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European Agency for Reconstruction

PREPARATION OF A MID TERM PLAN FOR EXISTING COAL MINES AND A MAIN MINING PLAN FOR THE DEVELOPMENT OF THE NEW SIBOVC MINE EUROPEAID/116986/D/SV/KOS

FINAL REPORT

Main Mining Plan for New Sibovc Mine Part I

Basic Investigations

June 24, 2005 prepared by:

Vattenfall Europe Mining AG

VATTENFALL

Deutsche Montan Technologie GmbH


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Key Experts of Project Team

Ullrich Höhna VEM Team Leader, Senior Expert Mine Planning

Hans Jürgen Matern VEM Senior Expert Mining Operation

Thomas Suhr VEM Senior Expert Computer-Aided Mine Planning Applications

Stephan Peters Senior Expert Geology

DMT

Helmar Laube VEM Senior Expert Soil Mechanics

Joachim Gert ten Thoren DMT Senior Environmental Expert

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

List of Contents 1 Summary ........................................................................................ 10 2 Introduction.................................................................................... 20 2.1 2.2

Allocation / Geographical Overview and Historical Development ......................... 20 Approach / Methodology ......................................................................................... 21

3 Coal Demand and Fuel Supply Strategy........................................ 22 3.1 3.2 3.3 3.4 3.5

Existing Power Plants............................................................................................... 22 New Power Plant Project(s) ..................................................................................... 22 Coal Supply by Independent or Captive Lignite Mines? ......................................... 23 Power Generating Programm for Comparing Various Mining Variants ................. 25 Coal Demand Forecast for the detailed Main Mine Plan (Part II) ........................... 26

4 Geological Conditions ................................................................... 28 4.1 Introduction .............................................................................................................. 28 4.2 Regional Geological Situation ................................................................................. 29 4.2.1 Geological Work Performed ............................................................................ 32 4.2.2 Geological Data Available ............................................................................... 33 4.2.3 2D Reflection Seismic...................................................................................... 34 4.3 Assessment of Data Base ......................................................................................... 38 4.3.1 Elaboration of Borehole Database.................................................................... 38 4.3.2 Assessment Methodology ................................................................................ 40 4.3.3 Stratigraphic And Lithological Borehole Data................................................. 41 4.3.3.1 Sibovc........................................................................................................... 41 4.3.3.2 D-Field ......................................................................................................... 41 4.3.3.3 “South-Field” ............................................................................................... 42 4.3.4 Coal Qualities from Borehole Data.................................................................. 42 4.3.4.1 Assessment of Borehole Data ...................................................................... 42 4.4 Geological Model..................................................................................................... 43 4.4.1 Modelling Procedure ........................................................................................ 43 4.4.2 Structural Model............................................................................................... 45 4.4.3 Coal Quality Distribution Model...................................................................... 47 4.5 Other Aspects influencing the Geological Situation ................................................ 48 4.5.1 Former Underground Mining ........................................................................... 48 4.5.2 Uncontrolled Coal Fires ................................................................................... 50 4.5.2.1 Development and locations of coal fires ...................................................... 50 4.5.2.2 Counteractive measures................................................................................ 52 4.5.2.3 Prevention of coal fires ................................................................................ 52 4.6 Geological Resources............................................................................................... 53 4.7 Hydrogeological Situation........................................................................................ 53 4.8 Further Exploration in the future Fields................................................................... 56

5 Overview of Potential Future Mining Fields................................. 56 5.1 5.2 5.3 5.4

General Aspects and Bedding Conditions................................................................ 56 Sibovc-Field ............................................................................................................. 57 D-Field ..................................................................................................................... 58 South-Field ............................................................................................................... 59 Page 3 of 120


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

5.5

Valuation of the Mining Fields ................................................................................ 61

6 Alternatives of Mining Equipment -Various Mining Methods..... 63 6.1 Bases for a Comparison of Alternative Mining Methods ........................................ 63 6.2 Description of the 4 Alternative Mining Methods ................................................... 64 6.3 Calculation of Average Cost per Unit ...................................................................... 65 6.3.1 General Data for Cost Calculation ................................................................... 65 6.3.2 Calculation of Operating Cost Positions .......................................................... 65 6.3.3 Actual Costs ..................................................................................................... 66 6.4 IRR, average Cost per Unit ...................................................................................... 66 6.5 Sensitivity Analysis.................................................................................................. 68 6.6 Result / Evaluation of new Equipment..................................................................... 69 6.7 Use of existing Equipment and Refurbishment Strategy ......................................... 72 6.8 New or Used Equipment? ........................................................................................ 74

7 Alternatives of Opening-up and Mine Development Scenarios.... 75 7.1 General Mine Design and Criteria of Evaluation..................................................... 75 7.2 Description of the Main Mine Scenarios.................................................................. 77 7.2.1 Var.1: Development of the Sibovc Field as sole Supplier of the Power Plants77 7.2.1.1 Variant 1.1: Operation from South to North ................................................ 77 7.2.1.2 Variant 1.2: Operation from North to South ................................................ 81 7.2.2 Variant 2: Development in den Opencast Mine Field of Sibovc and D-Field . 84 7.2.3 Variant 3: Separation of the Sibovc-Field in East-West-Direction.................. 88 7.2.3.1 Variant 3.1: Separate Opening-up in the Middle of the Sibovc Field.......... 88 7.2.3.2 Variant 3.2: Separate opening in the North of the Sibovc field ................... 94 7.2.4 Variant 4: Splitting of the Sibovc Field in North-South Direction .................. 95 a) Western Part (Company 1)....................................................................................... 96 7.2.5 Selection of Preference Variant...................................................................... 100 7.2.5.1 Single Coal Mine Variants ......................................................................... 100 7.2.5.2 Independent Coal Mines Variants .............................................................. 101

8 Environmental Aspects ................................................................ 103 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9

General Ecological Effects of Lignite Coal Exploitation....................................... 103 Hydrological Conditions ........................................................................................ 104 Surface Waters Run-Offs and their Qualities......................................................... 110 Groundwater Situation ........................................................................................... 113 Soil Qualities .......................................................................................................... 113 Waste Water Purification and Re-utilization ......................................................... 114 Environmental Monitoring and Management Structures ....................................... 114 Environmental Aspects of Mining Fields Alternatives .......................................... 115 Environmental Ranking of Alternatives................................................................. 118

9 Final Remarks of Part I ................................................................ 120

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Content of Tables Tab. 3.1-1 Tab. 3.4-1 Tab. 3.5-1 Tab. 4.2-1 Tab. 4.4-1 Tab. 4.4-2 Tab. 4.5-1 INKOS) Tab. 5.4-1 Tab. 5.5-1 Tab. 6.3-1 Tab. 6.4-1 Tab. 6.6-1 Tab. 6.6-2 Tab. 6.7-1 Tab. 7.2-1 Tab. 7.2-2 Tab. 7.2-3 Tab. 7.2-4 Tab. 7.2-5 Tab. 7.2-6 Tab. 7.2-7 Tab. 7.2-8 Tab. 7.2-9 Tab. 7.2-10 Tab. 7.2-11 Tab. 7.2-12 Tab. 7.2-13 Tab. 7.2-14 Tab. 7.2-15 Tab. 7.2-16 Tab. 7.2-17 Tab. 7.2-18 Tab. 7.2-19 Tab. 7.2-20 Tab. 7.2-21 Tab. 7.2-22 Tab. 7.2-23 Tab. 7.2-24 Tab. 7.2-25 Tab. 7.2-26 Tab. 7.2-27 Tab. 7.2-28 Tab. 7.2-29 Tab. 7.2-30 Tab. 7.2-31 Tab. 7.2-32 Tab. 7.2-33

Existing installed TPP Capacity....................................................................... 22 Summarized coal demand assessed by the consultants.................................... 25 Defined Coal Demand for the detailed Main Mine Plan.................................. 27 Existing Geological Database .......................................................................... 33 Sibovc, D-Field, „South-Field“ – Structural Characterisation......................... 46 Univariate Statistics, Coal Qualities from Geological Model Grid ................. 47 Coal production of old underground mines within area investigated. (source: 50 Comparison of Coal Content and Overburden Removal South-Field.............. 60 Valuation of the Mining Fields ........................................................................ 61 Operating Cost Position ................................................................................... 65 Comparison of average Unit Cost .................................................................... 66 Average Cost per Unit (new Equipment)......................................................... 69 Expenses over whole project life time ............................................................. 69 List of BWE and Spreader ............................................................................... 72 Main criteria for evaluating the mining development. Variant 1.1.................. 78 Development of overburden removal according to sectors. Variant 1.1.......... 79 Development extraction of coal according to sectors. Variant 1.1 .................. 79 Overburden: Coal ratio. Variant 1.1................................................................. 80 Coal Quality Var.1.1 ........................................................................................ 80 Main criteria for evaluating the mining development. Variant 1.2 .................. 81 Development of overburden removal according to sectors. Variant 1.2.......... 83 Development extraction of coal according to sectors. Variant 1.2 .................. 83 Overburden: Coal ratio. Variant 1.2................................................................. 83 Coal Quality Var.1.2 ........................................................................................ 84 Main criteria for evaluating the mining development. Variant 2..................... 85 Development of overburden removal Variant 2............................................... 86 Development mining according to sectors. Variant 2 ...................................... 86 Overburden : Coal ratio. Variant 2................................................................... 87 Coal Quality Var.2 ........................................................................................... 87 Main criteria for evaluating the mining development Var.3.1 (Southern Part) 89 Development of overburden removal. Var. 3.1 (Southern Part) ...................... 91 Development extraction of coal according to sectors. Var.3.1(Southern Part) 91 Overburden: Coal ratio. Variant 3.1 (Southern Part) ....................................... 91 Coal Quality Var.3.1 ........................................................................................ 91 Main criteria for evaluating the mining development Var.3. (Northern part).. 92 Development of overburden removal. Var.3.1 (Northern Part) ....................... 93 Development extraction of coal according to sectors. Var.3.1 (Northern Part)93 Overburden: Coal ratio Var. 3.1 (Northern Part) ............................................. 93 Coal Quality Var.3.1 ........................................................................................ 93 Development of overburden removal Var.3.2 (Northern Part) ........................ 94 Development extraction of coal according to sectors. Var.3.2 ........................ 94 Overburden: Coal ratio Var. 3.2....................................................................... 95 Coal Quality Var.3.2 ........................................................................................ 95 Main criteria for evaluating the mining development. Var.4 (West) ............... 96 Development of overburden removal according to sectors. Var. 4 West ........ 97 Development extraction of coal according to sectors. Variant 4 West ............ 97 Overburden: Coal ratio. Variant 4 West........................................................... 98 Page 5 of 120


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Tab. 7.2-34 Tab. 7.2-35 Tab. 7.2-36 Tab. 7.2-37 Tab. 7.2-38 Tab. 7.2-39 Tab. 7.2-40 Tab. 7.2-41 Tab. 8.3-1 Tab. 8.9-1

Coal Quality (West) ......................................................................................... 98 Main criteria for evaluating the mining development. Var.4 East ................... 98 Development of overburden removal according to sectors. Var.4 East........... 99 Development extraction of coal according to sectors. Var. 4 East .................. 99 Overburden: Coal ratio. Var.4 East.................................................................. 99 Coal Quality Var.4 East ................................................................................. 100 Comparison of Single Coal Mine Variants 1.1 and 1.2 ................................. 100 Comparison of the Independent Coal Mines Variants ................................... 101 Comparison Water Qualities .......................................................................... 113 Environmental Impact .................................................................................... 119

Contents of Figures Fig. 2.1-1 Location Map of the Mines .................................................................................. 20 Fig. 4.1-1 Mining Concession Areas .................................................................................... 28 Fig. 4.2-1 Stratigraphic Standard Profile of the Kosovo Basin (KEK 2003) ....................... 29 Fig. 4.2-2 Geological Map of Kosovo. Limits of the Kosovo Basin are marked in red...... 31 Fig. 4.2-3 Coal seam in the western border area of the Sibovc field.................................... 32 Fig. 4.2-4 Seismic Location Map And Interpreted Structural Features............................... 35 Fig. 4.2-5 Tectonic „Collapse Structure“ and Reverse Faulting on Seismic Lines 01 and 02, South of Hade............................................................................................................. 37 Fig. 4.3-1 Spacing of the active boreholes............................................................................ 40 Fig. 4.4-1 Lignite Thickness vs. Depth Plot ......................................................................... 46 Fig. 4.5-1 Arial photography showing the area of the D-Field with regularly aligned collapse structures (more or less round holes) in consequence of former underground mining. The highlighted area indicates zones with still stable galleries. ......................... 48 Fig. 4.5-2 Collapsed gallery of old underground mining.................................................. 49 Fig. 4.5-3 Coal fire at a base of a dump................................................................................ 51 Fig. 4.5-4 Coal fire in old mining structures......................................................................... 51 Fig. 4.7-1 Complemented Extract from Hydrogeological Map............................................ 55 Fig. 5.1-1 Potential Mining Fields ........................................................................................ 57 Fig. 5.4-1 Two Variants in the South-Field .......................................................................... 59 Fig. 5.4-2 Outside Dumps on the South-Field ...................................................................... 60 Fig. 6.5-1 Results of economic comparison of mining methods –equipment alternatives ... 68 Fig. 6.6-1 Result of economic comparison of the four mining equipment variant............... 70 Fig. 6.6-2 Current mining RAC with loan for 80% main equipment with 6% interest ........ 71 Fig. 7.2-1 Var. 1.1 (Development from South to North) ...................................................... 77 Fig. 7.2-2 Var.1.2 (Mine Development from North to South).............................................. 81 Fig. 7.2-3 Development D-Field - Var.2............................................................................... 85 Fig. 7.2-4 Development South to North Var.3.1................................................................... 89 Fig. 7.2-5 Mine Development Var.3.1 (Northern Part) ........................................................ 92 Fig. 7.2-6 Mine Development Var.3.2 (Northern Part) ........................................................ 94 Fig. 7.2-7 Mine Development Var.4..................................................................................... 96 Fig. 8.2-1 Long term Distribution of monthly Precipitation............................................... 105 Fig. 8.2-2 Monthly Range of Precipitation ......................................................................... 106 Fig. 8.2-3 Daily Precipitation.............................................................................................. 107 Page 6 of 120


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Fig. 8.2-4 Fig. 8.2-5 Fig. 8.2-6 Fig. 8.3-1 Fig. 8.3-2 Fig. 8.3-3 Fig. 8.5-1 Fig. 8.8-1

Distribution of Temperatures ............................................................................. 108 Monthly Temperatures ....................................................................................... 109 Direction and Velocity of Wind ......................................................................... 110 Catchment Areas ................................................................................................ 111 Characteristic water quality values for river Sitnica (INKOS Institute) ............ 112 Characteristic Drainage Water Quality .............................................................. 112 Soil Map ............................................................................................................. 114 Areas of potential risk of toxic waste deposits................................................... 118

List of Annexes (Part I) I/ 4.4-1 I/ 4.6-1 I/ 4.6-2 I/ 4.6-3 I/ 4.6-4 I/ 4.6-5 I/ 4.6-6 I/ 4.6-7 I/ 4.6-8 I/ 4.6-9 I/ 4.6-10 I/ 4.6-11 I/ 4.7-1

Interpreted Seismic Lines01 and 07 Linjat Sizmike 01 dhe 07 Depth Structure Map: Top Lignite Seam [m] Harta e Strukturës së Thellësisë në pjesën tavanore të qymyrit [m] Depth Structure Map: Base Lignite Seam [m] Harta e Strukturës së Thellësisë në dysheme të qymyrit [m] Overburden Thickness [m] Trashësia e Djerrinës [m] Overburden-To-Coal Ratio [cu m/t] Raporti Qymyr - Djerrinë [cu m/t] Seam Thickness [m] Trashësia e Qymyrit [m] Overburden-To-Coal Ratio [cu m/t] and Seam Thickness [m] Raporti Qymyr - Djerrinë [cu m/t] dhe Trashësia e Qymyrit [m] Top Lignite Seam: Structural Dip [Degrees] Thellësisë në pjesën tavanore të qymyrit: Strukturor ngjyej [°] Geological Cross Section I to III Profilet Gjeologjike I deri III Lignite Fm. - Total Sulphur [%] Qymyri Fm. - Sulfuri Total [%] Lignite Fm. - Low Calorific Value [kJ/ kg] Qymyri Fm. - Vlera Kalorike [kJ/ kg] Lignite Fm. - Ash Content [%] Qymyri Fm. - Përqindja e Hirit [%] Stations of Overburden Excavation Areas and Assumed Extension of Underground Mining Stacinet e shfrytëzimit të tokës me daljen në sipërfaqe të minjerës së re dhe Zgjerimet e Supozuara te Minjerava te Vjitra

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

List of Abbreviations a bcm bcm/h EN EnO ESTAP GWh IPP kt mt lcm m m² m³ mbcm mlcm MME mMSL mt NCV OCM RAC sqm TOR TPP TPS `000 bcm `000 lcm

year bank cubic meter bank cubic meter per hour European Norm Energy Office Energy Sector Technical Assistance Project Gigawatt-hours International Power Provider thousand tonnes million tonnes loose cubic meter million square meter cubic meter million bank cubic meter million loose cubic meters Main Mine Equipment (BWE, belt conveyor and spreader) meter above Mean Sea Level million tonnes Net Calorific Value Open Cast Mine Real Average Costs square meter Terms of Reference Thermal Power Plant Thermal Power Station thousand bank cubic meter thousand loose cubic meter

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Glossary of Statistic Terms Minimum 25%-tile Median 75%-tile Maximum Midrange Midrange Range Interquartile Range

Median Abs. Deviation

Mean Trim Mean (10%)

Standard Deviation Variance

Coef. of Variation

Coef. of Skewness

minimum value lower quartile; 25 percent of the values are smaller than this number and 75 percent of the values are larger middle data value, 50 percent of the data values are larger than this number and 50 percent of the data are smaller than this number upper quartile; 75 percent of the values are smaller than this number and 25 percent of the values are larger than this number maximum value the value halfway between the minimum and maximum values = (Minimum + Maximum) / 2 separation between the minimum and maximum value. Range = Maximum - Minimum separation distance between the 25%-tile and 75%-tile.This shows the spread of the middle 50 percent of the data, similar to standard deviation, though this statistic is unaffected by the tails of the distribution Median Absolute Deviation is the median value of the sorted absolute deviations. It is calculated by 1. computing the data's median value 2. subtracting the median value from each data value 3. taking the absolute value of the difference 4. sorting the values 5. calculating the median of the values arithmetic average of the data Trim Mean is the mean without the upper five percent and lower five percent of the data, therefore, extreme value influence is removed. If there are fewer than 20 data points, the minimum and maximum data points are removed instead of the upper and lower five percent. square root of the variance

The Coefficient of Variation is calculated by dividing the standard deviation by the mean. If a "-1" is reported, the coefficient of variation could not be computed. The Coefficient of Skewness is calculated by

If a "-1" is reported, the coefficient of skewness could not be computed. The coefficient of skewness is computed only for the Z values.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

1 Summary According to the Terms of Reference the main goal of the study is: “To provide security, both in the technical and economic terms, of future electrical power production in Kosovo, as defined in the “White Paper”1, through the guarantee of the coal supply security and economical viability over the entire life of the existing power plants and the new power plants (approximately 30 years).” The text of the Terms of Reference is attached as Appendix D. As a result of the agreed final comments on the draft Main Mine Plan (MMP) of May 2005 the project documentation consists of: • • • • • •

Summary Part I Part II Part III Part IV Appendices

(of all Parts) Basic Investigations Technical Planning Environmental Impact Study Economical and Financial Analysis A, B, C and D

While the Part I addresses different scenarios of mining developments the Parts II up to IV deal with the chosen mining variant (which starts from the existing mines Mirash/ Bardh and northwards within the Sibovc Concession Area). The work for the Part I of the main mine plan was mainly focused on: • • • •

Evaluate options of future coal supply to the existing and new power plants, compareing different mining equipment alternatives, developing different opening-up scenarios and assessing costs for various mining developments.

The project was conducted in two stages: 1st stage: In the first stage (MMP-Part I) it was focused on developing different scenarios of mine development and to draw conclusions for the mining development of Sibovc on that basis. The objective was to obtain information on alternative developments in the mining sector and to make a decision on how to supply the power plants. In addition to the Sibovc Field, alternatives like „D-Field“ and the „South-Field“ have been evaluated. 2nd stage: The second stage (MMP-Part II, III and IV) was focused on the detailed mine planning of coal extraction in Sibovc including determination of the required workforce and the accruing investments and costs.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Summary and Conclusion from 1st Stage (MMP- Part I) Power Plant Concept and Coal Demand The current coal consumption level of the power plants amounts to 6-7 mt/a. This level is not sufficient to secure the demand for electricity in Kosovo. In the coming years, the production could increase only insignificantly (to approx. 8.7 mt according to the Mid Term Plan). In order to fullfill the future power demand, UNMIK committed to launch a project for the establishment of a new power plant. At projects´s launch,the detailed concept and the coal demand of the new power plant were not available at the time, when the work on the study had begun. It was the aim of the first stage of the study preparation to obtain information about the quantity and sequence of time coal can be supplied to the power plants and/or seems to be economically reasonable. The investigation of the above originates from the fact that • in Bardh / Mirash equipment resources have been bound till 2007 and partly even until 2011 • so far no significant preparatory works have been made for the new Sibovc mine • planning, permits and operating licenses for a new mine and power plant have been missing • a quick resettlement of Hade is problematic and • high investments will be required for the opening-up of Sibovc Under consideration of the above, it was worked out that a new power plant could not be commissioned earlier than 2012. The demand for fuel should moderately increase to avoid a too high investment peak. Thus costs (in particular financing costs) could be kept low. This concept was used for the cost comparison for pre-selection. According to that the first coal from Sibovc was planned for 2010 and the assumed coal supply amounts to approximately 15 mt per year from 2014 onwards. In view of the high investment costs both in the mining and in the power sector, it would be advisable to have private investors. They could work parallel to KEK. Issues a main question is: One or two mines? The main beneficiary as well as World Bank and the Department of Mining and Minerals (DMM) raised the question of “having independent or captive mines in the future?” How reasonable is it to have more than only one mine? We investigated the options for splitting the Sibovc mine field into parts to be operated by independent mines (the mine development variants 2, 3 and 4). The main findings were: two independent mine operators having two independent mining licenses could operate in the Sibovc mining field at the same time. What is better? – To have captive or independent mines? Technically, both options are possible. According to our economic modelling a new independent mine for the new IPP/TPP shows real average costs in the range from 7 €/t subject to financial conditions. The existing KEK Coal Production Division was requesting for about 8.5 €/t transfer price for lignite delivered to the existing power plants when we started the project. Page 11 of 120


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Captive mine (production out from only one mine) might have scale effects. Problems could occur since the mining operator would be a monopoly supplier. One important question will be: is this operator able to ensure the expected efficiency and able to provide the necessary investments for the expansion of mine capacity? Independent mines would be favourable in terms of compliance to a desired market economy environment with competition as a main driving force: This would help to attract private investments to close the investment gap in the energy sector. The decision is therefore decisively influenced by the fact, Whether the financial resources can be made available.

