Colliery insurance costs have soared

BBC Radio Cymru's Post Cyntaf programme has learned that more than 100 members of staff at Betws Colliery in the Amman Valley have received letters informing them that the coal mine could close within nine weeks.

Managers at the colliery have said that the jobs are under threat because mine insurance premiums have increased dramatically, and they can no longer afford to pay them.

The 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.

Plaid Cymru MP Adam Price has called on the UK Government to intervene so that insurance premiums are lowered - but he says it has so far refused to do so.

Colliery managing director Martin Cook is hoping that the situation can be resolved and that he will be able to save the jobs.

He is hoping to meet the Energy Minister Steve Timms within the next few weeks to discuss the crisis facing the mine.

Just a year ago it was announced that 110 jobs at the colliery had been safeguarded thanks to a last-minute deal to secure insurance cover.

Workers were laid off in July 2002 after cover ran out as spiralling bills could not be met - and there was speculation that the entire workforce could be facing redundancy.

But Mr Cook said at the time that he was unsure of the effect the high premium would have on the long-term future of the colliery.