Claims that a new coalmine in Cumbria will help supply
British-made steel and replace Russian imports do not “stack up”, a senior
industry figure has warned, as the government prepares to make a final decision
over the project.
Supporters of the proposed mine,
which would be the UK’s first new coalmine in 30 years, have suggested that at
least a share of the coal produced would be used in domestic steel production.
They also say it could lower reliance on Russian coking coal in the wake of the
invasion of Ukraine.
“There’s a frustration hearing other industries speaking on behalf of the steel
industry when the steel industry itself has not come out to say that it wants
this mine,” he told the Observer. “I would contend that there isn’t a demand for
it. The case for the mine has been built around the need for coking coal
produced in the UK for the UK steel industry. That’s the case that the coal
industry is making. But that doesn’t stack up with the needs of the steel
industry.
“There are only two potential
customers for this coal in the UK: Tata Steel and British Steel. British Steel
have said they cannot use the coal from this mine because the sulphur levels
are too high. Tata Steel have said if the coal were available, then they may or
may not use a small amount. There isn’t anyone in the steel industry who’s
calling for the mine.”
The Woodhouse Colliery was initially approved by
councillors in 2020. However, ministers intervened and launched an inquiry
following opposition to the project, which grew in the run-up to the Cop26 climate conference in Glasgow
last year. Michael Gove is set to decide on whether to approve the mine by
July. Recent reports have suggested he is minded to do so, although his
department states no decision has been made.
West Cumbria Mining (WCM)
has said the plan would create 530 permanent jobs, with 80% going to local
people.
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McDonald, who also chairs the UK Metals Council, questioned claims that the
mine would lower reliance on Russian energy imports. Mike Starkie, the
Conservative mayor of Copeland, which includes the proposed Whitehaven location
of the mine, said the Ukraine invasion had “demonstrated why we need far more
self-reliance for all of our natural resources”. Local MP Trudy Harrison said
the UK has “typically” imported coking coal from Russia.
McDonald dismissed the claim. “I
think it’s important to be clear that even if this mine opened tomorrow, it
would not displace a single tonne of Russian coking coal from the UK – and I
can say that with confidence,” he said. “Tata Steel already does not use any
Russian coking coal. British Steel have said they can’t use the coal from
Cumbria. So there’s no possibility that it can displace any Russian imports.
“We’ve got all of the big players in
the European steel industry, with plans to gradually reduce their reliance on
coking coal from 2030 onwards. If the mine were given approval tomorrow, I
think it wouldn’t open until 2026 or similar. So it’s unlikely to have a very
long life in that regard. There might be some other basis or some other case
that somebody is making for the mine. From my view, as someone who’s worked in
the steel industry for 20 years and deals a lot in future steel technology,
there isn’t a demand from the steel industry for the mine. Environmental
arguments aside, I think they’ve missed the boat on the market, essentially.”
Sources at Tata Steel concurred with
McDonald’s view, though the company has not publicly expressed a view on the
mine. British Steel declined to comment. WCM was contacted for comment but had
not responded by the time of publication.
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