Mines in Bosnia owe 920 Million BAM to Electric Power Industry

The process of reorganization of the mine must be comprehensive, including the reorganization and optimization of labor and production capacities, which will result in economic sustainability, the Electric Power Industry of BiH stated on Friday.

In case of obstruction and non-implementation of this process, the only option is bankruptcy.

According to preliminary data as of December 31, 2020, the total liabilities of the mines of the Concern Elektroprivreda BiH on all bases amount to 920 million BAM. Of this amount, debts to BiH are almost 495 million BAM. Last year, the mines ended with a total loss of 79 million BAM. Despite the more than half a billion BAM that Elektroprivreda BiH has invested in the mines, their economically sustainable business has not been ensured.

Elektroprivreda BiH, as the ruling company of the EPBiH Concern, regularly fulfills and settles all obligations towards mines – independent companies, which generate income with their main activity and, among other things, pay salaries to workers. The reasons for non-payment of salaries should be sought in the fact that the mines of the EPBiH Concern do not achieve the planned production, and thus revenues.

The process of reorganization of the mines was initiated with the aim of ensuring their economically sustainable business. In the implementation of this process so far, ordinances on organization have been adopted and the consent of the ruling society has been given to the ordinances on job systematization, which should enter into force on 1 May.

Other acts are being drafted, among others, the rulebook on work and the rulebook on work performance.

”The initiated process of reorganization encounters great resistance and opposition from the mines and is manifested by work stoppages. The demands of the mine unions often do not have the character of union activities,” it is stated in the announcement and it is added that the reorganization of the mine is a responsible process and its full implementation requires full engagement of all employees in the EPBiH Concern.