UK Coal pits return to profitability

Pits run by the UK’s biggest coal producer are making money for the first time in a decade, it emerged today.

UK Coal, which owns the former assets of British Coal, said its deep mines returned to profitability in the three months to November, helped by higher selling prices and new working practices designed to boost efficiency.

The Doncaster-based business has seven deep mines, although two are due to be mothballed next year.

The portfolio made losses of £37.8m (€55.8m) in 2004, following a drop in output to 12 million tonnes.