The funding will be used to replace a an existing tarmac playing field in the village with a one nine-a-side and three five-a-side, Fifa approved football pitches.
The project is expected to be completed by February 2016.
Steve Hyrschko, chair of the trust, said: “By refurbishing this facility we can improve the lives of people in the community and create a place that will develop people’s confidence, teamwork, discipline, health and well-being.”
A programme of activities for all age groups will also be provided as part of the scheme, including sports such as cricket, bowls, boccia and goalball.
The trust took ownership of the Kiveton colliery building and its 7.5 acres of land back in 2o14.
It was financially unviable to redevelop the building, and the land around it offered greater scope.
An extensive consultation throughout Kiveton and the surrounding villages showed overwhelming demand for a new sports facility on the site.
According to the Trust, a subsequent study demonstrated that the sport facility would have the potential to be self-financing and generate a surplus that could be re-invested in the community.
£200,000 in in-kind funds was secured from steel company Harsco, along with £75,000 from Sports England and £308,454 from Power to Change.
“My Dad worked at Kiveton Colliery for 27 years,” added Steve.
“It destroyed his health and he died from emphysema like so many of his generation from our community.
“It is a sweet irony that we will have such an amazing facility on top of the same land to improve the health of this generation and the next.
“This is a great legacy our minin forebears would be proud of,” Steve added.
Kevin Baron, MP for Rother Valley, said he was’delighted’ about the plans.
He added: “This is great news for the Kiveton community.
“Physical activity is a good investment in your personal health.”