Hargreaves in line to reopen pit

The owner of Yorkshire’s Maltby colliery, which also operates Hatfield mine near Doncaster, said its plans to mine about 7m tonnes of coal from an opencast pit at Tower Colliery were granted planning permission by Rhondda Cynon Taf Borough Council.

Although subject to conditions, including agreeing a Section 106 agreement, Hargreaves said it expects production to start shortly after these are satisfied.

“Despite the delays in obtaining planning, the existing infrastructure on the site should allow for a rapid commencement of operations,” said Hargreaves.

Analysts said a finalising a Section 106 agreement – where a developer agrees to enhance a community to mitigate the impact of a development – could take up to a month.

Hargreaves added it has started talks with the site’s owners to take over operation of the site. It said if agreed, this would be on a cost-plus arrangement said.

Hargreaves will receive a 35 per cent share of any profits from the mine.

Together with Doncaster’s UK Coal, Hargreaves is one of the country’s few remaining domestic coal miners.

Shares in the group rose 35p to close at 1040p while investors wait ed for confirmation of the Section 106 agreement.

Analysts at Altium Securities believe about a million tonnes of coal a year could be produced once the mine is in full production.

“Whilst we acknowledge the risks, this is clearly good news for Hargreaves.”