AN AMERICAN tycoon could become the UK's new King Coal after he was identified as the mystery bidder for RJB Mining.

Billionaire Ira Rennert's Renco Group could seal a deal for RJB next month - triggering fresh fears about the industry's future.

A takeover of RJB would virtually mark the end of UK involvement in the domestic coal industry, which has been struggling against cheap foreign coal and the dash for gas.

It is understood the approach made to RJB's advisors is dependent upon the current senior management structure remaining in place for a number of years - including Richard Budge as chief executive - with production levels maintained until at least 2004.