Investment Aid

UK Coal PLC
07 August 2003


7 August 2003


                 INVESTMENT AID SOUGHT FOR ONGOING COLLIERIES:

           Schemes would access over 100 million tonnes of reserves.

SCHEMES to access over 100 million tonnes of coal, safeguarding 4,000 jobs at
collieries in the Midlands, Yorkshire, and the North East, have been submitted
by UK COAL to the Department of Trade and Industry for grants under the
government's Investment Aid scheme.


If all applications were approved they would attract grant aid of £79 million
under a scheme currently capped at £60 million.


Says UK COAL Chief Executive Gordon McPhie: 'We have made applications for
Investment Grant Aid in respect of all eight deep mines which we will be
operating post the closure of the Selby Complex. All these mines have reserves,
that with the appropriate investment would extend their lives and safeguard
jobs, providing a secure and reliable source of energy for the future.'


The Investment Aid scheme operates on a discretionary basis. When judging
applications DTI will take into account economic viability and the number of
jobs created or safeguarded. On-going support will depend on the achievement of
performance targets.



MEDIA CONTACTS:

UK COAL PLC
Gordon McPhie, Chief Executive         Tel: [phone]

Gavin Anderson & Company
Financial:
Liz Morley / Ken Cronin                Tel: [phone]

Operational:
Stuart Oliver                          Tel: [phone]


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