EMCC European Monitoring Centre on Change

Siderit

Company/Organisation:
Siderit

Geographic Location

Country: Slovakia
Region: Kosicky kraj; Vychodne Slovensko
Location of affected unit(s): Nižná Slaná

Company

Sector: Mining / quarrying
Mining and quarrying
07 - Mining of metal ores
Number Employed: 600

Employment Effects

Announcement Date: 28-10-2008
Planned Job Reductions min: 600
Planned Job Reductions max: 600
Type of Restructuring: Bankruptcy/Closure
Foreseen End Date: 30-11-2008
Direct Dismissals: 600

Additional Information

Siderit Company, the last Slovak iron ore mine based in Nižná Slaná, is to close due to bankruptcy and dismiss all 600 employees by the end of November 2008. The main reason is the company’s inability to pay off a SKK 200 million debt to the Slovak Gas Company SPP. The bankruptcy took place in spite of more than SKK 100 million state subsidies provided to the mine. People hesitate to accept employment in the coal mines in Nitra region because of hard working conditions and long commuting time.