UK coal mining and distribution firm Hargreaves Services said Wednesday it has decided to mothball its 1 million mt/year Maltby underground thermal and coking coal mine due to safety concerns.
In a statement, Hargreaves said that, since a consultation process began in October, geological reports had indicated that risks associated with mining the new T125 panel had not significantly reduced.
"It is therefore, with regret, in the opinion of the board of Maltby Colliery Limited the T125 panel is not viable on health and safety, geological, and financial grounds," the statement said.
About 60% of Maltby's total output is supplied under a long-term secure contract with Drax Power, Europe's largest coal-fired power plant, while much of the remaining production is supplied exclusively to Hargreaves' 200,000 mt/year Monckton Coke Works.
Around 500 people are currently employed at the Maltby site. Hargreaves said it "remains committed to exploring alternative employment opportunities for staff."
Hargreaves bought Maltby -- which has been operational for more than 100 years -- from Britain's largest miner, UK Coal, in February 2007. It originally intended to keep the colliery open until 2015 but feasibility studies based on current output extended the mine's life to 2025.
