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will enter the closure process this year after several postponements
the European Commission approved state aid to finance the closure of the two mines in 2018
The closure plan has been updated and re-notified to the European Commission
and now the Ministry of Energy has prepared a new draft government decision to close them
The two mines belong to the Hunedoara Energy Complex
which has been in insolvency for several years
its Mintia thermal power plant has been sold to Mass Global Energy Rom
a major global energy producer with capacities of over 8,500 MW
State aid worth RON 27 million from the Ministry of Energy budget will be granted for this operation this year
This amount will cover costs of severance payments to employees who lose their jobs (RON 186 thousand); costs of vocational retraining (RON 60 thousand); costs of recultivation of areas (RON 26,996 thousand)
CE Hunedoara’s failure to comply with the conditions undertaken in order to obtain state aid to facilitate the closure of uncompetitive coal mines leads the Ministry of Energy to apply the necessary measures to recover it
State aid for 2023 is a support measure that is part of a wider plan of measures
aimed at closing the uncompetitive mines of the insolvent Complexul Energetic Hunedoara S.A
These support measures are granted up to and including 2024 and have been notified to and authorised by the European Commission
The closure of the two exploitations requires extensive safety work to avoid the risk of self-ignition
According to a study conducted by the Główny Instytut Górnictwa
which validated the assessment and risks previously identified by the Romanian experts
coal has to be mined for a period of about 4-6 years in the process of mine closure
which requires the extension of the closure period of Lonea and Lupeni mines
the work to secure the hard coal deposit will be carried out until 31 December 2024
followed by the final closure and land greening works in 2025-2026
given the similar nature of the coal beds at the Vulcan and Livezeni mines
measures similar to those established for the Lonea and Lupeni mines are required
The Vulcan and Livezeni mines are mining exploitations located in the same coal basin of the Jiu Valley and present the same risks of coal self-ignition
According to the results of the Polish study
the safe closure of the Livezeni and Vulcan mines can be achieved through the mining of hard coal by 2030
while the final closure and land greening works will be carried out by 31 December 2032
and since then mining activity has been almost uninterrupted here
the Government adopted the Emergency Ordinance on the decarbonisation of the energy sector
it may be decided to postpone the closure of some coal-fired power plants or restart some energy groups
the closure and safety period for coal mines
it could be decided – in the event of a crisis situation – to extend their closure until 2026
as well as to close and secure the Livezeni and Vulcan mines until 2032
After the great liquidation of the mining sector in the late 1990s
the Jiu Valley region never recovered economically
which led to massive depopulation and an ageing resident population
The liquidation of the last remnants of mining in the coming years will put even more pressure on the inhabitants of these areas
in the absence of viable livelihood alternatives
the government launched the “Strategy for the economic
social and environmental development of the Jiu Valley (2022 – 2030)” in an attempt to revive the area
the Government will be able to use non-reimbursable European funds made available through the Just Transition Mechanism for regions in energy transition
but which will generate investments estimated at €30-35 billion
plus European money from the Innovation Fund
The new strategy has a lot of European money at its disposal
the only question mark being the authorities’ ability to develop the projects needed to attract it
nine of which have been greened up and two others – Uricani and Paroșeni – are in the process of being greened up
The Lonea Mining Exploitation and the Lupeni Mining Exploitation are in a closure programme in accordance with Decision 2010/787/EU
supplemented by Decision C(2018) 1001 final
with the prospect of completing underground closure works by the end of 2026
recultivation of the surfaces by the end of 2027
it is stated in the Strategy for the economic
social and environmental development of the Jiu Valley (2022-2030) published by the Romanian Government
Insufficient tax incentives to attract investors
In order to support the efforts to attract investment in the Jiu Valley
the possibility of higher state aid will be examined
as the measure has been tried in the past when the Jiu Valley was declared a disadvantaged area and the investments made benefited from a preferential tax regime
this measure has proved insufficient to attract investors for several reasons
The area lacked a well-qualified workforce
poorly developed transport and social infrastructure etc
The Government is betting heavily on the development of tourism in the Jiu Valley
this sector will be insufficient to absorb the workforce
about 6,200 unemployed people were officially registered in the area
of which those with a high school education had the highest share
Romania has drafted the decision to grant RON 110 million (EUR 22.6 million) for the…
Romania
Vladimir Spasić
0
The decision is being prepared by the Ministry of Economy and Energy
Jiu Valley is Romania’s best-known coal region
It is one of the European Union’s 20 coal regions
those that are heavily dependent on mining of the fossil fuel and coal-fired power plants and included in the EU’s Initiative for coal regions in transition
It was launched by the European Commission in December 2017 as part of the Clean Energy Package for All Europeans to help coal regions in transition from high to low carbon society
The closure of coal mines Lonea and Lupeni was planned for the end of 2018
The closure of the two coal mines was planned for the end of 2018
Now the plan is for the Lonea mine to be closed at the end of this year
The grant will be approved for CE Hunedoara as state aid
The money will be used for payments to employees
costs of the closure of the mines’ pits and the recultivation of the area
The company operates two more coal mines in Jiu Valley – Vulcan and Livezeni
and coal-fired power plants Mintia and Paroseni
More than ten mines were closed in the valley in the last 20 years
costs of the closure of the mines’ pits and the recultivation of the areas used for mining
The state aid was approved by the European Commission
In June, it launched the Just Transition Platform to help member states draw up their territorial just transition plans and access funding from the Just Transition Mechanism, valued at more than EUR 150 billion. The scheme is envisaged by the European Green Deal
A few weeks later, Romanian Prime Minister Ludovic Orban said coal is doomed
He added the EU’s carbon emissions target may wipe out two fifths of the current domestic power production capability
In order to help citizens of the Jiu Valley, nongovernmental organizations Greenpeace and Bankwatch Romania presented a report on scenarios for the just transition of Jiu Valley
