Boss Jon Lloyd leaves UK Coal

Another energy boss was on his way out today, as UK Coal parted ways with chief executive Jon Lloyd.

The company is splitting responsibility for its coal and property arms as part of a board shake-up.

Shares in Britain's biggest coal miner have lost two-thirds of their value in the last year.

They are down more than 90% since Lloyd succeeded Gerry Spindler as chief executive in September 2007.

The company's losses widened in 2009 after production problems at its underground mines and lower prices received for its coal under legacy sales contracts.

It said today that the planned transition of its deep mine business has now been achieved and that the legacy contracts, which have constrained UK Coal over many years, will be substantially completed in 2011.

The group is planning to appoint an executive chairman rather than being led by a non-executive chairman and chief executive, a move which is likely to raise eyebrows among corporate governance fanatics.

From August, Gareth Williams, currently group mining director, will become managing director of the Mining Division, while non-executive director Owen Michaelson will leave Peel Holdings to become full-time managing director of the group's Property Division.

Both will sit on the group's board.

Peel is the biggest investor in UK Coal, with a 28% stake.

The shares today gained 1p to 37p, leaving the company valued at £111 million.