UK COAL has revealed it is to recruit an executive chairman who will oversee the mining group’s development strategy and replace its chairman and chief executive.
The firm, which operates the Daw Mill mine near Coventry, said the move would allow its two operating businesses – mining and property – to “take more responsibility for their own activities”.
UK Coal said the full-time executive chairman, which would become part-time over time, would lead the company rather than a non-executive chairman and a group chief executive.
The company said it had started the process of recruiting an executive chairman, adding: “Until this person is identified, Mr David Jones and Mr Jon Lloyd will continue, respectively, as chairman and chief executive. Mr Lloyd has also agreed that he will continue with the group for a limited period thereafter to facilitate an orderly transition.”
UK Coal also announced today that its mining and property businesses are to be led by separate managing directors.
Gareth Williams, currently group mining director, will become managing director of the mining division, and Owen Michaelson, currently a non-executive director, is to leave his employment with Peel Holdings to become full time managing director of the property division.
UK Coal said the executive chairman will have overall leadership of the group and will be accountable for the group managing directors, whilst being supported by a central team under David Brocksom, the finance director.
David Jones, UK Coal’s chairman, said he wouldn’t be in the frame to become executive chairman.
Mr Jones said: “We have now completed the transition of our deep mining business to three mines, and our recent trading statement shows the sharp improvements in their operating performance, as well as pointing to the benefits still to come from our new supply agreements.
“In parallel, our property business has demonstrated the substantial value it can realise and, over the coming years, will be moving into its development phase. These very different businesses need to focus single-mindedly on their distinct value creation strategies.”
UK Coal reported last week that it expects pre-tax losses for the first half of the year to rise to £94m.
However, the group believes improvements at its three deep mines at Kellingley, Thoresby and Daw Mill are beginning to show positive results, while schemes are expected to begin to be developed out in its property arm.
Steven Underwood, corporate development director of Peel Holdings, is also to join the UK Coal board as Peel Holdings’ representative non-executive director.
