Mining: Kolubara coal company enters biggest investment cycle in its history

20. May 2013. / Mining

In May,  “Electric Power Industry of Serbia” and Mining Basin “Kolubara” signed the Contract for the Procurement of the Spreader for the System Excavator-Conveyor-Spreader in the Open Pit “Field C”, with the “Sandvik” company from Sweden, based in Austria. Kolubara mines company as biggest mining operational company in Serbia announced biggest investment cycle in its history. Modernization and procurement of the new equipment will follow in 2013/2015 as Serbia energy security relies on Kolubara lignite coal excavation, more than 70% of Serbian electricity is being produced from Kolubara mines coal.

The Contract, worth 14.38 million euros that is the part of the project “Environmental protection improvement in the Mining basin Kolubara“ of 181 million euros, was signed by Mr. Aleksandar Obradović, the Acting General Director of “Electric Power Industry of Serbia”, Mr. Milorad Grčić, the Director of MB “Kolubara” and dr. Stefan Hinterholzer, the representative of “Sandvik” company from Sweden, seated in Austria.

– The Project is of multiple importance, not only of economic and environmental, but also the social importance to EPS, “Kolubara”, “Thermal Power Plant Nikola Tesla”, as well as to the whole society. The fact that this project has been chosen as the Serbian candidate within the International Initiative RIO + 20 indicates that the project is recognized worldwide.  – said Mr. Aleksandar Obradović, Acting General Director of EPS. – The implementation of this investment will ensure the use of the uniform quality coal in MB “Kolubara”, which will increase the efficiency of power units operation in thermal power plants of Obrenovac and also have a direct effect on the reduction of negative environmental impacts. Mr. Obradović pointed out that by the implementation of this project, EPS will show that it is an efficient and responsible company, and that by taking care of its own resources, it takes care of the environment, surroundings and the society at large.

Mr. Milorad Grčić, the Director of MB “Kolubara”, explained that by this project “Kolubara” enhances the production and environmental protection, and thus ensures the stability of the power system of Serbia. Speaking of the importance of this project, the Director Grčić pointed out the following:

–       This is one proof more that the miners can also contribute to the protection and preservation of the environment, and not only to the pollution and degradation of visual terrain of municipalities in which the coal is mined. In addition  to significant benefits in ecological sense, the project shall bring a high level of modernization of production, standardization of coal quality delivered to TPPNT and better air quality control.

Within the project “Environmental protection improvement in the Mining basin Kolubara“, in late March, two contracts were signed for the procurement of the new equipment. The Contract, worth 31 million euros,  for the procurement of the new bucket wheel excavator was signed with the German company “Thyssenkrupp“,  while the Polish consortium will be in charge of the belt conveyor system development, worth  29 million euros.

In the following period, the signing of the Contract for the procurement of the power supply system, worth two million euros, is also expected.

The funds required for the realization of the “Kolubara Green Project“ are estimated at 181.6 million euros. The financing is contracted by the loan of 80 million euros from EBRD bank and the funds contracted with KfW bank, and 27 million euros will be provided by EPS by its own funds. The project is envisaged to last for 3.5 years.

The aim of this project is to secure the safe and continuous coal supply and rational natural resources management, with reduced air pollution in thermal power plants using coal from Kolubara mining basin. This project is of technological, ecological and social importance. The realization will secure the utilization of lignite of uniform quality excavated in the “Kolubara” open pit mines, which will facilitate the increase in efficiency of operation of  TPP “Nikola Tesla” and TPP “Morava”.

The “Green Project”  includes the introduction of the coal quality management system and homogenization in the western part of the mining basin, modernization of the equipment by procuring the new ECS system and power supply system for the “Field C” and by procuring the Spreader for interburdern excavation for OPM “Tamnava West Field”. Realization of the “Green Project” will enable summary financial savings of  26 million euros and coal savings in the amount of a million ton a year. In the power plants using coal from “Kolubara”, the emissions of carbon dioxide, sulfur dioxide and nitrogen dioxide will be lower by 3% a year, and the quantities of ash and slag by 885 thousand tons a year.

Source; Serbia Energy

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