Jobs at risk in UK power plant buyout

UK Coal says as many as 9,000 jobs could be lost if London-based BHP Billiton takes over Drax, the United Kingdom’s biggest power station.

Drax buys a third of its fuel from UK Coal, but there are concerns BHP Billiton wants to replace it with cheaper coal from mines in South America and South Africa.

UK Coal says increased coal imports could lead to the closure of at least three mines, as well as the loss of up to 3,000 direct jobs and 6,000 indirect jobs.

International Power and investment bank Goldman Sachs became the de facto owners of Drax after U.S.-based power company AES abandoned plans to restructure its 1.3-billion debt.

BHP Billiton submitted the highest bid for Drax, but UK Coal says it will seek legal action to block the move.

Last year, the plant was hit by a slump in wholesale electricity prices, and at the same time, its biggest customer sought bankruptcy protection.

UK Coal has already decided to close the Selby and Prince of Wales collieries in Yorkshire in a bid to become more competitive.