UK Coal loan falls through

COAL producer Hargreaves Services has withdrawn a loan offer to rival miner UK Coal, saying it could not agree to a loan plan with other parties discussing the managed shutdown of the company.

UK Coal, Britain’s largest coal producer, went into administration last year and trading has deteriorated further due to competition from cheaper coal producing markets.

Hargreaves had been in talks to provide UK Coal with a £5m loan to help it wind down. UK Coal said it will keep pursuing other options.