The state aid comes from the state budget, through the Ministry for Energy and was approved by the European Commission in 2012.
The state-owned coal mining company CNH owns seven coal mines: Lonea, Petrila, Livezeni, Vulcan, Paroseni, Lupeni and Uricani. Petrila, Paroseni and Uricani are considered noncompetitive and should be shut down by 2018.
The remaining coal mines were included in 2012 in a new energy holding, CE Hunedoara, together with thermal power plants Deva and Paroseni.
The European Commission authorized Romania in 2012 to assign state aid of RON1.17 billion (around EUR270 million) in view of shutting down three coal mines in the interval 2011-2018.