Losses grow at UK Coal

Britain's biggest coal miner, which is based in Doncaster, said the total first half pre-tax loss is expected to be about 94m, compared to 81.5m for the same period last year.

In a trading update for the six months to June 26, it also said the operating loss, including its share of the results of its joint ventures, is expected to be about 52m before revaluation movements and non-trading exceptional items, up from a 37.7m loss the same period last year.

The first quarter was hit by the delayed start to the new face at Daw Mill, along with lower performance from Kellingley and Thoresby, as they mined the last of the coal through poor geology in their old seams.

A new seam at Kellingley in Yorkshire was brought into production in March while the new seam at Thoresby in Nottinghamshire began in the first week of April. The firm said second quarter deep mine production rose sharply as Kellingley and Thoresby ramped up production on their new seams and Daw Mill fully was ramped up by the end of May.

"Over the last six weeks prior to this announcement, weekly production from the deep mines averaged 137,000 tonnes, in line with expectations."

Thoresby and Kellingley respectively increased production by 50 and 100 per cent during the first half of 2010, compared to their production in the first half of 2009.