UK Coal confirms production target as loss widens

THE country's biggest coal miner UK Coal re-affirmed its full-year production guidance after its first half pretax loss widened.

By The Newsroom

Published 25th Aug 2010, 10:04 BST

Updated 25th Aug 2010, 10:08 BST

UK Coal, which held merger talks with Hargreaves Services in June before Hargreaves, the owner of Maltby colliery near Rotherham, walked away, said production in the second quarter rose sharply and is now living up to its expectations, following a substantial drop in production in the first quarter.

The Doncaster-based company, which restructured its board earlier this month in a move which will see its current chairman and chief executive depart, confirmed its guidance for full year production of 7.6m tonnes, nearly three times as much as the half year total.

UK Coal made a pretax loss of 93.2m in the half year to June 26, compared with an 81.5m loss the year before.

UK Coal has appointed two separate managing directors to run its coal and property operations and is looking for an executive chairman to whom each MD will report.

Shares in the company closed yesterday at 38 pence, valuing the business at 120m.