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Judge tells British Coal it can close 10 pits: Legal tussle between company and miners has cost pounds 150m. Mary Fagan reports

Mary Fagan
Wednesday 26 May 1993 23:02 BST
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BRITISH COAL has won approval in the High Court for the closure of the 10 most threatened mines after a lengthy legal tussle with miners' unions. None of the pits is still producing coal and it is believed that the total cost of keeping them open since the closures were announced in October could be around pounds 150m.

Some of the pits could be offered within days for sale or lease to the private sector. Companies and individuals have expressed interest in mines, including Betws in Dyfed and Markham Main in Yorkshire, but it is unclear how many could be saved.

In December, Lord Justice Glidewell said BC had failed to consult fully with the unions and ruled that the decision to close the mines was unlawful. Yesterday he said the company had now consulted fully and he believed the decision to close the pits was based on 'reasonable' criteria.

The National Union of Mineworkers has been at loggerheads with BC since the hearing over the consultation procedure. The NUM has refused to accept as independent the consultants appointed by the company to report on the mines' viability.

Yesterday, Lord Glidewell said that unions had either completely failed to understand critical passages of his judgment in December or they had been trying to drag out proceedings for as long as possible. 'I believe that continued uncertainty over the future of the pits is not good for miners, for British Coal or indeed for the country as a whole,' he said.

BC estimates that the cost of maintaining the mines has been pounds 13m a month since production stopped - a possible total of pounds 100m. Mark Stephens, the NUM's lawyer, said that wages, legal fees and enhanced redundancy payments paid to some miners brings the bill for BC to pounds 156m.

Mr Stephens said: 'It is an appalling state of affairs that because British Coal broke the law seven months ago, the pits have had to be kept open in an unproductive manner at such cost. What we want to know now is who it was who made the decision to break the law and so cost the British taxpayer pounds 156m.'

A spokesman for BC welcomed the court's decision, adding:'The fabric of the mines will be preserved while we assess the prospects for disposal to the private sector.'

The company promised to try to sell or lease doomed mines after the Government's recent White Paper on the prospects for the industry and the review of a further 21 pits earmarked for closure. In addition to the 10 most threatened mines, another 10 are expected to be put up for sale shortly.

Companies interested in taking over pits include Ryan and R J Budge. Malcolm Edwards, British Coal's former commercial director, has proposed taking over four mines. All say that the mines can be run profitably and that BC is wrong in saying that there is no market for the coal.

Since October, BC has already shed around 16,000 mineworkers. Although the Government's White Paper resulted in a 'reprieve' for 12 mines, their future depends on persuading the electricity industry to buy extra coal. The generators, National Power and PowerGen, already have five-year contracts with BC, and have more than 30 million tons of coal stockpiled.

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