Bonuses slashed after workers' deaths

THE bosses of Britain's biggest coal miner saw their salaries frozen and bonuses slashed following the death of two workers, one based at Kellingley, Yorkshire, last year.

Doncaster-based UK Coal said chief executive Jon Lloyd will continue to receive 375,000 in pay, while finance director David Brocksom is to get 234,675 after separate accidents in two of the firm's deep mines in 2009.

The pair's bonuses were also cut, reflecting missed targets on safety, cash flow, profit and group coal sales.

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Consequently Mr Lloyd and Mr Brocksom's reward payments were reduced by 20% and 14% respectively to 36,000 and 21,120.

UK Coal also posted a pre-tax loss of 129.1 million for the year to December 2009, compared with a 15.6 million deficit in 2008.

Chairman David Jones said the year had been "extremely challenging" for the group as financial results were "substantially affected by geological issues" in each of its deep mines.

The company has deep mines at Daw Mill in the West Midlands, Kellingley in Yorkshire and Thoresby and Welbeck in Nottinghamshire, although the Welbeck mine is earmarked for closure.

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The mining division of the business slipped from a combined operating loss of 2.4 million in 2008 to a deficit of 68.6 million last year.

In July a worker at the Thoresby site died when a stack of pipes being unloaded underground slipped from the transport vehicle.

This accident was followed by a fatality at the Kellingley mine, resulting in the Health and Safety Executive (HSE) banning the firm from continuing to operate on the affected face until it had replaced components in its roof supports.