Worrying results of coal, overburden production in BiH’s power utility

Coal deliveries to thermal power plants in the first half of the year reached 73% of the plan, while only 43% of the overburden excavation target was achieved, warned Sanel Buljubašić, CEO of Bosnia and Herzegovina’s state-owned power utility Elektroprivreda Bosne i Hercegovine (EPBiH).

Increasing coal production is the only way to stabilize the energy system in the Federation of Bosnia and Herzegovina (FBiH), Sanel Buljubašić told state news agency Fena. Focus.ba republished the report.

FBiH is one of the two entities making up BiH. The other one is the Republic of Srpska.

The chief executive pointed to the significance of coal, stressing that 80% of EPBiH’s production comes from coal power plants, with hydropower plants providing the remainder.

Of note, the company recorded a loss of BAM 45.47 million (EUR 23.25 million) for the first half of this year. BiH’s electricity imports were 4.5 times higher than in the same period of 2024.

Buljubašić: We will fulfill our obligations only if the mines fulfill theirs

Buljubašić recalled that the Government of FBiH raised the price of coal at the beginning of 2024 and signed a new collective agreement in the mining sector to demonstrate its commitment to improving working conditions for miners and their status.

The coal mines are operating under an entity called EPBiH Concern. They must produce the planned quantities of coal, which have been jointly agreed and contracted, the CEO underscored and added that EPBiH would meet its obligations only if the mines do the same.

Buljubašić said RMU Breza and RMU Đurđevik are facing the most pressing issues while that RU Kreka is making its best result of the past three years. Coal mine operators RU Kreka, RMU Kakanj, and RMU Abid Lolić have increased production, he added.

Of the nearly 5,000 workers, 1,226 are occupationally disabled

The company head said EPBiH Concern’s mines employ 4,967 workers, of whom 1,226 are occupationally disabled. Additionally, on average, between 1,500 and 1,700 employees are absent every day for various reasons, such as annual leave or sick leave.

In his words, restructuring would imply a program for surplus workers at RMU Zenica, closing mines that are technologically and economically unviable and continuing investments by procuring equipment for economically viable mines to increase productivity.

One of the main problems is the devastated coal deposits, a result of years of delay in overburden excavation, Buljubašić stressed.

Just transition includes mine shutdowns, installation of solar power, batteries, and the use of biomass

The just transition project in BiH’s coal regions, estimated at BAM 160 million (EUR 81.8 million), is being implemented with a World Bank loan. Most of the funds will be spent on closing mines and taking care of surplus employees of RMU Zenica, repurposing RU Kreka’s land, building the 12.2 MW Dubrave photovoltaic plant, repurposing the land of RMU Banovići and installing another solar power plant, of 15 MW, the CEO explained.

He pointed out that the authorities are preparing a law on the closure of Zenica mines — the first such legislation in BiH.

Green investments within a just transition platform for coal regions can include the construction of battery energy storage systems (BESS) and fast-growing biomass plantations, according to Buljubašić.

He announced that EPBiH would soon present its Prosumer 5000+ project and a long-term development plan for EPBiH for the period 2025-2050, within the energy sector development strategy.