Undermined

Three British pits and 1,400 jobs threatened as report for Government casts cloud over the case for future investment. Clayton Hirst reports

The future of at least three UK coal mines employing nearly 1,400 people is in doubt, after the publication of a government-sponsored study of their viability. The revelation will be another blow to the industry, which is still reeling from the closure of the Selby pits after a request for state aid was turned down.

The report, produced by consultants IMC, has been prepared to help ministers decide which pits should receive future investment aid. It casts doubt over the long-term viability of Ellington (pictured) in Northumbria, which employs 391 people. IMC says it has "limited reserves" and a "poor financial history" and warns it would be "difficult to substantiate capital investment at this mine".

Harworth near Doncaster, which employs 481 people, is also singled out. IMC says the area has a "limited life", adding that "it would be doubtful whether it could support any major capital investment".

The report also warns that future reserves are limited at the Welbeck mine near Mansfield, which employs 504 people. "It may prove difficult to substantiate long-term investment," says IMC.

All three pits are owned by UK Coal, the quoted mining group that recently reported an annual loss of £82m.

Earlier this month, the Government announced a new £60m investment aid package for the coal industry. A Department of Trade and Industry spokesman said that the IMC report "is a guide" for how this money would be spent. UK Coal is expected to prepare an application for aid in the next few months.

However, a UK Coal spokesman denied that the report put the future of the pits in doubt.

He pointed out that business plans had been developed for each pit to secure future mining activity.