Velenje
Slovenia's last coal mine may close by 2027—economics, not politics; €403M government takeover manages transition for sunny city built on lignite.
Velenje operates Slovenia's last coal mine—a lignite operation that may close before its 2033 target date, not from policy pressure but from economics. The mine produced 2.44 million tonnes in 2023, supplying the Sostanj power station that provided district heating for the Šalek Valley. In 2024, the government agreed to pay €403 million to take over operations generating €150-200 million in annual losses.
The irony is stark: Velenje ranks among Slovenia's sunniest cities, yet its economy depends on burning fossil fuels. Gorenje, the appliance manufacturer, moved headquarters here, diversifying employment beyond extraction. The €70 million municipal budget (2024) reflects both industrial strength and transition anxiety. A January 2025 mine accident—three workers killed when water and mud flooded a tunnel—reminded residents of extraction's ongoing risks.
The city has committed to climate neutrality, investing in transformation while coal still pays wages. The just transition framework provides EU funding for economic restructuring. Underground farming experiments explore post-mining uses for tunnel infrastructure. What happens to communities built around extraction when extraction ends is Velenje's defining question.
By 2026, Velenje will likely be deeper into transition—coal operations reduced or ended, alternative industries expanding, identity evolving. The city demonstrates that phaseout can be accelerated by market forces rather than delayed by politics.