British coal miner UK Coal Mine Holdings, has decided to close its Daw Mill Colliery in Warwickshire after the mine faced its largest fire in three decades.

The fire, which broke out on 22 February 2013, continues to blaze at a depth of 740m with no signs of reducing. The fire has not subsided even after the company shut oxygen supply through the ventilation.

UK coal announced that a core team will secure the mine over the next few months, but a majority of its 650 strong workforce will be made redundant.

The company has undertaken discussions with the Department of Energy and Climate Change to manage the closure of Daw Mill.

Responding to the announcement, Minister for Energy, John Hayes commented that the government will fully support employees during this unsettling time.

"Job Centre Plus, the Skills Funding Agency, BIS West Midlands and local skills bodies are ready to offer their considerable expertise if needed," Hayes added.

Hayes further emphasized that few workers may be redeployed at UK Coal’s other deep mines at Thoresby and Kellingley.

"Along with my Department, I understand that the company is also working closely with their insurers, suppliers and customers to agree arrangements for the way forward and I welcome this collaborative approach," Hayes said.