Doing Business with Romania - Über die Osec

Extractive Industry
Energy Products (Mining and quarrying of energy products)
Coal Mining
Overview
o Romania has coal reserves estimated to 545 million short tons;
o According to the 2008 BP Statistical Energy Survey, in 2007 Romania had a coal production of
35.41 million t. and a consumption of around 30 million t (9.01 million t oil equivalent);
o Virtually all production is used for power generation, with coal accounting for 29% of Romanian
energy production;
o More than 90% of Romanian coal reserves are located within the basin of Oltenia Region;
o More than 80% of Romanian lignite reserves can be mined profitably in opencasts, whereas the
remaining 20% require underground mining;
o Two state-owned companies are responsible for lignite and brown coal production, National
Lignite Co Oltenia (CNL Oltenia) and National Coal Co Ploieşti (SNC Ploieşti), whereas one
company is responsible for hard coal production - National Hard Coal Co Petroşani (CNH
Petroşani);
o CNL Oltenia is the major lignite company. It produces around 35 Mt from 6 open pits and 5
underground mines;
o Surface mine technology is predominantly bucket wheel-based, while the underground mines
operate ten modern long walls.
Issues
o Coal is between 50%-200% heavier on the same energy unit, which makes transportation a lot
more difficult;
o Coal extraction is done with the help of liquid fuel operated machinery. Therefore, the increase in
oil price will trigger an increase in the price of coal;
o Coal has a recovered energy/invested energy report of 8 -18 to 1; it is estimated that in 2030-40,
the report will be of 1 to 1, which means that in order to produce a coal cart, the energy of a coal
cart will be necessary (oil has the report of 40 - 60 to 1);
o Romanian coal has an energy content of about 1 400 kcal/kg, while in Germany, the energy
intake is of 3 000 kcal/kg and that of the United States is of 6 000 kcal/kg;
o The coal industry is one of the biggest debtors to the Romanian state, owing about RON 379
Million (about EUR 88 Million);
o A large number of employees have been made redundant over the past years;
o The miners used to protest in a very violent way in the years before 1989, being a major social
problem.
Opportunities
o The coal industry is being restructured. For this purpose the Government has allocated over USD
2.2 billion between 2004-2010
o The European Commission approved the state help funds for the Romanian coal industry
between 2007 and 2010. Thus, the coal and uranium industry received in 2008 a subvention of
almost RON 350 million (around EUR 81 Million);
o Romania has enough oil and gas proven reserves for 15 years and uranium for 18, whereas coal
is sufficient for about 30 years – giving the state and investors enough time for necessary
investments;
o Romania’s intention is to erase the debt of the coal industry to the state, in order to attract foreign
investors;
o Coal is getting more expensive on an international level and thus, the Romanian coal industry is
turning into a real attraction for foreign investors.
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