UK Coal sells methane business
A business which utilises methane from four of the UK's last remaining coal mines to generate energy has been sold in a £20 million deal.UK Coal, which operates three deep mines and six surface mines, plans to sell Harworth Power, which uses gas trapped in the coal to power excavations or for sale to the National Grid.
The sale to a clean energy investment firm managed by Capital Dynamics covers 14 gas engines at UK Coal's Kellingley, Thoresby, Harworth and Stillingfleet mines.
The deal was announced at the company's annual meeting where it reported progress in discussions about plans to turn around the debt-laden business by splitting its coal mining and property arms.
UK Coal, which employs 2,500 staff, had hoped to agree the restructuring by Friday's meeting but it said discussions were still ongoing about how to deal with its £875 million pension liability.
The money from the sale of Harworth will be used to pay down some of the company's net debt, which stood at £139 million at the end of 2011.
The South Yorkshire-based group made its first annual profit in four years earlier this year.
But it is still considering closing its Daw Mill mine near Coventry, which employs 800 staff, by early 2014 when current coal panels will have been exhausted.
Over 90% of UK Coal's output is sold to generate about 5% of Britain's electricity.
The money from the sale of Harworth will be used to pay down some of the company's net debt, which stood at £139 million at the end of 2011.
The South Yorkshire-based group made its first annual profit in four years earlier this year.
But it is still considering closing its Daw Mill mine near Coventry, which employs 800 staff, by early 2014 when current coal panels will have been exhausted.
Over 90% of UK Coal's output is sold to generate about 5% of Britain's electricity.
© 2013 Press Association