 Drax burns around 36,000 tonnes of coal every day |
The UK's largest mining group has revealed that it does not have enough coal to supply the country's biggest coal-fired power station. UK Coal blamed geological problems at its Kellingley colliery for an expected shortfall at the nearby North Yorkshire power station Drax.
Drax has been warned to expect a shortfall of 500,000 tonnes a year.
However, it was "confident" that its remaining requirements could be met by other coal producers.
New deal
The problems come just eight months after UK Coal announced a new deal to supply Drax with around 18 million tonnes of coal over a five-year period.
Drax said it had been told to expect a shortfall of 750,000 tonnes in the year to March while there may be a gap of 500,000 tonnes in each year up to 2009.
It pledged to seek recovery of additional costs from UK Coal, although in the meantime the situation would knock �10m from its 2005 earnings and up to �5m from next year's figures.
Shares in UK Coal, which last week announced plans to close its Welbeck Colliery at Mansfield, Nottinghamshire, fell on the back of the news.
The stock has been under pressure following a "disappointing" year for mining performance.
The company said in January that unforeseen geological problems had impacted on plans for its Kellingley colliery, which lies on the border of West and North Yorkshire.
As a result, it cut its production target to 1.7 million tonnes and reduced the 700-strong workforce by 180.
Drax is situated close to the Selby complex that was closed by UK Coal last year.
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