Colliery insurance costs have soared

More than 100 members of staff at Betws Colliery in the Amman Valley have been told that their colliery could close by the end of the month.

A deputation from the pit and Carmarthen East and Dinefwr MP Adam Price met Energy Minister Stephen Timms at the Department of Trade and Industry on Tuesday to appeal for government aid.

But Mr Price said after the meeting that it was inevitable that Betws would close over the summer.

Workers were given redundancy notices last month after managers said mine insurance premiums had increased dramatically, and they could no longer afford to pay them.

I can't raise any false hopes Adam Price MP

Mr Price said on Tuesday night that the Government had reiterated its position that no further help would be available to the pit.

The Plaid Cymru MP said: "I can't raise any false hopes."

Mr Price had argued that other coal-producing countries in the European Union were doing much more to protect their mining industry.

He will call on the Government to offer enhanced redundancy terms when Betws shuts.

The Betws 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.

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.