UK Coal require the money to take forward schemes to access over 100 million tonnes of coal, safeguarding 4,000 jobs at collieries in the Midlands, Yorkshire, and the North East.

The grant comes under the government's Investment Aid scheme, which is currently capped at £60 million over the next three years. The money will be awarded according to economic viability and the number of jobs created or safeguarded. On-going support will depend on the achievement of performance targets.

"We have made applications for Investment Grant Aid in respect of all eight deep mines which we will be operating post the closure of the Selby Complex,” UK Coal chief executive Gordon McPhie said.

“All these mines have reserves, that with the appropriate investment would extend their lives and safeguard jobs, providing a secure and reliable source of energy for the future."

UK Coal produces almost 20 million tonnes of coal a year, 16 million from its deep mines and 4 million tonnes from surface mines and employs 7,000 people at 30 locations throughout the United Kingdom.

The Financial Times reported the department of Trade and Industry said there were other applicants for the money, including smaller companies Coalpower and Tower Colliery.

A decision is expected within three months.