A trust is to be set up to restore old open cast coal mines across Scotland in the wake of almost 600 job losses in the industry.
Scottish Coal, which operates six mines in East Ayrshire, South Lanarkshire and Fife, announced it is in liquidation yesterday.
Administrators KPMG cited a combination of falling coal prices and rising operational costs.
A group of 142 staff had been retained while administrators consider what to do with Scottish Coal's assets.
Scottish energy minister Fergus Ewing said the government will do all it can to protect jobs in the industry and Skills Development Scotland will help support those who have been made redundant.
The largest job losses in Scottish Coal are at the Broken Cross site at Douglas Water in South Lanarkshire, where a total of 191 posts will go. At the Dalfad mine in Muirkirk, East Ayrshire, 101 jobs have been cut and 89 staff will go at Dunstonhill at Patna in East Ayrshire.
A trust is now being set up to lead operators and environmental groups in the tidy up and restoration of open cast mines.
Mr Ewing said: "We have been working closely with the key stakeholders over the past six months to address the issues facing the coal industry in Scotland and we share the concerns raised by local communities around the responsible restoration of open cast coal sites.
"I am therefore pleased to announce that we are setting up a new trust to help facilitate the restoration of old open cast coal mines across Scotland.
"Whilst our main concern is to retain as many of the existing Scottish Coal jobs as possible, the restoration process itself is expected, over time, to create hundreds of jobs across the country - as well as restoring the local environment."
Professor Russel Griggs OBE, chair of the Scottish Government's independent regulatory review group will chair the trust initially.
He said: "I am grateful for the support and constructive engagement I have had from local councils, landowners and the coal operators over the last few months in developing the new Trust.
"I look forward to working with them to launch the Trust and be ready to help with a fresh approach to restoring old mines."
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