UK Coal returns to profit

Britain's biggest coal producer said talks about closing one of the country's largest mines were ongoing despite its first annual profit in four years today.

UK Coal, which employs 2,500 staff, hailed its recovery plan as it reported pre-tax profits of £58 million for 2011, compared to a £124.6 million loss the previous year.

The South Yorkshire-based group, which operates three deep mines and six surface mines, said it benefited from a 25% rise in coal prices and a 4% increase in production.

But UK Coal is still considering closing its Daw Mill mine near Coventry, which employs 800 staff, by early 2014 when current coal panels will have been exhausted.