The owner of Daw Mill Colliery confirms it will close, ending 47 years of coal production at the Warwickshire mine.
UK Coal Mine Holdings said the majority of its 650-strong workforce face redundancy.
The move comes after what the company's chief executive described as a "ferocious" underground fire at the colliery last month.
The fire - believed to be the largest in a UK coal mine in more than 30 years - is still burning at a depth of 740 metres with no signs of stopping, the company said.
"This has been a terrible week, not just for the company and its employees but also for the energy security of the country," Kevin McCullough said in a statement.
"Having successfully completed the restructuring, and being only weeks away from returning to healthy production, this ferocious fire has dealt a blow to everything we tried to achieve over the last 12 months - in just ten days."
He said the company is exploring the possibility of transferring some staff to other mines, but added: "this news is likely to see the majority of the Daw Mill workforce being made redundant."
A small team will remain on site to secure the mine over the coming months, the company said.
It added that it is in discussions with the Department of Energy and Climate Change over managing the closure of Daw Mill and seeking a way forward for its remaining collieries.
Its deep mines at Kellingley in North Yorkshire and Thoresby in Nottingham - along with its surface mines - will continue to produce coal for use in the UK's power stations.
News of the closure comes after Hargreaves Services said Maltby Colliery - which has been producing coal for more than 100 years in Rotherham - was no longer viable on health and safety grounds.
UK Coal Mine Holdings supplies about 5% of the UK's energy needs making it the country's largest coal producer.
Daw Mill has been at risk of closure since March last year when it said restructuring was needed to safeguard its future.
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