Today : Mar 14, 2025
Economy
14 March 2025

Romanian Government Approves 3.9 Billion Lei For Mine Closures

This aid aims to support miners and promote safety as four mines are phased out by 2032.

The Romanian government has announced significant financial support for the phased closure of mines in Valea Jiului, by approving state aid of 3.9 billion lei (approximately 800 million euros) as part of its efforts to manage the region's transition away from coal mining.

On March 13, 2025, the government issued an emergency ordinance to facilitate this transition, marking a significant step for the troubled mining sector. Minister of Energy, Sebastian Burduja, indicated during the announcement at the Victoria Palace, "The Romanian Government transposed the decision approved at the level of the European Commission," highlighting the European framework supporting this initiative.

The allocated funds will support the closure of four mines within the Valea Jiului area over the next several years. The schedule includes the closure of the Lonea mine by the end of 2025, followed by Lupeni on June 30, 2026, and Vulcani and Livezeni by the end of 2030. Burduja confirmed, "The aid will help close and secure the four mines: Lonea, Lupeni, Vulcani, and Livezeni," ensuring miners are taken care of during this transition.

The aid package is not just focused on closing the mines; it also aims to safeguard the jobs of miners who will be affected by these changes. To facilitate this, over 225 million lei is designated for compensatory payments to support former miners during the transition. Another 5.97 million lei will fund professional reconversion programs aimed at helping these individuals integrate back onto the job market.

"This is necessary but very strictly monitored," Burduja emphasized, assuring the public of rigorous oversight. The Ministry of Energy is set to hire independent experts to oversee the implementation of these funds and assess all technical works and invoicing related to the closures. This includes ensuring proper safety measures are maintained during the transition, to prevent accidents, pollution, and maintain the ecological integrity of the region.

The decision follows extensive negotiations with the European Commission to secure backing for this initiative. Across Europe, similar support measures have been adopted to help smooth the transition from coal to greener energy sources as part of broader environmental objectives.

Burduja voiced awareness of the historical significance of coal mining for Valea Jiului, emphasizing, "I'm aware of the challenges facing communities. Thousands of families built their existence around this industry, and energy transition must prioritize their welfare." The assistance scheme aims not just to stabilize the economy but also to promote new opportunities within the region, shaping it for future energy production possibilities.

The Romanian government plans to stimulate investments aimed at renewable energy sources and natural gas through this transitional effort. Areas under consideration for development include projects for biomass fuel production, solar energy centers, and gas-fired power plants, which will help maintain Valea Jiului's status as an energy producer within the country.

Plans under the new emergency ordinance include measures for the underground site safety, ecological rehabilitation, and the controlled handling of superfluous coal to avoid environmental degradation. This transition to greener energy sources reflects Romania's commitment to broader EU energy goals, fostering both ecological responsibility and social equity for mining communities.

Burdja's remarks underscored the balancing act required between energy policy, economic realities, and the livelihoods of miners: “This plan is strategic for Romania as it addresses the complex nature of our energy sector and proposes viable solutions for ensuring continuous energy supply, protecting consumer interests.”

He also noted the potential risk of community unrest during this transformation as the reliance on historical mining jobs diminishes. The government is on track to engage local stakeholders to facilitate these changes seamlessly.

Overall, this initiative positions Romania at a pivotal moment to redefine its energy future, ensuring the well-being of its miners and the communities they have supported for generations. These efforts underline the urgency of transitioning away from coal dependency amid growing environmental concerns and the shifting dynamics within the energy market.