Chinese company invests $700 million in Serbian coal

Kostalac power station

Power Station Kostolac A | Creative Commons image by Mazbln

Serbia’s electricity supply is safe. But environmentalists may not be too happy about the how.

As a major face-off between coal supporters and environmentalists unfolds in nearby Poland, Serbia’s power utility EPS has signed a $715 million deal with a China Machinery Engineering to build a coal fired power plant – the country’s first new one in 23 years.

Once operational in 2019, the 350-megawatt unit will be the third addition to the Kostalac plant, about 100km east of Belgrade, Serbian news outlet Vesti (in Serbian) reports. The deal also provides for the expansion of the Drmno lignite mine.

The three Kostalac units combined will provide 20% of the state’s power supply.

Serbia’s energy minister Zorana Mihajlovic said the unit would give the country “complete stability” in electricity supply.

The Chinese company is already helping EPS with its $1.25 billion upgrade for the rest of the plant, which is operating under-capacity because of outdated technology, Reuters reported earlier this month.

With expansions at Drmno, the mine capacity is expected to increase to 12 million from 9 million tonnes per year.

Serbia is highly dependent on coal for its power supply. Last month the Mihajlovic said that without the black rock, Serbia would lose half of its electricity supply, Novosti reported (in Serbian).

The European Union has been pushing the Balkan state to wean itself off coal but Mihajlovic says the country prefers to make coal plants more environmental friendly. Earlier this month the minister said that turning to nuclear power was “out of the question.”

157 0

More Coal News

Latest Stories

MSHA honours Massey operations for safety achievements

The Mine Safety and Health Administration (MSHA) in the USA has selected the Green Valley Preparation Plant and two mines operated by the Aracoma Coal Co to receive Pacesetter Awards for outstanding safety achievements. Green Valley and Aracoma are operating units of Massey Energy Co. The awards to the Green Valley plant and Aracoma’s Alma and Hernshaw mines honour operations [...]

Eyes on Indian Underground

increasing demand for coal. Industry observers believe that India is poised to become a major market for mining equipment, even larger than China, and this opportunity has led several global mining companies to open up shop in the country at least four

SIGN UP FOR OUR DAILY NEWSLETTER

Bateman makes major acquisitions in mineral processing

As IM May is prepared for printing, with an article on developments in mineral processing, comes dramatic news from Bateman. The company has recently acquired the mining-process division of Intertech, with a strong market presence in the CIS. Even more significant, Bateman’s latest acquisition, announced as IM goes to press, is that of the Delkor [...]