Bosnia: Coal mines operational loss despite state subsidies

1. July 2015. / SEE Energy News

The losses of the seven coal mines in the Federation BiH that are in consortium with the “Electric Power Industry of BiH” reached 42MEUR in 2014.

The representatives of the Miners’ Trade Union in FBiH warned the Prime Minister of the Federation BiH, Fadil Novalić, and the competent Minister, Reuf Bajrović, that they would seek other ways to exercise their rights if, by the end of that month, a way was not found to settle the losses, better working conditions were not provided for the miners through the procurement of better equipment, and a subsidy was not given to the mines.

Because of all this, as the competent Minister Reuf Bajrović said in Sarajevo after the meeting with the representatives of the six mines from the consortium, the Trade Union, the representatives of the “Electric Power Industry of BiH” and the Prime Minister of FBiH, Fadil Novalić, the subsidization requested by the miners could be solved in three ways, and this by the electricity price increase of 0,75 Eur/cent per kilowatt-hour in FBiH, by reducing administration or by reducing the costs of the mines and of the “Electric Power Industry of BiH”.

By all odds, it is most likely that the electricity price will rise in FBiH, because Elvedin Grabovica, director of the “Electric Power Industry of BiH”, responding to the reporters, confirmed that this had been discussed.

– It was, but I am not the one who can tell you if the price will rise, it is up to the Government of FBiH – Grabovica said and stressed that the mines were subsidized with 75MEUR, but that the investments have not rendered results.

He also said that the miners’ representatives wanted a change in leadership positions, and that they emphasized that they wanted educated and capable people, and not the politically suitable.

Grabovica acknowledged that the mines were still generating losses, commenting that, to improve the state in the mines, it was necessary to submit the Law on Mining Subsidies for Parliamentary procedure.

He stressed that the funds from the subsidies amounting to 0,75Eur/cent per kilowatt-hour of electricity would be spent exclusively on the investments in the mines.

However, Bajrović could not confirm that the electricity price would rise, explaining that the meeting had been constructive, but that it had not produced any solutions.

– We have to find a systematic solution which will include all interest groups, also including the pensioners – said Bajrović.

Yesterday in Sarajevo, after the meeting with the representatives of the mining sector and the “Electric Power Industry”, Fadil Novalić, the Prime Minister of FBiH, said that, during the talks, the emphasis was placed on the recapitalization of mines and on providing subsidization for the mines, and he announced that the World Bank would be called to help resolve the problems.

Sinan Husić, President of the Miners’ Trade Union in FBiH, said that all mines in Europe had subsidies for their operation, but not the mines in FBiH.

– If our problems are not solved, it will not be good – said Husić. , transmits Serbia-energy.eu

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