£8 million loan to keep colliery in operation

Hatfield Colliery
Hatfield Colliery

Hatfield Colliery, in Doncaster, is to get a £8m Government loan to help develop a new coal panel.

The 104-year-old mine has been run by an employee-owned trust since 2013, and the first portion of cash was sent last week.

Brian Holland, the trust’s operations director, said the money would allow the pit to continue mining until summer 2016.

The mine secured a £4m loan from the National Union of Mineworkers in September but said it needed additional funding to develop the seam.

Mr Holland said the first coal from the new coal panel, which is part of a coal face is expected to be dug this month.

He said: “Without this support from Government it will not be possible to complete the mining plan, which currently sees mining ending in 2016, and we would have been announcing an immediate insolvency with approximately 500 direct job losses.”

The pit is one of just three deep coal mines left in the UK.

The other two, Kellingley, in North Yorkshire, and Thoresby, in Nottinghamshire, are scheduled to close this year.