Bosnia and Herzegovina: Coal exploitation concession contract for Kakanj

, SEE Energy News

Kakanj coalmine (RMU Kakanj), a subsidiary of power utility EPBiH and the Government of the Zenica-Doboj Canton signed a concession agreement for the exploitation of brown coal.

The concession was awarded to RMU Kakanj in February. The area of the exploitation field is 5,888.37 hectares and the concession period is 30 years. The concessionaire is obliged to pay concession fees – a fee of 0.4 euros per ton of coal produced and a minimum one-time fee of 125 euros per hectare of exploitation field. The minimum binding amount of exploited brown coal for which the concessionaire is obliged to pay a continuous concession fee every year is one million tons of coal produced. EPBiH’s lignite coalmine in Kakanj municipality supplies coal for thermal power plant Kakanj. The mine’s average annual coal production is around 0.9 million tons, while it has exploitation reserves of some 156 million tons of coal.