800 jobs on the line as Daw Mill faces closure

Britain's largest coal mine faces closure, putting 800 jobs at risk, if its owner, UK Coal, cannot reach a deal with unions on pay and working practices.

The group has begun consultations over a proposal to close Daw Mill in Arley, near Coventry, in early 2014 when current coal panels will be exhausted. The last remaining mine in the Warwickshire coalfields, an area that once had 20 deep mines, Daw Mill has been dogged by productivity problems, including a four-month gap in production which cost it £75m two years ago. Just three months ago, UK Coal agreed a deal with unions which included a two-year pay freeze and a new shift system, and the closure of its final-salary pension scheme, in a bid to keep the mine operating.