Geology In the first months of the project implementation major activities were undertaken to provide additional geophysical exploration works, process new and existing geological and exploration data, making field observations and setting the geological database. More than 1000 boreholes were digitally recorded, digitised and validated to become part of the database. All existing geological reports and interpretations were studied and screened as a basis for the new geological model. The 2D reflection seismic lines totals up to 10460 m. Finally, a revised geological model was generated. The geological setting is summarized as fallows: The basement of the Kosovo Basin and the exposed surrounding areas are built up by Palaeozoic to Mesozoic crystalline rocks. The basin fill consists of Upper Cretaceous strata which are unconformably overlain by Tertiary clays of Pliocene age in which lignite is interbedded. Subordinated, Tertiary volcanites (andesite-dacite rocks) are distributed in Northeast of the basin. The Pliocene sediments can generally be subdivided in coal unproductive areas in the north and south and a coal productive central area. The central area, the “Coal Kosovo Basin”, is extending over approximately 300 km². Simplified, the succession can be subdivided by grey (altered to yellow clay within the weathering zone) on top, the underlying Lignite Formation and at the bottom the green clay. The geological and hydrological evaluation and interpretation was conducted over an area of some 92 km2. It encompasses the mining concession areas of Sibovc, the D-Field and an open acreage area to the south of the existing open cast mines, here introduced as the “SouthField”. The structural model integrates all available sources as surface observations, borehole and seismic data. The structural setting is shown on depth structure maps at Top and Base Lignite, on a seam isochore map, overburden thickness and overburden-to-coal ratio maps. A coal property distribution model for the coal properties as relevant for the mine plan, i.e. ash content, net calorific value and total sulphur, has been developed on length weighted borehole averages and are presented on average maps. A generated 3D Block Model of the Net Calorific Value for the Sibovc Concession Area is described in the MMP- Part II. In the Sibovc Concession Area the structural dip at top lignite is low with overwhelming values below 5º. Steeper dipping is indicated along two SW-NE alignments which are believed to represent erosional channels. The erosion is also seen on the depth structure map at Top lignite, the isochore map and even expressed on the low CV map. Page 12 of 120


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

The mapped area is characterised by a NNW-SSE striking basin. Along the axis the seam thickness reaches up to 70-80 m. The coal basin is delineated to the West by a series of stepping fault blocks which separate the Tertiary fill from the Mesozoic basement. The lignite pinch-out to the NE appears to be a unconformal without recognized boundary faults. Cross-faults which strike roughly perpendicular to the basin axis are developed in the North of Sibovc and to the South of Hade. There is clear evidence that subsidence and faulting took already place during the lignite deposition. The geological resources of the lignite deposit were computed in accordance with the UN International Framework Classification for Reserves/Resources of 1997 (UNFC). The volumetric calculation of geological resources for the Sibovc, D-Field and “South-Field” resulted in the following figures: • Sibovc 990 mt over an area of 19.7 km2 • D-Field 395 mt over an area of 7.8 km2 • Northern Part of “South-Field” 537 mt over an area of 8.0 km2 For the Sibovc Concession area the volumetric split according to the area-of-influence method and structural uncertainties is reported in the Main Mining Plan – Part II. Due to the wile hole spacing in the “South-Field” the resources are mostly categorized as inferred. For further seismic exploration work in context of opening-up the new Sibovc mine it is concluded that reflection seismic will detect and describe tectonic structures which would remain ambiguous from the interpretation of borehole data alone. Due to the experienced signal deterioration outside “maiden” subsurface conditions it is recommended that future seismic surveys should be carried out before any mining activities in the areas of interest.

Alternative Mining Fields Within the framework of the available study the Sibovc mining field was investigated not only under the aspect of a single opencast mine; alternative possibilities of coal supply were also considered. The alternative possible mining fields as: • Sibovc mining field • “D-Field” • South-Field were roughly evaluated (see map below).

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

The summarized result of the evaluation is: 1. The mining of the lignite field of Sibovc offers the most inexpensive alternative to supply coal to a newly built power plant (if >600 MW). 2. The mining of the Southfield is definitely the most expensive one due to the more unfavourable geological conditions, especially the relatively high O:C ratio and the problematic outside dumps – therefore this alternative shall not be considered further. 3. A new power plant can only be erected with a capacity of up to 600 MW owing to the limited coal reserves. In contrast to this the supply of the existing power plants is assumed possible. Economic utilization will not be applicable if the construction of the motorway via the field will block off 30% or even more.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Alternatives of equipment The evaluation of lignite fields has been provided for the Concession Areas of the Sibovc Field and in addition to the D-Field and the area to the South of the Bardh-Mirage OCMs (“South-Field”). The main findings substantiated the selection of the Sibovc mining field as the most appropriate for the future coal supply of the new power plants. D-Field has been recognised and considered as a very interesting option for the future supply of the existing power plants. After having analysed various main mining equipment solutions and mining methods the following four alternatives have been recognised as suitable: 1. 2. 3. 4.

Conventional bucket wheel excavator (BWE), belt conveyors and spreader Compact BWE, belt conveyors and spreader Truck and shovel (mobile equipment) Combination of BWE belt conveyors, spreader and truck and shovel

An economic model was developed and used in order to compare the efficiency of the four alternatives. The main equipment has been planned and dimensioned, output capacity has been calculated and the annual investment and operating costs were estimated for the mentioned alternative mining methods.

Cost for lignite extraction in Sibovc for various alternatives: Using new equipment: The average costs per unit were calculated by means of the Discounted-cash-Flow method (DCF) assuming a discount rate of 12 % and based on real values (i.e. for personnel cost and additional increase of ca. 2 % is assumed as against the international inflation rate). With real average cost of 6.8 €/t the Variant 4 is the most favourable. The other alternatives 1, 2 and 3 have higher real average costs amounting to subsequently 7.2, 7.4 and 7.7 €/t.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations Current Mining RAC Euro/t 2012 to 2041 8.00

Sensitivity of discount rate 11.00

7.72

7.42 7.21

6.76 7.00

10.00

6.00 9.00

RAC in €/t Lignite

RAC in €/t Lignite

5.00

4.00

8.00

7.00

3.00

6.00 2.00

5.00 1.00

4.00

0.00 Alternative 1 Personnel Maintenance Recultivation & Roads Total

Alternative 2

Alternative 3

Power Taxes & Royalties specific Invest costs

Alternative 4 Fuel Other financing costs

4% Alternative 1

6%

8% Alternative 2

10%

12% Alternative 3

15%

20%

Alternative 4

Please note: the financial model also is based on significant productivity gains in the near future. This has to be reflected in the future owner/operator structure. It is important to notice, that all variants are based on these productivity gains and are consequently comparable.

Using existing equipment: The cost will be less if the existing main mine equipment will be used. In case of bypassing Hade with a mine starting from the Southern part of Sibovc the RAC have been calculated to 6.8 €/t (coal production 7 mt/a). If all production will be concentrated in one mine with an output level of about 16mt/a the cost could be reduced up to 5.9 €/t – provided a labour productivity as in the other alternatives. There is a cost differential between a one mine and a two mines scenario of 5.9 €/t for one mine with 16 mt/a and 6.8 €/t when running two mines. The difference will decrease if: 1) the total output of coal would be higher 2) the output only from the second mine would be higher 3) there would occur problems during resettlement of Hade (higher cost) 4) The second mine (private, new equipment) would have access to buy existing (old) Bucket Wheel Excavators or spreaders (seems possible) and particularly 5) the restructuring of KEK would not be finished until 2007 with impact to higher operational cost Further: historical liabilities from KEK mines are not subject for the financial model and there fore not included in the cost!

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Opening –up / Mine development For the mine development and the opening up of the Sibovc field six variants have been investigated. For a single mine development only two main variants can be compared (see below): • •

Variant 1.1 Variant 1.2

Mining Sibovc from South to North Mining Sibovc from North to South

Var.1 is applicable, if the mine operator will take over the supply obligation for both the existing and the new lignite-fired power plants.

Variant 1.2 has its advantage from: • technically requirement for a very late resettlement of the village centre of Hade • a better overburden : coal ration in the first years after the opening-up. Variant 1.2 has disadvantages in most of the evaluation criteria as against Variant 1.1. Most important disadvantage is the fact that Variant 1.2 would be a green field project with additional land withdrawal and higher impact to the environment. It is doubted if the permits will be granted in time. It is supposed to be better to work in an area which has already been influenced by mining activities instead of unnecessary claiming of other additional areas. Moreover, mining development from the South has a shorter transport distance to the dump and dumping is intended to contribute to shaping the residual pit of Bardh/Mirash. The latter facts discussed above favour Var.1.1 if the total resettlement can be done in time. In case of a competitive two mines scheme for an independent coal supply to the existing and the new TPP the following principle variants have been assessed and evaluated: • Var. 2 Parallel mine development in Sibovc and D-Field • Var. 3.1 Parallel mine development in Sibovc (South) and Sibovc (middle) • Var. 3.2 Parallel mine development in Sibovc (South) and Sibovc (North) Page 17 of 120


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Var. 4

Parallel operation of two mines along a South-North demarcation line

We recommend that the private investor for the new TPP (IPP) should get the license for the Northern part of the Sibovc field according to the Variant 3.2. Consequently, the question is raised, how KEK should organise the supply of the existing power plants after the depletion of the remaining reserves in the existing mines. According to the TOR future coal supply for the existing and the new TPP (IPP) should be ensured from the Sibovc mining field. If closely following this requirement and considering the Hade resettlement situation as problematic KEK should develop a small mine into the Southern area of Sibovc with shortened coal face, i.e. to bypass Hade. Variant 4 demonstrates that the Sibovc field could be opened up from the Southwest part a small compact mine without the resettlement of the entire Hade village. Such mine would be sufficient to feed the existing power plants. In this variant with bypassing of Hade, maximally up to approx. 10 mt/a could be mined economically. Alternatively, it might be useful to consider the Variant 2 for KEK (instead of moving into the West part of Southern field of Sibovc) to go into the D-Field. The overburden : coal ratio comes to 0.9 to 1 m³/t by taking the ash dump into account. However, the excavation process for the mining of D-Field has reserves for optimization. This for example refers to the coal quality. The average heating value for the raw coal improves if coal horizons with especially low quality will be cut off by selective mining. The overburden to be removed specifically will not be higher in D-Field than in the South-West part of Sibovc. Due to the objective of the study and the time available we have not been able to carry out more detailed investigation of the mine D-Field.

Environmental aspects Having in mind that the whole district is historically influenced by mining and wider parts of the landscape are determined by the mines and power plants all variants discussed are judged to be feasible, if appropriate actions are taken to diminish the effects. Combining the environmental aspects mentioned in this report a matrix is presented balancing the degrees of impacts. A first judgement scale with 1 to 7 points is used describing the growing strength of impact between the variants. A balancing between the impacts themselves is not performed. Effect Population Changes Local Roads and Transportation Water and Air Flora, Fauna, natural Heritage Soil, Natural Resources and land use Sum

Var.1.1

1.2

3 3 1 2 3 12

4 4 2 3 4 17

Var.2 D-Field 1 1 6 1 1 10

3.1

3.2

4

6 6 3 6 7 28

5 5 4 5 6 25

7 7 5 4 5 28

SouthField 2 2 7 7 2 20

Following this ranking usage of D-Field (Variant 2) shows the smallest expected impact. From the environmental point of view opening the Sibovc-Field with one mine (Variant 1) Page 18 of 120


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

should be given the preference rather than working with two mines. Using the South-Field seems to be minor suitable because of the developed and adjusted fauna and flora and the need of canalling river Sitnica.

Main Conclusion and questions of the 1st Stage – Part I To attracting a sufficient investment there are good reasons to develop a new independent coal mine in the North of the Sibovc field. In this case the Mine Plan should be based on the selected equipment alternative Variant 4 – Combination of BWE, belt conveyor, spreader and truck and shovel. The mine development and opening up as well as license issue should be based for the selected Northern part of the Sibovc field according to the preference Variant 3.2. The obvious variant to continue the current KEK operations is the development into the South of Sibovc. If developing two mines it should be considered: Effects of scale cannot be realized with a two mine scenario. Technically one large mine has the potential for the best production cost. The financial model shows about 0.90 €/t or 12-15% cost advantage. But economically this can be compensated by benefits i.a. arising from the owner/operator structure, i.e. competition. After presenting the first results (described in the “Interim Report” and “Short Presentation Paper”) decisions had to be made regarding the following issues: a) Level of Power generation and yearly coal demand b) Possibilities regarding the Resettlement of Hade (safety zone and total) c) Number of mines supposed to supply the TPPs d) Selection of the mine design scenario (variant of mining development)

It was decided to elaborate a mining plan similar to Variant 1.1 for the Main Mine Plan for new Sibovc mine (see Part II – Technical Planing).

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2 Introduction 2.1 Allocation / Geographical Overview and Historical Development The Kosova lignite deposits are located between the cities of Mitrovica in the North and Kaqanik in the South. The total estimated resources of Kosovo’s lignite deposits are approximately 10,000 Mt (Carl Bro; 2003), thus forming one of the largest lignite deposits in Europe. As being one of at least four major deposits the Kosova Coal Basin covers about 85 km from North to South with an average East – West extension of 10 km. Hence the deposit comprises some 850 km².

Fig. 2.1-1

Location Map of the Mines

Morphologicaly, the Kosova Coal Basin forms a extended valley where the differences in elevation do not exceed 80 m. Around the river Sitnica stretches a central plane part followed by a more hilly terrain nearing the mountains Çicavica Golesh and Sharr. The basin is surrounded by an elevated relief with Kopaonik massive, Kozic, Zhegovc Lisic in the East, Montenegro massive in the South and Çicavica, Golesh, Carnaleva as well as

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Sharr mountains in the West and Northwest. The mountains around reach elevations from 900 to more than 1600 m. The resources were discovered more than hundred years ago and the first small-scale utilisation was started in the 1920’. According to more information first utilization started with underground mining in at least five locations. Underground exploitation was ongoing until the year 1966 followed by large scale surface mining at Bardh and Mirash mines. Large-scale utilisation was already decided in the 1950’ties and the first mine “Mirash” started coal production in 1958. Power generation started at Thermal Power Plant Kosovo A (TPP A) in 1962. Kosovo A was extended in the period 1962 to 1975 to the current capacity. A second Thermal Power Plant Kosovo B (TPP B) was commissioned in 1985. Coal exploitation from surface mines in the first period mend that the overburden excavated had to be dumped outside the excavation holes. Hence, at least seven outside dumps were installed today surrounding the mines.

2.2 Approach / Methodology After several fact finding activities at the site and the main beneficiaries the following start situation has been recognized: • confirmed future coal demand available till 2007 only • a new geological model had to be created • geotechnical data for the stability calculations of the slopes and slope systems only partly available • poor data situation regarding the environmental situation and resettlement • important legal regulations are in transition phase between the previous laws of former Yugoslavia and a new laws not yet established According to this situation and pursuant to the TOR the project work during the first stage has been mainly focused on the following activities: 1) 2)

3)

4)

Assumption of the future lignite demand Preparation of geological model including - Analysis of available borehole and other exploration data - Localization of cracks and geological faults, - Calculation of mineable reserves Comparison of mining- and equipment application alternatives including - Selection of most preference future field, - Selection of opening-up position, - Selection of the main equipment Financial calculations for comparison the basic alternatives

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

3 Coal Demand and Fuel Supply Strategy 3.1 Existing Power Plants Kosovo has no important fossil fuel resource but it is rich in lignite. There is no natural gas import nor gas supply infrastructure. Kosovo has no oil refinery and depends entirely on imported liquid fuels. The hydroelectric potential is very modest. Therefore the backbone of the power generation and the energy sector of Kosovo are the lignite fired thermal power plants Kosovo A and Kosovo B located near Pristina. The installed capacities of both existing lignite fired plants are set out in the table below. Tab. 3.1-1 TPP

Existing installed TPP Capacity Gross Power Net Power

Kosovo A A1 A2 A3 A4 A5

[MW] 800 65 125 200 200 210

[MW] 722 58 113 182 182 187

Kosovo B B1 B2

678 339 339

618 309 309

Available Net Power [MW]

Start of Operation

30 - 40 0 130 - 145 120 - 145 135 - 150

1962 1964 1970 1971 1975

230 - 250 230 - 250

1983 1984 (Source: KEK)

Year

Due to the low availability and unreliable base load plants KEK needs to import peak power. The increased net imports had to be paid for in cash very often. This led to inadequate supplies and frequent power outages. Real time balancing of the demand and supply is managed partly by exports and imports and partly by planned and rotating load shedding.

3.2 New Power Plant Project(s) UNMIK has published on August 03, 2004 a press release: “UNMIK committed to launch a project for the establishment of a new power plant and lignite mine of sufficient size. The aim is to meet future domestic and industrial as well as export demands. Kosovo must use its primary natural asset: great quantities of the best quality lignite in Europe. This asset needs to be used to attract investment and create new jobs. A reliable power supply is essential for further economic development and will boost investors’ confidence in Kosovo’s economy. Planning and tendering for such a project will be done in close cooperation with the PISG. The need for a new power plant had already been jointly identified by the PISG and UNMIK in the context of a World Bank study.” Page 22 of 120


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The World Bank further wrote: “Electricity produced using such low cost lignite should be very competitive in SEE REM. The demand in SEE REM countries is expected to grow at 2% per year calling for capacity additions of the order of 4.5 GW through 2012, thus providing Kosovo an excellent market for exports. An export oriented 1000 MW unit in Kosovo could generate export revenues of the order of Euro 224.25 million or 16.7% of its present GDP. Other benefits to Kosovo would include increased royalties on lignite, corporate taxes on profits, employment in the mines and power plant, and import of modern management and methods. Thus energy sector could become an engine of growth instead of being a drain on public resources as at present.” The Kosovarian Government (incl. Ministry of Energy and Mining) shares this view and so one aim of the study is to help to proceed in the preparation of a new project to increase the energy production based on lignite.

3.3 Coal Supply by Independent or Captive Lignite Mines? This question has been discussed in the latest World Bank Report ENERGY SECTOR IN KOSOVO - ISSUES AND PROSPECTS dated January 2004 as follows: “1. Similarly the strategy envisages that the investment needed to develop and operate the new lignite mine would also come from the private sector. Discussions with Kosovo officials indicate that they envisage one private sector investor operating all lignite production in Kosovo and one or more IPPs contracting with him for fuel supply. Implicitly they also seem to believe that KEK will give up mining business, buy its lignite from the mine operator, and that the price of lignite could be regulated as the production would be from a private monopoly. These aspects need further review. First, pending the resolution of the legal status of Kosovo, private investors would be reluctant to consider investment in Kosovo, even though the lignite deposits are extensive and economic to extract, the quality of lignite very good and prospects for electricity exports are bright. Second, the prospect of price regulation (regulatory risk) would act as a serious disincentive for investment. Regulation of lignite prices would be messy, as vested interest groups would push the competing principles of, actual cost of supply versus opportunity costs and endless arguments about depletion premium. The declaration in the strategy that the advantages of low cost lignite production in Kosovo would be used to ensure low cost power supply to captive consumers is likely to complicate the regulatory process. Third, the quality of lignite is such that it cannot be transported over any long distance and can be used only in a power plant located close to the mine to enable transport by a conveyor belt. Thus investor in a stand-alone mine faces a market risk. Fourth, the power plant designed for this lignite can not easily or economically change over to alternate fuels, so that the IPP without his own captive lignite mine will face a serious fuel supply and fuel price risk, which would further dampen his enthusiasm to invest. 2. Instead, it may be advantageous to pursue the concept of each IPP having its own captive lignite mine and have more than one entity carrying out the mining operations. This would enable the existing generating units of KEK to continue to use its captive mines Bardh and Mirash with the needed additional areas in the Sibovc area for which it is believed to have already an exploratory license and where it has done a considerable amount of drilling. Kosovo basin is large and even Sibovc has more than 1.72 billion tons of reserves, enabling Page 23 of 120


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orderly exploitation by two or more mining entities. Under financing from the European Agency for Reconstruction (EAR) a study is expected to be carried out during 2004 to decide on (a) the best method of operating the existing mines without jeopardizing the proposed new mine, and (b) the optimal and rational mining plan for the new mine. The proposed mining study must thus focus on how to enable KEK and at least two IPPs to have mining leases for various parts of Sibovc and develop it in an orderly way. Such a course of action would obviate the need for price regulation of lignite. KEK’s generating units with a public supply obligation would find it advantageous to have their own captive mines than having to buy lignite from a private mine. Finally, if the private investment fails to materialize as discussed in the earlier paragraphs, the fall back position would be supported by the development of KEK’s own part of the Sibovc mine. Thus the strategic approach to lignite mining should favour captive mines for power companies and multiple mining entities in Kosovo operating without the need for price regulation.”

The position of the World Bank in this matter seems very reasonable and leads to the main questions of future development of Kosovo: Is the direction of economic development of Kosovo towards market economy? Will competition be considered as a main principle of the economy? Will the attraction of private investments be approved as strategy to close the investment gap in the energy sector? If the Kosovo government gives positive answers to all three questions than an approach would be recommended of having independent mines with the condition that the KEK Coal Production Division remains able to operate in case of failing or postponing the private energy sector investment in Kosovo. The TOR of our contract for the preparation of the Main Mine Plan for the Sibovc Field are setting out that we have to develop one Main Mine Plan for the Sibovc Field for one mine which ensures fuel supply to the existing and newly constructed power plants. It demands to develop the Main Mine Plan for Sibovc according to the captive mine approach. It seems to be clear that the license for the Sibovc South-Field should be given to KEK CDP in order to enable KEK to expand mining operation from the existing mines without separate opening-up and interruption of coal supply to the existing KEK TTPs. This would allow a going concern approach for KEK and may simplify the approval procedure by selection of approval scheme “expanding the existing coal mines by the required reserves in the South of the Sibovc field“ instead of developing a new green field project “Sibovc South-Field”. Such a decision would ensure sustainability and viability of KEK’s coal business. The Sibovc North Field is available to be licenses for one IPP operator and could be developed completely independent. Let’s come back to the World Bank question – Is it possible to enable KEK and at least two IPPs to have mining licenses for various parts of Sibovc and develop it in an orderly way? Yes, but not in same period of time. An operation of three coal mines in the Sibovc Field (owned by KEK and two IPP operators) at the same time is in principle possible. But practically it would create massive interface problems and dependencies between the three mines, increase land demand, decrease chances for a sustainable reclamation and post mining landscape and land use, so that this could not be recommended.

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3.4 Power Generating Programm for Comparing Various Mining Variants The Energy Strategy and Policy “The White Paper” provides a first road map to desired changes and developments in the energy sector of the Kosovo. Power generation from lignite will be the major user of lignite in the future. It seems clear that the envisaged target is to achieve a best possible utilisation of the useful existing power capacities trying to meet increasing domestic electricity demand. A new power plant should be build as soon as possible by attraction of private investments into the energy sector. However no binding mid-term and long term energy programme exists today with fixed and confirmed production levels and targets. For the period from 2005 till 2007 the Business Plan for KEK from February 2004 provides clear production targets. These targets have been taken into account in our coal demand assumptions. Different opinions occurred for the mid term period about how to continue to operate TTP A. One party is for a fast decommissioning of TTP A and proposes to close possible supply gaps by electricity imports. The major counter position to this is the concept of a limited life extension programme and substantial refurbishment of the units 3, 4 and 5 of TTP A for the next 12-15 years. A third opinion is to continue the operation of TPP A with two units operating with reduced steam parameters in mid load range. Only the most urgent repairs will be made avoiding expensive investments. For a new power plant the Consultants assumed that it has a four-year construction time and requires a pre-feasibility and feasibility study beforehand. The construction of this new power plant could be a green field project and may require an EU compliant public approval procedure before construction. If private investors should be invited on a competitive basis an international tender needs to be provided to evaluate the investor. Then it can be assumed that such a new TPP as IPP could be commissioned at the earliest in 2012. A capacity of 1000 MW was considered by the consultants. Due to the non-availability of an approved power generation programme the following reasonable assumptions have been developed by the project team regarding the future coal supply programme in terms of annual quantities. Tab. 3.4-1 Year

2006 - 2011 2012 2013 2014 - 2024 > 2025

Summarized coal demand assessed by the consultants Lignite Demand Existing TPP Kosovo A & B 7-8 7.0 6.5 6.5

Lignite Demand New 1000 MW TPP (IPP)

Second new TPP (follow up of TPP B or 2. IPP)

Other Lignite consumer

0.1 3 7 9 9

7

Total Coal Demand

7-8 10 13.5 15.5 16

The coal demand scenario set out in table above bases on the following principles and assumptions: • For the time 2005 up to 2007 the production level already planned by KEK is applied. Page 25 of 120


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The mid-term coal demand will be around 7.5 m t/a determined by the TPP abilities (the operating time of the existing TPP B for calculation is about 7000 h/a, TPP A will give few mid load support) • The service life time of the TPP’s units will be 40 years (25 years and 15 year life expansion) • Kosovo will enter in South East European Regional Market • Construction of a new TPP C of 1000 MW by foreign investors for electricity supply into REM (Regional Electricity Market); the start of production of the Thermal Power Plant C is as soon as it is regarded as practically possible, i.e. 2012 • TPP C will be established with two units of 500 MW power station boilers and turbines with 40 % net efficiency, operated at 7500 full load hours p.a. • The grid of the REM will be reinforced to allow power transmission • The dimensioning of the new Power Plants should be done under consideration of the economical lignite mining potential • The variation of heating values over the Sibovc coal fields will be roughly considered for the calculation of the amount to be supplied to the TPPs • After decommissioning of TPP B a new Power Plant (TPP D) will be established so that the production level can be maintained (TPP B will be replaced by a new TPP D so that the production level can be maintained. This scenario meets the requirements of the mining potential (especially in the period up to 2013 which is the opening-up phase) helping to supply lignite at a low price. The comparison of the different alternatives and mining variants (carried out in Part I) is based on this mentioned coal demand

3.5 Coal Demand Forecast for the detailed Main Mine Plan (Part II) Due to the lack of energy and considering the opportunities for export revenues outstanding efforts are planned by the Kosovo government in order to commence new TPPs very soon and with enormous capacities. According to this ambitious target four new power plant units, B3 to B6 shall be erected at the location of the current power plant Kosovo B. The commissioning is foreseen for the period between 2012 and 2020. In addition to these units (B3 to B6) there is the intention of offering to build an additional new TPP for instance for Independent Power Producers (IPP) with a capacity of about 3*350 MW. The annual requirements for coal will be approximately 8 mt/a. For the existing power plants TPP A it is envisaged to refurbish three units in a way that the power plant will be ready to operate until 2019. On the basis of the described targets set by the Ministry for Energy and Mining (from 2009 onwards), the following coal demand figures have been defined which is valid for the technical planning:

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Tab. 3.5-1

Year

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 > 2025

Defined Coal Demand for the detailed Main Mine Plan

Lignite Demand existing TPP A 2.0 2.0 3.3 4.75 4.75 4.75 4.75 4.75 4.75 4.75 4.75 4.75 3.14 1.57

Lignite Demand existing TPP B1+B2 5.0 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 2.65

New TPP Kosovo B3-B6

2.71 5.42 5.42 5.42 5.24 5.24 5.42 8.13 10.84 10.66 10.66 10.84 10.66 10.66

Page 27 of 120

New IPP C1 + C2

2.71 5.42 8.13 8.13 7.95 7.95 7.95 8.13 8.13 7.95

Other Lignite Consumers

Total Coal Demand

0.1 0.1 0.1 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5

7.1 7.4 8.7 10.35 10.35 10.35 13.06 15.77 15.87 15.87 18.40 21.11 22.49 23.63 24.59 24.41 24.41 24.77 21.94 19.1 – 19.5


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

4 Geological Conditions 4.1 Introduction The geological and hydrological evaluation and interpretation was conducted over an area of some 92 km2 . It encompasses the mining concession areas of Sibovc, the D-Field and an open acreage area to the south of the existing open cast mines, here introduced as the “SouthField” (Fig. 4.1-1).

