Troubled mining group UK Coal has gone into administration following a devastating blaze at a pit in Warwickshire.

UK Coal collapsed after the underground blaze that closed its Daw Mill pit in March but a restructuring has seen the remaining mines taken over with the backing of the Government’s pension rescue scheme.

The closure of Daw Mill sees 350 workers being made redundant but another 120 have been transferred to other sites, said the company, which supplies five per cent of the UK’s energy needs.

David Kelly, Rob Hebenton and Ian Green from PwC have been appointed administrators of the company by Birmingham High Court following an application by the directors.

Graham Newton and Paul Bates of BDO were also appointed joint administrators of Mining Services.

 

Viable mining operations have been successfully restructured and their assets will now be held in individual companies owned by a new business which will operate as UK Coal Production.

Kevin McCullough, chief executive of UK Coal, said it was the best outcome for the company because 2,000 jobs had been saved.

He said: “Entering administration and the subsequent restructuring was the only way we could preserve any of the business.

“I’m pleased that we managed to transfer 120 of our Daw Mill colleagues to our other mines following the fire.

“Our thoughts also rest with the 350 colleagues who will now, regrettably, be made redundant as a result of Daw Mill closing.”