Coal Preparation Projects In The UK

The reconstruction of the British mining industry which began shortly after nationalisation in 1947 continued until well into the 1950s with the support of the Government. This support diminished as plentiful supplies of cheap oil from the middle East made many coalmines un¬economic. The planned rundown which followed was foreshadowed in the 1965 White Paper which outlined the financial measures to speed the closure of uneconomic collieries. The decline appeared likely to continue into the 21st century as the role of coal in UK energy requirements became less and less significant. This policy was well on course in 1973 when the oil crisis led to a complete reappraisal of the position. A Government examination in 1974 of the coal industry then supported the National Coal Board's general strategy of major capital investment as set out in its 'Plan for Coal' (1). Plan for Coal aimed at halting the intended decline in the industry's capacity and restoring it to 120 million tons of deep mined output in 1985. The Plan proposed action along the following lines (a) increase output by major Investment in construction at existing collieries with sufficient reserves to give 13 million tons per annum extra output (b) invest in extending the life of existing collieries by gaining access to additional reserves, to give 12 million tons per annum extra output © by sinking new mines, produce an extra 20 million tons per annum. Figure 1 shows the contribution (2) expected from each of the three sources up to 1990/1. The measures taken were expected to offset the inevitable exhaustion of existing pits and provide the additional 40-42 million tons capacity needed to restore annual output in 1985 to 120 million tons. Parallel to this programme for expansion of deep mined output, opencast mining was to produce 10-15 million tons per annum. A recent review however, indicates that new mines are likely to yield only 10 million tons per annum by 1985, mainly owing to the need for public inquiries into proposals for new mining and the resultant fact that planning approval takes 'much longer than originally expected. Nevertheless the objective of 120 million tons deep mined output by 1985 is still considered achievable of means of a greater contribution from existing mines. This programme was originally estimated to cost 2,-56 million dollars at March 1974 prices, out revised estimates of the cost of Plan for Coal indicate that it may now exceed 6,960 million dollars at mid-1977 prices. Plan for Coal includes a substantial investment in new and reconstructed coal preparation plaints. At mid-1977 prices more than 322 million dollars Ls so be invested in coal preparation projects in the UK, at the rate of, about 70 million dollars a year. This rate 3f capital expenditure has been maintained over the past three years and covers investment in a wide range of coal preparation coals for the power station, coking and domestic markets.