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According to the report RAG coal mining subsidiary Deutsche Steinkohle (DSK) spent €163 million ($US211 million) more than its government subsidies in 2006.
A member of DSK’s board told Der Spiegel magazine that if the company could not reduce the gap by the end of this year – or if the Government did not increase coal industry subsidiaries – one of Germany’s eight mines could be closed with the loss of at least 3000 jobs.
Currently Germany has until 2018 to wind down its coal industry, but a final decision on the date will be made in 2012. German mines currently receive about €60 per ton but the cost of producing that ton from current operations in about €190, according to DW-World.
“We are looking at the situation with great concern. The consequences of this situation will be discussed as part of an extraordinary supervisory board meeting with the DSK," RAG spokesman Christian Kullmann told the Associated Press.
