Selby shutdown blow for 5,000

THE worst fears of more than 2,000 Yorkshire mine workers were confirmed by UK Coal today. The company said its Selby complex in North Yorkshire will cease operations by spring 2004. Another 3,000 jobs will be lost in related industries.

In a trading update, it said operations at the mine, which hosts three separate pits - Riccall, Stillingfleet and Wistow - will be phased out over the next 20 months to give affected workers the time to look for jobs elsewhere.

'It has been apparent for some time that our Selby mines have not been able to produce coal at an economic cost,' said Gordon McPhie, the company's chief executive.

'The mines made operating losses of £35m last year and £107m in the past three and a half years amid deteriorating geological conditions. Losses continued in the first half to June 2002, although at a lower level of £14m against £19m a year ago.

The closure of the complex will have no financial effect on the interim results, it said.

The redundancy costs will reach £40m, about £10m of which will be government funded. They will be treated as an exceptional cost in the full year account.

Job losses are believed to reach 5,000 if the knock-on effect on related industries in the region is factored in.

UK Coal's decision to shut the Selby complex followed two expert studies, one by the independent consultants IMC and the other by the Department of Trade and Industry.

The research showed that while there are considerable reserves left, geological conditions mean they cannot be extracted economically. Two other pits in the Selby complex were closed in the late 1990s.

The National Union of Mineworkers dismissed today's decision as 'ludicrous' and said the pits could be kept open another 30 years.