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over 100 miners in Lupeni mine in Valea Jiului (Jiu Valley) – a mine that is still functioning but that is earmarked for closure following negotiation with the European Union – refused to come out when their shift ended and declared a strike
hundreds of miners in the region protested in solidarity
The immediate reason for the strike is clear
The company that hires the miners (Hunedoara Energy Complex) is bankrupt and hence was unable to pay their salaries and bonuses for some months
the situation is much more dramatic than that and the causes are systemic
Chief among them is de-carbonization and the social costs of moving away from fossil fuel
their protest was quickly politically instrumentalized in both old and novel ways – to which I will return below
The Jiu Valley has been the most important coal-extracting region in Romania and key for its modernizing and industrializing efforts throughout the 20th century
Socialist modernization expanded the area exponentially and after the second oil crisis in 1979 coal was expected to completely replace oil in the local production of energy in order to lower costs
in the Valley around 70,000 miners extracted approximately 12 million tons of coal per year
High intensity levels of labor exploitation
coupled with below par levels of work conditions and compensations
led to frequent negotiations and clashes between the government and the workers
the most significant labor action under Romanian socialism
The political militancy of the miners was well known historically
a strike in the Lupeni mine against harsh working conditions and austerity was brutally repressed by the government when the army killed 68 miners – one of the bloodiest labor militancy episodes in the interwar period
The situation of the miners quickly deteriorated after 1989
when the political economy dramatically changed
and too inefficient to make economic sense
Forced to leave the area as mines began to shut down
the miners could not sell their houses for lack of buyers
Some of the state’s assets were privatized
others were simply closed and left to ruin
Those who stayed in the area were unable to sustain the cost of urban infrastructure
One of the key processes in the area was the disconnection of flats and houses from the central heating system
With few customers and huge levels of unpaid bills
the local electrical power-plants scaled down their activities
which meant reducing the amount of coal they bought from the still-existing mines
the miners were in effect further reducing their job prospects
the entire area switched from coal to timber for heating
precisely the inversion of the transition that the socialist urbanization of the area had implemented earlier on
decarbonization in the area entailed not only de-urbanization but also the formation of a hybrid type of living environment in which some traditional urban features (such as blocks of flats
etc.) coexist with forms of rural living and economic relations
The political decision to close down the mines was made in the early years of the first post-communist government. However, politicians had to compromise with the miners when faced with their labor militancy. Organized groups of miners descended on Bucharest on several occasions in the early 1990s, significantly altering the political life of the capital; these events are known as Mineriade in Romanian
the miners became figures of socialist working-class brutality
about half of the miners were laid off after receiving between 12 and 20 salaries as compensation
around 1,000 miners are laid off every year
Romania’s EU ascension sped up the process; therefore
only four mines exist today out of 15 in 1990
these mines are also expected to close in accordance with EU requirements
and the remaining 4,000 miners will be laid off
The miners in Lupeni know this very well; they just hope to get their remaining salaries on time until then – a fact that seems unlikely
The company that hires them is bankrupt and in mounting levels of debt
and objective economic constraints all played their part
the company will close down and with it the activity of mining as such
The closure of the mines resulted in the social devastation of the area alongside the already ecological one
after more than a century and a half of mining
Lacking the previous solidarities formed around labor and a shared sense of belonging and pride
the miners were unable to fight back collectively
except for some isolated cases of bargaining
Migration became the only available option for many
either as cheap migrant laborers to the west
or as agricultural workers in their home villages
Gender and family relations were severely altered in the process
While the decarbonization process brought women
traditionally confined to the household in the miners’ universe
and thus offered them a renewed sense of agency
they became casual laborers in regional and continental networks of precarious and poorly paid work
industrial domesticity was replaced by agricultural domesticity and a completely different type of housework and care
It is estimated that about half of the population of the Jiu Valley left in the three decades after 1989
Those who stayed faced specific and unforeseen challenges
Miners’ solidarity gave way to a clear distinction between those who readily accepted the compensation from the state and those who did not and remained to work as miners until the end
This moral conflict further altered the social fabric and led to the destruction of the previously existing networks of trust and comradeship
the closing of the mines was not an even process in terms of consequences
it meant immiseration and social dislocation
for a select segment it brought in handsome profits
One way to achieve this was to become the sole provider of materials the mines needed in their daily activities; the other was to act as intermediary between the mines
This led to an increased internal differentiation and class conflict inside the Jiu Valley itself
which underscores the uneven and highly contextual consequences of decarbonization in the area
Coping mechanisms for those who stayed in the region were diverse
but generally combined small-scale entrepreneurship (like mini-markets and bars) with informal labor
such as illegal timbering for men and mushroom picking for women
Decarbonization entailed not only deskilling but also de-urbanization and a return to village-like economy
State efforts to mitigate the impact of decarbonization were ill conceived
The mining industry entailed not only extraction per se
but also a host of other institutions orbiting it and helping with its reproduction
They were either abandoned or privatized as the mines were closed down and the miners began to
The state and NGOs envisaged tourism as a solution for regenerating the area and for reallocating labor
but the investment was paltry compared to the funds required
Employees of the state institutions in the area
including a university that in the past educated future mining engineers – a specialization now redundant – constitute an important segment of the population that dispose of constant income and thus can sustain the modicum of economic life from further collapse.
