Two deep mines and six open mines are still operating despite the financial difficulties
UK Coal has announced a restructuring of its mining operations, which it says will secure 2,000 jobs.
Under the reforms, the company's pension scheme will be taken over by the Pension Protection Fund (PPF), the safety net for troubled businesses.
It is set to be the biggest rescue so far by the PPF, and is an attempt to avoid major closures and pension cuts.
However, 370 jobs will still go, and some staff will see a 10% reduction in their pensions.
UK Coal has been suffering significant financial difficulties, and underwent a restructuring last year. It suffered a costly fire at the Daw Mill pit in Warwickshire earlier this year.
It has operated two deep mines and six surface mines under UK Coal Operations, which is a subsidiary of UK Coal Mine Holdings.
Both of these businesses will now go into administration. However, the viable mining operations have been restructured and their assets will now be held in individual employee trusts owned by a new business which will operate as UK Coal Production Limited.
Source: BBC News - Business http://www.bbc.co.uk/news/business-23243633#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
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