More than 400 jobs have been saved at north-east England's last remaining deep coal mine.

A �1m investment in Ellington Colliery in Northumberland will see the pit stay open until 2007.

The move has been welcomed as a vital vote of confidence in the 93-year-old mine, which lost more than �26m in 2001.

Owner, UK Coal, says the new cash will be used to develop new undersea reserves.

'Committed workforce'

Ian Lavery, Northumberland secretary of the National Union of Mineworkers, said: "Everyone at Ellington is delighted that the workforce has been given a chance to produce coal for a further five years.

"It is a massive vote of confidence in what UK Coal knows is an extremely capable and committed workforce.

"Without this investment Ellington would have been forced to close next summer and the resulting blow to the economy of south-east Northumberland would have been devastating."

A UK Coal spokesman said recent improved performances at Ellington justified the investment.

'Vast reserves'

But he added progress will be monitored on a monthly basis.

Wansbeck MP Denis Murphy said: "This decision gives us the opportunity to press the government for more aid for Ellington.

"There are still vast reserves of coal which can be accessed and this decision allows the pit the breathing space it requires."

Ellington closed in 1994 with the loss of 1,200 jobs, but re-opened a few months later as a privately-run concern by UK Coal predecessor RJB Mining.