LONDON, June 12 The British government and
investor Harworth Estates are continuing talks with UK Coal and
other stakeholders over a loan to allow the managed closure of
the company's mines, they said on Thursday, after another
potential lender pulled out.
Hargreaves Services, which had indicated it could
provide a 5 million pound ($8.4 million) loan, said on Wednesday
it had dropped out of the process because it was unable to agree
on a loan plan with the other stakeholders.
The government said on Thursday its 10 million pound loan
offer was still available.
"The government will continue to cooperate fully with other
parties and to explore any proposals that might assist in the
managed closure of the mines," said UK Energy Minister Michael
Fallon in a written statement to Parliament.
Regeneration company Harworth Estates also confirmed it was
continuing talks with the government, UK Coal and other
stakeholders to find a solution.
UK Coal, Britain's largest coal producer, went into
administration last year and its business has declined further
since due to fierce international competition and the
It is now seeking a loan to pay for the gradual closure of
its business and prevent an immediate insolvency shutdown.
UK Coal employs around 1,300 people across its two deep coal
mines in Yorkshire and Nottinghamshire.
($1 = 0.5956 British Pounds)
(Reporting by Karolin Schaps; Additional reporting by Kylie
MacLellan; Editing by Mark Potter)