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Department of Energy & Climate Change 3 Whitehall Place London SW1A 2AW

www.gov.uk

Léonie Mathers

Our ref: TO2014/06195/RL

10 April 2014

Dear Léonie Mathers Thank you for your letter dated 3 April to Edward Davey, about Thoresby Colliery and the UK Coal Mining industry. I have been asked to reply. Please find attached a copy of the Written Minister Statement tabled on 10 th April 2014 which provides an update on our support for the private sector led consortium proposals made to Government for a managed closure of the operational deep mines by Autumn 2015 and the sale of the surface mining business. The Government’s proposed contribution of a £10m loan, which is provisional on terms being agreed by all parties, alongside contributions from private sector investors, to help support a managed closure of UK Coal’s two deep mines by Autumn 2015 will ensure the taxpayer avoids having to meet significant losses and liabilities that would have materialised in the event of an uncontrolled insolvency of UK Coal. As UK Coal have stated “This proposal offers the best opportunities for our workforce, our customers and our suppliers. Without the support to close the business on a phased basis to 2015, we would have been announcing an immediate insolvency and 2,000 job losses”. The Job Centre Plus Rapid Response Service will be deployed to support the staff affected. There is nothing in the deal which precludes additional private sector parties in making a longer term investment in the continuation of deep mine operations, should they choose to do so. But I must make it absolutely clear, the Government will not provide subsidy for any further development of the deep mine seams beyond those already prepared. I hope that this is helpful. Yours sincerely, DECC Correspondence Unit


Letter