KING coal is making a comeback as dwindling oil and gas supplies make investors nervous.
The Royal Bank of Scotland has provided working capital to support Hargreaves Services in its new joint venture with UK Coal ”“ Coal 4 Energy.
Coal 4 Energy will allow both companies to provide the domestic and light commercial sector with coal products. The new company has an expected annual turnover of £50m and will be based at Kellingley Colliery in West Yorkshire.
Hargreaves, based in Co Durham, has expanded rapidly over the last 11 years, growing from a haulage firm into a provider of transport and support services to the energy and waste sectors.
It floated on the Alternative Investment Market last November. Last year RBS helped Hargreaves in the acquisition from UK Coal of the last remaining independent coke production unit in the UK ”“ Monckton Coke & Chemical Company, which is based near Barnsley, South Yorkshire.
Mike Mullaney at RBS said the new venture with UK Coal demonstrated the firm’s successful development. “We are delighted to continue to work closely with the Hargreaves management team and provide working capital facilities to assist Coal 4 Energy.”