Annexes to COM(2010)372 - State aid to facilitate the closure of uncompetitive coal mines - Main contents

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dossier	COM(2010)372 - State aid to facilitate the closure of uncompetitive coal mines.
document	COM(2010)372
date	January 1, 2011

ANNEX

DEFINITION OF COSTS REFERRED TO IN ARTICLE 4

1. Costs incurred and cost provisions made only by undertakings which have closed or are closing coal production units

The following cost categories exclusively, and only if they result from the closure of coal production units:

(a)	the cost of paying social welfare benefits resulting from the pensioning-off of workers before they reach statutory retirement age;

(b)	other exceptional expenditure on workers who have lost or who lose their jobs;

(c)	the payment of pensions and allowances outside the statutory system to workers who have lost or who lose their jobs and to workers entitled to such payments before the closure;

(d)	the cost covered by the undertakings for the readaptation of workers in order to help them find new jobs outside the coal industry, especially training costs;

(e)	the supply of free coal to workers who have lost or who lose their jobs and to workers entitled to such supply before the closure, or the monetary equivalent;

(f)	residual costs resulting from administrative, legal or tax provisions which are specific to the coal industry;

(g)	additional underground safety work resulting from the closure of coal production units;

(h)	mining damage, provided that it has been caused by the coal production units which have been closed or which are being closed;

(i)

all duly justified costs related to the rehabilitation of former coal mining sites, including:

—	residual costs resulting from contributions to bodies responsible for water supplies and for the removal of waste water,

—	other residual costs resulting from water supplies and the removal of waste water;

(j)	residual costs to cover former miners’ health insurance;

(k)	costs related to the cancelling or modification of ongoing contracts (for a maximum value of 6 months of production);

(l)	exceptional intrinsic depreciation provided that it results from the closure of coal production units;

(m)	costs of surface recultivation.

The increase in the value of the land shall be deducted from the eligible costs for the cost categories referred to in points (g), (h), (i) and (m).

2. Costs incurred and cost provisions made by several undertakings

The following cost categories exclusively:

(a)	increase in contributions, outside the statutory system, to cover social security costs as a result of the drop, following closure of coal production units, in the number of contributors;

(b)	expenditure, resulting from the closure of coal production units, on the supply of water and the removal of waste water;

(c)	increase in contributions to bodies responsible for supplying water and removing waste water, provided that this increase is the result of a reduction, following the closure of coal production units, in the coal production subject to levy.