Negotiations have begun on the sale of surplus coal to EPS

The Pljevlja mine is trying to find new buyers while the thermal power plant is on a break;

RUP has also applied for tenders from the Serbian Electric Power Company, but is also participating in direct sales. They expect to conclude a contract in the coming period.

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They are also using advances from EPCG for coal that will be delivered to them from November: RUP, Photo: Shutterstock
They are also using advances from EPCG for coal that will be delivered to them from November: RUP, Photo: Shutterstock
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

Apart from participating in the tender, the Pljevlja Coal Mine (RUP) is also negotiating with the Serbian Electric Power Company (EPS) about the direct sale of coal to that company.

This was confirmed by the executive director of the largest Pljevlja company to "Vijesti". Nemanja Laković, who expects the finalization of the agreement and possible signing of the contract in the coming period.

The largest buyer of Pljevlja coal, up to 90 percent, has so far been the Electric Power Company of Montenegro for the needs of the Pljevlja Thermal Power Plant, but since the beginning of April the TPP has been out of operation due to the completion of environmental reconstruction and the shutdown will last until November 15th. So the Mine has lost most of its income, which is why it is trying to find new buyers for coal and increase sales to existing ones.

"The Pljevlja Coal Mine continues its long-standing successful cooperation with customers, many of whom have been partners for more than 30 years. Widespread consumption is being realized at the usual intensity for this time of year. In accordance with previous practice, we expect an increase in the intensity of coal sales from September, with the beginning of the heating season. The main buyer for wide consumption, Elektroprivreda Srbije, changed the method of purchasing coal this year by switching to tender procedures. Therefore, suppliers, including our company, are waiting for the outcome of the tender. At the same time, RUP is negotiating with EPS on direct coal sales, and in the coming period we expect the finalization of the agreement and the possible signing of the contract," said Laković, answering a question from "Vijesti" about plans for the sale and distribution of coal in the next seven and a half months, while the Thermal Power Plant is not operating due to the final works on the ecological reconstruction of the Pljevlja block.

The shutdown of the Thermal Power Plant will reduce the Coal Mine's revenues by around 48 million euros this year.

"The coal sales plan depends on demand and customer structure. RUP has three categories of customers: TE Pljevlja, which is supplied with about 90 percent of total coal production, then general consumption, which includes households, smaller businesses and long-term business partners with whom RUP has had cooperation for more than 30 years. The average monthly delivery of coal for the needs of TE Pljevlja, before the temporary suspension of work due to the implementation of the ecological reconstruction project, was 128.155,58 tons," said Laković.

Due to the halt in the operation of the TPP and the implementation of infrastructure projects, this year will be one of the most demanding.

"The current year will be one of the most challenging and demanding in the history of the RUP and the Montenegrin power system. The key reason is the parallel implementation of two most important infrastructure projects: the relocation of the Ćehotina riverbed and the ecological reconstruction of the Pljevlja thermal power plant, which is planned to last eight months. Due to the temporary suspension of coal deliveries during the ecological reconstruction of the Pljevlja thermal power plant, 48 million euros less revenue is expected for the RUP. For the purpose of financial stability, the coal mine has signed a four-year contract with EPCG that allows for the advance withdrawal of funds during the ecological reconstruction, thus ensuring stable operations. However, our goal is to keep the advance withdrawal of funds to the lowest possible level, and to make up the difference by implementing the recently presented Just Transition Plan through Business Transformation," said Laković.

He also said that RUP was preparing for the implementation of two most important projects - the ecological reconstruction of the Pljevlja thermal power plant, which temporarily caused the suspension of coal deliveries, and the relocation of the Ćehotina riverbed, and that the coal sales process was aligned with these circumstances.

"The accumulation of coal reserves in the landfill is not allowed, as this could lead to spontaneous combustion. Therefore, regular overburden removal is planned, as a preparation for future exploitation, with constant coordination with the needs of coal for wide consumption. The coal sales market is known and limited to countries in the region that also have their own mines and coal-based capacities, which further reduces export opportunities. In accordance with the EU Green Agenda, many countries are phasing out coal use due to global and European climate policies, as a strategic commitment to decarbonization, and this trend is also present in the region," the company's CEO emphasized.

The mine is moving into construction work, asphalt base, production of protective equipment...

The company's management will use the period of suspension of operations at the Pljevlja thermal power plant to carry out works on overburden removal - removal of a layer of soil and rocks on the coal deposits on the new part of the mine shaft. In preparation for future exploitation, it is planned to excavate eight million cubic meters of solid mass, which is a record amount.

"The RUP construction group is successfully implementing the works contracted with the Eco Fund. It is also employed through projects with EPCG and the Municipality of Pljevlja on the implementation of the project to build multi-chamber reservoirs for the "Troje česma" water system worth 287.979,98 euros, and additional projects that this group can carry out are being negotiated. The asphalt base is ready to cover the needs for asphalt in the territory of the Municipality of Pljevlja during this construction season. The adaptation of the premises and preparations for the launch of the production of personal protective equipment, the primary production of which will be directed to the needs of our company, are underway, and market expansion is also planned. We are also working on the reconstruction of services, increasing the operability of mechanization and reducing breakdowns, with the aim of maximum cost rationalization," Laković listed some of the activities that will bring the company income during the months-long downtime of the Pljevlja thermal power plant.

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