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Sarajevo Times > Blog > BUSINESS > Federal Minister claims Coal Mine gives Positive Results
BUSINESS

Federal Minister claims Coal Mine gives Positive Results

Published September 21, 2022
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The Federal Minister of Energy, Mining and Industry, Nermin Djindic, with his associates, yesterday paid a working visit to the Banovici Dark Coal Mine (RMU), where he was welcomed by Director Elvir Salihovic and members of the Management Board and Supervisory Board.

They informed Minister Djindic about the condition, production process and financial results of Banovici Mine, as well as plans for the next period.

”I am extremely satisfied with the speed of recovery of RMU Banovici after the pandemic, and especially after the several-month stoppage of work in the pit caused by the fire. Now the level has been reached where the mine starts to give positive results. The planned activities and the transition we started show the first positive results in RMU Banovici, because we have excellent results in supplying domestic and foreign customers. While the entire region is in huge energy problems due to the lack of coal, RMU Banovici fulfilled the plan with 105 percent in the supply of Thermal Power Plant (TE) Tuzla and the supply of households increased by as much as 50 percent compared to the same period last year,” explained Minister Djindic.

Director Salihovic thanked the minister for the support provided by RMU Banovici throughout the past, very difficult period.

On the other side, several tens of thousands of citizens in Bosnia and Herzegovina (BiH) cannot buy coal this year, which they use for heating during the winter.

One of the reasons for the shortage is the growth of exports, primarily to Serbia, and the second is reduced production in mines.

In the first seven months of this year, coal exports doubled compared to the same period last year, according to the data of the BiH Indirect Tax Administration. 207,000 tons of coal were exported, which is approximately the amount consumed annually by households in BiH.

The value of this year’s coal exports is about 31 million BAM(16 million euros). Of that number, coal worth 28 million BAM(14 million euros) was sold to Serbia.

BiH annually produces about 13.5 million tons of coal. Citizens use about 225,000 tons for heating annually, or less than two percent of the total production.

This year, BiH exported coal at an average price of 148 BAM(76 euros) per ton. This is lower than last year’s average price, which was 158 BAM (81 euros) per ton.

Zarko Simic is the director of the company “AOP-MIS” from Tuzla, which for years has been procuring large quantities of coal from Tuzla mines, then sells it and delivers it to households by truck.

Truck drivers wait for months in front of the mine to load coal that is not available. That’s the reason, says Simic, why his company can’t even cover its business expenses.

Due to poor operations, the mines of Elektroprivreda BiH do not manage to produce enough coal even for the needs of their own thermal power plants.

For this reason, Elektroprivreda BiH has purchased coal from private mines in recent years, such as the mine of the company “EFT” in Stanari, in the north of BiH.

“It is obvious that the majority of mines in the region and BiHare not ready to provide sufficient quantities of coal, both for the production of electricity and for general consumption,” Savo Mirkovic, director of the company “EFT – Mine and Thermal Power Plan Stanari told.

“We will see whether we will provide the conditions and the necessary quantities to meet the needs of the majority of the domestic market and citizens by the end of September or October,” says Sinan Husic, president of the Union of Mine Workers of the Federation of BiH(FBiH).

Coal reserves that can be profitably exploited in BiH amount to 2.5 billion tons. Annually, the mines produce about 13.5 million tons, which means that there are reserves for at least 185 years of exploitation at the current rate, RSE writes.

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TAGGED:#BiH#business#coal#export#news
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