14/03/2012 03:53 GMT | Updated 14/03/2012 04:04 GMT

UK Coal Considers Closing Daw Mill Mine, Putting 800 Jobs At Risk

More than 800 people may lose their jobs if plans to close the biggest coal mine in the UK go ahead.

UK Coal, Britain's biggest coal producer, is currently consulting on closing its largest coal mine as part of plans to restructure the business.

The group is considering closing Daw Mill near Coventry by early 2014 when current coal panels will have been exhausted and has stopped work to extend production beyond then.

UK Coal is a major supplier to Britain's coal-fired power stations from three deep mines and six surface mines.

It said Daw Mill has considerable long-term resources but production is 175,000 tonnes behind budget.

The company returned to profit earlier this year for the first time in four years but chairman Jonson Cox recently said Daw Mill was the greatest risk to output this year due to a change in the coal face.