HERNE, Germany (Thomson Financial) - RAG Deutsche Steinkohle, the operator
of Germany's remaining hard-coal mines, said it will continue mining in the
German state of Saarland until 2012 at reduced capacity.
At the end of February, Saarland issued a complete halt to coal-mining after
an earthquake induced by mining activities led to severe damage to buildings in
the region. RAG Deutsche Steinkohle operates Germany's eight remaining hard-coal
mines.
RAG will shut two of its mines in the region as "threats to life or physical
condition" cannot be ruled out there, according to a statement the company
issued yesterday.
In its other mines, operations will resume as soon as possible, it said.
The proportion of solid rock is much lower in these mines than in the ones
that will be shut, and the company there mines coal from a depth of 800-1,000
meters, compared with 1,500 meters in Primsmulde, one of the mines that will be
shut.
The supervisory board will meet again on April 2 to discuss concrete plans
to exit coal mining in Saarland in 2012.
Germany plans to eliminate hard-coal mining, which is limited to the
historic mining regions of Saarland and North Rhine-Westphalia, and phase out
related subsidies by 2018, as German hard-coal is not price-competitive.
The sudden halt to hard-coal mining affects German utilities RWE AG and E.ON
AG that operate several hard-coal fired power plants in Germany.
maria.sheahan@thomson.com
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