Serbia, report: 80MEUR mining equipment supply, coal quality improvement for power plants

1. January 2015. / Mining

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Project “the Environmental Protection and Improvement in Kolubara Mining Basin” consists of three parts. The first part represents a Project A- designing, manufacturing and erection of the ECS system for the future open pit mine Field “C”. The value of this part of the project amounts to 80 million euros and it is financed by the EBRD Bank loan.

Project B includes the Spreader for the interburden intended for the OPM Tamnava “West Field”, with the capacity of 12,000 cubic meters per hour, and the Project C includes the coal quality management system in Tamnava open pit mines. The Loan for the Projects B and C, in the amount of 65 million euros, as well as 9 million euro grant were provided by the KfW Bank.

Implementation of the project, widely known as the “Green Loan” will facilitate a rational utilization of coal as a non-renewable natural resource, secure supply of thermal power plants with lignite of uniform quality and the reduction of the harmful gases emission – CO2, SO2 and NO2, as well as quantities of ash and slag.

EPS will invest its own funds in the amount of 28 million euros in the implementation of this project.

Project A, i.e. the ECS system consists of four packages. First package A1 includes a bucket wheel excavator with the capacity of 6,600 cubic meters per hour, and the supplier is the company “ThyssenKrupp”. Package A2 consists of four belt conveyors, with belts 5 km long, including the power supply, i.e. central control room, and the transport platform for the drive stations. The contractor of works is a Polish company, “Copex“. Package A3 includes a Spreader and the contractor of works is the company “Sandvik”. Package A4 includes the power supply and the contractor of this part of the project is a local company “Montprojekt“.

Contracts for the Project A came into force in June 2013 for the packages 1 and 2, in July for the package 3 and in October for the package 4. Envisaged deadline for the manufacture of the entire equipment is the end of 2015.

A regular meeting with contractors was held in mid-November, in order to establish the current status of works and to agree on further steps in the project implementation.

It was concluded at the meeting that there still was a standstill of works on the excavator of about 6 months. The commencement of the erection works is expected in mid-December. In order to stop further delay, a part of equipment was ordered from the company “Lola Montavar”, and the procurement of some intermediate goods for “ Kolabara-Metal” was taken over by “ Krupp”.

When it comes to package A2, the delivery of conveyor belts and the assembly of drive stations are expected in December. There are hundreds of segments in the erection yard which are being mounted successively and dispatched to the route of the future belt conveyor. The Project will be implemented in accordance with the time schedule as promised by the “Copex” company.

The greatest progress has been achieved within the package A3 (the contractor “Sandvik”), concerning the spreader. The Substructure is completely delivered, while the scope of delivered crawler chains is sufficient to start the erection. Four out of five crawler supporting structures are accepted and now the assembly is being performed thereof. The acceptance of the slewing platform steel construction has been performed, while the delivery of a great deal of the equipment is expected in December.

When it comes to the power supply, i.e. the package A4, the contractor, the local company “Montproject” has been adjusting to the progress rate of the other parts of the project.

Some changes regarding the conveyor belt routes are envisaged due to a possible delay of the project and technological situation in the Field “C”. Regarding the fact that the erection yard is located in the zone of open pit mines, the OPM’s technology experts have made a new spatial arrangement in order to enable the continuous production in this OPM until the end of works in the erection yard.

The best bidder was chosen in the tender for the Project B. It is the “Sandvik” company, and the contract was signed in late November. Provision of the bank guarantee by Sandvik and the advance payment by the KfW Bank are in progress, after which the contract will come into force. According to the expectations, it could occur on 15th January 2015.

Project C refers to the expansion of the stockpile and coal homogenization, i.e. to the system for coal quality control in Tamnava OPMs. The equipment which will be delivered within the package includes the hardware and software for on-line analysis of coal quality, on-line analyzers, belt scales, magnetic screwdrivers, crushers, belt conveyors, dedusting device and machines for works at the very stockpile: two reclaiming machines and a spreader.

As agreed with the bank, three tenders for the package C will be announced successively at intervals of 15 days. For the package C3, which includes the largest equipment quantity, the bank had “no objections” and it is in the announcement process. The deadline for bid submission shall be three months. It is expected the implementation of the package C to take 27 months, taking in to account the KfW Bank procedures.

Given the fact that this kind of project is to be implemented in Serbia for the first time, and the implementation of the new technology requires the comprehension of all the elements of the quality control system, the consultant (consortium Mibrag and RWE) has envisaged the training for the experts and management of EPS and MB “Kolubara”. First part of the training was successfully finished in June and the second one is envisaged to last until March.

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