News Column

Hargreaves Services Won't Provide Loan To UK Coal For Mine Closures

June 11, 2014

Rowena Harris-Doughty

LONDON (Alliance News) - Hargreaves Services PLC Wednesday said that it will no longer be involved in providing loan finance to UK Coal as part of coal miner's plan to close two of its three remaining deep-pit coal mines.

In April, UK Coal confirmed that it plans to close two of its three remaining deep-pit coal mines, resulting in the loss of 1,300 jobs from its total 2,000 workforce.

The UK government has agreed to give the country's largest coal producer a GBP10 million loan, in addition to an equal loan from the private sector, to facilitate the "managed closure" of the mines.

In the same statement on April 10, solid fuels and bulk material logistics company Hargreaves Services said it was working closely with the government and key stakeholders with the intention of providing marketing and operational support on commercial terms, including the provision of a GBP5 million secured loan to UK Coal.

However, Hargreaves Services said in a statement Wednesday that it was not possible to agree a plan that it is able to support.

"In these circumstances the company is no longer able to provide loan finance and has now withdrawn from the process," Hargreaves Services said in the statement.

Hargreaves Services shares were trading down 0.4% at 747.00 pence Wednesday afternoon.

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Source: Alliance News

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