The European Commission has approved the RON 447.8 million (EUR 99 million) financial support that Romania plans to grant for closing two inefficient coal mines, Lonea and Lupeni, which are part of the energy group Complexul Energetic Hunedoara.

The EC ruled that the financial support the state plans to grant to the energy producer for the closing of the mines does not breach EU rules on state aid.

The miners who will lose their jobs following the two mines’ closing will get a financial support totaling EUR 52 million as compensations. The remaining EUR 47 million will be used to cover the losses of the two mines until they will be closed.

The mines will be closed because the Government considers that they don’t have prospects for improving their business. The two units will be shut down by the end of 2018.

Troubled electricity producer Complexul Energetic Hunedoara has been operating at a loss for years. The company filed for insolvency in June but a local court denied its request.

Some 6,300 people work at the company’s thermal power plants Mintia and Paroseni, and in the coal mines of Lonea, Livezeni, Lupeni, and Vulcan. The company has total debts of EUR 332 mln.

editor@romania-insider.com