Receive our newsletter – data, insights and analysis delivered to you
  1. Market Data
July 12, 2015

UK Coal halts coal mining at Thoresby Colliery

UK Coal has halted coal mining at Thoresby Colliery in Nottingham and plans to end production at Kellingley mine, North Yorkshire, in December.

Thoresby Colliery

UK Coal has halted coal mining at Thoresby Colliery in Nottingham and plans to end production at Kellingley mine, North Yorkshire, in December.

Societe Generale analyst Paolo Coghe told Bloomberg: "The UK coal industry has been in structural decline for 40 years.

"It’s no longer positioned to withstand an extended period of low prices such as the one we are experiencing now."

Following the halt of production at Thoresby mine, 360 employees at the mine were made redundant.

"The UK coal industry is no longer positioned to withstand an extended period of low prices such as the one we are experiencing now."

The Thoresby mine opened in 1925 and is situated off the A6075, north of the River Maun.

The company said in a statement that the mine closure comes after a long period of difficult trading conditions, primarily due to low international coal prices as well as geological issues at both mines.

Following the closure of Kellingley colliery in North Yorkshire, 200 employees are expected to lose their jobs, while another 500 staff will remain at the site until closure, UK Coal said.

The UK Government, coal producer Hargreaves Services and Harworth Estates offered around £20m of combined loan to UK Coal, which was placed into administration in 2013.

Reuters reported that the grant helped the company to close its operations in a balanced way over 18 months.


Image: Thoresby Colliery in February 2007. Photo: courtesy of Martin Loader.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The mining industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU