Wendy Alexander: "Disappointing news"

The directors of Scottish Coal (Deep Mine) - a subsidiary of Mining (Scotland) - announced that the company could no longer operate the mine.

The receivers, Glasgow-based accountants PKF, have estimated that it could cost �50m to make Longannet operational again.

Partner Bryan Jackson described the pit's prospects as "horrendous".

The Fife Redundancy Response Initiative has been set up to help workers find new jobs or retrain but for many the prospects look bleak.

"The news of the closure of the Longannet deep mine, whilst not unexpected, is very disappointing," Ms Alexander said.

Financial problems

"The mine is closing despite the best efforts of all concerned, the management, workforce and the government, who stood by the mine in difficult times.

"Our priority now must be to provide all possible assistance to those facing redundancy."

Scottish Enterprise Fife will lead a rapid response team, the minister added.

"We are determined that employees should be given the best support available in terms of offering advice, retraining and upgrading skills."

The pit - which has operated since the 1960s - received more than �40m in government grants over the past two years as it battled financial problems.

UK Energy Minister Brian Wilson said that in terms of the mine's future there was little ground for optimism.

Engineers called in to inspect the mine after the flood said they could not guarantee a similar incident would not happen again.