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Bucharest
October 21, 2021
COMPANIES ECONOMY ENERGY

State spends over RON 105 M to Jiu Valley mines

Consistent with its programme to limit mining as rapidly as possible, this year the Government will pay subsidies in excess of RON 105.119 M to the Jiu Valley Mine Closing National Company.

Half of the sum to be spent this year, namely RON 52.558 M, represents state aid meant to cover production costs, while the rest, RON 52.561 M, represents state aid meant to cover exceptional costs. This includes severance payments (RON 9.329 M) and mine closing operations (RON 33.899 M).

Of the sum earmarked for mine closing operations, RON 10.926 M will be spent on works meant to ensure underground safety, RON 16.509 on the rehabilitation of mines, RON 6.646 on environment rehabilitation and RON 9.333 M represent benefits for pensioners.

The company’s total revenues stand at RON 158.771 M, while its expenditures total RON 158.589 M.

“The revenues, forecast at RON 158.771 M, are correlated to the level of expenditures (RON 158.589 M), the overall result being positive, namely RON 182,000, resulting from the sale of ferrous waste resulted from the scrapping of fixed assets. The volume of physical production, taken into account when calculating revenues from sold production, stands at 283,000 tons of extracted bituminous coal, with an average heating value of 3,499 kcal/kg, resulting a net production of 280,000 tons at a recovery rate of 98.94 percent, corresponding to a total quantity of 979,700 gcal,” reads the explanatory note of the project posted on the Energy Ministry’s website.

The authors of the document also show that the number of employees stood at 1,139 at the end of 2015, down from the 1,189 level approved in the amended budget of 2015. The lower level is the result of labour contracts cancelled at the end of 2015, at the employees’ request, in line with Art.55 of Law no.53/2003 concerning the Labour Code, the employees that filed the requests not benefitting from severance payments.

The Jiu Valley Mine Closing National Company is managing the activity of mines that have been included in the mine-closing programme agreed with the European Commission and set to run until 2018. The mines closed as part of this programme are the Petrila, Paroseni and Uricani mines. Petrila, the country’s oldest bituminous coal mine, was closed last autumn.

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