The contract with EDF Energy is for the delivery of 4 million tonnes of coal between 2009 and 2012 from Thoresby to EDF Energy's Nottinghamshire power stations, Cottam and West Burton.

After 2012, UK Coal will further continue production at Thoresby for an estimated six years, with the flexibility to agree to new long-term supply contracts, make spot sales, or a combination of the two.

An extra 12Mt of reserves will be accessed by the mining company at the Thoresby site from the multi-million dollar investment program.

"This is excellent news for all parties. For EDF Energy, it secures a continued guaranteed source of quality coal produced on the doorstep of its power stations," said UK Coal chief executive Jon Lloyd.

"For UK Coal, it is a further significant advance towards us achieving market price for our coal production; it enables us to invest in profitably opening up major new reserves at Thoresby, and it thereby extends the life of the mine and the jobs of its employees for 10 years longer than had until now been planned."