Fig. 4.1-1

Mining Concession Areas

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4.2 Regional Geological Situation The basement of the Kosovo Basin and the exposed surrounding areas are built up by Palaeozoic to Mezozoic crystillane rocks (Fig. 4.2-1, Fig. 4.2-2). The basin fill consists of Upper Cretaceous strata which are unconformably overlain by Tertiary clays in which lignite is interbedded.

Fig. 4.2-1

Stratigraphic Standard Profile of the Kosovo Basin (KEK 2003)

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Towards the West the lignite deposition is tectonically bounded by a series of predominantly NNW-SSE striking faults. The eastern limit is characterized by sedimentological pinch-out.

Palaeozoic The Palaeozoic formations are mainly build up by marble and schists. The schist is composed of grey coloured shale, phyllites, phyllites mica-shale, quartzite, quartzite-phyllites and rare amphibolite shale. The crystalline series outcrop in the western periphery of the basin and are extending from the River Brusnik to Shipitulla, whilst the outcrops in the eastern periphery reach from Grabovc southward up to Ferizaj and Nerodime. In the northern section of the eastern periphery, near the region of the River Llap strike outcrops of andesite and dacite occur, submerge in the region near Mitrivica and appear again on the surface in the eastern part of this town. Most of the Palaeozoic succession within the frame of the Kosovo Basin are build up of crystalline limestones, which are tectonically stressed, and therefore, their origin is difficult to determine. Within the western part of the basin, the crystalline limestones appears as intermediate lenses, which are sometimes silicated, and therefore, difficult to distinguish from phyllites quartzite.

Mesozoic The lower part of the Mesozoic section consist of serpentinite and peridotite. It is covered by Upper Cretaceous flysch and limestone. The outcrops of serpentinite are located in the western section of the Kosovo Basin, creating the Lubovec-Galicë and the Golesh Massives. Towards the south, there are some further areas which show Serpentinite, but in these areas within a frame of rudist limestone, flysch and shale. The quantity of serpintinite outcrops decreases eastbound. Uppermost Cretaceous Flysch and limestones crop out within a NNW-SSE oriented area along the main bounding faults of the Kosovo Basin.

Cenozoic Besides the already mentioned clay and lignite deposits, Tertiary volcanic rocks from the Miocene and Quaternary unconsolidated sediments as sands and gravel are present within the Cenozoic. The Tertiary volcanites (andesite-dacite rocks) are distributed in Northeast of the basin (Kopaonik-Trepça zone). The Pliocene sediments can generally be subdivided in coal productive/unproductive areas

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Fig. 4.2-2

Geological Map of Kosovo. Limits of the Kosovo Basin are marked in red.

· Southern area unproductive · Northern area unproductive · Central area productive The central area, the “Coal Kosovo Basin”, is spreading out at a surface of approximately 300 km². Simplified, the succession can be subdivided as follows: · · ·

Bottom Series (green Clay) Coal Series (Lignite Formation) Top Series (grey Clay)

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Fig. 4.2-3

Coal seam in the western border area of the Sibovc field..

4.2.1 Geological Work Performed During the initial phase of the project the work focused on the compilation and quality assessment of geological data. More than 1000 boreholes were acquired, digitally recorded and validated to establish the geological borehole database. Extensive field work was carried out to get familiarized with the geological situation. Moreover, all available geological reports and interpretations were studied and screened. Finally, a revised geological model which integrates all data and observations including the acquired seismic data was generated. The geological resources were calculated in accordance with international classification methods, namely the UN International Framework Classification for Reserves/Resources of 1997 (UNFC). Finally, a revised geological model which integrates all data and observations including the acquired seismic data was generated. At the current stage, the structural framework is considered finalized. This includes detailed descriptions over the mining variant to be selected honouring the vertical heterogeneity of the coal quality. Proposed plans for additional exploration should concentrate on the areas which are selected to be the future mining areas and are presented in chapter 4.10 and 5 .

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4.2.2 Geological Data Available The following geological data were provided via EAR or KEK, Engineering Department: Tab. 4.2-1 Data Item

[1]

[2]

[3]

[4]

[5]

[6]

[7] [8] [9] [10] [11] [12] [13]

Existing Geological Database Author

Title/Contents

Date

Data Type Medi-um

EAR, KOSOVO Tender CD 1 OPERATIONAL CENTRE, Finance and Procurement Unit, THE PROCUREMENT TEAM Elaborat Rudarski Institut O klasifikaciji, kategorizaciji i proracunu reservi ugla – Beograd eksploatacionog polja „Sibovac“ kosovskog ugljenog basena, Knjiga I, Tekst Elaborat O klasifikaciji, kategorizaciji i proracunu reservi ugla Rudarski Institut eksploatacionog polja „Sibovac“ kosovskog ugljenog – Beograd basena, Tekstualni deo, grafica dokumentacija, broj priloga 5807.00.01,.03,.06-.18 Elaborat O klasifikaciji, kategorizaciji i proracunu reservi ugla Rudarski Institut eksploatacionog polja „Sibovac“, Kosovskog uglje– Beograd nog basena, Crtani profili bušotina

2004

Digital borehole database, EXCELSheets

CD-ROM

1997

Report

Paper

1997

Geological Maps, Profiles

Paper

1997

Elaborat Rudarski Institut O klasifikaciji, kategorizaciji i proracunu reservi ugla – Beograd eksploatacionog polja „Sibovac“ kosovskog ugljenog basena, Spisak crtanih profila bušotina Izvod iz Elaborata Rudarski Institut O klasifikaciji, kategorizaciji i proracunu reservi ugla – Beograd eksploatacionog polja Sibovac, Kosovski Basen Rezultatet e analizave laboratorike gjeomekanike për INKOS kampionet e marrur nga shpimi SH-1 në lokacionin e shpatit verior të M.S. Mirash-Bardh KEK Licence Concession Boundaries for Sibovc, Bardh, Mirash, Mirash Southeast Vojnografski Topografska karta 1:25,000 Institut Rehabilitation of Northern Slope System, KEK DMT, Civil Engineering DiviMirash West Mine, Kosovo, Phase 2, Brief Interim sion Report No. 3 KEK Topographic isohypses over Sibovc area KEK Lithological and Quality Borehole Data

1997

1997

Borehole Paper Logs, Geology and Coal Assays Borehole Paper Inventory List with coordinates Report Paper

2004

Report

Paper

2004

Paper

1970

Coordinate Listings Map

Paper

June 2004

Report

Paper

2001 1955-2004

Autocad 3D Digital Description Paper Sheets Report CD-ROM, Tender CD2

Energy Sector Technical Assistance Project (ESTAP) September 2002

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4.2.3 2D Reflection Seismic Location of the seismic lines The purpose of the seismic survey conducted from June 21, 2004 to July 03, 2004 by DMT was both to record long and continuous profiles within the area of the new Sibovc mine and to cover the pillar area between the Bardh and Mirash mines including the evaluation of the Bardh slide body. In order to avoid permitting problems the profiles were designed to be within the BardhMirash mine or to follow public roads in the Sibovc area. A total of 8 seismic lines were acquired using DMT´s Minivibrator MHV3. The profiles were between 330 and 3340 m long. Details on the acquisition parameters are found in Appendix A. Profile Name Length [m] Line01 3340.0 Line02 2110.0 Line03 330.0 Line04 1203.3 Line05 1630.0 Line06 563.3 Line07 840.0 Line08 443.3 10460.0

Lines01 and 07 are within the Sibovc area. The other lines are located on the pillar. Here, the actual mine morphology was affecting the selected line configuration. The line locations are shown in Fig. 4.2-4. Line 01 is a SW-NE orientated profile along the road Bardh-Hade. It starts where the road bends to the south at the northwestern edge of the Bardh mine and ends some 800 m NE of Hade. It was expected that it would image and locate tectonic structures known from the western slopes of Bardh and from the pillar area. Furthermore, it was used as a test to assess the ability of the seismic to clearly identify sliding areas and surfaces. Line 07 is a bended profile by running SW-NE in its southern half an then turning into S-N direction following a small road that departs from the road Bardh-Hade. It should evaluate the presence of possible faulting for an area which may be opened up during the early stages of the planned Sibovc mine. Along the line coal fire areas have been recognised by surface scouting. Lines 02 to 06 and Line 08 are described comprehensively in the MMP Final Report for the Bardh–Mirash Open Cast Mines.

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Data Quality The processing results of the seismic lines reveal varying imaging quality of the reflections regarding lateral continuity and amplitude behaviour. The physical causes affecting the changes in seismic energy recording and absorption are described in the Seismic Acquisition and Processing Report in Appendix A. The geological interpretation showed that the reflection responses are very sensitive to shallow subsurface conditions. High seismic quality and resolution down to some 300-400 m below ground level could be obtained in sections which run along areas not affected by mining operations or landslides. Within these intervals a detailed and certain interpretation at the top and the base of the lignite seam could be carried out. Geological Interpretation The geological interpretation of the seismic profiles01 and 07 is shown on depth converted sections in Annex I/4.4-1 . Fig. 4.2-4 displays the location of the seismic lines and summarizes the interpreted structural elements.

Fig. 4.2-4

Seismic Location Map And Interpreted Structural Features

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The sections are two-times exaggerated in the vertical direction. The seismic traces are displayed as variable amplitudes with normal polarity. Hereby, red amplitudes indicate negative reflection coefficients resulting from an interface with a higher impedance (the product of density times velocity) in the hangingwall than in the footwall layer. Blue amplitudes are from positive reflection coefficients. The top of the lignite seam is expressed by a red reflector mainly created due to the drop in density between the overburden clay and lignite. The definition at Base seam is generally poorer due to the mixed lignite/clay bedding at the base of the seam.

Line 01 A clear signal is recorded at Top and Base lignite seam where no mining activities or advanced slide systems are known, i.e. north of the pillar near Hade. Here, only weak internal reflection bands are developed. The underlying green clay shows a dense succession of parallel bedding, likely expressing intercalations of coarser grained layers. Directly to the south of Hade intensive faulting is visible on the seismic data. The fault geometries indicate mainly reverse faulting within a transpressional shear zone. At the intersection with line 02 a small grabenlike “collapse� structure is developed which is limited by very steep dipping faults with a vertical displacement of some 20 m. Fig. 4-5 displays the collapse structure at a larger scale and without exaggeration. A different amplitude display is chosen to accentuate layer definitions. In the overburden fill draping is present. It characterises synsedimentary faulting which might much resemble the exposed situation in Mirash as it is documented in the MMP Final-Report of Bardh-Mirash Open Cast Mines. Currently, excavator E10B is digging along a fault plane which belongs to the SW-NE directed shear zone. We understand the heavy faulting in the Mirash northern slope as the natural cause for its instability.

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Fig. 4.2-5

Tectonic „Collapse Structure“ and Reverse Faulting on Seismic Lines 01 and 02, South of Hade

Further to west the seismic response at the seam boundaries is much weaker due to a loss of seismic energy. That corresponds with advanced sliding bodies are recognised on the surface on the Bardh north slope. Reflector unconformities are interpreted to define the slide surfaces. The two bodies in the west of the profile are recognised on the surface. The easternmost has not been detected so far. However, minor morphological lineaments support the existence of a further slide.

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Line 07 Line 07 extents from virgin soil conditions in the north to a slide body that is already recognized on profile 01. The margin of the slide body coincides with a sharp drop in reflector response quality. The slide body is known to be affected by underground coal fires. Due to the relatively weak reflector definition within the lignite it could not be resolved whether resulting thickness irregularities or collapses are present. The lines over the Sibovc area indicate that seismic surveys provide a high quality method in exploration areas which are not affected by mining or advanced sliding.

4.3 Assessment of Data Base 4.3.1 Elaboration of Borehole Database A total of 1094 boreholes are available for the entire project comprising Bardh-Mirash, Mirash Southeast, Sibovc, D-Field, “South-Field” concession areas and adjacent areas out the concession boundaries. By commencement date analog borehole data containing graphical lithological descriptions and tabular assay data were made available by KEK. This data set represents copies from data item [7] as in Tab. 4.2-1. The volume of paper copies was checked against the borehole inventory list (data item [5] as in Tab. 4.2-1). The data set was nearly complete. From the listed 454 boreholes 451 copies were available. By commencement date digital data sets were provided by KEK. An EXCEL file contained a total number of 532 structural boreholes described by the following data columns: § § § § § § § §

Borehole name, Y, X, Z (= collar elevation), Overburden Thickness, Lignite Thickness, Interburden Thickness, Bottom Overburden (= Top Lignite in mMSL), Bottom Lignite (= Base Lignite in mMSL) Overburden-To-Coal ratio.

Within this digital data set prefixes as Sb, Bm, Br or ML were added to the borehole names as area identifiers. It was found that 57 boreholes represent duplicates due to using different prefixes for the same borehole. After removing the duplicates, 475 boreholes remained. Thereof 252 boreholes overlapped with the analog data set. For 223 boreholes no paper copies were available.

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After merging the digital and analog data into an EXCEL-based database the available borehole data set summed up to 674 boreholes. For 451 holes paper copies were available, for 223 not. On June-18-2004 KEK, Head of Engineering Department was requested to check the completeness of the borehole data set and to provide any further missing geological data. On June25-2004 borehole data from 64 additional boreholes were provided as well as 88 geological and assay paper sheets for the already existing data set. On July-01-2004 further 129 paper sheets for already implemented boreholes and for 2 additional boreholes were made available by KEK. By July-01-2004 the data set encompassed 740 boreholes. Only for 4 boreholes paper sheets were not available. On July-12-2004 KEK delivered further 382 paper sheets containing structural descriptions for boreholes mainly east of the railway track Belgrade-Skopje (East of 7507000, “D-Field”). It provided data for 354 additional boreholes. 28 boreholes had been already recorded. The data were digitally recorded between July-12-2004 and July-14-2004. By July-14-2004 structural borehole data collection was defined as completed. The complete borehole dataset consists of 1094 boreholes located between Northing 4721785.00 and 4729041.00 and between Easting 7499503.91 and 7513070.52, i.e. covering an area of some 98 km2. Thereof, 19 boreholes were not considered for the geological model for various reasons, leaving 1075 boreholes in the “active” borehole database. Fig. 4.3-1 shows the locations and the spacing of the active boreholes.

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Fig. 4.3-1

Spacing of the active boreholes

All available borehole data has completely been digitally recorded including assay data. In order to overcome the complex borehole naming conventions, the boreholes were additionally named with sorting IDs from 1 to 2379. IDs from 1 to 674 comprise the boreholes that were available by commencement date and are ordered by descending Northing and then by ascending Easting. So, borehole 1 is in “upper left map corner”, borehole 674 in the “lower right corner”. The available paper copies were sorted according to the sorting ID. The additional borehole data delivered on 01-July and 12-July were addressed with IDs from 1000 and 2000 onwards and are sorted according to the data recording sequence.

4.3.2 Assessment Methodology All surface locations and elevations from the originally delivered digital (Tab. 4.2-1,[1]) borehole database were checked against available paper copies since first random checks showed a relatively high portion of typing errors. Typing errors defining the seam boundaries were detected by anomalies not explainable by geological features during the mapping process and corrected. Plausibility checks on the coal quality data have been carried out for the originally received digital data (Tab. 4.2-1, [1]). Cross-plots of Ash vs. Net CV and Net CV vs. Volatile Matters Page 40 of 120


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indicate only few erroneous outliners which do not significantly influence the calculated averages by borehole as used for the geological model.

4.3.3 Stratigraphic And Lithological Borehole Data 4.3.3.1 Sibovc 443 borehole data (lithological descriptions, assay data) were available for the area within Sibovc Concession Area (Appendix B: Tab. App-B-4.5-2) After applying the auditing methodology as described in chapter 4.5.2 seven boreholes were removed from the active database. They represented extreme deviations in the surface elevation or lignite depth compared to adjacent boreholes. 436 boreholes remained as “active” data in the borehole database (Appendix B: Tab. App-B4.5-1 ). A total of 217,395.30 m were drilled by these boreholes. The total depth is ranging between 6.80 m and 200.50 m with an average at 103.26 m. On the average the boreholes were drilled to some five meters into the green clay. 41 holes were not drilled to the base of the seam. The top of the seam has been encountered between 2.30 m and 137 m md (measured depth) with an average at 43.85 m. The base was penetrated between 3.00 and 193.20 m md with an average at 93.20 m. The structural position for the top of the seam is between 494.60 and 623.10 mMSL (meter above mean sea level) with an average at 550.28 mMSL. The elevation for the base is between 530.90 and 663.30 mMSL with an average at 594.00 mMSL. The seam thickness is between 0 and 93.30 m. The average is at 51.07 m.

4.3.3.2 D-Field 226 borehole data (lithological descriptions, assay data) were available for the area within DField Concession Area . After applying the auditing methodology as described in chapter 3.6. one borehole was removed from the database. It was a duplicate. A total of 105,399.70 m were drilled by these boreholes. The total depth is ranging between 9.80 m and 142.00 m with an average at 88.69 m. On the average the boreholes were drilled to some five meters into the green clay. 41 holes were not drilled to the base of the seam. The top of the seam has been encountered between 5 m and 76 m md with an average at 31.40 m. The base was penetrated between 8.8 and 138.3 m md with an average at 90.06 m. The structural position for the top of the seam is between 472.40 and 581.10 mMSL with an average at 523.84 mMSL. The elevation for the base is between 533.8 and 596.10 mMSL with an average at 555.05 mMSL. Page 41 of 120


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The seam thickness is between 1.00 and 81.60 m. The average is at 58.17 m.

4.3.3.3 “South-Field” 65 borehole data (lithological descriptions, assay data) were available for the area within South-Field Mining Concession Area . One borehole was removed from the active database since the recorded surface elevation was estimated 120 m too high. A total of 27,731.7 m were drilled by these boreholes. The total depth is ranging between 11.8 m and 211.5 m with an average at 134.13 m. On the average the boreholes were drilled to some five meters into the green clay. Six holes were not drilled to the base of the seam.

4.3.4 Coal Qualities from Borehole Data 4.3.4.1 Assessment of Borehole Data Since the cores are not accessible no “first hand” judgement can be made about the reliability of the lithological descriptions which affect the definition of the seam´s vertical boundaries. Only indirect control was given during the modelling process by investigating anomalies in the structural setting or thickness distribution caused by a single borehole. Due to the sharp contact of lignite and grey clay it can be assumed that the hangingwall boundary of the seam has been unequivocally recorded. The modelling process confirmed this assumption. The definition of the footwall boundary is less precise due to the progressive intercalation of clay towards the base of the seam. It cannot be ruled out that either lignite or clay has been overseen in the cores which could cause interpretation errors. In this context it should be noted that core losses are only reported in the available description sheets for Sibovc. Anomaly spots in some areas indicate an uncertainty in the boundary definition of ± 5m. The data management with KEK´s responsible engineering department does not meet international standards. A complete and updated digital borehole database was not available by commencement of the study. The available data (Tab. 4.2-1, data item [1]) were apparently generated during the ESTAP study (Tab. 4.2-1, data item [12]) by the contractor. This data has not been completed or updated. In this data important qualifiers which e.g. indicate only partial seam penetration are not contained. Further borehole information is stored in KEK´s AUTOCAD Mining plans but apparently incomplete and not reviewed. Our general impression is that no authorized borehole database is in use. Page 42 of 120


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Therefore, it was necessary to generate a new database for the project tasks. It stores all available borehole data in EXCEL sheets and provides VBA functions for data filtering, calculations (as calculating length weighted borehole averages from assay data) and export function. We recommend that KEK is adapting this database and maintaining it in the future. Upon KEK´s request and specifications the database content could easily be transferred to their applications as in particular to DATAMINE.

4.4 Geological Model A detailed structural model has been generated for the Lignite Fm. It integrates all available sources as surface observations, borehole and seismic data. Due to the lack of decent borehole descriptions a differentiation in the overburden clay between the yellow and grey clay was difficult and only made for two cross-sections which are part of the Annexes in Part II. A coal property distribution model for the coal properties as relevant for the mine plan, i.e. ash content, net calorific value and total sulphur, has been developed on length weighted borehole averages. Additionally, a 3D Block Model for the spatial net calorific value distribution has been developed by applying SURPAC (see Part II – Technical Planing).

4.4.1 Modelling Procedure The borehole database are stored in an EXCEL file. The listings for the Sibovc Concession Area is contained in Appendix B (Tab. App-B-4.5-1 and –2) that provides VBA procedures for data filtering and averaging of coal quality assay data. The EXCEL database served as input of borehole data for the geological modelling. All maps, 3D displays and cross-sections were produced by using SURFER 8.00 (Golden Software) and AutoCad 2004. All grids have a 50x50 m grid node increment. For the gridding processes all available borehole data have been considered. The maps show an area of 91.8 km2 that fall in the limits of xmin=7499000, xmax=7511000, ymin=4721850 ymax= 4729500. For the generation of the depth structure grid and contour map at Top Lignite Seam a minimum curvature algorithm was used. An anisotropy factor of 0.8 was used to reflect the NorthSouth elongation of the lignite basin. This algorithm has been tested as the best available for modelling fault areas.

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The isochore thickness has been generated by applying a radial basis function with an anisotropy of 0.8 and a long axis directed to the NNW (340° azimuth). The base of the seam has been generated by isochoring downwards. The overburden, overburden-to-coal ratio and structural dip maps have generated by mathematical grid operations. The faults have been mapped as vertical faults. This simplification has been made because the chosen grid increment no significant improvement in volumetric calculation. The structural cross-sections (Annex I/ 4. 6- 8) were generated from the SURFER structural grids. The sections have manually edited to show fault dips. For the coal quality distribution grids which are not affected by faults a kriging algorithm with SURFER´s default linear variogram with the following specifications was used

. The search parameters have been selected as shown below.

The structural and property grids have been exported to the mine planning software Microstation as GS ASCII grids. The format exchange does guarantee a 1:1 imaging of the grid data among the software packages.

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4.4.2 Structural Model Depth structure maps at Top and Base Lignite, a seam isochore map, overburden thickness and overburden-to-coal ratio are shown in Annexes I/4.6-1 to –6. Three regional geological cross-sections in SW-NE, S-N and W-E directions depict the structural and depositional setting (Annex I/4.6-8). In all concession areas the structural dip at top lignite is low with overwhelming values below 5º (Annex I/ 4. 6- 7). In the ”South-Field” it dips with 5-10º to the South. Steeper dipping is indicated in Sibovc along two SW-NE alignments which are believed to represent erosional channels. The erosion is also seen on the depth structure map at Top lignite, the isochore map and even expressed on the Low CV map. The mapped area is characterised by a NNW-SSE striking basin. Along the axis the thickness reaches up to 70-80 m. The coal basin is delineated to the West by a series of stepping fault blocks which separate the Tertiary fill from the Mesozoic basement. The lignite pinch-out to the NE appears to be a unconformal without recognized boundary faults. Cross-faults which strike roughly perpendicular to the basin axis are developed in the North of Sibovc and to the South of Hade. The cross-plot lignite thickness versus depth (Fig. 4.4-1) eveals a strong correlation which indicates that subsidence and very likely faulting took already place during the lignite deposition. If the movements were commencing later the data would show high scattering. The seismic data indicate a highly faulted area along the Mirash northern slope directly to the south of Hade. It appears to be affected by reverse faults and dense normal faults creating a “collapse” structure. Due to the critical location in respect to the village of Hade a proposal for an appraisal borehole has been made to the mining director (see proposal document in Appendix A). The following table provides structural characterisation data for the evaluated areas:

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Tab. 4.4-1

Minimum: Median: Maximum: Mean: Minimum: Median: Maximum: Mean: Minimum: Median: Maximum: Mean:

Sibovc, D-Field, „South-Field“ – Structural Characterisation Univariate Statistics - Structural Characterization from Geological Model Grid Sibovc O-To-C Ratio Top Seam Base Seam [mMSL] [mMSL] Thickness [m] Overburden [m] [m3/t] 494 422 0 2 0.0 550 505 52 36 0.7 638 638 96 130 153.7 552 503 49 43 1.1 D-Field 454 378 0 2 0.0 534 476 58 27 0.6 581 564 83 84 99.9 529 480 48 32 1.6 "South-Field" 357 281 1 2 0.0 475 410 66 94 1.2 529 509 81 180 2.4 468 403 65 90 1.2

Fig. 4.4-1

Lignite Thickness vs. Depth Plot

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4.4.3 Coal Quality Distribution Model For the quality distribution length weighted averages have been calculated from the assay data within the Lignite Fm. on a single borehole basis. Averages for the Sibovc area are reported in Appendix B (Tab. App-B-4.5-2). Average coal quality distribution maps are shown in Annexes I/4. 6- 9 to –11. The concession areas are characterised by the following quality populations: Tab. 4.4-2

Univariate Statistics, Coal Qualities from Geological Model Grid

Univariate Statistics - Coal Qualities From Geological Model Grid Sibovc Ash Content Net CV Total Sulphur [%] [kJ/kg] [%] Samples 8115 8115 8115 Minimum: 25%-tile: Median: 75%-tile: Maximum:

11.29 14.28 15.33 16.87 38.19

1748 7834 8296 8657 9683

0.69 0.95 1.07 1.19 2.93

Midrange: Range: Interquartile Range: Median Abs. Deviation:

24.74 26.90 2.59 1.20

5716 7935 823 402

1.81 2.25 0.23 0.12

Mean: Trim Mean (10%): Standard Deviation: Variance:

15.86 15.64 2.31 5.35

8146 8214 762 580561

1.09 1.08 0.20 0.04

Coef. of Variation: Coef. of Skewness:

0.15 1.88

0.09 -1.72

0.18 1.66

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4.5 Other Aspects influencing the Geological Situation 4.5.1 Former Underground Mining Remains of the old underground mining are situated in the south-western part of the Sibovc field and the D-Field and are connected with the old mining structures which are currently exposed along the coal cuts in Mirash West and on the Mirash northern slope. Some of the old galleries have been already cut within the Mirash mine and the pillar area. First attempts to reach the seam were made along river erosion channels which cut the coal seam. In areas of the seam which were affected by it can be mixed completely or at least partly with humus strata resulting in a decrease of the coal quality. Therefore, the initial excavation of the stalls began about 7 meters under the roof of the seam. In the proximity of the riverbanks water handling was difficult. At a later stage vertical shafts were deepened. The documented coal mining using galleries and reaches back to 1922

Fig. 4.5-1 Arial photography showing the area of the D-Field with regularly aligned collapse structures (more or less round holes) in consequence of former underground mining. The highlighted area indicates zones with still stable galleries.

For the stabilisation of the galleries with a height of 2 m and width of 3 m was used a wooden timber set support system. The parallel galleries had a distance of 20 m one to each other, every 100 m a cross cut was excavated and they followed the given directions of the separations planes. The old roadways were driven parallel to the joint system within the mine. The galleries were widened to caverns with intervals of 7-20 m and the coal was broken from the roof. In the area Western of the overburden dump in the D-Field these caverns frequently collapsed forming more or less round craters, which show a regular alignment. Due to this method sections of the galleries show a low stability and there is a potential danger of collapse of the undermined levels under load if they are not already broken or refilled.

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The dimension of the undermined area in has been calculated considering the following factors: • Calculation of the excavated coal during 1922 to 1966 • Existing underground mining maps of the Mirash mine • Position of the old shafts

Fig. 4.5-2

• • • • • • • • •

Collapsed gallery of old underground mining.

Mapping of the outcrops of the gallery system and acquisition of data (gallery width, distance e.g.) Site visits of the for a specific delimitation of the underground mines Determination of the mining methods by means of the characteristics of exposed galleries Interpretation of aerial photographs for the acquisition of typical structures (patterned alignment of collapse structures) Interpretation of seismic investigations Acquisition of the fault pattern Acquisition of topographic elements and natural boundaries (old bed of the river Sitnitca, location of villages) Extension regarding the maximum practicable distance between shafts and galleries These points have been regarded for the purpose of compiling the geological model how it is described in the attachments.

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The underground mining was abandoned in 1922. Following table shows the overall coal production of the underground mine. There is no reliable documentation on the extension of the old underground mine or the information is at least incomplete. Coal production of old underground mining in the Kosovo Basin "Kosovo"

"Krusevac"

"Sibovac"

Years 1922 - 1966

years 1948 - 1966

Years 1952-1958

6.401.434 t

2.921.233 t

255.117 t

Tab. 4.5-1

Coal production of old underground mines within area investigated. (source: INKOS)

Partially, the exploitation fields of the old underground mining were limited by faults. Under consideration of these production rates for the field “Kosovo” can be calculated an area of app. 5 km2 and 2 km2 for the field “Sibovc”. These production rates from the field “Sibovac” show that the excavation only took place near the surface. The largest distance between a shaft and the outermost galleries did not exceed 700 meters. Annex I/4.7-1 shows the complete undermined area how it can be supposed under consideration of all aforementioned arguments and facts.

4.5.2 Uncontrolled Coal Fires 4.5.2.1 Development and locations of coal fires Within a wide area a large amount of lignite is affected by spontaneous combustion. which occurs in the mine slopes and coal yards, where the coal is exposed to air and can penetrate the underground and reach the coal Self- ignition is the consequence of the oxidation of coal, a process which is producing heat energy. If the energy production exceeds the amount of energy removed from the system, the coal will reach its ignition temperature, eventually. In a first phase coal fires take place within weakness zones like joints or slope failures or old mining structures, where enough oxygen can reach the surface of the coal and the heat is enclosed. The fire can be boosted by methane. In the following stage the complete hanging layer is influenced by the heat. About 60% of total coal fires are concentrated near or within the roof strata, where the coal shows the best quality and discharges a great amount of energy. Old galleries from the ancient underground coal mining facilitate a supplementary ventilation and therefore best conditions for oxygen inflow are given Burned out galleries result in large cavities and therefore a decreasing stability of the slopes. The experiences from the Bardh-Mirash mine showed, that also slide areas, slopes (especially the central pillar parts of the mine which remain exposed to air for a longer period), fault and joints are affected by these fires. Self combustion also occurs in dumped coal masses. Typically the coal fires begin at the base of the dumps and affect the hole dump until it is burned out.

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Areas which are affected by illegal (private) coal excavation are also potential locations of coal fires. In most cases the small quarries and shafts were not refilled and therefore potential conditions for self combustion are given (see Figures below). A secondary effect is the fritting of the clay in the seam roof. Due to the heat the material becomes dehydrated and oxidised and takes a red colour The characteristics (hardness) of the fritted clay allow a use as gravel to improve the stability of transport roads within the mine

Fig. 4.5-3

Coal fire at a base of a dump.

Fig. 4.5-4

Coal fire in old mining structures

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4.5.2.2 Counteractive measures The procedures for coal fire extinguishing and thus saving coal resources have to be adapted to the exploitation operations and to be done by the mines staff during the current mining activities. The following convenient extinguishing technologies have to be selected under consideration of the local geotechnical conditions. The extended use of water in most cases may cause landslides. • Direct fire fighting (small fires) • Excavation of local burning coal (hot spots) • Levelling of surface and drilling of injection holes • Injection of water or slurry to the fire centre • Surface sealing (excavation front) • Cooling with water spaying equipment • Inertisation • Flooding (surface near galleries) • Burnout control

4.5.2.3 Prevention of coal fires Prevention of coal fires is synonymous with the avoidance of the contact of coal and oxygen. The main focus is on the avoiding of oxygen entry into the underground corridors. The galleries in the central pillar allow the best ventilation and therefore strongest oxidation and heat development. Cut old galleries have to be protected against ventilation. If an excavator opens a gallery, a caterpillar or similiar machine should close the entry as soon as possible with clay or other impermeable material to prevent further oxygen entry. These actions have to be taken permanently during the excavation process. Collapsed old galleries near the surface or shafts have to be inspected if oxygen can penetrate somewhere and where appropriate, openings need to be filled. Self combustion and fires near the surface can be avoided minimising a permanent contact of the coal with atmospheric oxygen. Slide faults can cause deep cracks and are often the origin of coal fires, which are very difficult to extinguish. Therefore it is essential to prevent land slides Generally, the length of the excavation front has to be adapted to the yearly coal output. Thus, the time of exposition of the excavation front can be reduced. As potential appearance locations of coal fires are associated with the locations of the old underground mining, the underground mining map (Annex I/ 4.7-1) can provide information where to aspect fires in the future. In the 1st semester of 2006 a project will be started by EAR for fire fighting in the Kosovo Coal Mines. The results of this projects shall, so far as the instructions will be carried out strictly, achieve sustained success and lead to a significant reduction of coal fires.

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4.6 Geological Resources The calculation of geological resources for the Sibovc, the D-Field and the “South-Field” – within their respective concession areas – resulted in the following figure: • Sibovc 990 mt over an area of 19.7 km2 • D-Field 395 mt over an area of 7.8 km2 • “South-Field” 537 mt over an area of 8.0 km2 The calculation of resources defines solely “geological resources” or in other terms: “in-situresources”. A classification of these resources in accordance with their geological assurance was performed for the Sibovc field and is discussed in Part II of the report. As a general statement, geological resource figures are not considering any factors based on the mineability, such as mining losses or dilution. They are simply based on cut-offs assumed by a competent geologist. In this case, no cut-off for minimal thickness of the seam is required as the lignite bed is always well above the technical mineability. Also a cut-off for the thickness of partings was not applicable for the evaluated concession areas. The boundaries of the seam at the top and the floor are lithologically defined and also established by the sampled seam section. The geological assurance depends on the borehole spacing and the continuity of the deposit. It can be already noted that the borehole spacing is wide in the “South-Field” which would lead to classify the area as an coal field with “indicated” or “inferred” resources. The Sibovc field is well explored in the south and lesser explored towards the north, hence, measured resources are abundant. The thickness distribution within the deposit area is modelled by interpolation as described in chapter 4.4.1 and is established on a 50 x 50 m grid. Losses of resources due to underground mine workings in the upper part of the seam in some isolated areas are not yet estimated since no accurate maps of those areas are yet available. A specific gravity of 1.14 g/cm³ was applied in order to calculate the tonnage of lignite resources. This value is in accordance with former assumptions and allows a comparison of resource figures with various former studies. Assuming a real specific gravity in the range of 1.25 to 1.3 g/cm³, the geological resources would be increased by about 10 % which now can be considered now as a safety factor.

4.7 Hydrogeological Situation The hydrogeological situation of the area is defined by three main hydrogeological layers. The basis is given by an aquiclude formed by the “green clay” consisting of clay and silt with a general thickness of more than 100m. The overlaying lignite coal with a thickness up to 70m is generally described not to be good permeable but because of fissures and cracks within the coal groundwater can circulate whereby the coal layer has to be recognized as an aquifer. This fact can be underlined by field Page 53 of 120


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observations when wells were observed, which came into being while excavating coal in an elevation clearly above the water level of main drainage sump in Mirash mine. Above the coal follows the overburden mainly consisting clay with subordinated silt or sand. Characteristic are embedded layers with masses of snail shells. Near to the surface this “grey clay” can change its appearance to a “yellow clay” what is explained to be a result of weathering with oxidation of the iron content within the material. The clay material generally habits like an aquifuge but because of fissures and cracks reaching depths of 10 m to 15 m from the surface water can penetrate the rock. Hence groundwater appears either when the fissures are dug up by excavation or where those fissures are connected to better permeable layers within the clay such as the snail shell layers or gravel layers. Following the resulting hydraulic conductivity depends on the locally different appearance of the clay and fissures. The “yellow clay” horizon is frequently used to supply houses and smaller villages with water, e.g. in the village of Hade and in the valley west of Lajthishte. The observed water levels and the alteration in colour from grey to yellow indicate that this groundwater horizon is directly fed by precipitation and it is assessed that groundwater predominately circulates near the surface. Recent measurements on the quantity of groundwater and flow directions as well as expressive maps of the groundwater table are not available. Reviewing older documents an D-Field observations show that the quantity of groundwater descending the overburden at the mines is rather small. At the slopes groundwater can be observed after rainy periods favoured in coarse layers of the “yellow clay” and, along fissures, within the “grey clay”. Additional vadose water horizons can appear within courser layers of the grey clay especially where it contains larger amounts of snail shells. Locally the overburden is eroded to a thickness of meters or less and as abandoned underground works with broken roofs give direct access to the surface, precipitation can directly infiltrate the coal in larger areas whereby larger quantities of groundwater might be produced. Utilization of groundwater concentrates on private wells dug to depth of 10 to 15 m below the surface within the overburden clay. Production quantities are shown by Rudaski Institute (1985) with Q = 3 l/min to Q = 11 l/min with a maximum of Q = 54 l/min, which can be judged as hydraulic conductivities in a range of kf = 10-9 m/sec to kf = 10-6 m/sec. Field observations in the surroundings of Lajthishte showed artificial wells, drilled some 5 m to 7 m deep into the “yellow clay”, to serve as water supply for a village. Inhabitants described the wells rather unproductive but sufficient for private purpose. The quaternary deposits along the river Sitnica consist of coarser materials with sand and gravel contents. Resulting the hydraulic conductivity can reach values up to kf = 10-4 m/sec or even greater. Because of the hydraulic properties of the clay and the topsoil developed to a Vertisol (Smonitza) in case of rainfall an enriched surface run-off can be expected. To allow first assessments a run-off coefficient of 0.45 is chosen by Consultant. The hydrogeological situation at the surface is presented by Rudarski Institut in 1996. The map shows in brownish colour elevated and hilly plains with minor or no groundwater content as well as in blue colours the valleys of the rivers with enriched groundwater occurrence. Page 54 of 120


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From the hydrogeological point of view a first differentiation is possible for the potential mining fields. The Sibovc-Field is nearly wholly located in less water bearing overburden. Besides some minor waters the Sibovc river in the north of the field has to be diverted in an adequate way before excavation. In the valley of Sibovc river artesian groundwater outflow was observed in harvest of 2004. Hence beside a well prepared diversion of the river additional drainage will be needed for the alluvial sediments in the valley. Furthermore protective measures must be foreseen were the alluvial sediments of Sibovc river join the Alluvial sediments along river Sitnica near the village of Hamidija. It is assessed that at least an apron cutting through the permeable sediments and a dam will be needed to prevent water inflow from the river Sitnica. The fields D and South reach the river valleys where enlarged groundwater inflow is expected. Especially the South-Field will be excavated along the river Sitnica with diversion of the river needed and opening up the rim of the mine for more than 3 km parallel to the river. Hence intensified leakage from the river to the mine will be created and adequate measures have to be implemented to protect the mine in times of floods as half of the width of inundation area will be lost.

Fig. 4.7-1

Complemented Extract from Hydrogeological Map (Rudarski Institute 1996)

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4.8 Further Exploration in the future Fields The future coal fields should be examined with geological and geophysical methods under special regard of geotechnical conditions and the coal quality. The investigations should include: •

Borings executed with three drilling rigs for the examination of 2500 m of core material each year. For a reliable geological prognosis, in any case the respective borings should penetrate the whole seam till the lying green clay of the foot wall is reached. On demand (e.g. in the range of faults) the boring grid should be closer for obtaining more structural information (recognition of small size structures). • Registration of the strike and dip of the seam. This allows a better planning of the excavation. • Determination of the coal quality on the basis of the samples from the new borings • Investigation of the whole future field by line seismics. • E-W orientated 2D seismic line investigation for the verification of the orientation and throw of the faults • Hydrogeological evaluation in the boreholes • Geotechnical investigations including valuation of the parting plane texture. The future fields are expected to show structures in the northern sections how they are known from the actual mining areas. If such structures will be found, a detailed examination with borings should be made.

5 Overview of Potential Future Mining Fields 5.1 General Aspects and Bedding Conditions The deposit sections with the most favourable mining conditions are West of Pristina, where also the Mirash and Bardh mines are opened-up. The overburden to coal ratio is here approximately 1:1, i.e. to mine 1 t of lignite 1 cm of overburden has to be removed. In international scale these value are extremely favourable. The following three potential fields are considered for the further examination to choose the most effective opencast mine field: • Sibovc-Field • D-Field • South-Field

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Fig. 5.1-1

Potential Mining Fields

5.2 Sibovc-Field Location: The Sibovc Field is situated to the North of the Bardh and Mirash mines. So it is near the capital of Kosovo – Pristina and near to the existing power plant Kosovo B. The field area is approximately 16 msqm. It has a maximum mineable width (East-West extension) of 3.8 km and a length of about 6 km. Area use: The area of the Sibovc field is mostly used for agriculture. For a long time it has been known that this lignite field is envisaged for excavation. Therefore, the people living in this area are prepared for mining activities. Previous plans included the mining from South to North whereby it was intended to develop the field from the existing rim slope system of Bardh/ Mirash. Small private coal openings exist which are used for local fuel use. Degree of building: The mining field is sparsely populated. The main villages are:

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• • •

Hade Sibovc und Lajthishte

The village of Shipitula is for the most part outside the field to be mined. The resettlement of the before mentioned villages is the major obstacle for the exploitation. There are no other restrictions for the coal mining.

5.3 D-Field Location D-Field lies in directly beside the power plant TPP Kosovo A and ca. 5.5 km away (straight line) from the power plant B. In the West it borders the village of Dardhishte and in the South the village of Polje (Fushe Kosove) including infrastructure like road and railway line, whereas the seam thickness thins out to below the economic limit into East/North-East direction and in parallel the coal quality changes to the worth.. There is existing a „concession line“ which was also used for the comparison of the mining fields. A minimum distance between the villages was taken into consideration when choosing the mine boundary with regard to the before mentioned concession line. The area within the mine configuration comes to 6.7 msqm. Area use Already in the past coal was extracted on the territory of field B. The major part was mined in underground mines. For example, 2.9 mt of coal were mined (Krusevac mine) between 1948 and 1966. At present, a considerable part of the area is used by KEK as ash disposal site. Furthermore, opening-up masses from the Mirash mine were deposited on this area. The dumped material is assessed to: Ash Dump Dragodara 1.52 m sqm Overburden Dump Dragodara 0.69 m sqm The recovery of the old dumps interferes with the excavation of the deposit. Degree of building There are only few houses on coal D-Field. It is envisaged to build a motorway right on the area of the D-Field. It seems that approximately 30 – 40% of the mineable lignite content will be lost due to this measure. In this case the coal field will loose its attractiveness.

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5.4 South-Field Location: The South D-Fieldirectly borders on the existing Bardh and Mirash opencast mines in the South. In the West the mine boundary is formed by the village of Bardh and in the East the Sitnica River (Variant 1) or the village of Kosovo Polje (Variant 2). In Variant 1 the area covers more than 11 and in Variant 2 more than 14 m sqm.

Fig. 5.4-1

Two Variants in the South-Field

Geology in the excavation area: The deposit is characterised by an at least 60 to 80 m thick coal seam which is covered y an overburden layer of 100 to 150 m. The ratio overburden to coal is about 2:1. Compared with the Sibovc field the overburden volume doubles. In general there is the tendency of the overburden to coal ratio to change to the worse into Southern direction. In addition to the geological overburden, large amounts of dump material will change this ratio (O-to-C) further to the worse. Area use:

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Most of the area is already owned by KEK and covered by the already mentions dumps (see Figure below):

Fig. 5.4-2

Outside Dumps on the South-Field

These dumps comprise a total volume of 90 to 110 mm³ (slope angle ca. 6°) of an entire area of 5.5 m sqm and an average dumping height of 20 to 30 m. Soil-mechanical conditions: The dump soil is very difficult to excavate. Besides the problems in the excavation and transportation process, there are considerable problems of static stability for the slopes to be built. Gravel shall be available to stabilise in particular the working levels; this material is not available in the mines. The following parameters depend on the chosen field boundary: Tab. 5.4-1

Comparison of Coal Content and Overburden Removal South-Field Variant 1 Variant 2 Area m sqm 11 14 Slope Angel Overb. ° 10 10 Slope Angel Coal ° 22 22 Mass Overburden m m³ 1100 1400 Mass Coal Mt 370 500 Ratio Overb. to Coal bcm/t 3.0:1 2:8

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Degree of building In any case, i.e. for both variants, resettlement of the villages of Lismir and Kuzmin is required. In Variant 2, the river Sitnica had to be relocated additionally. There are no other buildings which could have a relevant influence.

5.5 Valuation of the Mining Fields The following Table shows a comparison of the different alternatives under consideration of various criteria: Tab. 5.5-1

Valuation of the Mining Fields

Criteria

Unit

Lignite content within tech[ mt ] nological border * Overburden : Coal – Ratio [ bcm/t ] incl. dumping material

Sibovc

D-Field

South-Field

900

280

500

0.85

0.90

2.8

Average Net Calorific Value

[ kJ/kg ]

8312

7340

Average Sulphur Content

[%]

1.1

1.0

Land Use Covering by dumped Masses

[m sqm ]

Agriculture 0.5 Hade, Sibovc, Lajthishte Resettlement of Hade

KEK(Dumps) 2.2

similar to Sibovc similar to Sibovc KEK(Dumps) 5.5

few houses

Lismir, Kuzmin

Motorway

Currently hardly competitive

Resettlement Constrains

* Considering the geological content within the slope system in the boundaries of the mines

One of the important cost drivers is the ratio between overburden removal and coal extraction. The figure below shows a survey. According to that the very North and the very South of Sibovc and the D-Field is most favourable. The centre of the Sibovc field is mineable but unfavourable for the opening up of the new mine.

Valuation Sibovc Field: The Sibovc field has large coal content and is characterised by favourable deposit condition. The lignite has a high quality and the excavation is not largely affected by extensive recovery of outside dump material. Another advantage of this field is the moderate transport distance to the power plant. Developing the Sibovc field from the South has the best potential of all scenarios to fill the Bardh and Mirash pits with overburden masses. The exploitation of the deposit requires resettlements.

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The mining of the lignite field of Sibovc offers the best possibility to supply coal to a new large power plant. In total it can provide coal for 2000 -2500 MW power plant capacity.

Valuation of D-Field: D-Field is characterised by the low overburden thickness and the good overburden to coal ratio. The average heating value is by 12 % lower and the filed is covered by outside dump masses and ash dumps. The previous dumping of ash did not correspond to the standards and guidelines of the EU. It has to be assumed that this dump should be either recovered or at least provided with a sufficient cover layer. If the dumps will be carried out, the remaining overburden to coal ration will come from 0.72 to 1.0 bcm/t. If the cost for relocating the ash disposal from its current location into the old workings of Mirash will be covered by a third party, the mining costs are expected to be lower in comparison to the other mining fields. This is also valid considering the lower average heating value. With regard to future land use it is possible to establish an attractive lake for recreation at reasonable costs not far away from Pristina (15 minutes). In terms of sustainable development the D-Field offers the best post mining use of the land. The environmental liability of the ash dump is eliminated and a recreational area can be established. The building of a new power plant larger than 600 MW would not be justified in particular due to the limited coal content. Either TPP B until end of lifetime or/and a smaller new TPP can be supplied. The envisaged erection of a motorway impedes the economical use of the lignite deposit. That´s why it is requested to check whether it is possible to relocate the route eastwards – at least in the Southern part of the D-Field.

Valuation of South-Field The main benefit of the Southern field is the fact that most of the areas are already property of KEK. But more overburden has to be removed as the seam dips to the South. Another disadvantage of the South-Field is the increasing transport distance to the power plants TPP A und TPP B. Mining of the South-Field is the most expensive variant due to the unfavourable geological conditions, especially the relatively high overburden to coal ratio. It should therefore be postponed.

