FEARS over the future of the coal industry were sparked by a dire claim that production at almost all of Scotland’s opencast sites could grind to a halt next year.

This week shares in Hargreaves fell by 14 per cent after a trading update as coal prices have fallen dramatically this year.

However, local operator Hargreaves insisted they are a 'large and well-run business...less impacted by changes in coal price.’ Scottish Lib Dem leader Willie Rennie revealed his fears that devastation caused by the failing industry could blight the countryside for decades.

Mr Rennie, who has been a vocal critic of the Scottish Government’s policy for the industry, called for urgent action to ensure that Scotland is not left with a restoration burden of almost £200 million and a blighted countryside. He was to make the call at the Scottish Government’s Coal Industry Taskforce, which was set to meet on Tuesday.

Mr Rennie said: “I am angry that despite repeated warnings we are facing another crisis in the opencast coal sector in Scotland. We need urgent action to prevent an environmental crisis that could cost us all dear.

“With the collapse of the coal price we are facing a halt in production in Scotland that could leave us with a legacy of polluted water, barren land, a blighted landscape and a health and safety headache.

“The Scottish Government’s cavalier approach to the industry has failed the environment and local communities. Instead of recklessly promoting the exploitation of new opencast mines they should have focused on a plan to restore the failed sites that are already blighting our countryside.

“I will be urging action at the Scottish Coal Industry Taskforce which meets this week. The Scottish Government needs an urgent environmental restoration plan.” On Friday Hargreaves said the company will “monitor coal price and selectively target production.” It operates sites in Fife, Lanarkshire, Ayrshire and Dumfries and Galloway.

A spokesperson for Hargreaves Surface Mining Ltd said: “The profits of all coal producers are exposed to movements coal prices – the profits tend to rise and fall with coal prices. The market was aware of our exposure to coal prices. The shares price falls reflects the impact of the recent coal price drop on profit expectations.

“We remain a large and well run business. Unlike many other coal producers, like the two that failed, we have a diversified business with operations in coal importation, industrial services and transport, all of which are far less impacted by changes in coal price.

“The market still expects Hargreaves to make in excess of £30 million from its other businesses and we retain a strong balance sheet with over £200 million in net assets. We are targeting to be debt-free by the end of this financial year.

“This strong platform gives us the ability to invest and take a longer term view of coal production in Scotland. We will be doing all we can to maintain maximum capacity. All of our current projects are protected from recent falls in coal prices through contracts and hedges.” Greta Roberts of the Mining Environmental Group Ayrshire (MEGA), said: “The outlook is pretty grim for selling coal and it’s pretty grim in East Ayrshire for our chances of having the opencasts restored.”