A DEAL which could protect hundreds of jobs at a North Yorkshire colliery could be made within weeks, but a local MP said no final decision has been made.

The future of UK Coal, which runs Kellingley Colliery near Selby, has been in doubt since a long-running fire at its Daw Mill mine in Warwickshire left the company with one less facility and huge bills which threatened its viability.

Yesterday, it was reported in a national newspaper that UK Coal Mine Holdings will go through a “pre-pack administration” in the next fortnight that will see the group broken up and sold off, with the Daw Mill colliery handed to a quango.

The Sunday Times reported that Kellingley and Nottinghamshire’s Thoresby deep mines, along with six surface mines around the country, will be handed to the Pension Protection Fund (PPF) – a “lifeboat scheme” for troubled pension funds.

Nigel Adams, MP for Selby and Ainsty, told The Press the Government had been working to help secure the 700 jobs at Kellingley, but made it clear the deal was still in negotiation.

He said: “I wouldn’t speculate how the restructure is going to look, it could look like a million things. The key thing for our area is retaining coal mining and 700 jobs at Kellingley, that is my priority.

“All I can say is there’s a tremendous amount of work going on between UK Coal, the Government and the PPF to ensure the ongoing viability of parts of UK Coal, including Kellingley Colliery. I am very hopeful that a deal can be struck to retain Kellingley and secure the 700 jobs based there.”

UK Coal has lost more than £250 million in coal and equipment following the fire which broke out in Daw Mill pit in February and is still burning.