Trading Statement

UK Coal PLC
9 July 2001



                                                                   9 July 2001

                                  UK COAL PLC


                           TRADING STATEMENT UPDATE

In the first half of the year we have continued to supply our long term
contracts and customers.  Although the market for coal has remained strong,
production volumes have limited our ability to take advantage of the improved
market conditions.  Sales volumes in the first half of the year were 10.4
million tonnes (2000: 12.0 million tonnes), producing a reduction in coal
stocks of 0.6 million tonnes (2000: reduction of 1.8 million tonnes).

In our underground mines, production in the period was 7.6 million tonnes
(2000: 7.9 million tonnes).  Underlying costs are running at a slightly higher
level than for the same period last year due to the recommencement of
development at Ellington and Clipstone (additional costs of £5.3 million) and
cost inflation.  As noted in the AGM trading statement, there has been a
shortfall in production at Daw Mill due to adverse geological conditions in
the first half which we are targeting to recoup in the second half of the
year.  This should see an improvement in financial performance and deep mine
production in excess of 9.0 million tonnes.

Surface mines have produced 2.1 million tonnes (2000: 2.1 million tonnes) in
the first six months.  Planning approval has been received for a 1.9 million
tonnes site at Cutacre near Bolton, which will commence production in 2002.

We expect to receive further transitional State Coal Aid during the course of
this financial year.  The financial performance in the year will therefore be
affected by the phasing and amount of payments under the scheme.


Enquiries:

Liz Morley/Fiona Grant Duff
Gavin Anderson & Co             0207 457 2345