Tuesday, December 10, 2013

News: Hargreaves terminates Hatfield Colliery contract following sale

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Hargreaves Services plc, the owner of Maltby Colliery in Rotherham, has seen the business and assets of Hatfield Colliery Limited acquired by a new Trust.

In a statement to the stock exchange, Hargreaves said that Hatfield Colliery Partnership Limited, a company ultimately owned and controlled by an Employee Benefit Trust, had acquired the ultimate equity ownership of the mine transfer from ING Bank and that the Trust is run for the benefit of the employees.

Hargreaves mothballed Maltby earlier this year and without capital intensive underground workings Maltby provided management services and support to Hatfield Colliery in Doncaster.

The statement added that although Hargreaves will continue to provide whatever support and assistance it can to the new company, the mine management contract has been terminated by Hargreaves and no new contract will be put in place.

It said: "Any future services, equipment or consumables provided by Hargreaves will be carried out on an arm's length commercial basis. Hargreaves has already taken steps to reduce its cost base or re-deploy resources accordingly. The impact of terminating the management contract on the current and future financial years is not likely to be material."

Hargreaves has also granted a short term option to the partnership to acquire an extra set of face equipment from Maltby.

Gordon Banham, CEO of Hargreaves, said: "It has been a very challenging period for Hatfield with the combination of the landslip and recent geological problems. Hatfield remains a major employer in the Doncaster area with over 400 direct employees.

"Significant efforts and progress have been made by all the stakeholders and employees at Hatfield to improve the efficiency of the operation. I would also like to acknowledge and applaud the role that ING Bank have played during the past two years. ING have remained supportive and their professionalism has been key in enabling this highly complex restructure to take place.

"Hargreaves understands the challenges of operating a deep mine and, whilst focussing on our successful surface mining assets, we will continue to assist the operation in any way we can."

Hargreaves secured the management contract for Hatfield in 2011 after the mine was acquired by ING when the previous operators, Powerfuel Mining Ltd, went into administration.

Hargreaves Services website

Images: Hargreaves Services

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