HARGREAVES Services have concluded a deal for parts of Scottish Coal - and have pledged to start looking for new workers.

The sale covers a substantial property portfolio together with the plant and equipment owned by Castlebridge Plant.

Under the agreement Hargreaves are committed to paying �8.4million for the assets, comprising a property portfolio of approximately 30,000 acres, plant and equipment, and potential wind farm interests.

East Ayrshire sites include land at House of Water, Dunstonhill, Chalmerston, Powharnal, Barony, Mauchline Bing and Knockshinnoch.

They are also in discussions about completing a deal for Piperhill and Killoch.

The Durham based company have stated that they intend to move their surface mining headquarters to Scotland and say they hope to dig one million tonnes of coal in their first year.

In a statement realsed this afternoon, KPMG and Hargreaves said that complexities associated with the company's financial affairs meant significant time and effort had to be invested by all parties involved since Hargreaves were afforded preferred bidder status on Friday, May 10, Blair Nimmo, Joint Liquidator and Head of Restructuring at KPMG in Scotland said "This has been a particularly complex case which has required an innovative approach to get us to this point. Following a great deal of effort, I am very pleased to have concluded the sale of these assets to Hargreaves.

"I would like to thank everyone involved for their significant efforts in helping to deliver this outcome, which I appreciate is simply a further step in the right direction towards the possibility of mining resuming at certain former Scottish Coal sites.

"I wish Hargreaves every success in their continuing efforts to reach agreements with stakeholders which should bring new opportunities to many of the communities affected by the liquidation of Scottish Coal."

Iain Cockburn, Group Finance Director of Hargreaves Services plc said: "It has taken a lot of hard work by many stakeholders to reach this agreement, given the complexities involved following the collapse of Scottish Coal, and today's announcement marks a new start for coal production in Scotland, creating the opportunity for 300 much-needed mining jobs in the next three months and up to 500 as production increases.

"Today's agreement also provides wider development and regeneration opportunities to help address the legacy of unfulfilled restoration obligations. We will work collaboratively with our local communities, key stakeholders and regulators. We are committed to supporting the Scottish Mines Restoration Trust and we will encourage other industry participants to do likewise.

"The Scottish coal industry, responsibly managed, has a positive future and has a key role to play in the UK's energy landscape. We are committed to continuing our investment to help secure that future."

For much more on this developing story, see next week's Chronicle.