Novalić: FBiH Government to Pay State Obligations of Zenica and Breza Mines

SARAJEVO, (Patria) - Representatives of the House of Representatives returned to their parliamentary seats after a one-hour break, and the agenda began with a report on the state of mines within the Concern of JP Elektroprivreda BiH. 

Emir Aganović from Elektroprivreda stated that production grew in 2017 and that it was the most successful year.

“The problem is that we have a negative opinion on the consolidated report. The problems also include losses, illiquidity of obligations, and mine productivity. The accumulated loss is 769 million KM, while the obligations are 748 million KM. The mines are operating at a loss of 34 million,” Aganović explained. 

As he stated, potential obligations from lawsuits by the municipalities of Kakanj and Breza amount to 99 million KM. 

“Illiquidity is the key and biggest problem. The entire group, including Elektroprivreda, mines, and other companies, is operating at a deficit of 33 million KM. The accumulated profit within the group is only 14 million KM,” says Aganović. 

The foreign auditor noted a large amount of accumulated loss, as well as a significant loss relative to the share capital. Furthermore, the foreign auditor also pointed out large obligations to the state, suppliers, and creditors. 

“The long-term perspective is a matter of particular importance. We have environmental restrictions. Thermal power blocks must meet emission standards for pollutants by 2027. At least three blocks will be shut down, and from 2028, all blocks without regulated decarbonization will be shut down. Europe is telling us that it no longer wants fossil fuels. Due to all of this, it is questionable how many mines will continue to operate and at what capacity. Coal production can no longer grow, only decline,” states Aganović. 

He said there is a need for understanding and confronting these circumstances. He pointed out that from 2009 to 2017, the number of employees in the mines decreased by about 2,000 workers and that the growth rate of total assets could not keep pace with the growth rate of liabilities. 

“The FBiH Government will unblock the accounts of the Zenica and Breza lignite mines by paying their debts to the state. But that is not a solution, which is why we are discussing these problems today. Europe is imposing new rules on thermal power plants, and it is questionable how we will be able to cope with them,” said the Prime Minister of FBiH, Fadil Novalić, during the discussion on the state of mines within the Concern of Elektroprivreda FBiH. 

He added that in the case of restructuring, no one should be harmed, and that the Government is obliged to ensure social welfare. 

The representatives' discussion on this issue has begun.