News: Maltby mothballing progressing to plan
The mothballing of Maltby Colliery in Rotherham is expected be completed by the end of March, the board of site-owners, Hargreaves Services plc, has confirmed.
Maltby occupies a site of 500 acres and employed over 500 staff and contractors. It is the last coking coal mine left in the UK and produced both high quality coking coal and power station coal.
The owners confirmed the mothballing in December following no viable alternative solution being found to 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.
In its latest trading results, Hargreaves stated that "the mothballing process is progressing well and the forecast closure costs are in line with plan. It is still anticipated that the substantial elements of the mothballing process, including recovery of equipment, can be completed by the end of March 2013."
The post tax forecast loss from Maltby closing in Hargreaves' full year report is anticipated to be approximately £58m including redundancy, closure costs and non-cash write-offs relating to plant and equipment, development costs and other related assets.
Hargreaves estimated last year that the redundancy cost would be £7.3m, including £3.7m of enhanced redundancy payments.
"The loss of jobs at Maltby is very regrettable." the report said. "The group, management and unions have worked together closely to minimise the inevitable socio-economic impacts. In this regard great efforts continue to be made to find alternative jobs for as many of the workforce as possible."
Maltby workers have been encouraged to apply for positions at Hatfield Colliery near Doncaster, which Hargreaves manages on behalf of the mine owners. An additional shift was recently introduced at Hatfield in a bid to maximise production – something that had also been introduced previously at Maltby with great success.
Skilled workers are also needed to fill vacancies in the newly-created contracting arm, Hargreaves Technical Resources, and Hargreaves' HR team are also helping Maltby colleagues apply for and fill vacancies across the wider Hargreaves group.
The company is also working closely with teams from Jobcentre Plus, the National Careers Service & Barnsley College to offer a range of practical advice and support; this covers access to benefits, careers advice, training, self-employment, and further education.
The cost of the mothballing is expected to be £12.3m but Hargreaves stated that "discussions regarding the sale of plant and equipment are progressing well with a number of parties" and hope to realise £14m.
Without underground workings, Maltby will continue to trade with tiny coal particles called "fines" harvested and processed. The provision of mining management services to Hatfield Colliery Limited will also continue and Hargreaves expect that these activities will continue to provide a modest profit stream.
Losses of £9.8m due to the Maltby closure and a £18.8m exceptional charge relating to fraud in Belgium, led to a pre-tax loss of £9.1m for Hargreaves in the six months to November 30. However, revenues, underlying operating profit and dividends were all up.
Tim Ross, chairman of Hargreaves Services, said it has been a "challenging period" for the group but that "the underlying performance of the business in the first half was good and the prospects for the second half are also encouraging."
Hargreaves Services website
Images: Hargreaves Services
Maltby occupies a site of 500 acres and employed over 500 staff and contractors. It is the last coking coal mine left in the UK and produced both high quality coking coal and power station coal.
The owners confirmed the mothballing in December following no viable alternative solution being found to 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.
In its latest trading results, Hargreaves stated that "the mothballing process is progressing well and the forecast closure costs are in line with plan. It is still anticipated that the substantial elements of the mothballing process, including recovery of equipment, can be completed by the end of March 2013."
The post tax forecast loss from Maltby closing in Hargreaves' full year report is anticipated to be approximately £58m including redundancy, closure costs and non-cash write-offs relating to plant and equipment, development costs and other related assets.
Hargreaves estimated last year that the redundancy cost would be £7.3m, including £3.7m of enhanced redundancy payments.
"The loss of jobs at Maltby is very regrettable." the report said. "The group, management and unions have worked together closely to minimise the inevitable socio-economic impacts. In this regard great efforts continue to be made to find alternative jobs for as many of the workforce as possible."
Maltby workers have been encouraged to apply for positions at Hatfield Colliery near Doncaster, which Hargreaves manages on behalf of the mine owners. An additional shift was recently introduced at Hatfield in a bid to maximise production – something that had also been introduced previously at Maltby with great success.
Skilled workers are also needed to fill vacancies in the newly-created contracting arm, Hargreaves Technical Resources, and Hargreaves' HR team are also helping Maltby colleagues apply for and fill vacancies across the wider Hargreaves group.
The company is also working closely with teams from Jobcentre Plus, the National Careers Service & Barnsley College to offer a range of practical advice and support; this covers access to benefits, careers advice, training, self-employment, and further education.
The cost of the mothballing is expected to be £12.3m but Hargreaves stated that "discussions regarding the sale of plant and equipment are progressing well with a number of parties" and hope to realise £14m.
Without underground workings, Maltby will continue to trade with tiny coal particles called "fines" harvested and processed. The provision of mining management services to Hatfield Colliery Limited will also continue and Hargreaves expect that these activities will continue to provide a modest profit stream.
Losses of £9.8m due to the Maltby closure and a £18.8m exceptional charge relating to fraud in Belgium, led to a pre-tax loss of £9.1m for Hargreaves in the six months to November 30. However, revenues, underlying operating profit and dividends were all up.
Tim Ross, chairman of Hargreaves Services, said it has been a "challenging period" for the group but that "the underlying performance of the business in the first half was good and the prospects for the second half are also encouraging."
Hargreaves Services website
Images: Hargreaves Services
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