UK Coal officials say their business remains viable, despite an admission that the Daw Mill fire was heavily impacted by cash flow problems. The 650 staff at the Warwickshire colliery will be laid off by the end of Q2 2013, according to the company, but the union maintains they could still lose their benefits should the company seek insolvency protection.
UK Coal officials, however, said all options are being considered in a restructuring strategy, according to CEO Kevin McCullough. “Daw Mill represented a significant part of the business and discussions have been under way for the rest of the business,” said McCullough. “Remaining deep mines in Kellingley in North Yorkshire, Thoresby in Nottinghamshire along with six surface mines, remain viable.”
UDM union reps were less optimistic. “Our members are very concerned,” said Jeff Wood.
Through much of 2012, UK Coal announced restructuring after the Daw Mill episode, but by Q2 said the project would “unlikely” remain open beyond 2014. Last year, meanwhile, UK Coal reported overall losses of more than $32 million between Q1 and Q3 2012, with Daw Mill contributing to a 20% production drop.
