Mining (Scotland), the consortium which took over British Coal's Scottish interests in 1994, is to hive off Scotland's lone surviving deep mine at Longannet in a move aimed at raising new investment for the pit.

''The Longannet deep mine has recently been producing record outputs, but requires substantial investment to extend its working life well in to the next century,'' the company said.

''This involves accessing further substantial coal supplies - known as the Kincardine Reserves - stretching under the Firth of Forth.''

The nine opencast sites will continue to be run within the consortium's operating company Scottish Coal. The Longannet mine will be operated as the Scottish Coal (Deep Mine) Company.

Ian Preston, chairman of Mining (Scotland), said that the restructuring was ''absolutely essential'' to secure the future of Longannet.

Nicky Wilson, president of the NUM Scotland, said: ''Our advisers have gone through the restructuring plans and are satisfied.'' The new company will come into being on March 29.