In February, the European Commission authorized RON1.17 billion (around EUR270 million) of Romanian public funding for the closure of three uncompetitive coal mining units owned by CNH.
The authorities in Bucharest have already disbursed RON213 million (EUR48 million) from the subsidy package.
CNH, Romania’s largest debtor, operates seven coal mines and employs 8,800 staff. Four of the seven mines were deemed viable and will continue to operate after the company’s reorganization, while the three non-profitable units are to be shut down in the next years.
Romania has also committed to support miners who are to be laid off and their readaptation in order to help them find new jobs outside the coal industry.
According to the country’s letter of intent to a EUR3.5 billion loan deal with the International Monetary Fund, the government is to launch liquidation proceedings for CNH by end-September. (EUR1=RON4.3791)