UK Coal starts closure with CEO loss
Friday 30 May 2014
UK Coal, Britain’s largest coal producer, has started the gradual closure of its loss-making business by parting ways with its chief executive officer.
Kevin McCullough, brought in to help restructure the firm in early 2013, resigned last week. “There will be various changes at all levels in the company and it is right that those changes should start at the top,” a spokesman for UK Coal said.
Representation on a new board has not been finalised but it is envisaged that it will include its investors as well as existing UK Coal employees and will be announced following completion of the deal, the spokesman said.
The company was placed into administration last year after it struggled to contain rising costs, pay hefty pension liabilities and compete with cheaper imports from countries like Columbia and Russia.
Since then, the business has fallen deeper into financial trouble as competition intensified from cheap coal displaced by the US shale gas boom.
To help the business, whose two deep coal mines employ around 1,300 people, wind down its operations in a controlled way over 18 months, the Government, coal producer Hargreaves Services and Harworth Estates are set to give UK Coal a combined loan of about £20m.
UK Coal said on Friday it will next week begin individual redundancy consultations with nearly 300 employees at its deep mines in Thoresby in Nottinghamshire and Kellingley in Yorkshire and at its head office in Harworth near Sheffield.
Last year, UK coal production fell to its lowest in at least 15 years at 12.8 million tonnes, less than a third of what was still being produced in the late 1990s.
- 2 Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
- 3 Gamers confess the worst things they've done in The Sims
- 4 6-year-old writes ice cold Valentine's card to his stepmother
- 5 Syrian child photographed 'surrendering to camera because she thought it was a gun'
Rape threats, death threats and a police investigation after video poking fun at an Islamic Party in Malaysia goes viral
Why Robin Williams safeguarded himself against a morbid trend in advertising
Ohio Democrat Teresa Fedor speaks out during abortion debate to reveal she has been raped – and is interrupted by laughter from Republicans
Jeremy Clarkson to become 'special adviser on transport' to David Cameron
Exploding head syndrome: One-fifth of US college students suffer from ailment, study finds
Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
Revealed: Putin's army of pro-Kremlin bloggers
Katie Hopkins reported to the police for race hatred by Labour MP Simon Danczuk after tweet about Pakistani men
iJobs Money & Business
£20000 per annum + commission: SThree: Sthree have an exciting opportunity for...
£18000 - £32000 per annum: Recruitment Genius: A Telesales Executive is requir...
£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...