Property profits boost firm

The Harworth firm reported a loss of 15.3 million in its deep mining division in the first half of the year, hit by a halt in production at its Daw Mill mine in the West Midlands.

But it made 54 million in its property arm, which helped see its profits rocket to 40.6 million.

The firm is currently trying to develop sites including the former Yorkshire Main colliery site, where plans for a business park and housing were recently turned down by Doncaster Council.

It has also drawn up plans to redevelop the site of Rossington Colliery as a possible business park

UK Coal’s surface mine business tripled output to 700,000 tonnes.

The firm is trying to raise cash to develop a planned new coal seam at Harworth Colliery, which is currently mothballed because of geological problems.

The firm’s latest report also states it is trying to re-negotiate some of its contracts with power firms, which had prices fixed at levels, well below current market prices.

It said its contractual commitments had already been slashed, leading to average coal sale price rises of nine per cent.