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Daw Mill coal mine closure will 'damage local economy'

8 March 2013 Last updated at 21:46 GMT

Businesses in Warwickshire believe the closure of the Daw Mill coal mine, with the loss of 650 jobs, will badly damage the area's economy.

The colliery was due to close next year, despite restructuring.

A "ferocious" underground fire which started last month is still burning and UK Coal said it meant commercial mining would not resume at the site.

The company said a small team would remain to secure the mine, but the majority of its staff would be made redundant.

Local businesses have joined North Warwickshire Borough Council in voicing fears that the closure could badly affect other firms, including haulage companies.

Jaqueline Rivers, landlady of the Horse and Jockey pub in nearby Bentley, told BBC Midlands Today's Kevin Reide she depended on trade from the miners.

About 100 workers are expected to be redeployed at other sites.