The ceasing process of subsidised coal mining by the end of 2018 in Germany is subject to the Steinkohlefinanzierungsgesetz (Hard Coal Mining Financing Law), which forms the statutory framework for the RAG Foundation’s activities. In 2012 at the latest, this decision will be reviewed. The RAG Foundation was brought to life to ensure the safe, reliable and socially acceptable processing of the measures stated in the Hard Coal Mining Financing Law.

The RAG Foundation’s key tasks:

• As sole owner of the RAG Corporation, the Foundation is responsible for phasing out subsidised coal mining in a socially acceptable manner.
• Furthermore, the Foundation guides the profitable growth of the industrial group Evonik Industries AG, which evolved out of the RAG Corporation in 2007. The aim is to list the company on the stock exchange in the medium term and to turn it into a powerful global player. At least 25.1 per cent of Evonik Industries AG is to remain permanently in the hands of the RAG Foundation.

Foundation model reduces strain on public funds

The Foundation will build up a capital stock in order to finance the mining’s long-term liabilities on the part of the RAG Corporation as of 2019 without having to draw on public funds. Hence, the Foundation virtually acts as trustee of the public sector.

• The Foundation will use the proceeds generated by selling Evonik shares and further profits (dividends and investment profits) to establish a capital stock to finance the coal-mining’s long-term liabilities and cover these permanently as of 2019.
• By promoting education, science and culture connected to German coal mining, the foundation aims at setting positive signs in the Ruhr and Saar regions.