The north-east of England's last deep coal mine is in line for a �60m funding package.

The cash boost will be announced in the next few weeks as part of the Government's energy white paper, aimed at bolstering pits in the wake of a dramatic fall in world coal prices.

Bosses at UK Coal, which employs 450 men at Ellington, have already invested �1m of their own money into ensuring the mine remains viable until at least 2007.

The additional funds will offer state backing of up to 30% for further investments, while a further �50m from the Coal Authority could also be added.

'Good news'

UK Coal's Stuart Oliver said: "We broadly welcome any additional assistance given by the Government in keeping the British coal industry competitive, particularly following the worldwide slump in coal prices."

Former Ellington union official Ian Lavery, who is also president of the National Union of Mineworkers (NUM), said: "A deal has been cobbled together, but it is a fact that the country needs deep-mined indigenous coal, and the forthcoming energy white paper will say that.

"The Government knows it has to secure deep mine production in the UK, and this funding will do that.

"In terms of the North-East, and Ellington, this is very good news."

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.