Around 500 people work at Ellington Colliery

UK Coal has confirmed that Ellington Colliery, in Northumberland, which employs around 500 people, will close within three years.

The company said operations would cease at the pit because its reserves will be used up by then.

The National Union of Mineworkers (NUM) has disputed the company's claim, blaming a lack of investment.

Coal reserves

NUM Chairman Ian Lavery said Ellington had millions of tons of reserves and a closure would be caused by lack of commitment and investment.

But UK Coal chief executive Gordon McPhie said it would be uneconomic to find new coal reserves.

He said: "Ellington is likely to close because the existing reserve block will be worked out by 2007 at the latest.

"Unless the economics of coal change substantially, it will not be worthwhile going into the next block of reserves there, so economics will work against Ellington I think."