THE Selby pit complex is facing a new crisis, with predicted losses this year of up to £25 million, the Evening Press can reveal today.

The losses - incurred despite a £23 million Government subsidy in February - represent the worst performance since privatisation seven years ago.

The complex, which once made profits of £100 million a year, is now haemorrhaging money at an unacceptable rate, say UK Coal bosses.

The company's 13 deep mines - including Wistow, Riccall and Stillingfleet - lost £35 million in the first half of this year.

The biggest loss-maker is Wistow Mine, which is expected to plunge £11 million into the red this year.

UK Coal chairman John Robinson described the losses as "staggering".

And the company's chief executive, Gordon McPhie, warned miners they had to "grasp for themselves a more secure future while there is still time".

He said production costs had risen to a level customers were not prepared to pay, and it was vital to "close the gap" on their competitors.

A UK Coal spokesman said: "We have invested over £50 million in our pits this year. We have the equipment and the skills but badly need to improve performance.

"Five million tonnes of additional coal were there for the taking this year and it was all supplied from overseas."

He added: "We can carry on the way we are and die slowly or we can change and carve out a more secure future."

Company director Kevin Irving has flagged up the issue of cutting coal seven days a week.

He said more flexible working practices would help UK Coal to compete with countries such as the United States, now working its mines almost 24 hours a day, seven days a week.

Mr Irving said it was "sink or swim" time, adding: "We need to change. The alternative is to continue down the slippery slope the company has been sliding."

Ken Rowley, National Union of Mineworkers' secretary at Wistow, today blamed geology for the poor results.

He said: "The lads are just as fed up and frustrated as management because it affects our bonus payments."

Updated: 15:19 Tuesday, October 30, 2001