A FLOOD of cheap Chinese imports could result in the closure of Britain’s last independent coke works, bosses at Hargreaves Services said yesterday (TUESDAY).

The County Durham firm is reviewing operations at Monkton, near Barnsley which supplies the steel and chemicals plants, after the mine’s operating profit slump.

“Over the past year we have seen the Chinese dumping coke on Europe and we don’t have the protection of a strong home market,” said, Iain Cockburn, Hargreaves’ finance director said, who reaffirmed the company’s commitment to its North-East base.

Hargreaves will announce in January whether it has secured enough contracts to keep the 130-year-old plant, which employs 120 people.

Despite low coal prices Esh Winning-based Hargreaves increased its revenues and profits after buying several opencast mines in Scotland out of administration.

Last month, the company sold Stockton-based Imperial Tankers Limited to North West-based Suttons Transport Group in a £26.9m deal as part of a strategy to concentrate on core mining activities. Imperial had been part of the Hargreaves Group since 2007, when it was acquired for £6.3m.

Hargreaves continues to operate a bulk haul fleet of some 300 vehicles directly and via contractors.

It is reviewing other non-core assets in an attempt to reduce the need for working capital and pay down debt.

It is in talks to sell the only asset of Rocpower, which produces standby power from biofuel when the National Grid is under strain, and is reviewing its tyre recycling operation. It is closing a joint venture that sold Russian coal in Europe.

Mr Cockburn said there were "no immediate plans" to reduce staff numbers or cut costs at its North-East headquarters which he insisted "remains key to Hargreaves plans going forward."

Hargreaves is now the UK’s leading coal production, trading and distribution company. Underlying profit before tax from continuing operations increased six per cent to £55.1m over the year to May 31.

Mr Cockburn was optimistic that there was still a bright future for coal despite the recent collapse of mining companies such as ATH and Scottish Coal.

The UK will burn about 50 million tonnes of coal this year and coal-powered stations continue to provide up to 40 per cent of our electricity.

The firm hopes to sign longer term deals with UK power stations to give it greater certainty over prices.

Hargreaves continues to operate surface mines, but two of the UK’s last three deep mines, at Kellingley in West Yorkshire, and Thoresby in Nottinghamshire, are expected to close in the next 18 months.

Amid an uncertain European market Hargreaves has found its mining expertise is increasingly in demand in across the globe.

Earlier this year, the business signed its first major contract in Asia, a five-year deal with China Light and Power in the coal-fired power station sector.