The Romanian Government has endorsed the allocation of a EUR 32 million state aid to close down the uncompetitive coal mines in the Jiu Valley, southwestern Romania.

The state aid comes entirely from the state budget, through the Energy Ministry’s budget, reports local Hotnews.ro.

Of the seven coal production units the National Coal Company (CNH) Petrosani owns, the state deemed three uncompetitive, namely Petrila, Paroseni, and Uricani. The deadline to close them is 2018.

An institution founded in 2012, called the National Society for Coal Mines Closures Valea Jiului SA, will manage the state aid.

Some EUR 5.7 million of the entire amount will cover staff compensation packages.

editor@romania-insider.com