Germany Decides to Abandon Coal Mining

Germany will gradually phase out its coal mining, after declaring that it makes no economic sense. Subsidies to phase out the mining over the next decade will cost 30 billion euros ($41 billion.)

A 200-year tradition will come to an end in Europe’s largest economy. On Wednesday, the German government approved phasing out coal mining by 2018.

Germany’s eight coal mines employ approximately 33,000 people. The phase-out is planned to start in 2009, with miners receiving government compensation.
“A great, long era is coming to an end in a socially responsible way,” Economy Minister Michael Glos said Wednesday.

Domestic coal mining isn’t profitable

Coal mining “has no future” Glos said. For decades, the industry has been heavily subsidized to the tune of more than 160 billion euros, he said.

Inexpensive coal from abroad undercuts the expenses associated with heavily-subsidized domestic mining, he said. Seven of the mines are in the western German state of North Rhine-Westphalia. One is in Saarland, which borders France.

The phase-out will cost the federal and state governments 21.6 billion euros. The rest of the money will come from a partial privatization of the industry as well as from the energy company RAG.

Deutsche Welle