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UK Coal back in the black after 4 years

Philip Whiterow
Wednesday 24 August 2011 00:00 BST
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UK Coal has posted its first profit in four years after higher production and coal prices sparked a turnaround at its collieries.

The group, a major supplier to Britain's coal-fired power stations, swung from an interim loss of £93.2m to a profit of £22.1m in the six months to June as revenues jumped 81 per cent to £256m and average prices rose 20 per cent. More property sales also helped UK Coal cut its debt by 14 per cent to £207m.

Nearly all of UK Coal's output goes to the electricity sector, where coal accounts for nearly 30 per cent of the UK's electricity generation. Coal-fired plants, however, are facing tough new controls to cut greenhouse gases.

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