RJB Mining
| File:Ukcoal logo.png | |
| Company type | Private |
|---|---|
| Industry | Coal mining, Renewable energy and Real estate |
| Founded | 1974 |
| Defunct | 18 December 2015 |
| Headquarters | Harworth, Nottinghamshire, England |
Key people | Kevin McCullough (Chief Executive) |
| Revenue | £316.0 million (2009) |
| £82.7 million (2007) | |
| £94.0 million (2007) | |
Number of employees | 2,000 (2013) |
UK Coal Production Ltd, previously known as UK Coal plc, was the leading coal mining enterprise in the United Kingdom, headquartered in Harworth, Nottinghamshire. It was listed on the FTSE 250 Index. The company’s former property division evolved into Harworth Group, which continues to trade on the London Stock Exchange.
History
Established in 1974 by Richard J. Budge under the name RJB Mining, the firm experienced substantial growth after acquiring key operations from the privatised British Coal in 1994. The business adopted the UK Coal name in 2001 following Budge’s retirement and the takeover of UK Coal plc.
Former operations
As of late 2008, UK Coal reported coal reserves and resources totaling approximately 105 million tonnes, with around 45 million tonnes planned for extraction within a five-year horizon. Its main clientele consisted of power generation companies.
In 2010, the company announced intentions to develop open-cast mining sites, including the Minorca mine project situated in Measham, Leicestershire; however, by the end of 2014, UK Coal had withdrawn from surface mining and these initiatives were discontinued.
In 2012, after admitting to health and safety violations linked to a fatality at Kellingley Colliery, UK Coal was fined £200,000. The Welbeck deep mine ceased operations in 2011 after nearly one hundred years of activity, while Daw Mill closed in 2013 following an underground fire incident.
On 10 April 2014, UK Coal received a £10 million loan from the British government aimed at facilitating the closure of its remaining deep mines. The plan involved managed shutdowns by autumn 2015 alongside efforts to find purchasers for its surface mining assets. The company faced significant difficulties due to increased coal supplies from U.S. shale gas production and a strong British pound.
Thoresby Colliery was shut down in July 2015, with Kellingley Colliery following on 18 December 2015; ownership of these sites transferred to Harworth Estates for redevelopment purposes.
Former opencast mining operations
UK Coal Surface Mines Limited (company number 08492512) owned three open-cast mines located in North East England—Butterwell and Potland Burn in Northumberland, and Park Wall North in County Durham. This entity entered administration on 14 November 2014. Subsequently, its business was acquired by UKCSMR Limited (company number 09275881).
Former renewable energy and gas operations
The company broadened its portfolio by investing in renewable energy projects, utilizing its extensive land holdings to establish wind farms and capitalize on incentives such as Renewables Obligation Certificates. Additionally, through its subsidiary Harworth Power, UK Coal engaged in electricity generation via mine gas recovery. Harworth Power was sold on 1 October 2012 to Red Rose Infrastructure Limited for £20.30 million. At that time, it operated fourteen gas engines with a combined capacity of 26 MW, supplying power both to UK Coal and the National Grid.
Restructuring
On 12 December 2012, UK Coal plc finalized a complex financial reorganisation and adopted the new name Coalfield Resources plc. The business was divided into two segments: mining, operated by UK Coal Mine Holdings Limited, and property management, conducted through Harworth Estates Property Group Limited.
Ownership of the mining segment transferred to an employee benefit trust (EBT), which initially controlled 67% of the voting shares and 10% of the economic interest on behalf of employees. Coalfield Resources maintained the remaining rights, subordinate to obligations owed to pension fund creditors. After a significant fire occurred on 9 July 2013, the largest mining site, Daw Mill, was shut down, prompting UK Coal Mine Holdings Ltd and UK Coal Operations Ltd to enter administration. The remaining mining activities were reorganised under UK Coal Production Ltd.
By the time the final two mines ceased operations in 2015, Harworth Group—formerly Coalfield Resources—no longer held any ownership stake in mining. At the outset in 2012, Harworth Group possessed a 24.9% share in Harworth Estates Property Group, while the EBT controlled 75.1%, following a £30 million capital injection aimed at supporting mining operations. In November 2014, Coalfield Resources reached an agreement with the Pension Protection Fund to reacquire the 75.1% stake it did not own and subsequently rebranded as Harworth Group plc; this transaction was completed on 24 March 2015.
Operations
Mining activities concluded with the closure of the last deep mine at Kellingley in December 2015. Surface mining sites were sold to UKCSMR Limited towards the end of 2014. Coal production experienced a substantial decline, falling from 37.1 million tonnes in 1995 to roughly 7 million tonnes by 2009.
Currently, only the former property division remains active as Harworth Estates, a fully owned subsidiary under the Harworth Group umbrella. As of late 2007, the land holdings managed by Harworth Estates were valued at around £411 million. The portfolio primarily includes business parks, industrial estates, agricultural land, and a smaller residential property segment associated with agricultural assets. Harworth Estates oversees and develops over of land.
Harworth Estates operates as a wholly owned entity within Harworth Group, which divested its mining interests prior to completing its restructuring in March 2015.