The European Commission has approved public funding to facilitate the closure of the Paskov mine coal in the Czech Republic that primarily produces coking coal, mainly for steel production, and that is considered as uncompetitive and by the Czech mining company OKD. The aid aims to ease the closure process and provide financial support to those working in the Paskov mine. After several unsuccessful attempts made by OKD to restructure the Paskov mine to return it to economic viability, the company decided to close the mine.
In December 2010, the Council of the European Union adopted a Decision on state aid to facilitate the closure of uncompetitive coal mines. The Decision was adopted against the back drop of the European Union's policy of encouraging renewable energy sources and a sustainable and safe low-carbon economy and the diminishing role of indigenous coal in the overall energy mix of EU Member States. Closure aid can cover operational losses subject to certain limits and must be based on an agreed closure plan. The Council Decision requires that a mine receiving closure aid must be wound down by the end of 2018 at the latest.