Jobs at risk as south Wales coalmining site faces closure
A coalmining site in south Wales is facing closure after the Welsh government used new powers to force it to halt on environmental grounds.
More than 150 jobs at the Nant Helen opencast site near Neath are under threat after the Labour-led administration stepped in, arguing that keeping the coal in the ground was in the best interests of the people of Wales.
The site’s operator, Celtic Energy, expressed shock at the decision. It said work at the site was due to cease next year and it was worried at the impact on the community and on the site of stopping production immediately.
Nant Helen was mothballed in 2016 after it stopped supplying coal to the Aberthaw power station. It reopened in January 2019 and has been providing coal to, among others, the domestic market and the steel industry.
It has been operating under a licence issued by the UK body the Coal Authority. Earlier this month, Celtic Energy was told that the Welsh government, which has new powers over the production of fossil fuels, had declined to authorise the licence.
A Welsh government spokesperson said: “As we move towards a lowcarbon economy, we are proactively supporting a constructive transition away from coal extraction and use. Continuing coal extraction from Nant Helen would have inevitable environmental and climate change impacts.”
The spokesperson said refusing to authorise the licence ensures the coal remains in the ground. “It will not contribute to global climate change, which is in the best interest of the people of Wales.”
It is the first time Welsh ministers have declined to authorise a licence related to the extraction of fossil fuels under the licensing powers transferred to them in April 2018.
Will Watson, the chief executive officer of Celtic Energy, said: “We were shocked to receive a letter from the Coal Authority advising us of the [Welsh government’s] decision.
“We are working with the Coal Authority and local authorities to consider options for a way forward which minimises the environmental impacts and delivers the best long-term outcome for the site, surrounding communities, our employees and Wales as a whole.”
The opencast mine site and an adjacent coal washery is the preferred site for a £100m train-testing site. Currently manufacturers have to send trains across Europe for testing before they come back to the UK for service.
It is hoped employees of the opencast mine will be able to find work restoring the area and then be employed at the testing site.