UK Coal success benefits graduates - graduate jobs

Production at UK Coal is "living up to expectations" which could lead to openings for graduates in the industry this year.

The Doncaster-based company saw success after it started producing coal from seams at two of the biggest collieries in the country. In Kellingley, Yorkshire, volumes for the first half of the year were double the level seen during the same period in 2009.

Recent investment at Thoresby in Nottinghamshire pushed volumes up by 50%. But the cost of transferring to the new seams affected the company's half-year results despite UK Coal being on track to produce its 2010 target.

Chairman David Jones said: "With the transition completed, production in the second quarter rose sharply and is now living up to our expectations and demonstrating the benefits of the substantial investments we have made."

Stronger coal prices and the replacement of legacy contracts with new long-term supply deals, including recently-signed agreements with the likes of Scottish & Southern Energy, have also boosted prospects.

Shares jumped 7% on Wednesday as investors welcomed the production update and the prospect of significant agricultural land sales before the end of the year.