UK coal recovery boosted by new seams

UK Coal has said production was "living up to expectations" after it began operating new seams at two of the country's biggest collieries.

UK Coal has said production was "living up to expectations" after it began operating new seams at two of the country's biggest collieries.

The Doncaster-based company said half-year volumes at Kellingley in Yorkshire were twice the level seen a year earlier, with output at Thoresby in Nottinghamshire up 50 per cent following recent investment.

While UK Coal is on track to produce 7.6 million of coal this year, the cost of moving to more viable seams left its mark on half-year results.

First quarter production was sharply lower due to transition work and meant interim losses widened to £93.2 million from £81.5 million a year earlier. Net debt soared to £170.1 million from £114.3 million.

Stronger coal prices and the replacement of legacy contracts with new long-term supply deals, including recently-signed agreements with the likes of Scottish & Southern Energy, have also boosted prospects.

Shares jumped 7per cent as investors welcomed the production update and the prospect of significant agricultural

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