THE British, the largest derelict industrial site in south east Wales, is to be put up for auction after years of discussions have once again failed to make any progress on its future.

The 1,306 acres of disused colliery and iron works in Torfaen has been split into two lots by owners HSBC each with a guide price of £125,000, far below previous valuations of the land.

Residents and councillors now fear the return of the prospect of years of open cast mining at the site which has seen numerous proposals come and go over many years.

Concerns have been raised that any prospective buyer's would propose housing on land, which is also home to the recognisable Big Arch and three other Grade II listed buildings.

Sale agents Watts & Morgan have confirmed receiving interest of both ‘an agricultural nature’ and from ‘developers with various ideas for the land’.

In response to news of the auction, a liaison group has called a public meeting on Thursday at 6.30pm in the Talywain OAP hall.

Group chairman John Cox, 81 said: "I have been pressing the council to compulsorily purchase the site since 2009 but the council won’t even confirm if they will attend the meeting.

"People are worried about what will happen but we've previously had cast-iron guarantees that the infrastructure isn't there for housing."

Abersychan ward councillor Wayne Tomlinson said: “The only way I can see it moving forward is for there to be a joint venture with a developer, the council and the Welsh government as it is going to cost a lot to develop.

“Previous surveys have showed nearly 350 culverts, which shows the depth of the problem. I can’t see it being used for mining as the price of coal is so low, a new development on the site would be for the best.”

Cllr Tomlinson and other ward members Cllr Gwyneira Clark and Cllr Giles Davies confirmed they were in discussions with the council last week about plans to redevelop the site and ‘do not want the site to continue the decline we have seen’.

Opinion is mixed between those who want to see a development on the site and others who don’t.

Christine Lynch, of Cwmbran, who used to live near the site said: “The problem is that whoever owns the site will want to make money. I don’t want a housing estate, I would rather see it turned into a wetland centre or museum.”

Roger Rudge of Elizabeth Row, said: “That site was worth at least £5m so the fact that HSBC are willing to let it go for £250,000 says how much of a hot potato it is.

“I own 14 acres next to the site but can’t get permission from the council’s forward planning team to redevelop and that tells you the amount of problems any new owners will face.”

The site was previously bought with a £5m mortgage by Midlands-based Castlemore Securities, whose subsidiary Talywain Spring planned to transform it into a £100m housing development before going into administration in March of 2009. The company faced public opposition at the time in its plan to extract coal before developing the land.

Since then the site was repossessed by HSBC with talks between Torfaen council and the Welsh government stalling in 2012.

Torfaen’s chief planning officer Duncan Smith said: “The council have, over the years, played a significant role in efforts to achieve the reclamation of The British site.

“We are aware of the decision by HSBC to auction The British site and are actively engaged in discussions with the various parties that could play a role in the reclamation of the site.”

The British will go up for public auction at 7pm on Wednesday June 8 at The Bear Hotel, Cowbridge.