THE UK'S largest coal producer, which employs about 200 workers in North-East surface mines, has denied it is looking to cut jobs.

UK Coal Mine Holdings, which has mines in Crook, in County Durham, and Ashington, in Northumberland, has rejected national reports that claim it is seeking voluntary liquidation to avoid a full operational shutdown.

The company employs 2,000 workers across the country, but earlier this year was forced to close its Daw Mill colliery, in Warwickshire, causing hundreds of job losses, after a fire ravaged the mine.

Bosses say the firm, which wants to open a surface mine between Stanley and Marley Hill, County Durham, and supports more than 200 North-East supply chain posts, remains profitable, and are in discussions with a number of interested parties over its future.

They said its two deep mines, in Kellingley, West Yorkshire, and Thoresby, Nottinghamshire, and its surface mines, which employ 120 people at Ashington and 60 at Park Wall North, near Crook, would continue to operate.

Kevin McCullough, UK Coal Mine Holdings chief executive, said: “There has been some further unhelpful and inaccurate speculation, but our main focus has been on preserving 2,000 jobs and securing the future of UK coal mining.

“Our remaining mines have been performing well since the fire at Daw Mill and we continue to work closely with our employees, the Government, pension funds, the pensions regulator, suppliers and customers, and remain positive we have an underlying profitable business.

“There are many moving parts but I hope we are close to securing a way forward for our remaining mines.

“There will undoubtedly be some difficult decisions as we have had to look at all possible options, but there is a good business here with 2,000 families depending on our workforce.”

The reassurances come after the company last year secured a rescue deal to save North-East miners' jobs, overhauling its operations and splitting businesses into the Mine Holdings mining division and property arm Harworth Estates.

At the time, ownership of the Doncaster-based group, which generates about five per cent of Britain's electricity requirements, was broken up between the company, a newly-established employee benefit trust and pension funds.

That restructuring plan saw the pension fund given 75 per cent ownership of Harworth Estates, which has 30,000 acres of land and other property, in return for a £30m cash injection.