The investment will see the North East employer take delivery of six new Caterpillar 740B articulated trucks and two new JS220 JCB excavators at its Shotton surface mine site near Cramlington.
The British-manufactured equipment has been procured from two regional suppliers as part of the group’s policy of working with local suppliers wherever possible.
The trucks have been sourced through the Boldon branch of Finning (UK) and were manufactured at Caterpillar's Peterlee site, and the excavators have been sourced through the Scot JCB dealership in Newcastle.
Gavin Styles, executive director at Banks Mining, said: "Coal is still a central part of the UK's energy mix. In the last year, around 25% of the electricity that we all use to power our homes, businesses, schools and hospitals was produced through coal, yet over 85% of this coal was imported from overseas.
"The coal we produce at our Northumberland sites sustains substantial numbers of jobs for local people, supports British industry and electricity generation, creates considerable capital for investment in community improvement projects, heats homes across our region and helps to provide a responsible and reliable source of indigenous coal that reduces the UK's reliance on imports from potentially unstable overseas markets.”
Durham-headquartered Banks Mining has worked in South East Northumberland for more than three decades, and currently employs over 200 people across its Shotton and nearby Brenkley Lane mining sites.
The two sites contribute around £35m to the regional economy every year through wages, investments and the local supply chain, as well as more than £700,000 in annual business rates to Northumberland County Council and Newcastle City Council.