Trading conditions have been difficult due to a continuously strong pound and very low international coal prices:
- Although our customers are only a few miles from our sites, we have to trade in dollars on the international market as most of the coal used in the UK is imported
- The international coal price remains very low. This is good news for all energy bill payers but very difficult for coal producers in the UK.
A wide range of interested parties are involved. Once negotiations have been completed, the secured investment will fund a managed run down of Kellingley Colliery in Yorkshire and Thoresby Colliery in Nottinghamshire over an eighteen month period.
Formal consultation with the trade unions has now begun and is expected to last for at least 45 days.
As negotiations are in the final stages, there is little to add from a UK Coal perspective and a further update will be provided once negotiations have been completed.