10/04/2014

1,300 Jobs Threatened At Pit Closure

Two deep mines in North Yorkshire and Nottinghamshire are set to close next year.

Some 1,300 jobs are now under threat as a result of the announcement.

UK Coal plans to close the pits at Kellingley, North Yorkshire, and Thoresby, Nottinghamshire, and it is understood the government is to loan UK Coal £10m for "managed closure".

Business Minister Michael Fallon is quoted as saying the taxpayer will face "significant losses and liabilities" in the wake of the immediate insolvency.

He added that the directors of UK Coal had approached the government at the end of January to report that "the viability of the business was potentially in doubt".

It is thought a falling coal price and exchange rates are to blame as well as additional factors.

The private sector investment is said to be coming from rival mining group Hargreaves Services and Harworth Estates, landlord of the two mines.

The National Union of Mineworkers (NUM) have said the announcement of job losses and closures is "a kick in the teeth".

(CVS/JP)

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