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6 Alternatives of Mining Equipment -Various Mining Methods 6.1 Bases for a Comparison of Alternative Mining Methods Use of new Equipment /Comparison The deposit in the lignite mining area to be examined can be exploited economically by means of various different mining methods. Only those processes are considered which are able to extract the existing loose rock (mainly cohesive soils) in the overburden very economically: 1. 2. 3. 4.

Conventional bucket wheel excavator (BWE), belt conveyors and spreader Compact BWE, belt conveyors and spreader Truck and shovel (mobile equipment) Combination of BWE technology and truck and shovel

Other mining methods are not regarded efficient compared to the above mentioned. Those other methods include the excavation with draglines or „Hydromonitors”. The latter is not suitable because of the compact clay material and the thickness of the overburden layer. Often applied direct dumping methods are restricted due to depth of the overburden layer and the seam thickness. The dragline technology is possible in principle. It is the lowest cost waste removal equipment but restricted to: • Large deposits to ensure adequate strip length • Sufficient reserves to justify the capital expenditure • Gently dipping deposits, due to spoil instability • Simple geology and gentle terrain to ensure minimal changes in overburden thickness along the strip and • Shallow deposits due to dump reach and height limitations Due to the deposit parameters, draglines are not suitable as main winning equipment – capacity operation - in the Sibovc field. Deciding factors for this are the thickness of overburden and coal The important minimum values for the total benches (Sibovc deposit) are even in the first years: Overburden: 60 m Coal: 60 m The plan for cutting the general slope system includes 10° in the overburden and 22° in coal. This would mean that the excavators have to handle the excavated masses too often and would therefore not be profitable. But they could be useful at least for special works (auxiliary work) – if not applicable for the capacity operation.

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Definition of the working range for the comparison of the mining methods The detailed comparison of mining methods which seem to be reasonable is made at the example of the extraction in the Northern part of Sibovc. At this place, advantages are most likely to use alternative equipment like f. e. mobile equipment in contrary to the BEW-technology used at present. The reasons result from: • low overburden thickness • lower thickness of coal seam • larger distance of place of application of machines as against the present location

6.2 Description of the 4 Alternative Mining Methods Alternative 1 - Conventional continuous working Main Equipment Main equipments in Alternative 1 are standard machines, i.e. bucket wheel excavators with belt conveyors. This also corresponds to the present mining technology of KEK. Draglines work as auxiliary machines. The comparison can be made by a) new equipment and b) available old-equipment. Alternative 2 – Mining with compact excavators The most important difference to alternative 1 is that the excavators which are used as solcalled compact excavators have a shorter boom length. Those excavators have a lower weight and therefore have a lower price. That means the investment demand is also lower. On the other side, there are increased expenses in the production process because of the lower cut. Alternative 3 - Mobile Equipment This alternative mining method aims at determining it a sole truck/shovel operation would be more cost-effective than the extraction with continuous excavator-belt conveyor-spreader operation. Anyhow, the truck/shovel method is inherently more flexible and makes this method better suited in the following applications: • Small deposits, which do not justify the capital expenditure of BWEs • Geologically complex deposits with resultant irregular mine shapes • Comparably low labour costs for personnel, compensating the extra demand for additional labours Especially the last aspect is given and the moderate output capacity of 9 mt contributes to this as well.

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Alternative 4 - Combined Equipment Application In this alternative, overburden is removed by means of bucket wheel excavators. All excess heights in the overburden are removed by truck/shovel operation.

6.3 Calculation of Average Cost per Unit With regard to the future equipment use and output capacity, the operating costs were estimated for the four alternative mining methods. Average cost per unit was calculated by means of the Discounted-cash-Flow method (DCF) assuming a discount rate of 12 % and with the use of real values (i.e. for personnel cost and additional increase of ca. 2 % is assumed as against the international inflation rate).

6.3.1 General Data for Cost Calculation General assumptions for the study are as follows: - Currency of the study Euro - Discount rate 12 % escalated - Escalation rate 2 %/year. - Base cost 2004 - Labour costs 3,440 €/employee/year in 2004 - Shift factor 5.2 employees per workplace - Power 0.032 €/kWh - Fuel 0.70 €/l - Maintenance 0.08 – 0.10 €/(m³+t)*km - Recultivation 0.15 €/t Lignite - Taxes & Royalties 0.30 €/t Lignite - Other costs / contingencies 0.30 €/m³+t

6.3.2 Calculation of Operating Cost Positions Tab. 6.3-1 Operating Cost Position - Personnel: Main Equipment Personnel demand for main equipment was determined on basis of standard crew of heavy-duty equipment, estimated crew for belt conveyors as well as shift factor. Workshops/Maintenance:

50 % of main equipment

Auxiliary Equipment:

40 – 80 % of main equipment

Administration & Head Office:

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Other:

20 % of main equipment

- Maintenance costs:

The demand was determined on the basis of the performances of the equipment and the specific value. It was considered that the higher demand for auxiliary equipment requires higher maintenance costs in Alternatives 2, 3 and 4.

- Power:

Determination of costs on basis of output capacities. An additional demand of 5 Mio. kWh/a was estimated on the basis of data of similar opencast mines.

- Fuel:

Determination of costs on the basis of use of equipment. Depending on the use of auxiliary equipment an additional demand of 5 Mio. kWh/a was estimated.

- Recultivation: - Taxes & Royalties: - Other costs / contingencies:

0.15 €/t Lignite 0.30 cent/t Lignite. 0.30 cent/m³+t

6.3.3 Actual Costs Basic assumption is, that the personnel cost in Kosovo will rise sharply in the next years than all the other positions will rise. Basing on this, we made the following considerations: The personnel costs will increase: • until 2014 by 8 %/year • from 2015 by 1 %/year

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6.4 IRR, average Cost per Unit For different discounted rates the average cost per unit before tax over the whole project life amount to: Tab. 6.4 – 1 Comparison of average Unit Cost Discounted rate 4% 6% 8% 10 % 12 % 15 % 20 %

Average cost per unit in €/t Alternative 1 Alternative 2 Alternative 3 4.87 5.18 6.94 5.31 5.60 7.07 5.85 6.12 7.24 6.48 6.72 7.46 7.21 7.42 7.72 8.48 8.63 8.19 11.01 11.11 9.16

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Alternative 4 5.13 5.44 5.82 6.26 6.76 7.62 9.28


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6.5 Sensitivity Analysis The real average costs are graphically illustrated in dependence of the discounted rate. This clearly illustrates: As soon as the main equipment can be financed fully or partly via bank credits the average costs. The normal variation range is between 10 and 12 %.

Sensitivity of discount rate 11.00

10.00

RAC in €/t Lignite

9.00

8.00

7.00

6.00

5.00

4.00

4%

6%

Alternative 1

Fig. 6.5-1

8% Alternative 2

10%

12% Alternative 3

15%

20%

Alternative 4

Results of economic comparison of mining methods –equipment alternatives

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6.6 Result / Evaluation of new Equipment The following average costs per unit were determined, calculated on the basis of dcf methods for an internal rate of return of 12 %: Tab. 6.6-1

Average Cost per Unit (new Equipment) Unit Altern. 1 Altern. 2 Output m t/year 9.0 9.0 (after initial operation period) (from 2009 on) Average cost per unit Lignite thereof (incl. of indirect cost) Operating cost Investment cost and Acquisition/Resettlement Average cost per unit per tce (29 300 kJ/kg Lignite thereof: Investment Acquisition and Resettlement Operating cost Labour cost

Altern. 3 Altern. 4 9.0 9.0 (from 2010 on)

€/t (lignite)

7.21

7.42

7.72

6.76

€/t (lignite)

3.19 4.01

3.56 3.85

5.16 2.55

3.67 3.09

€/tce

29.32

30.18

31.41

27.53

€/tce

16.34

15.69

10.39

12.58

€/tce €/tce

12.99 3.08

14.50 3.90

21.02 4.91

14.94 3.64

Tab. 6.6-2

Expenses over whole project life time Unit Altern. 1 Altern. 2 Altern. 3 Altern 4 Investments, Reinvestments and Rehabilitation Total m€ 317.4 312.7 356.5 255.3 thereof: Lignite Excavator m € 51.0 31.2 10.8 25.8 Bet conveyor lignite m € 35.0 35.0 35.0 OB Excavator conv. m € 46.0 25.0 15.0 OB Excavator mobile. m € 12.0 2.8 Belt Wagon m € 4.6 13.8 7.2 Spreader m € 12.6 12.6 6.3 Belt conveyor m € 105.0 105.0 55.0 Draglines m € 12.0 18.0 Lignite Crusher m € 9.0 Heavy trucks OB m € 143.4 40.9 Heavy Trucks Lignite m € 99.2

The comparison of the alternatives shows that the operating costs in alternatives 1, 2 and 4 only differ to a small extent.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Current Mining RAC Euro/t 2012 to 2041 8.00

7.72

7.42 7.21

6.76 7.00

6.00

RAC in â‚Ź/t Lignite

5.00

4.00

3.00

2.00

1.00

0.00 Alternative 1 Personnel Maintenance Recultivation & Roads Total

Fig. 6.6-1

Alternative 2

Alternative 3

Power Taxes & Royalties specific Invest costs

Alternative 4 Fuel Other financing costs

Result of economic comparison of the four mining equipment variant

The investments are of greater influence on the alternatives. Due to the lead time of overburden removal and the respective technology great differences result in the capital costs. The lower bar chart illustrates an example for a financing 80 % of the main equipment with bank credits via a term of 10 years with an interest rate of 6 %.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Current Mining RAC Euro/t 2012 to 2041 with loan for 80% main equipment with 6% interrest in 10 years 8.00

7.61

6.84 7.00

6.58

6.37

6.00

RAC in â‚Ź/t Lignite

5.00

4.00

3.00

2.00

1.00

0.00 Alternative 1 Personnel Fuel Taxes & Royalties Recultivation & Roads Total costs

Fig. 6.6-2

Alternative 2

Alternative 3

Alternative 4

Power Maintenance Other Invest costs Acquisition/Resettlement

Current mining RAC with loan for 80% main equipment with 6% interest

Regarding the aspect of a long-term cost-efficient supply of the power plants in Kosovo as well as a necessary flexibility of the production, Alternative 4 shall be favoured.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

6.7 Use of existing Equipment and Refurbishment Strategy The operation of the Kosova lignite mines from the beginning of the nineteen nineties was characterized by minimum operational funding and suspension of necessary investments by former Yugoslavia. This deteriorated the conditions of future mine operations and became a major burden now in the opencast mines caused by mode of operation over the last decade. Today, the results are a huge maintenance backlog of more than 100 million € in the mines. Beside the effect for the mines operation this led to a critical status of most of the main equipment as excavators, spreaders, belt wagons and conveyor lines. As a consequence, the mining potential of the open-cast mines has been decreasing continuously. “The present state of the load-bearing steel construction would inevitably give rise to the immediate shutdown of about 85 % of the installed equipment if the safety criteria of the currently applicable German and European Standard DIN/EN 22261 and the Regulations on the “Operation of Open-Cast Mining Equipment and Belt Conveyors in Open-Cast Mines” derived from the German Mining Act were applied.” So the status of most of the equipment in the Mirash mine is catastrophic and can lead to the collapse of a machine all time. This would have influence on the coal supply capabilities and could stop the coal production from the mine for long time. Nevertheless the equipment is still in a condition which justifies rehabilitation in most cases. Therefore, the costs and the financial effects when using existing equipment have been considered for the variant comparison. It is therefore assumed that the refurbishment will lead to an increase in productivity to current international standards. The following table shows the existing bucket wheel excavators and spreaders: Tab. 6.7-1 List of BWE and Spreader Type/Capacity Quantity

SchRs 650

2 E9M E 10 M

SRs 1300

4 E8B E9B E 10 B E8M

SRs 470

5 E5M E6M E3B E4B E6B

SRs 400

1

Refurbishment Annual Program* Maintenance* m€ m€/a each 6.5 0.45 6 7 each 6.5 0.45 6.5 5.5 - 6.5 5.5-6.5 7 0.8 out of order under repair out of order heavy cracks -

Page 72 of 120

0.8

Suitable for Sibovc Mine

X X X X X X


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

E7M SRs 315

(X) 5

-

E1M E2M E4M E1B E2B SRs 250

out of order out of order Cracks out of order

1 E 11 M

Type/Capacity

Quantity

Spreader

7

0.8

0

Refurbishment Annual Program* Maintenance* m€ m€/a each 4.5

Suitable for Sibovc Mine

2

A2Rs-B 5200 P3M P4M

0.25 0.25

X X

0.25 0.25 0.25

X (X) X

3

A2Rs-B 4400 P1B P2B P3B

2

A2Rs-B 2500 P1M P2M

0.4 0.4 *estimation for comparing the variants

The excavators of the type SRs 470 / 400 are not suitable to operate as main mine equipment in Sibovc. They do not fit into the technological scheme regarding the performance required (output of coal) and the slope heights of 20 – 25 m. Nevertheless the E 7M can be used as stand-by machine for auxiliary works as far as it is required. Necessary mechanical refurbishment of excavators and spreaders: • Corrosion protection of the complete excavator • Drive units for travelling drives and belt drives, example gearboxes, drums • Collecting and discharge units and sealing • lubrication systems complete • Refurbishment of steel construction Electric refurbishment: • Complete renewal of the electrical system as follows: • Cable and cable run • Lighting • MV-switches • PLC-system • Drive controls (Converter) • Electric houses

Belt Conveyor It would take 60 to 70% of the cost for new conveyor installations to lift the availability of the conveyor lines to today’s standard. In addition a big part of the current installations is below Page 73 of 120


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1800 mm width and therefore does not match the capacity of the refurbished excavators. In summary we recommend to buy new conveyor lines including belt drive stations.

6.8 New or Used Equipment? Financial calculations have been performed for Alternatives 1 and 4 considering the use of valuable equipment existing today and considering complex refurbishment measures for such equipment. The calculations have been performed under the same assumptions and conditions as for the new equipment. In result of this calculation the real average costs for Alternative 1 (conventional BWE technology) amount to 6.5 €/t and for Alternative 4 amount to 6.6 €/t. The refurbishment of useful existing main mine equipment is the most economic solution. In summary the financial modelling favours the alternative with BWE and truck/shovel if using new equipment and the alternative with the exclusive use of BWEs using refurbished (existing) equipment. In absolute numbers the use of refurbished excavators is most economical and should be chosen in case the equipment is available. This is also valid for spreaders but only limited for conveyor systems.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

7 Alternatives of Opening-up and Mine Development Scenarios 7.1 General Mine Design and Criteria of Evaluation Up to here this paper dealt with geological issues and different mine equipment. In addition the business relations between mine and power plant as well as the resettlement of Hade are of significant importance for the development of additional mining capacities. Lignite is typically a commodity not traded for electricity generation and therefore very often lignite mines are captive to lignite power plants. The following variants are possible depending on the connections to the TPP and the resettlement of Hade.

Will all TPPs be operated from one Company?

No

Should the additional coal production capacity be captive to a new IPP?

Yes No

Yes

One Mine

Can Hade be resettled in time?

Two Mines

No

Two Mines one in Sibovc and one in D-Field

Two Mines in Sibovc

Yes Var.1.1 Sibovc from South to North

Var.1.2 Sibovc from North to South

Var.2 D-Field & Sibovc

Page 75 of 120

Var.3 one in South and the second mine in N

Var. 4 one in Sibovc West and the other in East


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

For the mine development and the opening up of the Sibovc field six variants have been investigated. (Variant 3 in two sub-variants, i.e. Var.3.1 and 3.2). For a single mine development two main variants have been compared: • Variant 1.1 Mining Sibovc from South to North • Variant 1.2 Mining Sibovc from North to South In case of a two mines scheme the following principle variants have been assessed and evaluated: • Var. 2 Parallel mine development in Sibovc and D-Field • Var. 3.1 Parallel mine development in Sibovc (South) and Sibovc (middle) • Var. 3.2 Parallel mine development in Sibovc (South) and Sibovc (North) • Var. 4 Parallel operation of two mines along a South-North demarcation line For selecting and evaluating different mining scenarios, criteria are used which have a decisive influence on the production costs and investments. These are: 1. Geology incl. ratio overburden to coal 2. Soil-mechanics / geotechnical safety 3. Technology (opening-up, transportation, dumping and equipment use) 4. Coal supply / coal losses 5. Coal quality 6. Resettlement 7. Auxiliary trades (not mining-related measures like road construction, etc.) 8. Area demand / area use 9. Environmental protection / ecology 10. Recultivation 11. Others /interfaces and permits 12. Risks The coal shall be supplied to the new IPP, which will be located nearby the present power plant B. ----------------------------------------Those coal losses are not considered which are due to interburden, unprofessional excavation and interface losses. They come to the same percentage regardless of the chosen scenario and are therefore hardly relevant for the comparison of variants.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

7.2 Description of the Main Mine Scenarios 7.2.1 Var.1: Development of the Sibovc Field as sole Supplier of the Power Plants Variant 1 assumes that the deposit of Sibovc is mined by a coal producer and it is intended to supply the total output to the existing and new power plants. The capacity of the opencast mine therefore orients to the existing power plant units B1 and B2 as well as the new power plant. As already mentioned, there is assumed annual output of ca.16 mt.

7.2.1.1 Variant 1.1: Operation from South to North A first scenario contains that the deposit is mined from South to North.

Fig. 7.2-1

Var. 1.1 (Development from South to North) Page 77 of 120


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

A major advantage is the short transport way to the dump area Bardh/ Mirash and the saving of a separate opening trench. Therefore the coal supply from Bardh/ Mirash can be compensated without delay. The following survey includes main criteria for evaluating the mining development. Tab. 7.2-1

Main criteria for evaluating the mining development. Variant 1.1

1

Geology

2

Soil mechanics

3

Technology (opening-up, transport, dumping, equipment use)

Especially in the first years, relatively known geological /hydrological situation due to vicinity to the existing mines. Low risk to evaluate the deposit Advance velocity is relatively slow. Attention has to be paid to surface water collection and drainage, to avoid additional introduction of water into the slope body. Otherwise joint water formation increases which can result in slope failures. Irrespective of this, in-house road construction, slope design and other have to correspond to the service life and the bench lengths. Opening-up: The Sibovc field is opened from the Northern boundary of the Bardh and Mirash mines. In general it possible to perform widening of the slope system as opening up operation earlier / ahead of schedule. But this can only be made when accepting a drastic shortening of the bench (if resettlement of Hade is not yet finished). At least preparatory work can be performed without complications from the present operation. Transport: The coal is transported along the existing route of the long-distance belt conveyor line. But it is considered to relocate the coal belt conveyor from the village place to the direction of the East boundary of the Sibovc field.

4

Coal supply / coal losses

5

Coal quality

6

Resettlement

7

Auxiliary trades (road construction, etc.) Area demand / area use

8

9

Environmental protection /ecology

Equipment use: Preferably BWE–technology with the available large equipment (of KEK). For overburden removal it is recommended to use the two existing SchRs 650. In addition, a new machine with along boom should be procured. In the local operation 4 excavators of the type SRs 1300 are planned. (Coal demand appr. 15 mt/a) Dumping is performed on short, direct way in the residual pit of Bardh/ Mirash. For this variant, the shortest transport ways with regard to dumping exist. Connection to coal supply possible without problem if Hade will be resettled in time. There will be not coal losses. Coal quality especially in first years is very good but changes to the worse into Northern direction in general. Hade must be resettled as soon as possible. It is assumed that resettlement will be finished mainly until 2008. Other resettlements will be necessary at a later date. The resettlement of Sibovc (main part) will only be requires after 2030. Infrastructure (like road to Bardh, electric wiring etc.) has to be replaced right at the beginning of the winning operation. Areas are mostly agricultural areas. Due to the envisaged mining of the Sibovc field, the users of the areas to be claimed are already prepared for exploitation. Concentration of the extraction work to one operating point (i.e. only one opencast mine with high capacity), which is moreover in an already influenced areas, Page 78 of 120


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10

Recultivation

11

Others / interfaces Permits

12

Risks

minimised the impacts to the environment. Ecologically valuable areas are only affected at a later time. The closure of the residual pit of Bardh/ Mirash offers economical advantages due to the short transport distance. The balance return of area to claim of area is comparably favourable. At the end of the coal extraction there will only be one residual pit in the North of the Sibovc deposit. As defined, interfaces to a second mining company do not exist. In principle, this variant is technically a continuation of the existing mines. Therefore, it will be possible to claim protection of vested rights within the permit process. The deposit is a continuous one and so it is also extracted without a spatial separation. It is assumed that this will simplify the permit process (operating permit). This is supported by the fact that previous concepts included such an operating management. a) The most important risk of this method is that the resettlement of Hade will not be finished in time. If this happens, the possible coal exposure will be delayed by this time and consequently the coal supply to the power plants will not be guaranteed. A possible alternative would be to advance mining only at the South-Western boundary line of the Sibovc field. In that case the bench lengths in the reduceD-Field part will follow the safety zone to Hade and the necessary slope design to guarantee opencast mine safety. The original bench length of 2.0 to 2.9 km in the mine will then reduce to 1.0 to 1.2 km (with a slope angle of 10°) This alternative means an increase in production costs. b) If the consumption of raw coal will be clearly reduced the basic design including long benches would no longer be optimal and result in a specific increase of production costs as well. On t he other hand, benches being too short would also lead to considerable production problems and capacity losses.

Tab. 7.2-2 Var.1.1

1 2 3 4 5 6a 6b Sum

Development of overburden removal according to sectors. Variant 1.1 Area Surface Overburden Volume Overburden thickness Overburden m m² + MSL M mbcm 1.92 594 45.0 86.6 3.60 615 70.5 340.7 2.45 625 71.7 516.6 2.47 602 45.1 628.0 1.94 578 21.8 670.3 2.98 595 30.3 760.6 0.33 550 8.5 763.4 15.71 602 48.6 763.4

Overburden Cumulative Mbcm 86.6 340.7 516.6 628.0 670.3 760.6 763.4 763.4

(mentioned values in the sectors are rounded figures)

Tab. 7.2-3 Development extraction of coal according to sectors. Variant 1.1 Var. Area Top Bottom Coal Volume Volume 1.1 Coal Sec- Seam Seam Thickness Coal Coal tors m m² + MSL + MSL M mbcm mt

Page 79 of 120

Coal cumul. mt


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

1 2 3 4 5 6a 6b Sum

1.13 3.05 2.35 2.50 2.03 2.69 0.40 14.16

538 542 548 555 556 562 545 551

467 473 490 500 509 512 536 494

67.0 68.6 58.0 54.9 46.7 49.5 9.0 55.8

75.8 209.5 136.3 137.4 94.7 133.1 3.6 790.3

86.4 238.8 155.4 156.6 108.0 151.7 4.1 900.9

86.4 325.2 480.6 637.1 745.1 896.8 900.9 900.9

One of the most important factors to evaluate profitability of the mining-related activities is the overburden removal to coal extraction. In Variant 1.1 it is the following: Tab. 7.2-4 Var.1.1 1 2 3 4 5 6a 6b Sum

Overburden: Coal ratio. Variant 1.1 Ratio Overburden: Coal bcm/t 1.00 1.06 1.13 0.71 0.39 0.60 0.69 0.85

Overburden to Coal cumul. Bcm/t 1.00 1.05 1.07 0.99 0.90 0.85 0.85 0.85

The general tendency of the change of geological coal quality to the worse is illustrated by the average values in the coal sectors. Tab. 7.2-5 Var.1.1 1 2 3 4 5 6a 6b Sum

Coal Quality Var.1.1 Sulphur % 1.1 1.0 1.1 1.2 1.2 1.0 1.1 1.1

NCV kJ / kg 8490 8647 8364 8272 8024 8249 7100 8312

Ash % 14.7 14.3 14.8 15.3 16.4 15.8 19.6 15.3

The heating value of the coal in Sector b is particularly low and characterized by a low seam thickness. However, the overburden cover is low so that the ratio overburden to coal seams to be attractive to win this area too. Otherwise there would result additional cost by leaving out this area especially when using a BWE-technology (additional belt segments and drive stations). Outside dump: Within Sector 2 an additional outside dump shall be considered (OD Shipitulla) which is not included in the above mass balance. The winning process shall be designed to maintain slopes of ca. 8°. The area of the outside dump is 0.564 m m² according to the available data.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

There are no other outside dumps worth mentioning that exist within the field boundaries of Variants 1.

7.2.1.2 Variant 1.2: Operation from North to South Approach of this mining variant is to develop the Sibovc deposit from a new independent and spatial separate area. So there is no temporal need to resettle the village centre of Hade.

