New boss aims to dig UK Coal out from £265m debt

The Doncaster-based group, labouring under a heavy debt burden, has called on the services of former Anglian Water chief executive Jonson Cox to lead its recovery.

Its debt had grown to 265m by the end of September.

Shares in the UK's biggest domestic coal miner yesterday climbed seven per cent to 38.25p.

It is understood Mr Cox spent yesterday meeting major shareholders, many of whom have

seen their stakes significantly eroded in value by UK Coal's mining woes.

Mr Cox said in a statement: "I look forward to joining UK Coal and to working with its management, its board and its stakeholders.

"Our focus will be on supporting the drive for performance of the deep mining business, seeking value over the medium term from the property portfolio and progressively working towards reducing the level of debt.

"I would like to thank the outgoing chairman for his diligence and perseverance on behalf of the company's shareholders."

Mr Cox, 54, replaces chief executive Jon Lloyd and chairman David Jones.

Mr Lloyd, a property man by training, is thought to have paid the price for a costly and delayed face change at the Daw Mill deep mine, which drove UK Coal to a 93m first half loss.

Two divisional managing directors will report to Mr Cox and sit on the board.

Former Anglo American executive Gareth Williams heads its mining arm and Owen Michaelson, Peel Holdings' former representative on UK Coal's board, leads its property division. Peel is UK Coal's largest shareholder.

Mr Cox was chief executive of Anglian Water Group from January 2004 until March 2010, leading the recovery of the group and its subsidiaries Anglian Water, Morrison and AWG Property.

Under his leadership, AWG became "highly-regarded", said UK Coal, reflected in a three-fold increase in its share price while a listed company.

Anglian Water also ranked as one of the top performing companies in regulator Ofwat's performance assessments for the last three years.

Peter Hazell, UK Coal's senior independent director, said: "We welcome Jonson to UK Coal. On behalf of all the board, I would like to thank Jon for his commitment and contribution, particularly in setting-up our property business, and David most warmly for his very considerable role over many years."

UK Coal has deep mines at Daw Mill in the West Midlands, Thoresby in Nottinghamshire and Kellingley, near Knottingley, in West Yorkshire. With its mines now operating "more consistently" and property sales in the pipeline, it is "cautiously optimistic" for the rest of this year and next.