Italy govt creates fund to offset Aloca, coal mine closures

MILAN Tue Nov 13, 2012 3:46pm EST

Related Topics

MILAN Nov 13 (Reuters) - The Italian regional and national governments have created a 451 million euro ($573.27 million) fund for the economic development of the area surrounding an Aloca aluminium smelter that is slated for closure at the end of this year.

The Sulcis area, in the south-western region of the island of Sardinia, is threatened with unemployment from the looming closures of the Carbosulcis coal mine, as well as the U.S. aluminium group's smelter.

With more than 1,000 jobs in the area at risk, the industrial crisis hitting the impoverished Mediterranean island of Sardinia is a political hot potato for technocrat Prime Minister Mario Monti as he fights to keep costs down and contain Italy's high debt.

With Alcoa set to leave Italy, the government is looking for a buyer for the smelter, which produces around 8 percent of Italy's aluminium needs.

An Italian junior minister said in October that three companies have expressed interest in the smelter that Alcoa decided to shut due to high power prices.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

How to get out of debt

Financial adviser Eric Brotman offers strategies for cutting debt from student loans and elder care -- and how to avoid money woes in the first place.  Video