Prague - The Czech government today approved state aid for a phase-out of the Paskov mine in northern Moravia, where mining will continue for three more years and the government will pay 600 million crowns for social programmes for the miners, according to CTK´s information.
The aid is yet to be approved by the European Commission.
It ensues from the agreement between the state and the New World Resources (NWR) firm, which controls the mine, that NRW will maintain the minimal average number of 1800 core employees of the mine. In the course of 2017, the number can be lowered to 1600.
The agreement would become invalid if the price of coal dropped beneath 110 dollars per tonne according to international comparative standards between July 1, 2014 and December 31, 2017.
The mine´s owner, OKD, retains the possibility of operating Paskov after 2017 if it chooses so.
The agreement would also lose its validity if the total of the mine´s net profits were positive for minimally four consecutive quarter-years.
OKD, which faces economic problems, announced last September that it will close Paskov down. Firm representatives said then if the costs of the phase-out were only born by OKD, it would close down the mine as from December 31, 2014. Some 2500 people work in the mine.