Uk Coal has halted coal mining at Thoresby Colliery in Nottingham and plans to end production at Kellingley mine, North Yorkshire, in December.
Societe Generale analyst Paolo Coghe told Bloomberg: "The UK coal industry has been in structural decline for 40 years.
"It’s no longer positioned to withstand an extended period of low prices such as the one we are experiencing now."
Following the halt of production at Thoresby mine, 360 employees at the mine were made redundant.
The Thoresby mine opened in 1925 and is situated off the A6075, north of the River Maun.
The company said in a statement that the mine closure comes after a long period of difficult trading conditions, primarily due to low international coal prices as well as geological issues at both mines.
Following the closure of Kellingley colliery in North Yorkshire, 200 employees are expected to lose their jobs, while another 500 staff will remain at the site until closure, UK Coal said.
Reuters reported that the grant helped the company to close its operations in a balanced way over 18 months.
Image: Thoresby Colliery in February 2007. Photo: courtesy of Martin Loader.