Hatfield produces 10,000 tonnes of coal per week

Energy Minister Brian Wilson announced the extra funding to assist six mines across England and Wales.

Hatfield Colliery, in Doncaster, will be given £867,400 while Hay Royds Colliery, in Huddersfield, will get £95,400.

The funding for the privately-owned mines is part of the Coal Operating Aid Scheme, which has approved £162m for the industry since 2000.

Future investment

Mr Wilson said: "The scheme has clearly achieved what it set out to do, to prevent a sudden and sharp decline in the coal industry by helping viable mines to overcome short term market problems.

"It has helped most producers to stay afloat despite the pressures."

A spokesman for Coalpower Limited - owners of Hatfield - welcomed the financial windfall.

"This underpins that the colliery is a viable operation and the money will be invested in its future," he said.