Jobs at a Carmarthenshire mine have been safeguarded after a last-minute deal to secure insurance cover.

More than 80 workers out of a total of 110 at the Betws mine in Ammanford had been laid off for nearly a month after cover ran out as spiralling premiums could not be met.

Customers were supplied from reserves

The mine's owners have closed a deal which sees the annual premium rise from �150,000 to �500,000.

The miners returned to work on Wednesday and the colliery is now back to full production.

The mine's owners had warned it was facing closure if a solution could not be found.

Betws's managing director Martin Cook said it was bitter-sweet news.

"We have been forced into a position to pay a massive increase in insurance premiums," he said.

"We can't pass these costs on to our customers in the price of coal.

Martin Cook: "bitter-sweet news"

"I made a commitment to the men that I would find an answer to the situation and I'm pleased we've been able to do that."

Mr Cook said he was unsure about the effect the higher premiums would have on the long-term future of the mine.

He has accused the government of "maladministration" by not intervening on an industry-wide basis.

He added: "The government is doing nothing to help despite warnings from the industry.

Bad attitude

"The insurance problem isn't going to go away and it will only get worse until the government acts.

"Their attitude has been deplorable."

The colliery used stockpiles of coal to supply customers while the miners were laid off.

Betws - a drift mine - was opened 24 years ago and was privatised in 1994.

It produces approximately 100,000 tons of coal each year for domestic and industrial use.