Hargreaves considers job cuts at troubled Maltby coal mine

Oct 8 (Reuters) - British coal supplier Hargreaves Services Plc said it would notify employees at its Maltby mine of potential job cuts and begin consultation regarding the reductions shortly.

Hargreaves said last month that the South Yorkshire coal mine, which employs about 500 people, faced the risk of being closed or mothballed because of worsening geological problems.

"Initiating this process is considered to be prudent business practice and does not indicate that a decision on the future of Maltby has been taken," the company said in a statement on Monday.

Hargreaves, which imports, processes and transports coal and other minerals, said the consultation would last 90 days.

The company said in May that delays in mining a new coal seam would reduce profit in the twelve months to May 31, 2013 by 12 million pounds to 16 million pounds ($25.91 million).

The company expects to take a decision on the mine after receiving reports on the geological, financial and health and safety risks associated with mining the seam later this month.

Hargreaves shares were flat at 728.5 pence at 1115 GMT on the London Stock Exchange on Monday. The stock has shed about a third of its value so far this year.