The British government has offered to buy the coking coal for British Steel that is needed to keep the country’s last blast furnace facility open while it negotiates a deal with its Chinese owners.
The move would allow the company to prolong production at the remaining furnaces at its main site at Scunthorpe in Lincolnshire while the future of the plant is resolved, said people familiar with the matter.
The offer comes as part of talks this week between British Steel’s owner Jingye Group and business secretary Jonathan Reynolds to discuss options to stave off a collapse of the lossmaking company.
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