09 May 2006 UK Coal Threatens To Close Five Pits By Christopher Hope, Industry Editor

The much-hyped renaissance of the British coal industry could be about to come to a shuddering halt unless power companies pay more for their fuel, UK Coal has warned. Britain's biggest coal producer is threatening to close five of its seven pits and cut 1,500 jobs unless it can force through price rises with major customers like Eon, Drax and Electricite de France. Pits that could close in the "near future" are Thoresby, Welbeck and Kellingley, in addition to Harworth and Rossington, accounting for 233m tonnes of coal reserves, it warns in a submission to the Government's energy review. The Drax power station UK Coal says prices must rise to secure the future of coal on the doorstep of power stations such as Drax Despite the much-trumpeted return of coal - with prices doubling in the past two years - UK Coal has been unable to take advantage of these rises because it is locked into long-term contracts. Talks with customers have started, the outcome of which is vital to ensure the continued viability of the British coal industry. The firm says 300m tonnes of coal can be recovered from its remaining seven deep mines. However, unless it can find new financing, five will close, with the loss of 1,500 jobs. UK Coal complains that generators have adopted a policy of only buying indigenous coal if it is priced at or below the international price of coal - which it claims costs the industry £100m a year. Generators are typically willing to pay 40p a gigajoule (equal to £9.60 a tonne) more for foreign coal than they are paying for coal mined on the doorsteps of power stations that are burning it, it says. The submission, which will be published on the Department of Trade and Industry's website this week, adds: "UK Coal states that action must now be taken to preserve the security of deep-mined coal supply for the longer term by reviewing these pricing assumptions and adopting new contractual arrangements." UK Coal is understood to be pushing for 40pc rises in the price it can charge for its coal. One source said: "Someone must decide do they want these power sources on their doorstep for the next 20 years or do they want them to be closed in the next three to four years." Soaring gas prices have meant that the UK has become increasingly reliant on coal for its power - in recent months, 50pc of Britain's electricity generation has come from coal. The submission urges ministers to recognise that "public policy for security of energy supply and affordable electricity must take priority over the short-term commercial interests of individual generators". UK Coal's submission is one of several hundred to the energy review team at the DTI. Energy minister Malcolm Wicks will make his recommendation to Prime Minister Tony Blair by July. Drax said: "The company will continue to source its coal in the most commercially sensible way." A source added: "It is a marketplace and you can buy coal from wherever you want to." An Eon spokesman added: "We get our coal from a variety of sources when we take a look at our coal requirements."

From: Chris Sampson Sent: 22 January 2007 Subject: News Alert: UK Coal PLC - Daw Mill Production

Oh dear......hope this does not mean the end for another one? Chris RNS Number:8907P UK Coal PLC 22 January 2007 UK COAL PLC Daw Mill Production UK COAL PLC ("UK COAL" or the "Company") today announces that, as a result of the fatal accident last week at its Daw Mill mine, caused by a fall of ground, the Health and Safety Executive ("HSE") has issued an order which calls for a systematic review of ground control requirements in an area of the mine associated with the current production phase. At the present time, it is estimated this will mean production at Daw Mill will be restricted for some four weeks. No other operations will be affected. UK COAL adheres to the highest standards of safety and deeply regrets the fatal accident. The Company has offered its fullest sympathies to the family. The National Union of Mineworkers is extremely saddened at the loss of yet another miner's life at Daw Mill colliery in Warickshire and expresses its heartfelt sympathy with his relatives, friends and work colleagues. This is the third fatality at the colliery in 8 months which causes us great concern. The NUM is in the process of ascertaining the full circumstances of this tragedy and will make further comment when in a position to do so. 'NO SAFETY FLAW' AT FATALITY COAL MINE UK Coal yesterday insisted there was no fundamental flaw in safety procedures at Daw Mill Colliery, despite the mine suffering its third fatality in eight months on Wednesday night. The 42-year-old contractor, named as Anthony Carrigan, of Moorends, Doncaster, was killed when the side wall of the tunnel he was working in collapsed, crushing him under a fall of coal. The mine's owner, UK Coal, said Mr Carrigan was performing routine repair work on a roadway at the mine in Arley, Warwickshire, when the accident took place and that support systems to make the tunnel safe were in place. Stuart Oliver, a spokesman for the company, said: "This fatality is a tragedy for the family, the management and the men at the mine. "It is being fully investigated by the Health and Safety Executive and we will act on any recommendations that are made. "The mine is now open again, after the 24-hour stoppage that is traditional after a fatality. However, the roadway where the accident happened is closed while the investigation is carried out." Mr Carrigan is the third worker to be killed at Daw Mill in less than a year but Mr Oliver insisted the deaths did not indicate a problem with safety at the mine. He said: "There have been three separate and totally unrelated incidents, and there is no causal link connecting them. "After the two deaths in 2006 UK Coal commissioned an independent inquiry into safety practices and procedures within UK Coal and especially at Daw Mill. "It concluded ... that there was no fundamental flaw in the safety procedures at Daw Mill." 19 January 2007

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