UK Coal May Need Bailout

UK Coal May Need Bailout.

UK Coal are in talks with a possible investor Hargreaves Services in hopes that they can save 2,000 jobs. If they do not secure the investment, they would need a £10m bailout.

UK Coal had previously been in talks with Hargreaves over possible investment opportunities, after a fire at its Mill near Coventry caused the company to go into administration. At the time the company was saved by the Pension Protection Fund.

There are eight pits at the present time including two deep working mines that UK Coal owns.

Reasons behind the bailout are due to rising of the pound meaning it is cheaper to import coals from other countries, mainly the US. This is due to a boom in shale gas in the US meaning that miners are having to look for business elsewhere.