UK Coal Production Ltd

Michael Fallon Excerpts

Monday 9th June 2014 Written Statements

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

I want to update the House on matters concerning UK Coal Production Ltd, further to the statement I provided to the House on 10 April 2014, Official Report, column 24WS.

As the House will recall, the Government’s intention in principle is to provide a commercial loan, alongside contributions from private sector parties, as part of a consortium created to avoid the immediate insolvency of UK Coal. Such participation remains conditional on both the negotiation of final terms that provide adequate protection to taxpayers, and the Government securing assurance that all parties are committed to successful delivery of the closure plan.

Significant progress has been made in this regard since April. However, a number of important matters need to be concluded before the final terms of the loan are agreed among all the parties and the funds can be made available to the company.

The company has performed well and production levels have been better than forecast. It is hoped that resolution and conclusion will be reached in the coming weeks. The exact amount of any Government loan is yet to be finalised and is still expected to be in the region of £10 million.

It is the Government’s intention that any party who wishes to come forward with investment to maintain the mines beyond autumn 2015, without Government support, will remain free to do so.

I should also like to again acknowledge the continuing support the company is receiving from its work force, customers, suppliers and creditors during this challenging period. I will continue to keep the House updated.