RON10.848 million of the total amount will be used for severance pay to employees who lose their jobs.
The state aid is entirely covered from the state budget, through the Energy Ministry’s 2019 budget.
In accordance with the provisions of the European Commission Decision no. 787/2010 regarding state aid to facilitate the closure of uncompetitive coal mines, and after analysing the technical-economic situation of the mining units within CNH, it was decided that coal mines Petrila, Paroseni and Uricani will be closed between 2011 and 2018. To access the state aid granted under the European legislation, CNH drafted a mine closure scheme and the papers needed to fund closure-related costs for the three coal mines. The papers were sent to the European Commission for approval.
On February 22, 2012, the European Commission authorized RON1.169 million (around EUR270 million) of Romanian public funding for the closure of the three uncompetitive coal mining units, between 2011 and 2018.
State-run mine closing company Societatea Nationala de Inchideri Mine Valea Jiului (SNIMVJ) was established in 2012.