Jump to content

UK Coal

From Alfawiki
UK Coal Production Ltd
Company typePrivate
IndustryCoal mining, Renewable energy and Real estate
Founded1974
Defunct18 December 2015 (2015-12-18)
HeadquartersHarworth, 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)[1]

UK Coal Production Ltd, previously known as UK Coal plc, stood as the foremost coal mining enterprise within the United Kingdom. Headquartered in Harworth, Nottinghamshire, it was listed among the companies comprising the FTSE 250 Index. Its successor entity, which includes the former property division now named Harworth Group, continues to be publicly traded on the London Stock Exchange.

History

The company originated in 1974 under the name RJB Mining, founded by Richard J. Budge. It experienced considerable growth after acquiring key operations from the privatised British Coal in 1994.[2] Following Budge’s retirement and his purchase of UK Coal plc, the firm adopted the name UK Coal in 2001.[3]

Former operations

At the close of 2008, UK Coal declared coal reserves and resources totaling 105 million tonnes, with approximately 45 million tonnes available under current five-year extraction and investment strategies.[4] The company primarily supplied coal to electricity producers.[5]

In 2010, UK Coal announced plans for several open-cast mining projects, including the Minorca mine project located in Measham, Leicestershire.[6] Nevertheless, by late 2014, the company withdrew from surface mining activities,[7] thereby discontinuing these initiatives.

In 2012, UK Coal was penalised £200,000 after admitting liability for health and safety breaches following a fatal accident involving a miner at Kellingley Colliery.[8] The Welbeck colliery in Nottinghamshire ceased operations in 2011 after nearly one hundred years of activity,[9] while Daw Mill colliery in Warwickshire closed in 2013 due to fire damage.

On April 10, 2014, the UK government agreed to extend a £10 million loan to assist UK Coal with shutting down its two remaining deep mines. The company aimed for an orderly closure by autumn 2015 and sought purchasers for its surface mining assets. Factors complicating operations included rising imports of American coal linked to shale gas development and a robust pound sterling.[10]

Thoresby Colliery terminated operations in July 2015, followed by the closure of Kellingley Colliery on December 18, 2015,[11] with ownership transferring to Harworth Estates for redevelopment purposes.[12]

Previous Surface Mining Activities

UK Coal Surface Mines Limited (company number 08492512) operated three open-pit mines located in North East England: Butterwell and Potland Burn in Northumberland, along with Park Wall North in County Durham. This company entered administration on 14 November 2014. Subsequently, its operations were acquired by UKCSMR Limited (company number 09275881).

Past Renewable Energy and Gas Ventures

Expanding beyond coal mining, the company capitalized on its substantial land holdings to develop wind energy projects, taking advantage of government-backed incentives such as Renewables Obligation Certificates. Additionally, through its subsidiary Harworth Power, UK Coal engaged in electricity generation by capturing and utilizing mine gas.

On 1 October 2012, Harworth Power was sold to Red Rose Infrastructure Limited for £20.30 million. At the time of sale, it operated 14 gas-powered engines with a total output capacity of 26 MW, supplying power both to UK Coal and the National Grid.

Corporate Restructuring

On 12 December 2012, UK Coal plc underwent a detailed financial restructuring process to stabilize its operations and rebranded as Coalfield Resources plc. The company divided its activities into two separate entities: mining operations were managed by UK Coal Mine Holdings Limited, while property development was handled by Harworth Estates Property Group Limited.

Ownership of the mining business transferred to an employee benefit trust (EBT), which initially held 67% of voting rights but only 10% of the economic interests in UK Coal Mine Holdings, benefiting employees. Coalfield Resources retained the remaining economic and voting rights, subordinated to outstanding pension liabilities.

Following a significant fire on 9 July 2013 at Daw Mill—the company’s largest mining site—the mine was permanently closed. This event led UK Coal Mine Holdings Ltd and UK Coal Operations Ltd into administration. The remaining mining activities were reorganized under a new company named UK Coal Production Ltd.

By the time the final two mines ceased operations in 2015, Harworth Group—the successor to Coalfield Resources—no longer held any equity stakes in mining. Initially, in 2012, Harworth Group owned 24.9% of Harworth Estates Property Group, with the EBT controlling the remaining 75.1%, which was exchanged for a £30 million capital injection supporting mining activities. In November 2014, Coalfield Resources reached an agreement with the Pension Protection Fund to repurchase the 75.1% stake it did not own and subsequently rebranded as Harworth Group plc; this transaction was finalized on 24 March 2015.

Operations

The company ended its mining activities following the closure of its last deep mine at Kellingley in December 2015. Surface mining sites were sold to UKCSMR Limited towards the end of 2014. Coal output experienced a steep decline from 37.1 million tonnes in 1995 to approximately 7 million tonnes by 2009.

Currently, only the former property segment continues under the name Harworth Estates, which is now fully owned by Harworth Group. At the close of 2007, Harworth Estates’ land portfolio was valued at around £411 million. Their holdings include business parks, industrial properties, agricultural land, and some residential assets associated with farming areas. Harworth Estates oversees and develops over of land.

Prior to the restructuring completed in March 2015, Harworth Group divested all its mining equity interests.

See also

External links

  1. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  2. ↑ UK Coal: History
  3. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  4. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  5. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  6. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  7. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named thejournal.co.uk
  8. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  9. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  10. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  11. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named scotsman.com
  12. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
Retrieved from "https://www.alfawiki.org/index.php?title=UK_Coal&oldid=90417"