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Released July 28, 2015 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The U.K. will see the end of 300 years of deep pit coal-mining operations by the end of the year.
Troubled company U.K. Coal (Doncaster, England), announced the closure of the Thoresby Colliery in Nottinghamshire this month, which will be followed by the closure of the Kellingley mine in north Yorkshire in mid-December. The closures, along with staff reduction efforts in the past year, will see the loss of about 1,300 jobs. The company blamed low international coal prices and geological issues at both sites.
Thoresby, which started life in 1925, was the first all-electric mine in the U.K. with fully mechanized coal production. At its height in the 1980s, it produced more than 2 million tonnes of coal. Kellingley began operations in 1965 and employs 700 people.
"This is a very sad day and clearly marks the end of an era," U.K. Coal said in a statement. "Mining at Thoresby dates back to 1925 and Kellingley started production in 1965. Together, they are the last remaining deep coal mines in the U.K. We would like to thank all of our colleagues who have worked so hard over the years to deliver millions of tonnes of coal to help power the U.K. We would also like to thank the government, our major stakeholders, our customers and suppliers for all their support during the phased closure process. We are working with government departments and agencies to find alternative work, or support, for employees who are not retiring as they leave the business."
Last month saw the unexpected closure of the Hatfield Colliery, 14 months earlier than scheduled. The employee-owned mine in South Yorkshire ceased operations at the end of June after failing to sell its coal, a situation it blamed on the government raising the carbon tax.
Mike Macdonald, a negotiator with the UK Energy workers' union, Prospect, declared: "Hatfield has been unable to sell its coal because of the government's refusal to sponsor coal contracts with generators and the doubling of the U.K.'s carbon tax. Despite the continued demand for coal in electricity generation, Hatfield will start to close this week, and the U.K. will have to rely on coal imports. Unlike other European countries that have a managed transition plan for closing their mines, the U.K. has decided to accelerate closures so all large deep mines will shut this year. The government has forced Hatfield to close--despite our members' hard work setting up the final coal face that would have extended coal production until August 2016."
The fate of the U.K.'s deep mining industry was sealed in April when the government refused to pay an extra $500 million to keep Thoresby and Kellingley open for a further three years.
Matthew Hancock, the then-minister of state for business and enterprise and energy, said: "We have concluded that committing public sector funding on the scale necessary to extend the company's closure plan by three years is not affordable and does not represent value for money to the taxpayer." For additional information, see April 1, 2015, article - Two U.K. Coal Mines to Close As Funding Refused.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
Troubled company U.K. Coal (Doncaster, England), announced the closure of the Thoresby Colliery in Nottinghamshire this month, which will be followed by the closure of the Kellingley mine in north Yorkshire in mid-December. The closures, along with staff reduction efforts in the past year, will see the loss of about 1,300 jobs. The company blamed low international coal prices and geological issues at both sites.
Thoresby, which started life in 1925, was the first all-electric mine in the U.K. with fully mechanized coal production. At its height in the 1980s, it produced more than 2 million tonnes of coal. Kellingley began operations in 1965 and employs 700 people.
"This is a very sad day and clearly marks the end of an era," U.K. Coal said in a statement. "Mining at Thoresby dates back to 1925 and Kellingley started production in 1965. Together, they are the last remaining deep coal mines in the U.K. We would like to thank all of our colleagues who have worked so hard over the years to deliver millions of tonnes of coal to help power the U.K. We would also like to thank the government, our major stakeholders, our customers and suppliers for all their support during the phased closure process. We are working with government departments and agencies to find alternative work, or support, for employees who are not retiring as they leave the business."
Last month saw the unexpected closure of the Hatfield Colliery, 14 months earlier than scheduled. The employee-owned mine in South Yorkshire ceased operations at the end of June after failing to sell its coal, a situation it blamed on the government raising the carbon tax.
Mike Macdonald, a negotiator with the UK Energy workers' union, Prospect, declared: "Hatfield has been unable to sell its coal because of the government's refusal to sponsor coal contracts with generators and the doubling of the U.K.'s carbon tax. Despite the continued demand for coal in electricity generation, Hatfield will start to close this week, and the U.K. will have to rely on coal imports. Unlike other European countries that have a managed transition plan for closing their mines, the U.K. has decided to accelerate closures so all large deep mines will shut this year. The government has forced Hatfield to close--despite our members' hard work setting up the final coal face that would have extended coal production until August 2016."
The fate of the U.K.'s deep mining industry was sealed in April when the government refused to pay an extra $500 million to keep Thoresby and Kellingley open for a further three years.
Matthew Hancock, the then-minister of state for business and enterprise and energy, said: "We have concluded that committing public sector funding on the scale necessary to extend the company's closure plan by three years is not affordable and does not represent value for money to the taxpayer." For additional information, see April 1, 2015, article - Two U.K. Coal Mines to Close As Funding Refused.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
