THE owners of an historic colliery site say they are now "extremely pessimistic" about whether a plan to save its landmark building and transform an eyesore site into flats will now go ahead.

The Navigation Colliery, a Grade II listed building in Crumlin, was the subject of a proposed development by Bristol-based Edward Ware Homes.

The company was planning a £25million investment, turning one of Wales’ most important post-industrial buildings into 120 homes, ranging from one bedroom to four bedroom flats.

But financial difficulties meant the firm entered into a voluntary agreement with creditors, and the Crumlin scheme was put on hold.

But Jack Hanbury, manager of Pontypool Park Estates which owns the five-acre site, said he has now not heard from Edward Ware Homes for a year.

"I am extremely pessimistic that it is going ahead. I have not had any confirmation from them that this is the case," said Mr Hanbury.

"Obviously we would welcome anyone to come forward who would be interested in developing one of Wales’ most important buildings.

"No-one would allow Caerphilly Castle to crumble down but people seem quite relaxed that Navigation Colliery, one of the most important buildings in the last 150 years and in Wales, is in such a state."

The 100 year-old pithead buildings have stood largely untouched for over 30 years and Pontypool Park Estates have spent £750,000 on its upkeep during that time.

Cllr Vera Jenkins blamed the latest setback on the current economic crisis.

"It’s extremely disappointing news and unlikely that the developers will go ahead with the proposals," said Cllr Jenkins.

"It is a local landmark and desperately in need of regenerating and there has been a long-standing campaign to safeguard its future," added Cllr Jenkins.

A spokeswoman for Edward Ware Homes said: "Edward Ware Homes has entered into a creditors voluntary agreement and are not able to comment any further."