Daw Mill Colliery

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The Daw Mill Colliery is a coal mine in Warwickshire which is owned and operated by UK Coal.

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Production

In 2011 the Daw Hill Colliery produced 2.1 million tonnes of coal.

Limited life

On it's website, as of October 2012, the company optimistically states that the mine's reserves "could last until 2028".

However, in its 2012 annual report UK Coal states that in March 2012 it announced that:

"it is consulting on the potential closure of Daw Mill, once it has mined coal from existing and part developed coal panels in 2014. The consultation process is continuing and no decisions have yet been made. The Group estimates that were an irrevocable decision be made to close Daw Mill in 2014, an impairment loss of approximately £36,000,000 will need to be recognised. In addition, depreciation would be accelerated on the remaining tangible fixed assets with a net book value at June 2012 of £40,000,000. Other related costs, including redundancies, will depend on the outcome of negotiations and cannot yet be estimated with any degree of accuracy."

In his address to shareholder, UK Coal Chairman Jonson Cox wrote that:

"Daw Mill remains on a course to close in early 2014, or before, unless it can achieve key targets. The mine is expected to endure another face gap in 2013, reflecting the results of past poor performance and the failure last year fully to mitigate a 2012 face gap. We have set out clearly the terms under which

the Company would seek to extend the life of Daw Mill to realise its full potential. One of these conditions was the adoption of new shift patterns. We regret that a recent ballot of the workforce rejected the proposals of our new Mine Director at Daw Mill, rendering it unlikely that the mine will be able to continue to operate under the required lower risk operating model."

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