Mining and Power
LOCATED JUST A FEW MILES FROM THE BIGGEST COALFIRED POWER STATION IN BRITAIN, UK COAL’S KELLINGLEY COLLIERY IN WEST YORKSHIRE IS DRIVING ACCESS ROADWAYS INTO NEW BEESTON SEAM RESERVES CONTAINING AROUND 10 MILLION TONNES OF COAL.
REVIEW OF OPERATIONS MINING AND POWER
Overall, our Mining and Power operations improved their financial performance from an operating loss before non-trading exceptional items of £26.8 million in 2006 to £1.8 million in 2007.
This overview reflects a strongly improved underlying performance from deep mining and strongly improved results from both surface mining and power business.
The period of non production during the early part of last year at Daw Mill represented a loss of some £20 million of profits against expectations. In addition, Daw Mill managed a face change in the second half and, as previously announced, production at Kellingley will remain lower whilst it negotiates adverse geological conditions. In the light of this, deep mining performed well to produce a full year loss before non-trading exceptional items of £14.6 million (2006: £30.4 million), and operated profitably in the second half of the year.
Operating profits before non-trading exceptional items from our surface mines increased from £0.5 million in 2006 to £8.5 million and similarly profits from our power business increased from £3.1 million to £4.3 million.
| Key Performance Indicators (“KPIs”) |
2007 |
2006 |
| Sales price per Gigajoule (£/GJ) |
1.62 |
1.41 |
| Tonnage sold (million tonnes) |
8.0 |
9.7 |
| Tonnage produced (million tonnes) |
8.1 |
9.5 |