, says the Rotherham pit continued to under-perform in the six months to the end of November, due in part to poor coal yields from a thin coal section.
Although that is likely to have an impact on performance for the full year, Hargreaves says that production should improve as Maltby begins to work a thicker seam, closer to the pit bottom.
Group revenue increased by £68.9 million from £253.9 million to £322.8 million, mainly thanks to higher commodity prices and higher shipments of coal to power stations.
However, underlying operating profit decreased by £2.0 million to £18.9 million due to a scheduled face change and the lower coal yields from Maltby.
Reported profit before tax decreased by 16.1 per cent from £16.1m to £13.6m.