HL Deb 16 September 2004 vol 664 cc132-4WS
The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)

My honourable friend the Minister for Energy and E-commerce (Mike O'Brien) has made the following Statement.

Following the acceptance of awards worth £41 million in the first of three planned CIA application periods, up to £19 million was available when bids in the second application period were invited in April 2004.

When the deadline for applications passed on 1 June, 12 applications had been received for a total of £94.6 million. All but one were for projects at mines which are already eligible for support following awards in period 1.

Applicant/Prod uction Unit Project Description Period 1 Award Period 2 CIA Sought Period 2 Award Tonnes Secured Mt Jobs Secured/Created
Eckington Colliery Partnerships, S Yorks Extension of main drift to access two new areas of reserves; acquisition of coal handling and other equipment £0.063m £0.014m £0.014m 0.3 25/6
Energybuild, Aberpergwm, S Glamorgan Recovery of cross-measure drifts to access reserves through fault; upgrade of coal preparation plant & surface/admin facilities. Purchase of rail head. £1.1m £2.76m £2.42m 20.0 78/100
Hatfield Colliery S Yorks Develop access to Barnsley Main seam £15.0m1 £33.28m £0.0m 100
Tower Colliery, Mid Glamorgan Development of replacement panels £2.2m £3.5m £0.0m 3.5 420/0
UK Coal plc, Ellington, Northumberland Development of replacement panels, purchase of new face equipment £2.1m £2.9m £0.0m 2.1 360/0
UK Coal plc, Daw Mill, W Midlands Strategic development to access reserves in Warwickshire Thick seam; coal face mechanisation programme including purchase of set of powered roof supports; 3D surface seismic survey & surface boreholes £9.6m £2.72m £1.26m 32.8 543/0
UK Coal plc, Harworth, S Yorks Development driveage to access 2 areas of Deep Soft reserves; purchase of new face equipment £4.6m £4.8m £1.72m 10.4 511/0
UK Coal plc, Kellingley, N Yorks Strategic driveage to access the Silkstone seam to the south of current workings and Beeston seam to the east; purchase of new face equipment; upgrade of No. 2 winders £7.2m £8.0m £2.27m 19.15 630/0
UK Coal plc, Maltby, S Yorks Strategic driveage to access reserves in Parkgate seam; provision of development & face machinery £2.4m £7.53m £2.71m 9.03 528/0
UK Coal plc, Rossington, S Yorks Strategic driveage to access reserves in Barnsley/Dunsil seam to the east of current workings; infrastructure improvements; 3D surface seismic survey £3.2m £3.54m £1.39m 15.6 386/0
UK Coal plc, Thoresby, Notts Development driveage to access reserves in Parkgate seam; purchase of new face and heading machinery and conveyor system. £2.9m £15.0m2 £2.09m 16.5 509/0
UK Coal plc, Welbeck, Notts Development driveage to access reserves in Deep Soft seam; infrastructure improvements; upgrade of ROM handling plant £5.2m £10.66 £2.54m 8.0 528/0
Total £40.7m £94.6m £16.42m 131.8 3738/106
1 Award was not taken up.
2 Included revision of project covered by period 1 award.

NB: No period 2 application was received from J Flack & Sons Ltd for Hay Royds Colliery, W Yorks, which received an award of £140,000 in period 1.

On review, the one new application was found to be incomplete. The applicant was given an opportunity to submit additional information but was unable to do so. This application therefore could not be considered for an award.

Two further applications were for further support for projects which had already received substantial awards in period 1 and for which further awards could not be justified on value for money grounds.

The nine remaining applications have been assessed and awarded further support worth a total of £16.42 million. Most of this is expected to be drawn down by 31 March 2006. These offers leave a balance of around £2.5 million for further awards and to meet CIA administration costs.

A summary of the period 2 awards is given below. More details will be published shortly on the DTI energy group website.