Fig. 7.2-2

Var.1.2 (Mine Development from North to South)

Tab. 7.2-6

Main criteria for evaluating the mining development. Variant 1.2

1

Geology

2

Soil-mechanics

3

Technology (opening-up, transport, dumping , equipment use)

With reference to the entire field, there is the same geological situation like in Variant 1.1. But there are some cost-effective differences due to the time-delayed effect. For example, for the first 100 mt of coal in Var. 1.1 an overburden to coal ratio of 1bcm:1 t is yielded, whereas in Var. 1.2 this ratio is only ca. 0.75 bcm : 1 t . Due to the inclining layers, the development of the deposit from North to South seems to me more (at least at the beginning) favourable. Altogether there are slightly better geotechnical conditions. Opening-up: The opening in the North is done on virgin land used for agriculture. Equipment has to be transported to this place. Transport: Transport distances coal to power plant are shorter in this variant.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Equipment use: With the general development over the whole period in mind, BWE–technology was preferred. At the beginning, overburden thickness is clearly lower, i.e. by 30 m (range from 10 to 70 m), whereas in Var. 1.1 on the average 45 m (range from about 40 to 120 m). Therefore only 3 excavators are needed fro overburden removal on the Northern part of the deposit (instead of 4 in the Southern part). Irrespective of the choice of BWE-equipment with belt conveyor system it would be in general simpler to start also with alternative equipment from the North as. Reason for this are the missing low dependencies on the present production area of KEK and the low cutting heights.

4

Coal supply / coal losses

5

Coal quality

6

Resettlement

7

Auxiliary trades (road construction, etc.) Area demand / area use

8

Opening up masses are dumped via long transport distance in the residual pit of m Bardh / Mirash. If inner dumping is started as soon as it will be technologically possible, dump masse for closing the residual pit of Bardh/ Mirash are missing. It should then be considered how to finance the considerable excess costs. Connection of the coal supply is not linked to the resettlement of Hade. But there are coal losses in the South of the deposit because the alternative of recovering dump material would be more unfavourable from the present point of view. The coal loss amounts to approximately 38 mt of coal, provided that the adjacent area (residual area of Bardh/ Mirash) will not be dumped higher than the roof of the coal seam (directed to the South with 7° inclining). Especially in the first years, coal quality is poorer than with Var.1.1 and will get better into Southern direction (see Sectors). The lower heating value shall be mentioned here especially. Apart from one safety pillar, Hade must not be resettled for the present. Resettlement of (the entire) place of Hade will only be necessary far beyond 2030 from the point of view of excavating the Sibovc-field. Instead, resettlement of Sibovc will be earlier. Infrastructure included in Var.1.1 (like road to Bardh, electric cables etc.) can be maintained for the present time. Areas are mainly sued for agriculture. Due to changed schedule of excavation of Sibovc, users of the areas to be claimed are less prepared to exploitation. Parts of the areas are already owned by KEK.

9

Environmental protection /ecology

In the North of Sibovc, the mine boundary was drawn opposite the „concession line“. Reason for this was a valuation process between coal loss and maintenance of relatively valuable areas for ecological grounds.

10

Recultivation

Closure of the residual area of Bardh/ Mirash will be extremely expensive due to the long transport distance. The balance return of area to claim of area will depend to a large extend on the decision about shaping the residual pit area of Bardh/ Mirash.

11

Others / interfaces Permits

12

Risks

At the end of the coal extraction there will only be one residual pit in the South of the Sibovc deposit Here also, interfaces to a second mining company do not exist. Although it is the same deposit like in Variant 1.1, it will be more difficult to get permits, because works will start in an area that has been virgin till today. The permitting procedure has to be performed as a green field project. a) Like for Var.1.1 the following applies: Page 82 of 120


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

if the consumption of raw coal will be reduced considerably the basic design of long benches would not be optimal and result in an increase in specific production costs. Effects, however, would not occur already when starting exploitation but will become effective later on. b) problems may occur with the possible start of coal output, since two basic conditions must be given: 1. permits and 2. main extraction equipment must be installed in-situ right in (and/or relocated) and sufficient coal has to be exposed.

The sectors are characterised as follows: Tab. 7.2-7 Development of overburden removal according to sectors. Variant 1.2 Var.1.2 Area Surface Overburden Overburden Volume Thickness Cumulative Overburden m m² + MSL M mbcm mbcm 1 0.94 596 22.9 21.6 21.6 2 2.63 588 29.4 98.9 77.3 3 5.01 598 42.3 310.9 211.9 4 2.17 628 77.6 479.1 168.2 5 2.84 612 68.5 673.9 194.8 6 2.00 594 44.4 762.4 88.6 Sum 15.59 602 48.9 762.4 762.4 (Parameters in the sectors are rounded figures) Tab. 7.2-8 Development extraction of coal according to sectors. Variant 1.2 Var.1.2 Area Top Bottom Coal Volume Coal Sec- Seam Seam Thickness Coal tors m m² + MSL + MSL M mbcm 1 0.32 569 532 36.6 11.8 2 2.40 559 515 44.0 105.4 3 3.99 556 506 50.2 200.6 4 1.94 553 498 55.6 107.7 5 2.72 543 480 63.6 173.1 6 2.28 539 470 69.6 158.4 Sum 13.64 551 496 55.5 756.8

Volume Coal

Coal cumul.

mt 13.4 120.2 228.7 122.7 197.3 180.6 862.8

mt 13.4 133.6 362.2 485.0 682.2 862.8 862.8

In Variant 1.2, the ratio overburden removal to coal extraction is in the first decisive years (apart from the opening-up itself) better than in Variant 1.1, as is illustrated in the following: Tab. 7.2-9 Overburden: Coal ratio. Variant 1.2 Var.1.2 Ratio Overburden: Coal bcm/t 1 1.61 2 0.64 3 0.93 4 1.37 5 0.99 6 0.49 Sum 0.88

Overburden to Coal cumul. bcm/t 1.61 0.74 0.86 0.99 0.99 0.88 0.88

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

The general change to the worse of O : C from 0.85:1 to 0.88:1 bcm/t results from the coal loss, which already becomes effective at the end of the mining activities in Sibovc. The general tendency of the change of geological coal quality to the worse is illustrated by the average values in the coal sectors. Tab. 7.2-10 Var.1.2 1 2 3 4 5 6 Sum

Coal Quality Var.1.2 Sulphur % 1.0 1.0 1.2 1.1 1.0 1.0 1.1

NCV kJ / kg 8050 8130 8106 8242 8618 8558 8306

Ash % 16.5 16.2 16.1 15.1 14.4 14.3 15.4

7.2.2 Variant 2: Development in den Opencast Mine Field of Sibovc and D-Field The general approach of Variant 2 is that parallel to the exploitation of Sibovc a second opencast mine of operated. In principle this could be KEK, its legal successor or even a new investor. Position, content and the former use of the coal field area can lead to the consideration to assign exploitation of that field to KEK. Analogue to var.1.2 works can start and the deposit can be exploited, respectively here in DField, irrespective of the development of the area Bardh/ Mirash or Sibovc. The basic development is from West to East.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Fig. 7.2-3

Development D-Field - Var.2

The concept of the available mining development aims at an output capacity of 7 mt/a. This means that there is enough fuel to supply to Power plant B. Tab. 7.2-11

Main criteria for evaluating the mining development. Variant 2

1 2

Geology Soil-mechanics

3

Technology (opening-up, transport, dumping, equipment use)

Apart from the material dumped on the field there are no geological problems. With regard to the natural overburden, the requirements of the extraction are simpler as against Sibovc due to the lower thickness to be removed. This also applies to the coal to be mined. More problems are occurring due the former underground mines and especially from, the dump massif which blocks the deposit. Opening-up: The Sibovc field is opened in the West of D-Field. After a first pivoted advance mining is then continued in parallel operation. Transport distance of coal to power plant is ca. 8.7 km (depending on the location of the newly built power plant) and/or 7.7 km to power plant B. Equipment use: Preferred alternative in this variant is BWE–technology with available old equipment. Average overburden thickness is 30m (range 20 to 60m). Due to the low overburden thickness only two excavators of the type SRs 1300 and/or SchRs 650 are sufficient. In the coal operation three bucket wheel excavators of this size are planned. Opening masses are dumped in the open pit room of Bardh/ Mirash. Afterwards dumping shall be continued this way for making residual area safe. Page 85 of 120


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4

Coal supply / coal losses

5

Coal quality

6 7

Resettlement Auxiliary trades (road construction, etc.) Area demand / area use Environmental protection/ ecology

8 9

10

11

Recultivation

Others / interfaces Permits

12

Risks

Coal supply is independent from expensive resettlements of villages. Planning shall take into account the on the average lower heating value with regard to the power plant. Coal quality is by 10% lower than in Var.1 and/or by 12% regarding the entire field in the first years. Resettlements do not play any role. Exploitation of D-Field does not require any measures worth mentioning which are not related to the mining business. The area was partly used as outside dump; at present it is used for storing ash. Compared with the exploitation of the Sibovc field the interference with nature is by far reduced. On the contrary: the removal of the existing disposal sites eliminated a considerable part of problem sites. Alternatively, measures have to be carried out anyway to remediate those areas, which have to be deducted from the extra expenses of their recovery. Closure of the residual area of Bardh/ Mirash is made directly from D-Field. But the overburden masses are not sufficient to achieve for example dumping to the natural surface level. Also in this variant, the balance return of area to claim of area will depend to a large extend on the decision about shaping the residual pit area of Bardh/ Mirash. It might be possible to dump the whole overburden in Bardh/ Mirash. In this case, there is a residual lake, which could be fed with water from the Sitnica and therefore shaped to a lake for swimming. Thus, a valuable recreation area could be established nearby Pristina. There are interfaces due to the dumping in Mirash/ Bardh.

There are no obstacles for granting permits, because exploitation contributes to ecological recovery. Nevertheless, special permits are to be taken into account for recovery of power plant ash. Risks occur in connection with phenols from earlier disposals and the underground mines. The construction of a motorway on the D-Field hinders the use of the D-Field (if put into reality as recently envisaged).

The main sectors are characterised as follows: Tab. 7.2-12 Development of overburden removal Variant 2 Var.2 Area Surface Overburden thickness m m² + MSL M 1 1.22 541 38.5 2 0.75 558 49.8 3 1.34 570 37.6 4 3.35 570 20.1 Sum 6.66 563 30.3

Tab. 7.2-13 Development mining according to sectors. Variant 2 Var.2 Area Top Bottom Coal Volume Coal Sec- Seam Seam Thickness Coal tors m m² + MSL + MSL M mbcm 1 0.32 504 438 66.2 21.2

Page 86 of 120

Overburden. cumulative mbcm 46.8 84.2 134.7 201.8 201.8

Volume Overburden mbcm 46.8 37.4 50.4 67.2 201.8

Volume Coal

Coal cumul.

mt 24.2

mt 24.2


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

2 3 4 Sum

0.56 1.09 3.24 5.21

504 525 548 536

434 461 512 488

70.2 64.4 35.6 47.2

39.3 70.2 115.3 246.0

44.8 80.1 131.4 280.5

69.0 149.0 280.5 280.5

The ratio overburden removal to coal extraction is better in view to the geological conditions than in the Sibovc field. Tab. 7.2-14

Overburden : Coal ratio. Variant 2

Var.2

Ratio Overburden: Coal bcm:t

Overburden to Coal cumul. bcm:t

1 2 3 4 Sum

1.94 0.83 0.63 0.51 0.72

1.94 1.22 0.90 0.72 0.72

The above mentioned volumes still not contain the masses of the outside dump as well as the masses from the ash dump. These additional overburden masses lie within the Sectors 1 to 3 including also the beginning of Sectors 4. The area is ca. 2.3 m m². Assuming an estimated volume of 50 mbcm the overburden : coal ratio changes to the worse from 0.72:1 to 0.90:1 bcm/t. The general change of the geological coal quality to the worse from West to East can be shown by the average values in the coal sectors. Tab. 7.2-15 D-Field 1 2 3 4 Sum

Coal Quality Var.2 Sulphur % 0.9 0.9 1.0 1.1 1.0

NCV kJ / kg 7791 7800 7427 7189 7341

Ash % 19.2 19.0 20.2 21.4 20.8

Within the last 600 m of the Eastern field part (corresponds to 40 m t coal) the average heating value is only 6900 kJ/kg. Especially in the North-East, low heating values and high ash contents are yielded. The average coal quality for the whole field is about 7340 kJ/kg (see table). However, the excavation process for the mining of D-Field has potential for optimization. The heating value for the raw coal supplies improves if coal horizons with especially low quality will be cut off by selective mining. Even taking into account these coal losses the overburden to coal ratio of DField compares favourable to the South-West part of Sibovc. The above mentioned statements regarding D-Field will not be valid if the newly envisaged motorway blocks more than 25 or 30% of the lignite content.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

7.2.3 Variant 3: Separation of the Sibovc-Field in East-WestDirection Alternatively to exploitation of D-Field it is considered, how the development looks like if two mining operators are working in the Sibovc field at the same time. Variant 3 assumes an interface line in East-West-direction. This may be accomplished by a) extraction moves together either from North and/or South or b) parallel to the development from the South (i.e. from the existing mines), a new investor extracts the Northern part of Sibovc from the middle.

7.2.3.1 Variant 3.1: Separate Opening-up in the Middle of the Sibovc Field Three advantages lead to the assumption to develop the new mine from the middle of the field: 1. thickness of coal seam is higher than in the North of the field 2. coal quality is slightly better 3. transport distance to dump areas Bardh/ Mirash is shorter Southern Part: Since the Southern part will be developed from the existing boundary system it seems to be fair to assign this part to KEK. The maximum technical extraction area is results from the openingup figure in the middle of the field.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Fig. 7.2-4

Development South to North Var.3.1

The borderline illustrated above implies the total exploitation of the deposit without any coal losses. This will only be possible when the company operating in the North will take this already into consideration for the dump development, i.e. no high dumps in the border area. Tab. 7.2-16

Main criteria for evaluating the mining development Var.3.1 (Southern Part)

1 2

Geology Soil-mechanics

3

Technology (opening-up, transport, dumping, equipment use)

The geological conditions correspond to var.1.1. The same applies for the soil-mechanical aspects with the modification that due to the lower advance, the dumps will stay longer and therefore great importance shall be attached to securing the slopes. Opening-up: The field is opened from the Northern rim slope. Then, parallel operation is carried out until closure of power plant unit B1 and B2 or reaching the excavation boundary according to the assigned mining property. Transport distance coal to power plant B is identical with var.1.1. Equipment use: Most efficient technology is use of available old BWE. In coal operation, three BWE of the type SRs 1300 are planned; in the overburden removal the tow available SchRs 650 as well as one SRs 1300 are used. The equipment must be refurbished. “Initial masses” are dumped to the open pit areas of Bardh/ Mirash. During the

Page 89 of 120


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

further mine advance, dumping shall be continued this way to help secure the residual pit. 4

Coal supply / coal losses

5

Coal quality

6

Resettlement

7

Auxiliary trades (road construction, etc.) Area demand / area use

8

9 10

11

Environmental protection/ ecology Recultivation

Others / interfaces Permits

12

Risks

Connection to the coal supply without difficulties will be possible if Hade will be resettled in time. There will be no coal losses if the dump design will allow this in the Northern part. But this means among others, to use a long-distance belt conveyor over a long period for transporting overburden to the residual pit of Bardh/ Mirash for closure. Apart from this, an unfavourable relief is shaped which would exist for many years. Probably, there will be a coal loss of at least 28 mt (coal stripe of 50m crest with 22° slope angle). Especially in the first years, coal quality is very good but in general changes to the worse into Northern direction. Like in Variant 1.1 Hade has to be resettled very early. It is assumed that the main part of the resettlement will be completed until 2008. Like in Var.1.1: Infrastructure (i.e. road to Bardh, electric cables etc.) must be changed right at the beginning of the extraction operations. Like in Var.1.1: Areas are mostly agricultural areas. Due to the envisaged mining of the Sibovc field, the users of the areas to be claimed are already prepared for exploitation. Parts of the areas are already property of KEK. Splitting of extraction into two operating points within the Sibovc field increases impacts to the environment. See Var.1.1: The closure of the residual pit of Bardh/ Mirash offers economical advantages due to the short transport distance. The balance return of area to claim of area is not so favourable than in Var.1.1 due to less overburden material. This can be balanced by enough overburden masses from the second opencast mine. At the end of the coal extraction there will only be two residual pits in the middle and in the North of the Sibovc deposit. Interfaces mainly exist by dumping operation in the area Bardh/ Mirash. Should the occasion arise, there will be additional interfaces at the border of the two mines and in case of supplies from one mine to the power plant unit of the other (i.e. in case of delivery problems of a mine). Getting of permits (operating permit) is more difficult because different interest of two independent mining-power plant companies have to be tackled. a) The risk of this variant is similar to that in Variant 1.1 and refers in the first line to the resettlement of Hade right in time. If not, coal exposure will reduce resulting in delivery problems to the power plant. The alternative to develop mining only at the South-Western boundary line of the Sibovc field would be simpler due to the lower capacity that is assigned to KEK. However, this would mean specific extra costs for KEK. b) The co-existence of two competing mining companies could lead to conflicts as the economic activities of both companies may have different success. Unequal production costs in the mines and/or power plants, different salary and perspectives for the personnel may lead to discontent or even disapproval which in turn can have negative influence on the operating result.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

The main sectors are characterised as follows: Tab. 7.2-17 Development of overburden removal. Var. 3.1 (Southern Part) Var.3.1 Area Surface Overburden Volume thickness Overburden m m² + MSL M mbcm 1 1.92 594 45.0 86.6 2 3.60 615 70.5 254.1 3 3.03 622 67.7 205.2 Sum 8.56 613 545.9 545.9

Overburden cumulative mbcm 86.6 340.7 545.9 545.9

Tab. 7.2-18 Development extraction of coal according to sectors. Var.3.1(Southern Part) Var.3.1 Area Top Bottom Coal Volume Volume Coal Sec- Seam Seam Thickness Coal Coal tors m m² + MSL + MSL M mbcm mt 1 1.13 538 467 67.0 75.8 86.4 2 3.05 542 473 68.63 209.5 238.8 3 2.96 548 491 57.46 170.0 193.8 Sum 7.14 544 480 63.75 455.2 518.9 Tab. 7.2-19 Var.3.1 1 2 3 Sum Tab. 7.2-20 Var.3.1 1 2 3 Sum

Coal cumul. mt 86.4 325.2 518.9 518.9

Overburden: Coal ratio. Variant 3.1 (Southern Part) Ratio Overburden: Coal Overburden to Coal cumul. bcm/t bcm/t 1.00 1.00 1.06 1.05 1.06 1.05 1.05 1.05 Coal Quality Var.3.1 Sulphur % 1.1 1.0 1.1 1.1

NCV kJ / kg 8490 8647 8348 8312

Ash % 14.7 14.3 14.8 15.31

Northern Part: The design of the new second opencast mine will be developed to meet the requirements of the new independent power plant. The opening up figure is designed at such a place where it does not affect the place of Sibovc already during the opening up phase.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Fig. 7.2-5

Mine Development Var.3.1 (Northern Part)

Tab. 7.2-21

Main criteria for evaluating the mining development Var.3. (Northern part)

1 2

Geology Soil-mechanics

3

Technology (opening-up, transport, dumping, equipment use)

Geological conditions correspond to Variant 1 – Northern part. Same applies to the soil-mechanical aspects, with the modification that due to the lower advance slopes will stay longer and therefore great importance shall be attached to securing the slopes. Opening-up: Opening-up South of the Sibovc field. Afterwards, parallel operation up to Northern boundary of the approved coal field. Very short transport distance to power plant. Equipment use: BWE–technology with new excavators seems to be best.

4

Coal supply / coal losses

5 6

Coal quality Resettlement

7

Auxiliary trades (road construction, etc.) Area demand / area use Environmental protection/ ecology

8 9

Dumping of „initial masses“ into the open mine space of Bardh/ Mirash. Also in case of further mine advance, dumping shall be continued to help secure residual pit. Opencast mine is developed parallel to new power plant. Problems are not expected. No coal losses in the Northern part. Coal quality is good but slightly changes into North. Most problems are occurring due to the partial resettlement of Lajthishte already during the opening-up phase. Resettlement of Sibovc must follow directly afterwards. Not mining-related measures are already necessary during the opening phase.

Specific area demand is high due to separate opening-up in the middle of the field. Environmental impacts are very high.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

10

Recultivation

At the end of coal extraction, a residual pit remains in the North of Sibovc.

11

Others / interfaces, permits Risks

See formulations for the Southern part.

12

Risks exist for the IPP operator if troubles among the miners will result in stop of production in the whole mining area.

The main sectors are characterised as follows: Tab. 7.2-22 Development of overburden removal. Var.3.1 (Northern Part) Var.3.1 Area Surface Overburden Volume thickness Overburden m m² + MSL M mbcm 1 1.29 604 48.0 62 2 2.54 581 24.6 62 3 2.98 595 30.3 90 4 0.33 550 8.5 3 Sum 7.15 590 30.4 217.5

Overburden cumulative mbcm 62.0 124.3 214.7 217.5 217.5

Development extraction of coal according to sectors: Tab. 7.2-23 Development extraction of coal according to sectors. Var.3.1 (Northern Part) Var.3.1 Area Top Bottom Coal Volume Volume Coal Sec- Seam Seam Thickness Coal Coal tors m m² + MSL + MSL M mbcm mt 1 1.12 557 500 56.95 63.8 72.7 2 2.81 556 508 47.97 134.6 153.4 3 2.69 562 512 49.52 133.1 151.7 4 0.40 545 536 9.03 3.6 4.1 Sum 7.02 558 510 47.8 335.1 382.0 Tab. 7.2-24 Var.3.1 1 2 3 4 Sum Tab. 7.2-25 Var.3.1 1 2 3 4 Sum

Overburden: Coal ratio Var. 3.1 (Northern Part) Ratio Overburden: Coal bcm:t 0.85 0.41 0.60 0.69 0.57 Coal Quality Var.3.1 Sulphur % 1.2 1.2 1.0 1.1 1.1

NCV kJ / kg 8326 8068 8249 7100 8123

Page 93 of 120

Overburden to Coal cumul. bcm:t 0.85 0.55 0.57 0.57 0.57

Ash % 15.1 16.2 15.8 19.6 16.1

Coal cumul. mt 72.7 226.1 377.8 382.0 382.0


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

7.2.3.2 Variant 3.2: Separate opening in the North of the Sibovc Field Variant 3.2 differ from Var.3.1 in the positions opening-up figure and development direction of mining operation in the Northern part. Development in the Southern part is not affected by that. Main advantage of such a variant: no resettlements at the beginning in the Northern part. Apart from this, pivoting lines correspond to those of Variant 1.2.

Fig. 7.2-6

Mine Development Var.3.2 (Northern Part)

Important difference is the output quantity and therefore the reduced use of excavators and personnel. This variant offers the chance to have more efficient operation by shovel/truck than with use of BWE. Tab. 7.2-26 Var.3.2

1 2 3 Sum

Development of overburden removal Var.3.2 (Northern Part) Area Surface Overburden Volume thickness Overburden m m² + MSL m mbcm 0.94 596 22.9 21.6 2.63 588 29.4 77.3 5.01 598 42.3 211.9 8.58 595 36.2 310.9

Tab. 7.2-27 Development extraction of coal according to sectors. Var.3.2 Var.3.2 Area Top Bottom Coal Volume Coal Sec- Seam Seam Thickness Coal tors m m² + MSL + MSL M mbcm

Page 94 of 120

Overburden cumulative mbcm 21.6 98.9 310.9 310.9

Volume Coal

Coal cumul.

mt

mt


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

1 2 3a 3b Sum

0.32 2.40 3.99 0.31 7.02

569 559 556 556 557

532 515 506 499 510

36.6 44.0 50.2 56.7 47.8

Tab. 7.2-28 Overburden: Coal ratio Var. 3.2 Var.3.2 Ratio Overburden: Coal bcm:t 1 1.61 2 0.64 3 0.93 Sum 0.81 Tab. 7.2-29 Var.3.2 1 2 3a 3b Sum

Coal Quality Var.3.2 Sulphur % 1.0 1.0 1.2 1.2 1.1

NCV kJ / kg 8050 8130 8106 8106 8112

11.8 105.4 200.6 17.3 335.1

13.4 120.2 228.7 19.7 382.0

13.4 133.6 362.2 382.0 382.0

Overburden to Coal cumul. bcm:t 1.61 0.74 0.86 0.81

Ash % 16.5 16.2 16.1 16.1 16.2

7.2.4 Variant 4: Splitting of the Sibovc Field in North-South Direction Last part of the considerations is the question if splitting of the Sibovc field in North-South direction offers advantages. This Variant 4 includes the parallel operation of two mining company – temporally and spatially. Practically, the Western part would be handed over to KEK whereas in the East a second new company will get the mining license. First is appears, that in case of such a distribution the village centre of Hade will be saved for a long time. However, the village Lajthishte has to be resettled right at the beginning by the new company.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Fig. 7.2-7

Mine Development Var.4

a) Western Part (Company 1) Tab. 7.2-30 1 2 3

Main criteria for evaluating the mining development. Var.4 (West)

Geology Soil-mechanics Technology (opening-up, transport, dumping, equipment use)

Geological conditions correspond to var.1.1. and/or var.3. Same applies to soil-mechanical aspects. Opening-up: Field is opened up from the Northern rim slope – the Western part. Afterwards parallel operation till closure of power plant unit B1 and B2 and/or the excavation boundary according to mining license. Transport distance of coal to power plant B is slightly higher than in Var.1.1. Equipment use: BWE–technology with available equipment seems to be most economic. In the coal operation three BWE of the type SRs 1300are planned, in the overburden the two already available SchRs 650 and one SRs 1300 are used. Excavators have to be refurbished. Excavation of the outside dump in the South-West has considerable more negative effects than with var.1.1 or 3.

