News: Hargreaves trading update

Hargreaves Services, the North East firm that owns and operates Maltby Colliery in Rotherham, has issued a trading update for the twelve months ended 31 May 2010.

Hargreaves announced that overall results are expected to be in line with management expectations but problems at Maltby has meant that the performance of the production division in the second half will be slightly behind management expectations.

The operators invested in high specification face equipment for Maltby last year but further teething problems meant that underground production was disappointing in the second half.

Maltby employs around 500 people and supplies coal to the Drax Power Station near Selby.

The update reported that surface coal production and shipments to Drax have progressed well but have only partially offset the lower underground production.

Full year production was 1,056,000 tonnes, slightly below the 1,075,000 guidance provided in December 2009. The next face change at Maltby is planned for July 2010 with development work and equipment installation proceeding on target.

Hargreaves also announced that merger discussions with UK Coal plc have ceased and no merger is currently being considered.

Hargreaves website

Images: hargreavesservices.co.uk