Underground Fire at UK Coal Mine Holdings-Daw Mill

RNS Number : 5598Y

Coalfield Resources PLC

25 February 2013

 



25 February 2013

Coalfield Resources plc

Major underground fire at UK Coal Mine Holdings' Daw Mill Colliery

Coalfield Resources plc brings to the attention of the market the press statement below issued today by UK Coal Mine Holdings Ltd.

Since restructuring in late 2012, Coalfield Resources has retained only a limited economic interest^[1] in UK

Coal Mine Holdings (UKCMH). However, together with controlling co-shareholder the UK Coal Employee Benefit Trust, Coalfield Resources plc has offered full support to the new management of UKCMH in this safety-critical incident.  Coalfield Resources plc supports the actions taken by UKCMH and its operational subsidiary, UK Coal Operations Limited, and continues to monitor the situation.

Statement by UK Coal Mine Holdings Ltd: Major underground fire at Daw Mill Colliery

Shortly after 15.30 GMT on Friday 22 February, a major fire broke out underground at Daw Mill Colliery in Warwickshire.  The fire began in the tailgate of the 32s face, at a depth of 540m and a distance of 8km from the bottom of the main shaft, and rapidly took over the tailgate area.

As a precaution, UK Coal safely evacuated 92 underground workers from the mine in accordance with standard emergency procedures.  A specialised team of 14 underground workers, trained in fire fighting, remained at the scene to extinguish the fire.  However, at approximately 19.30 hrs on Friday evening, due to the increasing severity of the situation, it became clear to mine management that all remaining miners should be evacuated from the mine.  Safe evacuation was completed at 21.00 hrs.

In an attempt to stem the fire, ventilation to the mine was switched off at 22.45 hrs to reduce oxygen levels and attempt to starve the fire. There is no risk or impact from the incident to residents living close to the site or above the mine.

A core team will remain at the mine to bring the situation under control and achieve an orderly closedown of operations.  It is not expected that the mine could be recovered to operational status in anything less than three to six months.

Business continues as normal at the Company's other operations, Kellingley, Thoresby and the portfolio of Surface Mines which constitute a viable entity.

Daw Mill's future has been the subject of significant uncertainty over the last year. The restructuring of UK Coal in 2012 achieved medium-term security for the mine providing it was able to produce coal safely reliably and efficiently.  The fire puts that security for Daw Mill seriously in doubt and the Company will consult over coming weeks with the workforce on the implications for them.

The Company has been in close contact with officials at the Department of Energy and Climate Change over the weekend who have recognised the exceptional severity and hazards of the fire at Daw Mill.  The Department has indicated that it will work directly, and through the Coal Authority, to assist UK Coal Mine Holdings to ring-fence the situation at Daw Mill and to seek, in the public interest, that the Company achieves a prompt, safe and orderly close down of the mine over coming months.  All parties have also indicated their support to ensuring that the remaining businesses of the Company, which are viable, continue to operate without disruption.

The Company has also been in dialogue with the Chairman of the Industry Pension Funds, who hold the principal economic interest in UK Coal Mine Holdings, and their regulator, the Pensions Regulator. Both parties have stressed to the company their desire to work together promptly and constructively to protect the viability of the on-going businesses in UK Mine Holdings.

Kevin McCullough, Chief Executive for UK Coal, said "This fire is on a scale not seen for decades.  I want to thank everyone in the mine that day for their professionalism and commitment.

"From the mine workers that fought the fire initially to the mine management team that evacuated all workers safely - everyone played their part.  The suddenness of the fire and its ferocity is something we train for and hope never to see, so the safe evacuation of over 100 miners is something the whole team can be proud of."

Further information

1.    Daw Mill has been at risk of closure since March 2012 when it was also announced that a restructuring was needed to safeguard the entire business.

2.    While small underground heating events are not uncommon, particularly in the Warwickshire coalfield, this fire is on a scale not seen before.  There had previously been heating on the 32s face which had caused UK Coal, in agreement with the HSE, to cease coaling from the face and begin to salvage the mining equipment.

3.    All parts of the mine are subject to regular safety inspections by qualified and competent officials on a shift-by-shift basis. The mine is also routinely inspected by the HSE. The last HSE inspection took place on 20th February 2013. All parts of the mine are regularly inspected by the HSE and this part of the mine was inspected only two days before the fire broke out.

4.    Carbon Monoxide readings, which are regularly taken to ensure a safe working environment, rose from a standard 7 parts per million (ppm) at 15.30 hrs to over 10,000ppm by 19.30 hrs.

5.    The management team is seeking to work promptly with all affected stakeholders, but the overwhelming responsibility remains the safety of the mine and its personnel and the management of environmental risks.

Enquiries:

Media

Anthony Cardew              Cardew Group                                                                                   Tel: [phone]

Andrew Mackintosh       Director of Communications, Coalfield Resources           Tel: [phone]

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^[1]  The economic interest of Coalfield Resources plc in UK Coal Mine Holdings Ltd is largely limited to the payment of certain outstanding professional and other creditor balances. 

 

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