MARKETS

No extension for Selby

FOLLOWING months of poor results, UK Coal is reviewing the feasibility of keeping the three-pit Selby complex going until the planned closure in March next year.

Staff Reporter
No extension for Selby

Growing concern was signalled in May when budgets from the Stillingfleet face were way down on target. At the time the Riccall and Wistow pits were performing to program but by July only Wistow had managed to produce to target.

Machinery breakdowns have impacted on Stillingfleet while output from Riccall was running just over 300,000t for the calendar year by July.

“Results so far this year have fully vindicated the decision to cease mining at Selby,” said chief executive Gordon McPhie.

“The only question is whether, because of the high cost of maintaining the infrastructure for low levels of output, we can justify continuing mining through to next March,” he said.

In other news, UK Coal said the future of the 450 man Maltby colliery was hinging on the result of a ballot of the mine’s officials and supervisors over flexible working conditions.

The company has emphasised that without flexible working Maltby cannot achieve viability when it switches to single-face operations next year to concentrate on reserves in the north east sector. Without flexi-working the mine is likely to cease production by the end of 2004.

Also being considered is a major new investment package, valued at around £20 million, for the company’s crown jewel, the Daw Mill colliery. This is for a second set of high-tech equipment capable of maximising output from the 5m Warwickshire Thick seam.

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