UK Coal eyes cash rescue and deep job cuts

3rd Apr 2014 07:43

UK Coal, the country's largest remaining coal producer, is seeking a cash injection as it plans to close mines and cut jobs. The company, which provides 4% of the UK's electricity needs, has sought talks with the government and City firms to secure an emergency cash injection of between £10m and £20m, its second rescue in less than a year.UK Coal said: "We have started today consultations with the unions on looking at the way forward - that is, looking at reducing numbers in the coming months."Mining group Hargreaves Services has been named as a possible investor to rescue the business, according to the Press Association, backed by money from the State purse.After a fire that closed its Daw Mill pit in Warwickshire a year ago, the firm went into administration in July 2013 resulting in 350 job losses.But it was saved in a restructuring that saw it taken over with the backing of the UK pension rescue scheme, the Pension Protection Fund (PPF).Previous majority owner Coalfield Resources retained only a small minority stake after the restructuring. OH