Peter Hain: aid will help ease problems

The money will go to Betws colliery in Ammanford, Carmarthenshire, Blaentillery in Bargoed, near Merthyr Tydfil, and Tower Colliery and opencast producer Celtic Energy, both in the Cynon Valley.

It is expected to secure hundreds of mining jobs in the south Wales valleys and help the coal industry through short-term energy market problems.

Mr Hain revealed the details of the settlement during a visit to Betws colliery which is due to receive �870,000.

The other Welsh hand-outs include �3m for Celtic Energy, �2.7m for Tower Colliery, and �113,000 for Blaentillery.

'Important image'

"The money will protect hundreds of vital mining jobs in south Wales valleys which suffer from areas of high unemployment," he said.

"My visit to Bettws today sends an important message to our coal industry.

"Those who dismiss the industry as having little relevance are wrong.

"Provisional figures show that coal accounted for 33% of all electricity supplied in the UK in 2000 and this source will not be easily replaced," he added.

Dramatic changes

"This government understands that keeping viable pits alive is absolutely essential to the everyday fabric of mining communities."

The landscape of the south Wales valleys has changed dramatically since all but one of the deep coal mines was closed.

The only remaining deep mine in Wales is Tower Colliery in Hirwaun.

Since the closure of the pits, successive governments have tried to rebuild the economies that had relied on them.

Mr Hain will be hoping that this latest cash injection will do enough to redress the balance in some of Wales's poorest areas.