FBiH Government approves increased coal price for thermal power plants

(Patria) - The Government of the Federation of BiH, at the proposal of the Federal Ministry of Trade, has passed a Decision approving the prices of coal for thermal power plants, namely 7.80 KM/GJ for coal from surface mining and 7.80 KM/GJ for coal from underground mining.

The Decision approves the request of JP Elektroprivreda BiH d.d. Sarajevo for coal prices for thermal power plants, accompanied by requests from seven dependent coal mine companies within the JP EPBiH d.d. Sarajevo Concern and the request from RMU Banovići d.d. These coal prices are differentiated depending on the calorific value of the coal.
The Federal Ministry of Energy, Mining and Industry and the Federal Ministry of Trade are designated to implement and supervise the execution of this decision, each within their jurisdiction. The Decision enters into force on the day it is adopted and will be published in the Official Gazette of the Federation of BiH.

In the reasons for adopting the decision, the Federal Ministry of Trade stated that on 29.11.2023, it received a request from JP EPBiH d.d. Sarajevo, which included requests for an increase in the price of coal for thermal power plants from the Kreka d.o.o. Tuzla Coal Mine and the Đurdevik d.o.o., Kakanj d.o.o., Breza d.o.o., Zenica d.o.o., "Abid Lolić" d.o.o. Travnik - Bila, and Gračanica d.o.o. Gornji Vakuf - Uskoplje brown coal mines, as well as a request from RMU Banovići d.d.

The Management and Supervisory Board of JP EPBiH reviewed these requests from dependent companies and assessed that the increase in the coal price to 7.80 KM/GJ is justified.

In the explanation of the request, JP EPBiH stated that there has been an increase in the price of all operating costs, labor costs in accordance with the provisions of the Collective Agreement, and that the prices of basic raw materials, supplies, spare parts, and services have significantly increased, resulting in production costs of coal in dependent companies - coal mines being significantly higher than selling prices.

The proposer also pointed out that, according to the statements in the JP EPBiH request, the requested increase in the coal price to 7.80 KM/GJ would enable the dependent companies - coal mines to operate profitably, provided their operating costs remain at the current level. The Federal Ministry of Energy, Mining and Industry, in its submitted opinion, assessed the proposal of the Management and Supervisory Board of JP EPBiH for an increase and introduction of a uniform coal price for both exploitation methods (surface and underground) as justified, and that the uniform coal price for thermal power plants (Tuzla and Kakanj) amounts to 7.80 KM/GJ.

In accordance with this opinion, the proposer assessed the increase in the coal price for both exploitation methods (surface and underground) to 7.80 KM/GJ as justified, as this will enable the sustainability of the mines' operations, as well as the settlement of obligations to workers and other outstanding debts, and the decision was proposed to the Government of the Federation of BiH.

Otherwise, as stated in the JP EPBiH request, the coal procurement prices for thermal power plants, in accordance with the Decision of the FBiH Government from 16.12.2021, amounted to 5.64 KM/GJ for coal from surface mining and 6.00 KM/GJ for coal from underground mining.