July 25 (SeeNews) - Serbia's government said it plans to launch procedures for the closure of two unviable mines of state-owned coal mining company Resavica by the end of the year.
"By end-2018, we will begin the closure procedures of two unviable mines," the Serbian government said in a statement on the 30-month Policy Coordination Instrument-supported programme agreed on with the International Monetary Fund (IMF), according to a document posted on the website of the Fund on Tuesday.
The government is developing an action plan for the Resavica mines with the assistance of the World Bank and intends to update the closure timetables for at least two additional unviable mines by the end of 2018, it said.
Moreover, the government will develop a voluntary social programme and labour optimisation plans and ensure that sufficient resources are allocated in the 2019 budget.
In November 2016, the IMF recommended to Serbia to take decisive action to end the drain on public resources by large utility companies and other state-owned enterprises, calling for clear plans for the resolution or restructuring of companies RTB Bor, Resavica, Petrohemija, Azotara and MSK.
Resavica operates nine underground coal mines in Serbia. The company currently has 4,021 employees, according to data published on its website.