Hargreaves calls off UK Coal merger

Jun 10 2010 By John Hill, The Journal

THE PROPOSED merger between UK Coal and Durham's Hargreaves Services has been called off.

Hargreaves announced this morning that "while recognising that UK Coal has many valuable assets, it does not intend to pursue such a merger". It revealed plans for a potential link-up with UK Coal in March, which would have made it a senior partner in a £360m firm.

However, Britain's largest mining company appeared to cool Hargreaves' interest when it posted widening losses of £129.1m for the full year in April, compared to a loss of £15.6m in 2008. Turnover also fell by 20% from £392.5m to £316m.

UK said today that it its new seams at Kellingley and Thoresby are in full production, and that it expected to achieve 2010 production of about 7.6m tonnes. It added that its property business continued to perform in line with expectations.