UK Coal
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| UK Coal | |
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| Type | Public limited company |
|---|---|
| Founded | 1974 |
| Headquarters | England |
| Key people | Garold Spindler, CEO & David Jones, Chairman |
| Industry | Coal mining, Renewable energy, & Real estate |
| Revenue | £341.2 million GBP (2005) |
| Website | www.ukcoal.com |
UK Coal plc (LSE: UKC) is the largest coal mining company in Britain. The Company operates 5 deep coal mines in the North of England and Midlands, as well as one surface mine. Until 2001 UK Coal was known as RJB Mining, but chose to rebrand after the departure of founder Richard J Budge.
[edit] Coal mining
UK Coal employs 4,000 people in the United Kingdom. In 2005 the Company extracted 10 million tonnes of coal, both from deep and surface operations. Coal extraction has been reduced over the past decade from 37.1 million tonnes in 1995 to 10 million tonnes in 2005. There has also been a dramatic shift away from surface mining, which produced 7.1 million tonnes in 1995 to only 1 million tonnes in 2005. However, the Company has three planned new surface mines in planning/application, compared with no new collieries planned.
UK Coal's production provides approximately 7% of the United Kingdom's electricity.
Due to price increases in coal over the past few years (along with other forms of energy) the economic viability of British mined coal has increased. However, the Company has not announced any major expansion plans, possibly due to planning restrictions and application costs.
[edit] Renewable Energy
UK Coal has moved into renewable energy in recent years. The Company, through its Harworth Power subsidiary, engages in mine gas-recovery, which is used to generate electricity and also gains carbon credits through the UK Emission Trading Scheme. The Company has also expanded into windfarms, which is helped by a large landbank and the desire to diversify into energy activities beyond coal. Wind power offers financial incentives such as Renewables Obligation Certificates.
[edit] Property Assets
At the end of 2005 UK Coal's landbank was estimated to be worth £274m and is handled through its Harworth Estates subsidiary. The Company's estate assets are primarily in business parks, industrial sites, and agriculture, with limited exposure to residential property (residential assets being associated with agricultural properties). The Company manages approximately 250 properties.
