A NORTH-East mining firm has rescued hundreds of coal jobs as part of plans to expand its operations across the UK.

Hargreaves Services, which employs about 100 staff at its Esh Winning, County Durham, headquarters, has bought assets from collapsed surface mining firm Aardvark for £10.4m.

All 237 workers employed at Aardvark's mines in Scotland are to be offered new contracts by Hargreaves, which recently announced plans to create up to 1,000 jobs nationally and open new mines.

Last month it launched a successful shares issue to raise £40m to fund the expansion of its opencast operations.

The County Durham firm wants to step up coal production by about three million tonnes a year.
Later this month, it is expected to announce details of two locations in the North-East that have been earmarked for potential opencast development.

Hargreaves has already started consultations with residents near a proposed opencast mine at Field House, near West Rainton, ahead of a planning application being submitted. If it is approved,

Hargreaves plans to extract 500,000 tonnes of coal over three years, creating 42 jobs.

The move to acquire assets in Scotland came as liquidators were appointed for Aardvark, the main trading arm of ATH Resources, which was put into administration in December. Earlier this year,

Hargreaves bought £12.5m of debt from ATH's lender, Becap Capital, whose demand for repayment forced the company into administration.

Gordon Banham, Hargreaves chief executive said the transaction brought to an end a long and complex restructuring process.

He continued: "Whilst it has been a lengthy and difficult exercise, we are very pleased with the end result.

"In comparison with an unstructured liquidation, we have saved or created over 230 jobs and been able to continue mining operations at two of the key sites.

"The number of properties that have had to be disclaimed by the liquidators have been significantly reduced.

"The continuance of operations at Netherton and Duncanziemere, together with the planned resumption of activity at Glenmuckloch, will greatly assist in achieving long-term restoration."

Netherton and Duncanziemere are located in East Ayrshire, while Glenmuckloch is in Dumfries and Galloway.

Hargreaves said it would provide site services to ensure that the mines continue in operation.