The Romanian government will provide around EUR 37 million in state-aid this year to help close down uncompetitive coal mines in the Valea Jiului. The money will go towards covering current production losses and exceptional costs.

The majority of the government money will be spent on production losses, some EUR 30 million. The remainder will cover exceptional costs incurred by the coal mines in the area near Western Romanian city Târgu Jiu, according to a draft government proposal seen by local news service Mediafax.

Two years ago, the European Commission (EC) approved state aid of around EUR 270 million for the closure of the Petrila, Paroseni and Uricani coal mines by 2018. The closure scheme drafted by the National Coal Company (CNH) Petrosani, which runs the mines, includes laying-off 3,300 employees.

Over the last two years, the government has provided the mines with around EUR 78 million in state aid, some EUR 30 million in 2011 and the rest last year.

editor@romania-insider.com