EC approves EUR 270 mln state aid for closure of three coal mines in Romania

The European Commission has approved EUR 270 million in aid for Romania to close three uncompetitive coal mines owned by the National Coal Company JSC Petrosani (CNH SA).

One of the mines, Petrila Colliery in Jiului valley, would close by the end of 2015. The other two, Uricani and Paroşeni Collieries, by the end of 2017. The company owns seven coal mines. Petrila mine got media attention four years ago, when an explosion killed 12 miners and injured 14 others. Romania is committed to carrying out accompanying measures to mitigate the social and environmental impact of the closure. EC aid for the closure of uncompetitive coal mines allows public authorities to grant, under certain conditions, aid to the coal industry, aiming to close down all uncompetitive hard coal mines by December 2018. Romania plans to gradually decrease the overall amount of aid granted to cover production costs for coal mines. Its plan includes measures to reduce the environmental impact of coal production. Romania has also committed to support miners who are to be laid off and help them find new skills and jobs outside the coal industry. editor@romania-insider.com