SHEERNESS steel mill workers will lose their jobs unless the plant wins a tough new operating permit.

News that the mill faces the possibility of closure with the loss of about 140 jobs came in a letter from the Environment Agency.

It told a Sheppey resident who had complained about smells and noise from the plant that mill owners Thamesteel had had to apply for a fresh permit under new European rules to curb pollution.

Terms of the mill's current permit prevent the Environment Agency from getting involved in noise issues but a new permit - if granted - will introduce a more rigorous regime covering emissions of both fumes and noise.

The agency stressed that if the mill is to continue operating it will have to comply with "explicit conditions regulating noise".

But Keith Plowman, the mill's general manager with responsibility for quality assurance and other matters, said he was confident the plant would win a new permit. "Of course we will," he said. "It's only an alteration to the law."

The letter, written by Kent area manager Dr Binny Buckley, said: "We are currently considering this application and will only issue a permit if we are satisfied that the plant will be operated using 'best available techniques' and without breaching any of the statutory limits.

"We are far from certain that this is the case at the moment and are undertaking considerable work to enable us to make a proper assessment."