This is the wider historical and social context in which the most recent protests in the Valley (as the region is fondly called by locals) must be understood
a self-proclaimed Thatcherite that is currently pursuing an austerity agenda for public workers
reacted to the miners’ protests by stressing that during his mandate he will now allow another Mineriada
there was not even the slimmest chance of that
His message was intended to mobilize the old anticommunist trope of the brutish miners keen to descend on the capital and run havoc
It was part of the well-known arsenal of the old right-wing for demonizing and de-humanizing the miners as a violent
retrograde social category that does not deserve help or solidarity
His speech had the desired performative effect
since many social media users rushed to condemn the miners in vitriolic terms
as writer Vasile Ernu noted in his op-eds on the issue in a local newspaper
the old prejudices against the miners were also couched in green concerns
pointing to the climate cost of extracting and burning coal
This conflict is well known in other areas experiencing decarbonization and it already played out locally during the protests to Save Roşia Montană in 2013
when the economic wellbeing of the gold miners was opposed to the environmental concerns
Finding a right balance between the two is
and this type of conflict will escalate further when decarbonization policies (mostly related to oil and gas) will accelerate in the near future
how the urban and more educated oilmen and women will react when faced with the decarbonization of their industry
it is important to note how the latest protest in Lupeni occasioned the emergence of a different type of populism in Romanian politics
was the only high-profile politician to visit the miners and rally to their cause
who entered the Parliament recently with the extreme-right party AUR (Alliance for the Union of Romanians) but was expelled following an argument with the leadership
has been a very vocal critic of the lockdown measures and of the legal imposition of mandatory masks in public
Her “in your face” and confrontational style made her a darling of televisions and her popularity soared
Her solidarity with the miners is part of a carefully calculated political ascendancy
she set the basis for a very coherent populism that denies climate change and pins the blame for the closure of mines on local politicians subservient to the EU and other nefarious foreign interests
Șoșoacă is the first public politician since the 1990s who took the side of the miners and refused to see the closure of the mines as a fait accompli
As it is the case with right-wing populism
this is another example of a false friend that promises to save workers by way of cheap tricks
Vague echoes of Trumpism could be heard in her 10-minute-long speech
While for the miners the historical dices are rolled
their unwilling political instrumentalization might lead to a new form of populism
30 years after their ideological construction as toxic remnants of communism
the miners continue to remain important subjects of political dispute
while their immiseration deepens and their social standing worsens
Note from LeftEast editors: this article is published in cooperation with the Eastern-European regional portal Bilten.
Florin Poenaru is an anthropologist and co-editor of CriticAtac
He works on issues of class and post-communism
This year the government will allocate state aid worth RON 143.4 million (EUR 32.3 million) in order to properly shut down the uncompetitive coal mines of the Valea Jiului Petrosani Mine Closure National Company
State aid is borne entirely by the state budget
Small and Medium Enterprises and Business Environment
and it was approved by the European Commission in 2012
Petrosani National Coal Company (CNH) owns seven coal production units, respectively Lonea, Petrila, Livezeni, Vulcan, Paroseni, Lupeni and Uricani.
The mines within CNH considered to be uncompetitive are Petrila
The total amount will be split for the energy coal delivered by the mines undergoing final closure process
which will receive RON 93.3 million (EUR 20.9 million) to cover the current production’s losses
respectively for the units in the final closing process
which will be allocated RON 50.1 million (EUR 11.2 million) for costs not related to the current production
Moreover, the amount of RON 25.8 million (EUR 5.8 million) will be used for compensatory wages, while for the works related to the mine closing will be used RON 24.3 million (EUR 54.6 million).
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