An historic iron foundry in Walsall accused of polluting the air with harmful chemicals has paid out more than £1 million following a five-year battle.

More than 150 residents campaigned to get the Government and Walsall Council to dust emissions from Chamberlin & Hill Castings, in Chuckery Road.

Today the company, which had breached Government air standards 70 times in one year alone, confirmed it had settled out-of-court with five residents who had decided to take legal action.

Most of the money has been spent on solictors costs for both sides but the firm refused to disclose today how much compensation was paid out to the homeowners.

People living in nearby Nutmeg Grove and other streets, first discovered dust was regularly settling on their houses and cars in 2004.

Officers called in to tackle the problem discovered fine particles called PM10 which, a report to the council’s cabinet said were “known to have important implications for human health” .

Chamberlin & Hill Castings said the payout was in the best interests of the shareholders. Full details of the settlement will remain under wraps, it said.