News: Maltby to be mothballed by March
The board of Hargreaves Services plc, the UK's leading supplier of solid fuels, has confirmed that Maltby Colliery in Rotherham will be mothballed.
Maltby occupies a site of 500 acres and employs over 500 staff and contractors. It is the last coking coal mine left in the UK and produces both high quality coking coal and power station coal.
The owners proposed mothballing in November following geological reports that indicated that the risks associated with mining a new panel, called T125, had not significantly reduced and that the panel is not viable on health & safety, geological, and financial grounds.
On November 30, a working party comprised of employees, union representatives and external consultants presented alternative proposals to the board.
The company has now concluded that, as with its own previous findings, the plans presented by the working party do not provide it with a viable alternative solution.
Mothballing of the underground operations at the 100 year old mine begins this week and will continue through to the end of March 2013 at a cost to the company of approximately £12.3m.
The company stated that it "remains committed to exploring alternative employment opportunities for staff, both within the wider Hargreaves Group and externally. The Company is also working closely with external agencies to provide maximum opportunities for its committed and loyal workforce."
Staff were notified of potential redundancies in October as experts carried out a comprehensive review into the problems with mining a new panel.
If redundancy notices were served to all employees, the redundancy cost would be £7.3m. This includes £3.7m of enhanced redundancy payment. Although, not contractually obliged to honour the enhancement, Hargreaves added that it was the board's intention to pay it.
Going forward, Maltby will continue to trade. Tiny coal particles called "fines" will be harvested and processed and the team is also exploring the potential for electricity production using the mine's methane regeneration assets during the mothballing phase.
With plant and equipment worth £34m, Hargreaves expects to realise £14m in its sale.
The land at Maltby has a value to the group of £11m with costs of restoration provided in the amount of £6m. Input into Rotherham's Local Development Framework (LDF) from Hargreaves last year shows that they are hoping that consideration could be given to utilise the site as a major development in the green belt with possible scope for industrial and business uses, taking advantage of rail infrastructure.
In a report to the stock exchange, the board concluded that: "This has been a very challenging period for the group. The decision to recommend mothballing the mine at Maltby has been a difficult one but the board is confident it is the right decision given the health and safety, geological and financial risks."
Hargreaves Services website
Images: Hargreaves Services
Maltby occupies a site of 500 acres and employs over 500 staff and contractors. It is the last coking coal mine left in the UK and produces both high quality coking coal and power station coal.
The owners proposed mothballing in November following geological reports that indicated that the risks associated with mining a new panel, called T125, had not significantly reduced and that the panel is not viable on health & safety, geological, and financial grounds.
On November 30, a working party comprised of employees, union representatives and external consultants presented alternative proposals to the board.
The company has now concluded that, as with its own previous findings, the plans presented by the working party do not provide it with a viable alternative solution.
Mothballing of the underground operations at the 100 year old mine begins this week and will continue through to the end of March 2013 at a cost to the company of approximately £12.3m.
The company stated that it "remains committed to exploring alternative employment opportunities for staff, both within the wider Hargreaves Group and externally. The Company is also working closely with external agencies to provide maximum opportunities for its committed and loyal workforce."
Staff were notified of potential redundancies in October as experts carried out a comprehensive review into the problems with mining a new panel.
If redundancy notices were served to all employees, the redundancy cost would be £7.3m. This includes £3.7m of enhanced redundancy payment. Although, not contractually obliged to honour the enhancement, Hargreaves added that it was the board's intention to pay it.
Going forward, Maltby will continue to trade. Tiny coal particles called "fines" will be harvested and processed and the team is also exploring the potential for electricity production using the mine's methane regeneration assets during the mothballing phase.
With plant and equipment worth £34m, Hargreaves expects to realise £14m in its sale.
The land at Maltby has a value to the group of £11m with costs of restoration provided in the amount of £6m. Input into Rotherham's Local Development Framework (LDF) from Hargreaves last year shows that they are hoping that consideration could be given to utilise the site as a major development in the green belt with possible scope for industrial and business uses, taking advantage of rail infrastructure.
In a report to the stock exchange, the board concluded that: "This has been a very challenging period for the group. The decision to recommend mothballing the mine at Maltby has been a difficult one but the board is confident it is the right decision given the health and safety, geological and financial risks."
Hargreaves Services website
Images: Hargreaves Services
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