Talks over sale of opencast mines

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Talks have begun over the possible takeover of UK Coal's five opencast sites in the north-east of England.

The company is in discussion with the Durham-based Hargreaves Group over transferring the Stobswood and Maiden Hall opencast sites, and three others.

If it goes ahead, the deal would mean 190 workers from UK Coal transferring to the Durham company.

A UK Coal spokesman said an announcement on any possible transfer would be made in about a month.

The country's largest coal producer, UK Coal recently estimated the value of its property portfolio at more than £500m.

'Employees protected'

The company, formerly known as RJB Mining, inherited the land during the privatisation of coal industry in 1994.

It currently operates two surface mine sites in Northumberland, has consent to operate a further site, has submitted a planning application in respect of one other site and has a further scheme in the development process.

The group has recently been granted planning permission to extract around 1m tonnes of coal from the Steadsburn site, near Widdrington, which will include an extensive reclamation of rail sidings.

A company statement said: "UK Coal has been in discussion with North East businessman Mr Bob Young, president of the Hargreaves Group, with a view to him purchasing these sites.

"Employees engaged in those North East operations have been informed of this development. Their employment terms will be protected if a sale is subsequently completed."