UK Coal to close Selby mine

UK COAL has warned the Government it plans to announce the closure of the loss-making Selby mine in Yorkshire by the end of this month, costing 2,100 jobs and furthering the demise of the region's collieries.

Representatives of the company, formerly called RJB Mining, told Trade and Industry Secretary Patricia Hewitt last week the group would not continue to sustain Selby's annual losses of more than £30m.

It is believed UK Coal will agree to keep the mine operating only if the Government provides enough subsidy to cover the losses for at least three years, a move which would cost taxpayers about £100m and is widely seen as politically unpalatable. The Government's other option is to provide aid to the Selby area to offset the impact of the job losses.

However, sources close to UK Coal say the company has not asked the Government for aid of any sort and has simply chosen to notify it of the intention to close the operation.

UK Coal has already announced the closure of its Prince of Wales Colliery in Pontefract, West Yorkshire as part of a drive to lift productivity by 20% within two years. It is in negotiations with unions about a range of work practices, including the prospect of operating its mines seven days a week.