Many deep coal pits in the UK have been closed

There are currently seven large deep mines in the UK producing 10 million tonnes of coal annually.

But next year there will be eight - Hatfield Colliery in South Yorkshire, which closed in 2004, is to buy �37 million of modern machinery and will be fully operational next year.

So is the Hatfield decision the start of a renaissance in coal or does the industry have a steep hill to climb?

The investment and reopening of Hatfield has been welcomed by those in the coal industry.

Cautious welcome

Dave Hadfield, former branch delegate at Silverwood colliery in Rotherham, said: "It's obviously a good thing if any pit reopens.

"It's going to be a good thing for the area and the former workers, because it's a totally different experience working down a coal mine, so they will go for experienced men."

But Mr Hadfield remained wary about the future of the coal industry.

REMAINING LARGE DEEP MINES Daw Mill, West Midlands Kellingley, Yorkshire Maltby, Yorkshire Harworth, Nottinghamshire Thoresby, Nottinghamshire Welbeck, Nottinghamshire Tower, South Wales Source: The Coal Authority

He said: "There still hundreds years of coal left in Yorkshire, but people seem more interested in going down the nuclear option."

This caution approach is echoed by Andrew Cox from the Energy Intelligence and marketing research consultancy, who believes the Hatfield investment is a one-off.

More work needed

He said: "As a standalone company Hatfield Colliery has a good future; it has good reserves, and is in an area with several coal power stations nearby.

"The outlook for the rest of the deep mine coal sector is poor, because of lack of investment and lack of support from the government and electricity producing companies.

"A lot of investment is needed for better equipment and underground development work and if that doesn't happen this will result in the eventual closure of the collieries.

"Although the world price of coal is improving, it's still a tough time for the coal industry in UK, because of higher production costs here which make it hard to compete with imports of coal from places from South Africa, Columbia and Russia."

Since 2004, four pits in Yorkshire (Riccall, Stillingfleet, Wistow and Gascoigne Wood) were closed, while Rossington was mothballed.