Mining group sets sights on Yorkshire for business expansion
HARGREAVES Services has its eye on a couple of potential sites in Yorkshire to expand its surface mining business to.
The mining group revealed its plans following the announcement that it may have to close its Monckton coke plant, near Barnsley. But, Hargreaves remains positive and despite uncertainties, said the group is in a good position to evolve.
The North-East headquartered group operates or manages nine surface mines (surface mining is the extraction of coal from seams lying just underneath the surface of the land) across the UK. Gordon Banham, CEO, said this is a growth area for the business, and although no plans are to be announced yet, the company is looking at two sites to bring through the planning process.
Speaking about the possible closure of the Monckton site, Banham said Hargreaves takes its responsibility at the site, where it has a team of 120, “very seriously” and no decisions will be made until December/January time.
He told TheBusinessDesk.com: “The plant has been there for over 130 years and is the last link to coal mining in Yorkshire, so we take our responsibility there very seriously.”
Banham said the issues and challenges around this site are due to the world markets for coke and volatility in the steel sector, which continues to significantly impact coke demand across Europe.
“75% of the coke is exported and at the moment, the exchange rate is working against us,” he added.
“We will sit down with export customers in November and review prices for the next 12 months, so we will have a clearer outlook then. We are working hard with our long-term customers. It is very, very challenging, so let’s hope we can find a solution.
“No decisions has been made and a decision is likely for the turn of the year.”
Monckton produces some 200,000 tonnes of coke per year and the coke is destined for use in glass, detergents and steel manufacturing; and coke used for home heating.
Looking at the wider group, Banham said he sees the business evolving.
“We have got a very good industrial services business with 1,200 people employed. This division, operated from Barnsley, is an exciting growth area for the business,” he said.
This business is also operating internationally in Hong Kong and Hargreaves is looking to develop it in South Africa and Asia, too.
“We believe coal is an important part of the energy mix going forward. There’s a strong case for indigenous coal in the UK, and we are well positioned,” Banham added.
