Operator UK Coal confirmed the closure Thursday, leaving the majority of Daw Mill’s 650 miners out of work.
The fire continues to burn at a depth of 740m with no sign of abating, despite ventilation being shut off in a bid to starve it of oxygen.
UK Coal chief executive Kevin McCullough did not sugar-coat the impact of the closure.
“This has been a terrible week, not just for the company and its employees, but also for the energy security of the country, as it brings an end to 47 years of coal production at Daw Mill,” he said.
UK Coal produces about 5 per cent of the electricity generated in Britain and its Daw Mill Colliery had capacity of about 1.6 million tonnes a year.
The company, dogged by loans and losses, avoided an imminent debt default and the closure of operations after completing a major debt restructuring with shareholders in December.
McCullough revealed shortly after the fire, which broke out underground on February 22 and rapidly took over the tailgate area, that the company’s future was now in jeopardy.
UK Coal is locked in talks with the government in the hope the state will help secure the future of its remaining operations.
“Having successfully completed the restructuring, and being only weeks away from returning to healthy production, this ferocious fire has dealt a blow to everything we tried to achieve over the last 12 months - in just ten days,” he said.
“We are now exploring the possible transfer of some colleagues to our other mines. Regrettably however, this news is likely to see the majority of the Daw Mill workforce being made redundant and our thoughts and best wishes are with these colleagues and their families at this difficult time.”
“The deep mines at Kellingley and Thoresby, together with the surface mines, continue to produce coal for use in the UK’s power stations,” McCullough added
Despite this, things are looking bleak for the UK coal industry. Scottish Coal, which supplies about 3.5 million tonnes of coal a year, also announced this week that it would close some of its oldest mines, mainly because of weak international prices.
The shutdowns will result in the loss of more than 1000 jobs – about a sixth of the work force in a once mighty industry.