ONE of the region’s last surviving coal miners has taken another step in diversifying from its traditional roots after receiving backing for a 1,600-home project.

County Durham’s Hargreaves Services has received planning approval in principle to revive the site of a former Scottish open cast mine.

Confirmation for the firm, based in Esh Winning, comes after boss Gordon Banham told The Northern Echo it was primed to expand in spite of a weaker coal market.

The business was previously hit by the closure of Redcar’s SSI UK steelworks, where it supplied the fuel to fire the Thai operator’s coke ovens, and has felt the effects of coal-fired power station closures, such as Ferrybridge.

However, Mr Banham said the company remains positive for the future, with transport and civil engineering operations, as well as its land division, which includes Blindwells, complementing lingering coal operations.

Hargreaves expects to pay an initial £5m from an existing cash pot to carry out groundwork and preliminary infrastructure schemes on Blindwells, which is based near Edinburgh.

Mr Banham said the development will feature affordable housing and form part of wider plans to build 3,200 properties over the next 15 years, with Hargreaves expecting to oversee sales of plots to housebuilders.

He also revealed Blindwells will help the business hit a potential £50m property goal.

Mr Banham said: “We are delighted to have secured this permission; Blindwells is an exciting site.

“It marks another important milestone in achieving the target we set ourselves to deliver between £35m and £50m of new value from our overall property portfolio over the next five years.”

Speaking to the Echo last month, Mr Banham said the company was primed to reverse a dip in revenue and profits, wherein coal distribution sales fell from £105.6m to £68.5m, as growing offshoots support remaining mining work.

He said sister operations, such as its transport division, which once traditionally moved coal and now shifts increasing amounts of fuels for waste-to-energy plants, would provide a platform for growth, adding a move into speciality coal markets, such as steam railways, will keep that side of the business ticking over.

He added: “We knew there would be a drop in profits because customers have disappeared.

“But as far as the group is concerned, we have a very strong balance sheet.

“Hargreaves is a very solid business and we are in a really good place.

“We are a North-East plc and are very proud of that.

“We will continue to develop and add people to the business that are going to help the North-East economy thrive.”

Mr Banham also pointed to Hargreaves’ previous decision to buy Essex’s CA Blackwell Group to extend into civil engineering.

He added: “We used to move soil to get to coal.

“Blackwell moves soil to create a platform to put roads and railways in; there are real possibilities to grow.”