# CE2004078EN.01050801.xml

| 27.3.2004 | EN | Official Journal of the European Union | CE 78/508 |
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27.3.2004

EN

Official Journal of the European Union

CE 78/508

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(2004/C 78 E/0529)

WRITTEN QUESTION E-3285/03

by Pierre Jonckheer (Verts/ALE) to the Commission

(5 November 2003)

Subject:   Feixolín open-cast coal mine (Valle de Laciana district, Spain)

Subject:

The company Minero Siderúrgica de Ponferrada S.A. (MSP) started to work the Feixolín open-cast mine in 1995. The mine is situated 2 km from the Fonfría mine — the subject of questions E-1892/02 (1), E-1431/03, E-1432/03 (2) and E-2858/03 (3) — and is thus also home to brown bears. The firm applied to exploit Fonfría on the grounds that Feixolín was exhausted. There was indeed a significant reduction in activity, which even came to a standstill once work started on exploiting Fonfría in early 2002, and the mine was therefore considered to be in the restoration phase. However, MSP resumed intensive exploitation of Feixolín in spring 2003, and the mine continues to be worked at full throttle.

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This mine lacks all the requisite permits and statements of environmental compatibility. It was tolerated by local people because they were unaware of its adverse impact on the surrounding countryside and because MSP had undertaken to preserve jobs. This undertaking was broken, since the number of jobs has fallen from around 2 500 to 1 000. In spite of this, MSP continues to threaten local and autonomous community authorities with the definitive cessation of activities if it is not granted authorisation for open-cast mines.

MSP still receives enormous amounts of economic aid to maintain the mine's viability (4), when in fact it is reducing costs by operating open-cast mines and at the same time closing underground mines. The profits obtained both from the reduction in costs and the aid received are channelled to other companies in the same group, through investment in machinery and outsourcing services. This machinery, which is required for open-cast mining, is also used for other types of work not connected with mining such as road-building etc., activities which happen to coincide with the activities of the companies referred to above.

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| 1. | How much European aid has MSP received and for what type of activities? Can the Commission investigate whether there has been any illegitimate use of the European aid received by MSP? |
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1.

How much European aid has MSP received and for what type of activities? Can the Commission investigate whether there has been any illegitimate use of the European aid received by MSP?

| 2. | Does the Commission not believe that the aid granted should be used to make underground mining profitable, as this is the only way of preserving jobs, and also to build up sustainable alternative industries which will guarantee the area's future, action which is not being taken at present? |
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2.

Does the Commission not believe that the aid granted should be used to make underground mining profitable, as this is the only way of preserving jobs, and also to build up sustainable alternative industries which will guarantee the area's future, action which is not being taken at present?

| 3. | Can the Commission include the Feixolín mine in its investigation into the environmental impact of MSP's mines, bearing in mind that the Valle de Laciana has been designated a biosphere reserve by Unesco? |
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3.

Can the Commission include the Feixolín mine in its investigation into the environmental impact of MSP's mines, bearing in mind that the Valle de Laciana has been designated a biosphere reserve by Unesco?

Answer given by Ms Wallström on behalf of the Commission

(18 December 2003)

(18 December 2003)

Minero Siderúrgica de Ponferrada S.A. (MSP) receives State aid each year for coal production. This aid is granted by Spain and authorised by the Commission.

Operating aid granted to MSP in recent years amounted to:

| — | ESP 11 014 million for 1998; |
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ESP 11 014 million for 1998;

| — | ESP 9 924,26 million for 1999; |
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ESP 9 924,26 million for 1999;

| — | ESP 9 633,34 million for 2000; |
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ESP 9 633,34 million for 2000;

| — | ESP 8 934,84 million for 2001; |
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ESP 8 934,84 million for 2001;

| — | EUR 48 million (ESP 7 986,44 million) for 2002. |
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EUR 48 million (ESP 7 986,44 million) for 2002.

The Commission authorised this aid after verifying that the company was carrying out a ‘modernisation, rationalisation and restructuring plan’ aimed at improving the economic viability of the company, through a reduction in production costs. MSP receives per tonne one of the lowest amounts of aid in the EU. The Commission is not aware of any unlawful use of this aid, in terms of compliance with the objectives of Decision No 3632/93/ECSC (5).

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| 2. | The Commission authorises EU aid for the coal industry in accordance with the existing legislation. In future, such legislation will be based on Regulation (EC) No 1407/2002 (6) which enables production units which offer the best economic prospects to contribute to energy security within the framework of sustainable development. Such an objective can be achieved through both underground mining and opencast mining, provided that national and EU legislation is complied with as regards the ‘pillar’ (social, economic and environmental) objectives relating to sustainable development. The Commission cannot intervene in the choice of mining system by a company, but it does monitor compliance with EU legislation.
  As regards the channelling of aid into the creation of alternative industries, the Commission is in favour of economic diversification programmes in mining regions. However, aid provided for in State aid schemes for the coal industry is intended solely for coal production activity and not for diversification activities. In the case of Spain, the Commission has been informed of its 1998-2005 plan for the alternative development of its mining areas, with the objective of regional development, as proposed by the Honourable Member. |
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2.

The Commission authorises EU aid for the coal industry in accordance with the existing legislation. In future, such legislation will be based on Regulation (EC) No 1407/2002 (6) which enables production units which offer the best economic prospects to contribute to energy security within the framework of sustainable development. Such an objective can be achieved through both underground mining and opencast mining, provided that national and EU legislation is complied with as regards the ‘pillar’ (social, economic and environmental) objectives relating to sustainable development. The Commission cannot intervene in the choice of mining system by a company, but it does monitor compliance with EU legislation.

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As regards the channelling of aid into the creation of alternative industries, the Commission is in favour of economic diversification programmes in mining regions. However, aid provided for in State aid schemes for the coal industry is intended solely for coal production activity and not for diversification activities. In the case of Spain, the Commission has been informed of its 1998-2005 plan for the alternative development of its mining areas, with the objective of regional development, as proposed by the Honourable Member.

| 3. | The Commission is currently checking whether the Spanish authorities are properly applying EU environmental law with regard to this company's activities. |
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3.

The Commission is currently checking whether the Spanish authorities are properly applying EU environmental law with regard to this company's activities.

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(1)  OJ C 28 E, 6.2.2003, p. 149.

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(2)  See page 32.

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(3)  See page 180.

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(4)  See E-0342/02, OJ C 205 E, 29.8.2002, p. 122. Both the Uninsa company and MSP form part of the group of companies owned by Victorino Alonso, together with other mining companies which he has been buying up, all of them operating at a loss.

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(5)  Commission Decision No 3632/93/ECSC of 28 December 1993 establishing Community rules for State aid to the coal industry, OJ L 329, 30.12.1993.

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(6)  Council Regulation (EC) No 1407/2002 of 23 July 2002 on State aid to the coal industry, OJ L 205, 2.8.2002.

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