RECLAMATION has begun on the last derelict pit site in a town once dominated by the coal industry.

The £3.4m scheme will transform 34 acres around the former Seaham Colliery.

Community leaders gathered at the site on Friday at the start of the first phase of the scheme, which will see 220 homes developed.

A network of footpaths and cycleways will link the new housing to surrounding parts of Seaham.

The initial reclamation stage of the scheme, which has won funding from English Partnerships' National Coalfields Programme, is being co-ordinated by the site owner, regional development agency One NorthEast.

John Williams, deputy chairman of One NorthEast, said: "The Seaham area has undergone massive change over the last few years and the clean-up of the last colliery site marks an important milestone in the town's transformation.

"The housing and recreational space provided will improve the quality of life for the local community."

Paul Wilding, Easington District Council's chief executive, said: "The council and all of its partners have worked together for the last ten years to regenerate Seaham.

"This has included regenerating the port, establishing an enterprise zone and reclaiming the former collieries.

"It's really marvellous to see the plans coming to fruition."

Euan Hall, director of coalfields and joint ventures for English Partnerships, said the start of the project marked an important step in an area which had undergone "fundamental changes" since the demise of the coal industry in the late Eighties and early Nineties.

He said: "By working together with One NorthEast and the local council we have achieved much, but there's still much more to be done.

"This new round of funding will ensure that the former colliery is part of the area's transformation, ultimately bringing new homes and communal areas for the local community."

It is the latest sign of the removal of evidence of the town's links with the coal industry, with factories already springing up on the former Dawdon Colliery.

Contractors are also on site revamping the former Vane Tempest Colliery, where 650 homes will be built.