State-owned lignite producer Societatea Nationala a Lignitului Oltenia’s (SNLO) chief Daniel Burlan told the AFP that demand had been dropping and stockpiles rising for several months.

Those workers laid off on Monday and due back on July 15 will receive 75% of their salaries during the furlough.

However, the company is also planning a permanent staff reduction of 600, mostly impacting those nearing retirement age, the news service reported.

No timeline for the cuts was indicated.

Union leader Marin Condescu said the lignite demand issues, primarily due to slowdowns at metal producers and electricity generators, began several months ago.

"Deliveries of brown coal began to fall in the fourth quarter in 2008 and dropped from 18.7 million metric tons last year to 15.2 million in 2009," he said.

Condescu expects Romanian coal mining to continue “until at least 2025”

According to previous media reports, SNLO has about 9000 workers on its total payroll.

The same outlets also pointed to another temporary layoff earlier this year, when 8000 workers were pulled from the company’s mines for an extended Easter leave.