4

Coal supply / coal losses

„Initial masses“ are dumped into the open pit area of Bardh/ Mirash. Also in case of further mine advance, dumping shall be continued to help secure residual pit. Connection to the coal supply does not depend of the resettlement of the village centre of Hade. There will be no coal losses, theoretically, if the dump design will allow this at the West and/or East border of the two companies. But this requires a lot of coordination and possibly additional costs. Page 96 of 120


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5 6 7

8

9 10 11

12

Coal quality Resettlement Auxiliary trades (road construction, etc.) Area demand / area use

Environmental protection/ ecology Recultivation Others / interfaces permits Risks

Coal quality almost identical to var.1.1. It is assumed that at least safety zone (close to Hade) is cleared. Infrastructure (i.e. road to Bardh, electric cables etc.) has to be replaced only partly. Like in Var.1.1 (Western part): Areas are mostly agricultural areas. Due to the envisaged mining of the Sibovc field, the users of the areas to be claimed are already prepared for exploitation. Splitting of extraction into two operating points within the Sibovc field increases impacts to the environment. At the end of the coal extraction there will be two residual pits in the South and North of the mining area. Problematic interfaces establish at the mine boundaries of the opencast mines. To get permits (operating licenses) is also complicated, since different interests of two independent companies have to be treated who partly work in same areas. The co-existence of two competing mining companies will lead at least to problems and/or conflicts. Among others, this is due to the fact that one of the companies will extract overburden for the other company to a considerable extend. If this should be avoided, coal losses will result along the whole demarcation line between the companies (over 4.1 km) which cannot be accepted.

The main sectors are characterised as follows: Tab. 7.2-31 Development of overburden removal according to sectors. Var. 4 West Var.4 Area Surface Overburden Volume (West) thickness Overburden m m² + MSL m Mbcm 1 0.78 576 34.1 26.6 2 1.14 598 49.4 56.4 3 1.30 625 78.6 102.2 4 1.11 638 90.3 99.8 5 1.12 608 54.7 61.3 6 1.28 578 19.6 25.0 7 3.31 591 28.1 93.2 Sum 10.04 600 46.3 464.5

Overburden cumulative mbcm 26.6 83.0 185.1 284.9 346.2 371.3 464.5 464.5

Tab. 7.2-32 Development extraction of coal according to sectors. Variant 4 West Var.4 Area Top Bottom Coal Volume Volume (West) Coal Sec- Seam Seam Thickness Coal Coal tors m m² + MSL + MSL m Mbcm mt 1 0.40 543 467 67.0 26.9 30.6 2 0.75 548 473 75.0 56.0 63.9 3 0.84 547 477 69.6 58.1 66.2 4 0.86 544 475 69.6 59.7 68.1 5 1.08 547 486 61.3 66.3 75.6 6 1.16 555 501 54.6 63.4 72.3 7 3.09 559 515 44.2 136.7 155.8 Sum 8.18 552 495 57.1 467 532.4

Page 97 of 120

Coal cumul. mt 30.6 94.5 160.7 228.8 304.4 376.7 532.4 532.4


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Tab. 7.2-33 Var.4 (West) 1 2 3 4 5 6 7 Sum Tab. 7.2-34 Var.4 (West) 1 2 3 4 5 6 7 Sum

Overburden: Coal ratio. Variant 4 West Ratio Overburden: Coal bcm:t 0.87 0.88 1.54 1.47 0.81 0.35 0.60 0.87 Coal Quality (West) Sulphur % 1.1 1.0 1.0 1.1 1.2 1.4 1.0 1.1

NCV kJ / kg 8490 8746 8830 8650 8250 8112 8100 8332

Overburden to Coal cumul. bcm:t 0.87 0.88 1.15 1.25 1.14 0.99 0.87 0.87

Ash % 14.7 14.5 14.3 14.6 15 15.7 16.3 15.4

To summarise this variant: Such mine as in var.4 (Western part) would be sufficient to feed the existing power plants with approx. 7 mt coal per annum. Due to the short bench, the O : C ratio is increased against Variant 1.1. For the mining of 100 mt (mineable) coal until decommissioning of the today existing TPP B the overburden to coal ratio will be between 1.0 - 1.1 to 1 m³/t. For the whole Western part the ratio comes to 0.87:1 (see table). b) Eastern Part (Company 2) Tab. 7.2-35 1 2 3

Main criteria for evaluating the mining development. Var.4 East

Geology Soil-mechanics Technology (opening-up, transport, dumping, equipment use)

Geological conditions in the first year more unsafe than in Southern part. Same applies for soil-mechanical aspects. Opening-up: The field is opened-up in the South of a fault area. In this fault area, coal thickness is on the average only 9 m. Afterwards pivoted advance follows and then parallel operation until the mine boundary in the South is reached. (= Northern mine boundary of Mirash) The transport distance coal to power plant B is the shortest for all variants. Equipment use: Preferred use of BWE–technology with new equipment.

4 5

Coal supply / coal losses Coal quality

6

Resettlement

Opening-up masses shall be dumped in the open pit of Bardh/ Mirash. Mine development is directly coupled with the new power plant. Possibly occurring coal losses are mentioned above. Coal quality of the Eastern part is almost identical to the Western field. Differences are only marginal. Resettlement of the village Lajthishte is precondition for the opening-up. Page 98 of 120


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7

8 9 10 11

Auxiliary trades (road construction, etc.) Area demand / area use Environmental protection / Ecology Recultivation Others / interfaces

The respective infrastructure must be replaced.

The specific degree of building of this mining field is the highest from all variants. Both, Lajthishte and Hade are within the field. Splitting of extraction into two operating points within the Sibovc field increases impacts to the environment. As already mentioned: At the end of the coal extraction there will be two residual pits in the South and North of the mining area. Problematic interfaces establish at the mine boundaries of the opencast mines The new mine requires a permit according to new standard.

12

Permits Risks

There is a risk that the new permit process will last too long and delays the exposure of the coal. Another problem which is much more important is caused by the resettlement measures. It is assumed that the time needed for this will determine the date of commissioning of the new IPP.

The main sectors are characterised as follows: Tab. 7.2-36 Development of overburden removal according to sectors. Var.4 East Var.4 Area Surface Overburden Volume (East) thickness Overburden m m² + MSL m Mbcm 1 1.07 582 27.2 29.0 2 2.07 611 51.7 106.8 3 1.96 612 73.6 144.5 4 0.58 612 32.1 18.6 Sum 5.68 606 52.7 299.0 Tab. 7.2-37 Development extraction of coal according to sectors. Var. 4 East Var.4 Area Top Bottom Coal Volume (East) Coal Sec- Seam Seam Thickness Coal tors m m² + MSL + MSL m Mbcm 1 0.38 555 512 43.2 16.5 2 2.19 559 512 46.8 102.4 3 2.68 543 485 57.9 155.4 4 0.73 534 467 67.0 48.9 Sum 5.98 548 494 54.0 323.2 Tab. 7.2-38 Var.4 (East) 1 2 3 4 Sum

Overburden: Coal ratio. Var.4 East Ratio Overburden: Coal bcm:t 1.54 0.92 0.82 0.33 0.81

Page 99 of 120

Overburden cumulative mbcm 29.0 135.8 280.4 299.0 299.0

Volume Coal

Coal cumul.

mt 18.8 116.7 177.2 55.8 368.5

mt 18.8 135.5 312.7 368.5 368.5

Overburden to Coal cumul. bcm:t 1.54 1.00 0.90 0.81 0.81


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Tab. 7.2-39 Var.4 (East) 1 2 3 4 Sum

Coal Quality Var.4 East Sulphur % 1.0 1.1 1.0 1.1 1.0

NCV kJ / kg 7290 8280 8374 8490 8285

Ash % 19.1 15.6 14.4 14.7 15.2

------------------------------------------------The above mentioned data of all variants do not contain coal losses in the contact zones to roof and floor strata as well as in the vicinity of geological structures. For this 8% coal losses further are estimated.

7.2.5 Selection of Preference Variant 7.2.5.1 Single Coal Mine Variants The evaluation of all considered mining variants from a technical and cost point of view leads to the conclusion that a single mine supply scenario has advantages for the future coal supply to the existing and new TPP. It ensures higher concentration of production and opens scale and synergy effects. Such a large single mine requires more “space” what means longer faces and mining front compared to the existing mines. For such single mine development only two main variants can be compared: • •

Variant 1.1 Variant 1.2

Mining Sibovc from South to North Mining Sibovc from North to South

Disadvantages of such a schemes would be that the technical possibilities for low cost production and high performance are principally there but problems could occur with motivation to use such opportunities (in case of state own enterprise) or with profit maximization (in case of private mining operator) since the mining operator would be a monopoly supplier. The comparison of Variant 1.1 versus Variant 1.2 illustrates the most cost-effective influences: Tab. 7.2-40

Comparison of Single Coal Mine Variants 1.1 and 1.2 Variant 1.1 Influences from the geology (a. o. overburden : coal exposure) Soil-mechanics / geotechnical safety Expenses for opening up + Equipment use Transport to dump + Transport coal to power plant Coal quantity / coal losses + Page 100 of 120

Variant 1.2 + + + + -


EAR-Project: EuropeAid/116986/D/SV/KOS Part I Main Mining Plan for New Sibovc Mine – Basic Investigations

Coal quality Resettlements Not mining-related substitute measures Area balance Environmental protection Recultivation Interfaces Permits Risks (except resettlement of Hade)

+ + + + + + +

+ + -

Variant 1.2 has its advantage from: o technically requirement for a very late resettlement of the village centre of Hade o a better overburden : coal ration in the first years after the opening-up. Variant 1.2 has disadvantages in most of the evaluation criteria as against basic variant 1.1. Great disadvantage is the fact that Variant 1.2 would be a classical green field project with additional land withdrawal and higher impact to the environment. It is doubted if the permits will be granted in time. It is supposed to be better to work in an area which has already been influenced by mining activities instead of unnecessary claiming of other additional areas. The latter facts discussed above favour Var.1.1. Moreover, mining development from the South (Var.1.1) has a shorter transport distance to the dump and dumping is intended to contribute to shaping the residual pit of Bardh/ Mirash. Var.1.1 is applicable, if KEK or their legal successor will take over the supply obligation for both the existing and the new lignite-fired power plants. Basic condition for this Variant 1.1 is the resettlement of the entire Hade village by an accelerated scheme (mainly till 2008).

7.2.5.2 Independent Coal Mines Variants The following comparison becomes useful when considering the risks which are given by the monopoly of one single supplier of raw coal for the lignite-fired power plants. There are requirements for flexibility and independence in terms of time, physical interfaces and development of existing and new TPP. In case of a competitive two mines scheme for an independent coal supply to the existing and the new TPP the following principle variants have been assessed and evaluated: • Var. 2 Parallel mine development in Sibovc and D-Field • Var. 3.1 Parallel mine development in Sibovc (South) and Sibovc (middle) • Var. 3.2 Parallel mine development in Sibovc (South) and Sibovc (beginning at Northern border) • Var. 4 Parallel operation of two mines along a South-North demarcation line Tab. 7.2-41

Comparison of the Independent Coal Mines Variants Variant 2 Variant 3.1 Influences from the geology + (a. o. overburden : coal exposure) Soil-mechanics / geotechnical safety Expenses for opening up Equipment use + -

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Variant 3.2 +

Variant 4 -

+ + +

+


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Transport to dump Transport coal to power plant Coal quantity / coal losses Coal quality Resettlements Not mining-related substitute measures Area balance Environmental protection Recultivation Interfaces Permits Risks (except resettlement of Hade) Total “ + “

+ + +

+ + + -

+ + + +

+ + + -

+ + + + + + 11

3

+ + + 11

4

The evaluation of the advantages and disadvantages leads to the clear result that Variant 3.1 and Variant 4 can be excluded from further comparisons. This is mainly owing to the considerable expenses involved in the resettlements (of Sibovc and Lajthishte). However Variant 4 demonstrates that the Sibovc field could be opened up from the South West part by a small compact mine without the resettlement of the entire Hade village. Such mine would be sufficient to feed the existing power plant TPP B with approx. 7or 8 mt coal per annum. The remaining comparison between Variant 3.2 and Variant 2 refers to the comparison between excavation in Sibovc (Northern part) and excavation of D-Field, because the second opencast mine (in the South of the Sibovc field) can be shaped identically as alternative. Variant 2, which includes the excavation of D-Field, is highlighted because there is removed a problem site and the public interest in this case will also simplify the granting of permit. Even if this is linked to the provision of financial means from the public hand this field only offers a restricted coal supply basis for a new investor. This investor might only accept the private investments if the duration of the fuel supply will be guaranteed over a period of 40 years. The envisaged motorway-route across the field would block the use of the coal field to a great deal for several decades.

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8 Environmental Aspects As this report represents a study to find the best fitting new mining field, in addition to the technical selection the potential environmental impacts are to be addressed. This is done to follow the requirements of EIA procedure enclosing the collection of knowledge about the environmental situation and expected effects as preparation for a Scoping Direction.

8.1 General Ecological Effects of Lignite Coal Exploitation Production of lignite coal stands for large scale excavation of soil using heavy duty equipment. Mining exploitation of mineral resources thus causes negative impact on the environment as well as each penetration into natural resources. Negative effects accompanying the development of this economy branch are related to violating of ecological system of a wider zone where exploitation is taking place and forms of violations are numerous. Questions concerning environment can be formulated having in mind how lignite coal is mined. The coal itself is buried deep under the surface. As the open cast pit that comes into being mostly reaches a depth of more than hundred meters and covers an area of several hundred hectares first of all land for excavation is needed. As slopes of the open cast pit have to be constructed in a soil mechanically safe way the extension of the mine openings need to be considerably larger than the area of coal production itself. This means estates used either for agricultural or for housing have to be bought. Residents have to be resettled. Surface soil has to be removed resulting in a nearly complete loss of fauna and flora. Groundwater within the overburden strata and covering the coal must be adequately lowered before starting excavation. While excavating rain water and remaining ground water have to be pumped out of the mine. In general this water has low pH values with probably larger contents of heavy metals. The excavation and exploiting of lignite coal causes noise and dust due to the excavation operations, maintenance works and coal transportation. Where the coal face comes in contact with the atmosphere oxidation processes can lead to self ignition of coal. This affects employees at the working places as well as the surroundings and neighbouring residents. The overburden strata have to be removed. In case direct back-filling into the pit can not be performed dumps for overburden outside the open pit are needed. Hence additional land is needed whereby floral cover will be disturbed, animals lose their habitats and the landscape changes as hills come into being. After excavation of coal the mined area generally is devastated. In order to re-utilize the area a complete refill of the pit should be achieved wherever possible. But because of the coal extracted leading to a deficit in volume not the whole mined area can be totally refilled. Therefore a well prepared “Mine Closure Plan” should be prepared and implemented showing the future landscape and possibilities of re-selling of land. The post-mining utilization should consider agricultural use of land, commercial and industrial use as well as restored areas as habitats for fauna and flora. Summarizing main impacts on the environment by coal mining and production of significant quantities of ash is reflected in following main aspects: •

Influences on surrounding terrain by excavation; Page 103 of 120


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• • • • • •

Total loss of naturally grown environmental contents and relations; Change of hydro-geological regime in wider area; Soil pollution and ground-/surface water pollution (wider area in the water shed) owing to soil alterations and coal processing (ash deposits, processing water release); Air pollution due to dust expositions while excavating and conveying; Influences on terrain stability within mine (working slopes) and surface deformation (subsidence of the soil); Noise due to working conveyor belts

8.2 Hydrological Conditions Values for precipitation were collected from different sources. The Hydro-Meteorological Institute of Kosovo provided a study showing in the year 1999 the monthly average for a period of 25 years (25 years average). The Institute provided also monthly values for the years 1979 to 1995. By adding values for the years 2001 to 2004 this data base was widened to cover a period of 25 years (1979 – 2004). The data base was completed by an existing evaluation for the duration 1948 to 1978. The average yearly precipitation amounts 600 mm. Minimum precipitation can be described using the year 1990 with 372 mm. Using monthly values maximum yearly precipitation is documented with 1010 mm in the year 1995. An enlarged value of 1028 mm is presented by Rudarski Institute (1985) but the year of appearance is lacking in that document. Following figure shows the distribution of average monthly precipitation. Statistically precipitation is rather evenly distributed with lower values from January to March and higher values throughout summer and harvest.

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Fig. 8.2-1

Long term Distribution of monthly Precipitation

The range of monthly precipitation can be described using the recorded values from the year 1979 to 2004. Figure above shows a wider range of monthly precipitation. For example within the month of August a minimum of 5 mm (year 1992) stands against 184 mm (year 2002). The average monthly precipitation is 56 mm. The figure shows that more than 80 mm precipitation per month can appear all over the year.

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Fig. 8.2-2

Monthly Range of Precipitation

To show the variation in daily precipitation values for the years 2001 to 2004 were made available from the Hydrometeorological Institute of Kosova. High quantities of precipitation were recorded with 44.5 mm on 11 April 2001 and 42.5 mm on 8 August 2002. The absolute recorded maximum was achieved on 5 September 1954 with 64.1 mm (INKOS; 1987).

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Fig. 8.2-3

Daily Precipitation

The Kosova basin is characterized by continental climate with dry and warm summers and indifferent winter temperatures depending on the influence of high-pressure areas from Siberia or low-pressure areas from the Atlantic Ocean. Reviewing data from the Hydro-Meteorological Institute as well as other documents describing the mining area average annual temperature results in +10°C. On a basis of the years 1979 to 1991 the range of temperatures is shown in figure below with minimum temperatures in January and maximum in July. Lowest Temperature ever measured counts –25.2°C.

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Fig. 8.2-4

Distribution of Temperatures

Supplementary information was found at www.qwikcast.com presenting in 2004 a statistic on an eighteen years basis.

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Fig. 8.2-5

Monthly Temperatures

The wind is predominantly blowing from north and northeast with average velocity near 3 m/s. Rudarski Institute in the year 1985 gave an overview about wind velocities and directions that are repeated in following figure. The greatest wind velocity was recorded with 34.3 m/s blowing from the north.

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Fig. 8.2-6

Direction and Velocity of Wind

8.3 Surface Waters Run-Offs and their Qualities The Kosova Basin forms a smoothly shaped plain that is bordered by hills and mountains. This basin includes a developed hydrological network with the main collector given by the river Sitnica. This river crosses the basin from south to north and drains off 80 % of the accumulating surface water northward. Major tributary rivers in the vicinity of the site are river Drenica in the west and river Lab in the east. The Sitnica run-off of water varies between a minimum of 0.5 – 1.5 m³/sec and a maximum of 50 – 120 m³/sec with an average of 5 – 10 m³/sec. In flooding periods, the course of the river reaches a width of up to 1000 m in the flooding areas. On 3 May 1958 a maximum run-off for river Sitnica near to the mines was measured with 90.3 m³/sec. Because not being available the usual basis to assess the quantities of water discharged by tributary rivers and creeks was prepared as catchment area map shown in following figure. Using run-off coefficients like mentioned in chapter 4.7 allows first assessments on the quantities of water to be delineated when opening up a mining field.

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Fig. 8.3-1

Catchment Areas

By now surface water quality data are available from the INKOS Institute’s monthly measurements for the main run-offs Drenica and Sitnica. As basis for assessments on the effects of the outlet from a future mine water drainage values from the years 2001 to 2003 for the river Sitnica upstream the existing mines can be presented.

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Fig. 8.3-2

Characteristic water quality values for river Sitnica (INKOS Institute)

The parameters shown in the figure above are found adequate to represent the up to date quality of river water without effects of the mines. The expected quality of drainage water without any treatment can be assessed using the quality parameters from the water pumped out of Mirash mine. It has to be taken into consideration that the sampling point does not always show the quality of pumped out water as thinning by rainwater might have falsified the sample.

Fig. 8.3-3

Characteristic Drainage Water Quality (INKOS Institute, Mirash mine) Page 112 of 120


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The following table compares the values and shows, that the receiving river might be affected mainly by sulphate and chloride as well as organic materials, if no purification will be foreseen. Concerning heavy metals or other trace elements no argumentation can be given by now because those analytical results are lacking. Tab. 8.3-1

Comparison Water Qualities

pH value El. Conductivity Chloride Sulphate Hydrogen carbonate Nitrate KMnO4 Consumption

Minimum Sitnica Mirash 6.8 6.7 230 175 3 4.5 29 75 104 232 0 0 5 3

Average Sitnica Mirash 7.9 7.8 486 1,381 28 90 78 924 284 447 3.7 10.3 15 45

Maximum Sitnica Mirash 8.4 8.7 1,100 3,700 70 290 516 1,741 381 600 14 72 26 183

Following those results it is necessary to purify the mine water. At least settling ponds should be implemented to diminish the load of soil and coal dust.

8.4 Groundwater Situation The knowledge about the general groundwater situation is described in chapter 4.7. Environmental effects are expected when groundwater will be withdrawn by excavation works. The present knowledge from the existing mines shows groundwater not to be a major problem for the mining activities, but is to be taken into consideration that the long term exploitation has affected the groundwater levels extensively. In case of creating a new and uncoupled mine the dewatering especially within the sandy layers of the overburden might be more expensive. To achieve a better knowledge of this it is essential to explore the groundwater conditions more detailed before opening up. Indications are given that the groundwater within the coal north to the existing mines might be polluted by liquid phenol bearing waste. Hence, before lowering the groundwater table, investigations are to inform about the extent of pollution by quantity and quality to adjust the mine dewatering system to necessary purification of water.

8.5 Soil Qualities Investigations on available soil qualities by now led the way to the community of Kastriot (Obiliq). Unfortunately no answer on the promised information was delivered. By this reason Consultant started to digitalize the soil map scale 1:100,000. Interim results are presented in following figure.

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Fig. 8.5-1

Soil Map

8.6 Waste Water Purification and Re-utilization Up to now mine water purification and re-utilisation seems to be unknown in connecting with mining activities. Any new mining activity has to take into consideration that water purification is needed not only for the sewage resulting from workers social services but also from the mining drainage. Here at least settling ponds are needed to purify the mining drainage from soil and coal dust. Other needs of purification will result from heavy metals and trace element analyses or the appearance of fluid phenol bearing waste. By now adequate analyses, allowing more detailed assessments, are not available. The need to take into consideration those parameters is expected to be relevant for any new mining activity in Kosovo.

8.7 Environmental Monitoring and Management Structures Reflecting the up to now experience at Kosovo’s lignite mines it has to be stressed that any new mining activity has to be combined with a well educated environmental management team. The management has to be informed not only about the activities within the mine but Page 114 of 120


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also about the situation in the nearer and remote surroundings. Analyses for water and groundwater qualities and quantities, dust and noise emissions etc. should be reflected regularly leading to dynamic improvements on the entire environmental situation. To achieve this, a close connection to official bodies is advised. Already in the phase of concrete planning for the new mining area a first monitoring system has to be implemented and surveyed to document effects on air, soil ground and surface waters, neighbouring inhabitants as well as the faunal and floral population. Hence a trained team is needed to assess the expected detailed effects, to prepare an adequate monitoring plan before opening up the mine and develop this throughout the lifetime of the mine.

