UK Coal
Encyclopedia
UK Coal plc is the largest coal
mining business in the United Kingdom. The Company is based in Harworth
, in Nottinghamshire
. It is listed on the London Stock Exchange
and is a former constituent of the FTSE 250 Index
.
in 1974 as RJB Mining. In 1994, following the privatisation of the UK mining industry, it grew fivefold with the acquisition of British Coal
's core activities. It changed its name to UK Coal in 2001 after the retirement of its founder.
in the UK. It produces about half of all domestic coal or around 6% of the domestic energy need for power generation. The Company operates four deep mines located in Central and Northern England, at Daw Mill
, Kellingley
, Thoresby and Welbeck The company has three surface mines too. Coal extraction has been reduced over the past decade from 37.1 million tonnes in 1995 to around 7 million tonnes in 2009.
At year end 2008, the company estimated coal reserves and resources of some 105 million tonnes at the mines, of which 45 million tonnes is accessible under existing five year mining and investment plans. Production of the other 60 million tonnes will require further development investments and other costs..
The company has commitments to deliver coal to customers. Its most important customers are electricity generators. These contracts may have a duration of many years. In these contracts both volumes and prices of the coal are agreed. The prices agreed are a mix of market prices, market prices with agreed minimum and maximum prices in order to protect both customer and UK Coal, fixed price contracts with inflation indexation and finally fixed price contracts.
Due to price increases in imported coal over the past few years (along with other forms of energy) the economic viability of British mined coal has increased. This has led to the company proposing a series of mainly opencast mining developments, including the Minorca development in Measham
, Leicestershire
.
s, 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
.
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
mining business in the United Kingdom. The Company is based in Harworth
Harworth
Harworth is a small town in the county of Nottinghamshire, in the Midlands of England in Bassetlaw district. It is approximately eight miles north of Worksop...
, in Nottinghamshire
Nottinghamshire
Nottinghamshire is a county in the East Midlands of England, bordering South Yorkshire to the north-west, Lincolnshire to the east, Leicestershire to the south, and Derbyshire to the west...
. It is listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and is a former constituent of the FTSE 250 Index
FTSE 250 Index
The FTSE 250 Index is a capitalisation-weighted index consisting of the 101st to the 350th largest companies on the London Stock Exchange. Promotions to and demotions from the index take place quarterly in March, June, September and December...
.
History
The Company was founded by Richard J. BudgeRichard Budge
Richard John Budge is the Chairman of The Coal Industry Social Welfare Organisations.-Early life:He went to Boston Grammar School in Lincolnshire. He entered the coal mining industry when he joined the company of Retford-based AF Budge, owned by his brother Tony, which ran opencast mines...
in 1974 as RJB Mining. In 1994, following the privatisation of the UK mining industry, it grew fivefold with the acquisition of British Coal
British Coal
thumb|right|British Coal company logoThe British Coal Corporation was a nationalised corporation in the United Kingdom responsible for the extraction of coal...
's core activities. It changed its name to UK Coal in 2001 after the retirement of its founder.
Coal mining
UK Coal is the biggest producer of coalCoal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
in the UK. It produces about half of all domestic coal or around 6% of the domestic energy need for power generation. The Company operates four deep mines located in Central and Northern England, at Daw Mill
Daw Mill
Daw Mill is a coal mine located near the village of Arley in the English county of Warwickshire. The mine is Britain's biggest coal producer, mining a five-metre thick section of the Warwickshire Coalfield in the north of the county...
, Kellingley
Kellingley Colliery
Kellingley Colliery is one of the newest of the few deep coal mines left in Britain today. It is situated at Beal in North Yorkshire, about east of Knottingley in West Yorkshire, on the A645, although the postal address is Knottingley, West Yorkshire, and east of Ferrybridge power station. The...
, Thoresby and Welbeck The company has three surface mines too. Coal extraction has been reduced over the past decade from 37.1 million tonnes in 1995 to around 7 million tonnes in 2009.
At year end 2008, the company estimated coal reserves and resources of some 105 million tonnes at the mines, of which 45 million tonnes is accessible under existing five year mining and investment plans. Production of the other 60 million tonnes will require further development investments and other costs..
The company has commitments to deliver coal to customers. Its most important customers are electricity generators. These contracts may have a duration of many years. In these contracts both volumes and prices of the coal are agreed. The prices agreed are a mix of market prices, market prices with agreed minimum and maximum prices in order to protect both customer and UK Coal, fixed price contracts with inflation indexation and finally fixed price contracts.
Due to price increases in imported coal over the past few years (along with other forms of energy) the economic viability of British mined coal has increased. This has led to the company proposing a series of mainly opencast mining developments, including the Minorca development in Measham
Measham
Measham is a village in Leicestershire, near the Staffordshire and Derbyshire border, located just off the A42 just south of Ashby-de-la-Zouch, and within the National Forest...
, Leicestershire
Leicestershire
Leicestershire is a landlocked county in the English Midlands. It takes its name from the heavily populated City of Leicester, traditionally its administrative centre, although the City of Leicester unitary authority is today administered separately from the rest of Leicestershire...
.
Renewable energy
UK Coal, through its Harworth Power subsidiary, engages in mine gas-recovery, which is used to generate electricity. The Company has moved into renewable energy in recent years, expanding into windfarmWindFarm
WindFarm is wind energy software used to analyse, design, optimise and visualise wind farms. It calculates and optimises the energy yield subject to natural, planning and engineering constraints. WindFarm has the wind modelling software MS-Micro integrated. MS-Micro is based on the same...
s, 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
United Kingdom Climate Change Programme
The United Kingdom's Climate Change Programme was launched in November 2000 by the British government in response to its commitment agreed at the 1992 United Nations Conference on Environment and Development...
.