THE prospect of a new hospital being built on the Corus Ebbw Vale steelworks site moved a step closer after engineering consultants said the location was suitable.

And Blaenau Gwent council is urging health chiefs to use the land to build the long-awaited £35 million community hospital.

Last month, Gwent Healthcare Trust threatened to abandon plans for the site near the west gate, exasperated by delays in receiving guarantees that the site was suitable.

The trust said that unless safety guarantees were delivered, it would return to a back-up site for the hospital, next to the existing Ysbyty'r Tri Chwm, also in Ebbw Vale.

But now Blaenau Gwent council says obstacles to developing the hospital at the site have been removed following an assessment by international engineering consultants Halcrow.

Halcrow was commissioned by the Welsh Development Agency and the council to prepare the entire 200-acre former steelworks site for redevelopment.

Engineers have completed their site investigations and the council's chief executive, Robin Morrison, says the company's assessment indicated the location is suitable for the hospital.

"Engineering consultants advising Gwent Healthcare Trust also agree with Halcrow's report," he said.

"We believe any obstacles to develop the hospital on the site have now been removed.

"We are keen the project should be on this site as it would be a huge catalyst for regeneration, not only in Ebbw Vale but for the wider community of Blaenau Gwent."

Council leader John Hopkins was delighted at the results of the assessment.

"We were always confident this part of the steelworks site would be suitable for the hospital," he said.

"It offers the wonderful opportunity of delivering the new hospital within a quicker timescale than any other option being considered, and at a more economic cost."

He added the project would be the centrepiece of the modernisation of the area's hospital services - and a huge milestone in terms of regeneration the whole area.

Besides the hospital, the masterplan for the Corus site proposes a learning campus, residential and business development, a new primary school and a wildlife reserve.