Unions had insisted there was a future for the facility

Production at Welbeck Colliery in Nottinghamshire will be phased out over the next 12 months, owners UK Coal said on Thursday.

The pit employs 520 workers, some of whom could transfer to other pits.

The announcement had been expected because of geological problems at the site near Ollerton and falling profits.

Union leaders met with company officials after the announcement to discuss ways of saving the mine.

Redundancy costs

The colliery, which has been producing coal for almost 90 years, lost �20m in 2004 after its planned output dropped to 800,000 tonnes.

In 2003 UK Coal had announced it planned to spend �18m on the colliery to access new reserves.

However, the discovery of a geological fault led the company to launch a review of its plans.

UK Coal said there will be some opportunities for Welbeck miners to transfer to its two other collieries in Notts - Harworth and Thoresby - as well as to the Daw Mill pit in Warwickshire.

We should be backing them - not sacking them MP Paddy Tipping

Chief executive Gerry Spindler said: "Despite the best endeavours of the workforce at Welbeck, we have failed to secure ways of reducing the high-cost gaps in production which are forecast in the current mining plans."

Notts MPs Paddy Tipping and John Mann both opposed the closure, saying more talks will take place to save the pit.

Mr Tipping said: "There's a big task ahead of us, but these are the most efficient miners in Europe and we should be backing them - not sacking them."

Welbeck has been awarded �7.8m in government investment aid towards projects costing �27.5m in recent years to access reserves.

Redundancy costs of up to �12m will be made in the company's accounts this year.

The closure will leave the UK with just seven deep pits.