Liquidators have admitted defeat in their efforts to sell a vast opencast mine in central Fife.
In the latest blow for the beleaguered coal industry, professional services firm KPMG confirmed work at Muir Dean, near Crossgates, had ceased and said all staff had been made redundant.
Muir Dean supported a total of around 100 employees and contractors just months ago but it is understood the workforce dwindled to single figures after owner ATH Resources fell into administration late last year.
The blow comes just weeks after 590 workers, including 46 based at sites in Fife and Alloa, lost their jobs following the collapse of Scottish Coal.
Cowdenbeath MSP Helen Eadie said she was “disappointed” at the news, and highlighted environmental concerns including minewater pollution.
“There are a lot of questions which arise,” she said. “What are the implications, and what state will the site be left in?”
It is understood that the 225-hectare colliery equivalent in size to 275 football pitches is likely to be turned over to the Scottish Mines Restoration Trust (SMRT), launched by energy minister Fergus Ewing last month, for reinstatement work. Talks, involving Fife Council and other interested parties, continue.
The news emerged as Hargreaves Services of Durham agreed to buy other assets of ATH subsidiary Aardvark TMC, and coal mined at Netherton and Duncan-ziemere in Ayrshire, in a £10.4m deal. Almost 240 jobs there will be transferred.
A Scottish Government spokeswoman said it sought to ensure “the responsible restoration of former sites”, while continuing mining operations and preserving jobs where possible.