8.8 Environmental Aspects of Mining Fields Alternatives Population Changes The opening of a field in all cases will mean that resettlement of inhabitants is needed. By now it is assessed that in case of Sibovc-Field the largest quantity of at least three villages and nine settlements with their population will be affected. South-Field covers two villages and one settlement whereas the D-Field effects partly one settlement as well as some detached houses. Variant 1.1 forms an extension of the existing mines, where the excavation moves forwards to the north. For neighbouring inhabitants this might be felt like an ongoing process deriving from the known mining activities. The population of the village of Hade has to be resettled prior to the start of mining activities. Major resettlements than will be needed towards the middle of the lifetime of the mine with the villages of Sibovc and Lajthishte. Variant 1.2 opens a new mine developing to the south. Hence erecting all needed infrastructure and opening the mine means an intervention to a nearly unaffected area. Resettlement of the villages of Sibovc and Lajthishte will be needed in an early stage of activities whereas the village of Hade, actually suffering from mining activities, is able to develop naturally until it is to be resettled finally toward the end of mining activities. Variant 2 requires a previous partly resettlement in the east of Dardhishte village. The connecting road Dardhishte – Nakarade/ Fuche Kosove will form the western rim of the mine. Hence the remaining inhabitants of Dardhishte will be affected mostly in the starting phase of mining. While developing the mine a few additional resettlements of detached houses will be needed towards the end of the lifetime of the mine. Variants 3.1 and 3.2 are intensifications of the effects shown in Variants 1.1 and 1.2. As two mines are working timely parallel the inhabitants will suffer in a extended volume especially from dust and noise pollution as well as sooner loss of farmland. Resettlements of the villages of Hade, Sibovc and Lajthishte will be needed nearly parallel in time prior to or at least in a very early stage of mine development. On the other hand these variants offer the opportunity to employ more local personal as two independent mines are operating with their full accessories. Variant 4 causes nearly the same effects as Variants 3 but in addition communication roads will be severed north of the village of Hade after short time of operation. Opening the South-Field will force the villages of Doberdup (Dobri Dub) and Kuzmin as well as new housing estates east of river Sitnica to be resettled. It has to be mentioned, that the village of Doberdup is already affected by creeping outside dump masses which up to now are explained not to present urgent threats. Effects on humans may result from the necessary relocation of river Sitnica to the east. As only a small corridor remains between the rim of the mine

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and the railroad track at Fushe Kosove special flood prevention measures have to be implemented leading to an enlarged surface requirement at the populated outskirts of Fushe Kosove. Local Roads and Transportation In the areas of potential mining fields the roads from Grabovc to Kastriot (Obiliq) and Sibovc to Kastriot (Obiliq) are assessed to be of major importance for regional transportation. Both roads lead through the Sibovc-Field and have to be abandoned in the course of mining. The difference for Variants 1, 3 and 4 can only be seen in the difference in time when abandoning becomes necessary. Variant 2 with D-Field as well as South-Field does not affect roads of regional importance. Water and Air Emissions to water and air mainly depend on the size of the open mine. In Variants 1 and 2 as well as South-Field only one mine is working while in Variants 3 and 4 there are two mines working parallel in time. For the latter variants this will lead to increased dust emissions from excavation and conveying activities. As self ignited lignite burnings should be prevented at any new mining field there result no specific differences between the variants even though self ignition might not be generally excluded. Effects on waters result from the necessary mine drainage and social sewage from mine barracks and offices. In case of Sibovc-Field (var. 1, 3 and 4) excavation is performed in rather watertight materials. Hence the quantities of water depend mainly on the precipitation. In Variant 2 (D-Field) as well as South-Field it is expected that leaking surface water and groundwater from river Sitnica will decisively contribute to the drained quantities. Flora, Fauna Natural Heritage The three areas of concern contain different types of ecological habitats. The Sibovc-Field is characterised by extensive but busy agricultural use. Areas unaffected by humans are rather seldom. Hence useful plant varieties dominate the floral scene. Resulting from temporarily unused or fallow land as well as minor bushes or wooded areas as well as mall creeks dividing the landscape a reasonable diversity of floral elements is expected. The South-Field is to the half of its area covered by overburden dumps. As this dumping area is unused in a large extent for years an adopted natural environment came into being with different, small scaled habitats. Some areas mainly at the rims of the dumps are agricultural used. The southern part of the South-Field is determined by the valleys of rivers Sitnica and Drenica and mainly agricultural used. Hence the South-Field gives a wide range of habitats from wetlands to dry locations on a small floor space. D-Field is characterised by the Dragodara ash dump (TPP A). As the surrounding is mainly agricultural used without extensive bush, copse or tree occurrence the biological diversity is judged rather poor compared to the other alternatives. Soil, Natural Resources and land use As described above and in chapter 4.2 the alternatives differ in their general soil appearance. Sibovc-Field is characterised by clayey materials in a hilly shaped landscape forming a typical Smonitza soil rather difficult to cultivate because of soil compression and enriched surface Page 116 of 120


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water run off in wet periods as well as deep reaching drying up in the summer time. Nevertheless the soil is described fertile but nearer information has to be inquired. South-Field (Variant 2) holds a large area of spread soil materials where a top soil development similar to the development outside the dumps is visible. As the soil is not as compact as the natural grown, better hydraulic conductivities result and the top soil is intensively biological loosened up. The slopes of the dumps are slowly creeping towards the surroundings and thereby covering the grown soil. No polluting elements are mentioned to be contained in the soil dumps. Hence it is judged that an ongoing and nearly unhindered agricultural use south to the dumps will be possible in the future. Depositing of soil and especially ash determines the surface of D-Field. The fly ash from the dumping site influences the surroundings up to some hundred meters distance. This mainly affects the usability of the farmland but no information is available by now concerning e.g. the heavy metal or trace element contents of the ash. Micro-Climate Opening a surface mining field causes a depression in the surface. All alternatives of excavation will lead to a loss of elevated elements on the surface and wind velocity will increase. As the mines will be artificially dewatered a change in evaporation rates will result which, in combination with the decrease in floral coverage, is assessed to lead to a decrease of evapotranspiration rates. The influences for the three different fields are judged to be rather similar but detailed assessments will only be possible after conducting extensive measurements and computing models for different climatic scenarios. Phenol Deposits The data inquiry on potential environmental risks gives indications of old neglected deposits of fluid wastes containing phenol. These materials probably result from an abandoned gasification plant at TPP Kosovo A, where remnants of this waste are still stored today. In August 2004 two shafts of old underground workings at Mirash workshop were opened. A specific chemically smell and some tar similar lumps at the rim of one shaft were observed. Workers at the mine explained to have observed those fluids in the past at the northern slope, where the slope cuts into underground workings. Further investigations on the spatial spreading and the quantity of dumped waste led to no reliable results up to now. Interviews this neighbouring residents and former workers helped to form a first idea. Two former underground workings might be affected with the “Kosovo” field underneath the valley between Mirash mine and Lajthishte and the “Krusevac” South-Field to TPP Kosovo A. As no maps are available showing the extension of the former mines a first demarcation was carried out using aerial views, field observations on collapse structures and interviews. Result is shown in following figure.

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Fig. 8.8-1

Areas of potential risk of toxic waste deposits

Because up to now it is unknown, •

which chemicals the original waste really comprised and if the contents is similar to the stored remnants, • which alterations happened to the waste and • what quantities of original or altered materials are buried in the underground workings this problem forms a potential risk when the coal is excavated (protection of miners and water) and burned in a TPP (conglutination of equipment, generation of hazardous gases such as dioxins).

8.9 Environmental Ranking of Alternatives Having in mind that the whole district is historically influenced by mining and wider parts of the landscape are determined by the mines and power plants all variants discussed are judged to be feasible, if appropriate actions are taken to diminish the effects. Combining the environmental aspects mentioned in this report a matrix can be presented balancing the degrees of impacts. A first judgement scale with 1 to 7 points is used describing the growing strength of impact between the variants. A balancing between the impacts themselves is not performed.

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Tab. 8.9-1 Effect

Environmental Impact

Population Changes Local Roads and Transportation Water and Air Flora, Fauna, natural Heritage Soil, Natural Resources and land use Sum

Var.1.1

1.2

3 3 1 2 3 12

4 4 2 3 4 17

2 D-Field 1 1 6 1 1 10

3.1

3.2

4

6 6 3 6 7 28

5 5 4 5 6 25

7 7 5 4 5 28

SouthField 2 2 7 7 2 20

Following this ranking usage of D-Field (Variant 2) shows the smallest impact to be expected. Opening the Sibovc-Field with one mine (Variant 1) should be given the preference rather than working with two mines from the environmental point of view. Using the South-Field seems to be minor suitable because of the developed and adjusted fauna and flora and the need of canalling river Sitnica.

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9 Final Remarks of Part I The objective of the Part I of the documentation is to provide information which should help to make solid decisions how to develop the lignite sector for the near future. The most suitable mining concepts were addressed and the opportunities and risks were mentioned. As main result (for a mine scenario with appr.15 mt/a) it is worked out that: In the case the high investments can be provided and the government prefers a single mine operator KEK should prepare a mining development as described in Variant 1.1. A two-mine concept would be favourable to attract private investors within a short time or if the financial means can not be provided. The decision also depends on the power plant concept. However the decision on which concept the detailed Main Mine Plan has to be based on is to set by the Ministry for Energy and Mines. ---------------------------------------------------Regarding the second stage (detailed “Main Mining Plan�), it was decided to elaborate a mining plan similar to Variant 1.1 (see MMP-Part II Technical Planning).

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European Agency for Reconstruction

F

PREPARATION OF A MID TERM PLAN FOR EXISTING COAL MINES AND A MAIN MINING PLAN FOR THE DEVELOPMENT OF THE NEW SIBOVC MINE EUROPEAID/116986/D/SV/KOS

FINAL REPORT Main Mining Plan for New Sibovc Mine Part II

Technical Planning

June 24, 2005 prepared by:

Vattenfall Europe Mining AG

VATTENFALL

Deutsche Montan Technologie GmbH


Key Experts of Project Team

Ullrich Höhna VEM Team Leader, Senior Expert Mine Planning

VEM Hans Jürgen Matern Senior Expert Mining Operation

Thomas Suhr VEM Senior Expert Computer-Aided Mine Planning Applications

Stephan Peters Senior Expert Geology

DMT

VEM Helmar Laube Senior Expert Soil Mechanics

Joachim Gert ten Thoren DMT Senior Environmental Expert


Table of Contents 1 Summary Part II ............................................................................14 2 Introduction...................................................................................47 2.1 2.2

Allocation and Geographical Overview ................................................................... 47 Approach / Methodology.......................................................................................... 49

3 Coal Demand and License for Coal Extraction.............................50 3.1 3.2

Forecast of Future Coal Demand.............................................................................. 50 License for Coal Extraction from Sibovc Open Cast Mine...................................... 52

4

Geological Conditions .............................................................53

4.1 4.2

Introduction .............................................................................................................. 53 Sedimentology and Petrography of the Pliocene Lignite Deposit in the Sibovc Area ................................................................................................... 55 Development of the Overburden Section ................................................................. 59 Geophysical Exploration Work Performed .............................................................. 60 Available Borehole Data .......................................................................................... 60 Coal Qualities from Borehole Data.......................................................................... 61 Sampling And Analysis Methods ............................................................................ 61 Geological Model ..................................................................................................... 64 Structural Model ...................................................................................................... 65 Coal Quality Distribution Model ............................................................................. 67 3D Block Model of Net Calorific Value Distribution ............................................. 68 Model Parameter and Methodology......................................................................... 68 Other Aspects influencing the Geological Situation ................................................ 72 Former Underground Mining................................................................................... 72 Uncontrolled Coal Fires........................................................................................... 75 Development and locations of coal fires.................................................................. 75 Counteractive measures ........................................................................................... 77 Prevention of coal fires ............................................................................................ 78 Geological Resource Assessment............................................................................. 78 Classification and Calculation Method.................................................................... 78 Lignite Resources..................................................................................................... 80 Further exploration for the new Sibovc Mine .......................................................... 81

4.3 4.4 4.5 4.5.1 4.5.1.1 4.6 4.6.1 4.6.2 4.6.3 4.6.3.1 4.7 4.7.1 4.7.2 4.7.2.1 4.7.2.2 4.7.2.3 4.8 4.8.1 4.8.2 4.9

5 Soil-mechanical Parameters ..........................................................82 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9

General ..................................................................................................................... 82 Soilphysical Parameter ............................................................................................. 82 Soil mechanical Calculation Methods ...................................................................... 83 General Stability Factors .......................................................................................... 84 Soilmechanical Calculations for Border Slope Systems .......................................... 85 Soilmechanical Calculations for Advance Slope Systems ....................................... 86 Static Stability of Single Slopes ............................................................................... 86 Soilmechanical Calculations for Dumping Slope Systems ...................................... 88 Geotechnical Requirements to a Safe Operational Management ............................. 89

6 Technological Development of the Sibovc Mine..........................90 6.1 6.2 6.3

Preconditions ............................................................................................................ 90 General Remarks on Mine Development ................................................................. 93 Technological Equipment Parameter ....................................................................... 94


6.4 Capability / Capacity Calculation for MME ............................................................ 95 6.4.1 Capability of Excavators .................................................................................. 95 6.4.2 Capability of Belt Conveyors ......................................................................... 105 6.4.3 Capability of Spreaders .................................................................................. 109 6.5 Mine Planning ........................................................................................................ 110 6.5.1 Follow-up to mining in Bardh / Mirash.......................................................... 110 6.5.2 Excavation Boundary / Boundary Line .......................................................... 111 6.5.3 Conveyor Belts ............................................................................................... 115 6.5.4 Bench Design ................................................................................................. 116 6.5.5 Division of Cuts.............................................................................................. 117 6.5.6 Mass Calculation ............................................................................................ 120 6.5.7 Overburden Removal...................................................................................... 123 6.5.7.1 Excavation .................................................................................................. 123 6.5.7.2 Dumping ..................................................................................................... 129 6.6 Lignite Operation.................................................................................................... 130 6.7 Stockpile Operation ................................................................................................ 133 6.7.1 Stockpile TPP A ............................................................................................. 133 6.7.2 Stockpile TPP B ............................................................................................. 134 6.8 Opening-up Operation ............................................................................................ 139 6.8.1 Preparatory Works in the Year 2007/2008..................................................... 139 6.8.2 Mining Development in the Year 2009 .......................................................... 140 6.8.3 Mining Development in the Year 2010 .......................................................... 142 6.8.4 Mining Development in the Year 2011 .......................................................... 142 6.8.5 Mining Development in the Year 2012 .......................................................... 143 6.8.6 Mining Development in the Year 2013 .......................................................... 144 6.9 Regular Operation .................................................................................................. 144 6.9.1 Mining Development in the Period 2014 – 2018 ........................................... 144 6.9.2 Mining Development in the Period 2019 - 2023 ............................................ 145 6.9.3 Mining Development in the Period 2024 - 2028 ............................................ 146 6.9.4 Mining Development in the Period 2029 - 2033 ............................................ 146 6.9.5 Mining Development in the Period 2034 – 2038 ........................................... 147 6.10 Production Schedule............................................................................................... 148

7 Main Mining Equipment .............................................................149 7.1 Technical Status of existing Main Mining Equipment........................................... 149 7.1.1 Technical Status of Excavators ...................................................................... 149 SRs 1300 und SchRs 650 ........................................................................................... 149 b) Electrical Equipment.............................................................................................. 149 a) Steel Construction and Mechanical Engineering............................................. 151 7.1.2 Technical Status of Belt Conveyor Systems .................................................. 152 7.1.3 Technical Status of Spreaders ........................................................................ 153 a) Steel Construction and Mechanical Engineering ................................................... 153 7.1.4 Technical Status of Belt Wagons ................................................................... 154 7.1.5 Technical Status of Stacker / Reclaimer......................................................... 155 7.2 Rehabilitation Measures for MME......................................................................... 158 7.2.1 Measures for Excavators ................................................................................ 158 7.2.2 Measures for Belt Conveyor Systems ............................................................ 159 7.2.3 Measures for Spreaders .................................................................................. 160 7.2.4 Measures for Belt Wagons ............................................................................. 161 7.2.5 Measures for Stacker / Reclaimer (Stockpile Equipment) ............................. 161 7.2.6 Conclusion for the Field Sibovc ..................................................................... 162 7.3 Technical Specification of Main Mining Equipment ............................................. 164


8 Power Supply System and Electrical Equipment ........................165 8.1 8.2

Future Energy Demand .......................................................................................... 165 Investment for Electrical System............................................................................ 167

9 Auxiliary Equipment...................................................................171 9.1 Assessment of Technical Status in the Existing Mines .......................................... 171 9.2 Auxiliary Equipment and Devices for the Sibovc Mine ........................................ 171 9.2.1 Maximal Demand of auxiliary Equipment ..................................................... 171 9.2.2 Yearwise Development of Auxiliary Equipment Fleet .................................. 173 9.3 Heavy Auxiliary Equipment for Sibovc Mine........................................................ 179 9.4 Draglines ................................................................................................................ 179 9.4.1 Transport Crawler........................................................................................... 180 9.4.2 Derricks .......................................................................................................... 181 9.5 Investment and Cost Calculation for Auxiliary Equipment ................................... 181

10 Infrastructure and Surface Facilities ...........................................183 10.1 General Principles .................................................................................................. 183 10.2 Social facilities and administration ........................................................................ 184 10.2.1 Mine Offices................................................................................................... 184 10.2.2 Mine Control Centre....................................................................................... 187 10.2.3 Washrooms and Sanitary Facilities ................................................................ 187 10.3 Supply and Disposal ............................................................................................... 188 10.3.1 Transformer Station........................................................................................ 188 10.3.2 Erection Yards ................................................................................................ 188 10.3.3 Road Construction .......................................................................................... 189 10.4 Workshops and Warehouses................................................................................... 191 10.4.1 Principles ........................................................................................................ 191 10.4.2 Central- and plant workshops......................................................................... 194 10.4.3 Warehouses..................................................................................................... 199 10.4.4 Petrol Station / Fuel Depot ............................................................................. 203 10.5 Investment and Cost Calculation for Infrastructure ............................................... 204

11 Mine Dewatering.........................................................................209 11.1 11.2 11.3

General Information ............................................................................................... 209 Dewatering Measures / Dimensioning of Dewatering Elements ........................... 211 Investment and Cost Calculation for Dewatering .................................................. 214

12 Mine Closure and Recultivation Planning ..................................216 12.1 12.2 12.3 12.4 12.5

Principles ................................................................................................................ 216 Present Land Use.................................................................................................... 216 Mine Closure Plan .................................................................................................. 216 Concept of Post-Mining Use for the Fields Bardh, Mirash and Sibovc................. 218 Investment and Cost Calculation............................................................................ 221

13 Resettlement................................................................................222 13.1 General Remarks / Situation................................................................................... 222 13.1.1 General Conditions......................................................................................... 222 13.1.2 Legal Resettlement Regulations ..................................................................... 222 13.2 Resettlement of Hade ............................................................................................. 223 13.2.1 Conditions / Situation in Hade ....................................................................... 223 13.2.2 Buildings in Hade ........................................................................................... 224 13.2.3 Valuation of Compensation............................................................................ 225 13.2.4 Locations for Resettlements of Hade ............................................................. 228


13.2.5 Resettlement Process ...................................................................................... 228 13.2.6 Resettlement Procedure .................................................................................. 229 13.2.7 Time Scheduling for Resettlement Measures................................................. 230 13.2.8 Status of the Hade Resettlement..................................................................... 231 13.3 Resettlement of Villages in the field Sibovc .......................................................... 232 13.3.1 Communities affected by Resettlement.......................................................... 232 13.3.2 Valuation of Compensation............................................................................ 234 13.3.3 Locations for Resettlements ........................................................................... 234 13.3.4 Time Scheduling for Resettlement Measures................................................. 235 13.4 Investment and Cost Calculation for Resettlement ................................................ 236

14 Manpower Developemente and Organisation .............................243 14.1 14.2 14.3 14.4

Actual Situation ...................................................................................................... 243 Proposed Improvement / Benchmark ..................................................................... 244 Employment of Staff and Organisation Sibovc...................................................... 246 Organisational Structure......................................................................................... 249

15 Final Remark (Part II) .................................................................257


Content of Tables Tab. 3.1-1 Tab. 3.1-2 Tab. 4.2-1 Tab. 4.2-2 Tab. 4.6-1 Tab. 4.6-2 Tab. 4.6-3 Tab. 4.7-1 Tab. 5.2-1 Tab. 6.1-1 Tab. 6.1-2 Tab. 6.1-3 Tab. 6.3-1 Tab. 6.3-2 Tab. 6.3-3 Tab. 6.4-1 Tab. 6.4-2 Tab. 6.4-3 Tab. 6.4-4 Tab. 6.4-5 Tab. 6.4-6 Tab. 6.4-7 Tab. 6.4-8 Tab. 6.4-9 Tab. 6.4-10 Tab. 6.4-11 Tab. 6.4-12 Tab. 6.4-13 Tab. 6.4-14 Tab. 6.4-15 Tab. 6.4-16 Tab. 6.4-17 Tab. 6.4-18 Tab. 6.5-1 Tab. 6.5-2 Tab. 6.5-3 Tab. 6.5-4 Tab. 6.5-5 Tab. 6.6-1 Tab. 6.6-2 Tab. 6.7-1 Tab. 6.7-2 Tab. 6.8-1 Tab. 6.8-2 Tab. 6.8-3 Tab. 6.8-4 Tab. 6.8-5 Tab. 6.8-6

Defined Coal Demand......................................................................................... 50 Coal haulage required from new mines .............................................................. 51 Summary of Interburden Occurences thicker than 0.5 m in the Sibovc Concession Area ..................................................................................... 56 Petrographic Analysis ......................................................................................... 59 Structural Characterisation of the Sibovc Concession Area ............................... 66 Sibovc Concession Area, Average Coal Qualitiesfor the Lignite Seam from Geological Model Grid ....................................................................................... 67 Block Model – volume report of several categories ........................................... 71 Coal production of old underground mines within area investigated. (source: INKOS) ............................................................................................................... 74 Soil-mechanical Parameters ................................................................................ 83 Coal Output (Part 1: in the „extended“ Development Period) ............................ 90 Coal output from Sibovc in regular operation..................................................... 91 Release Time for Main Mine Equipment............................................................ 92 Basic Geometry of the Bucket Wheel Excavators .............................................. 94 Cutting Heights and block Width of Excavators................................................. 94 Maximum Inclination of working Levels and Curve Radii of Excavators ......... 95 Theoretical Digging Capacity in lcm/h ............................................................... 97 Theoretical Capacity of Excavators in bcm/h resp. t/h ....................................... 97 Effective Capacity of Excavators - Overburden ................................................. 98 Effective Capacity for Excavator - Coal ............................................................. 99 Planned Working Time Tb of single Equipment ............................................... 101 Normal Capacity and maximum Capacity - Overburden.................................. 102 Capability of Bucket Wheel Excavators in Overburden Operation .................. 103 Capability of Excavators in Coal Operation ..................................................... 103 Nominal Capacity of the Pit System ................................................................. 104 Bulk Density, Angle of Repose and Inclination of Belt Conveyor................... 105 Factor fi for Considering the Inclination........................................................... 106 Possible Conveying Capacity for the 1.8 m Belt Conveyor, loose ................... 106 Eff. Conv Capacity Ve in bcm/h of the 1.8 m Belt Conveyor (Overburden) ... 107 Possible Conveying Capacity for the 2.0 m Belt Conveyor, loose ................... 107 Eff. Conv. Capacity Ve of the 2.0 m Overburden Belt Conveyor in bcm/h ..... 108 Conveying Quantity of a 1.8 m Coal Conveyor in t/h ...................................... 108 Conveying Quantity of a 2.0 m Coal Belt Conveyor (wc = 1.75 m) in t/h ....... 109 Comparison of possible Volume Streams ......................................................... 110 Overburden and Coal Output in Mirash / Bardh............................................... 110 Sector calculation of the entire field ................................................................. 121 Division of slices / overburden – SRs 1300 ...................................................... 128 Block length and division of slices / overburden SchRs 650............................ 128 Block length and divisions of slices –new BWE .............................................. 129 Block length and division of slices / coal – SchRs 650 .................................... 132 Block length and division of slices / coal – SRs 1300 ...................................... 132 Overview of mine potential and power plant requirerment .............................. 137 Belt Length of charging conveyor to the power plant....................................... 138 Output in overburden and coal in 2007/08........................................................ 140 Output in overburden and coal in 2009............................................................. 141 Output in overburden and coal.......................................................................... 142 Output in overburden and coal.......................................................................... 143 Output in overburden and coal.......................................................................... 143 Output in overburden and coal.......................................................................... 144


Tab. 6.9-1 Tab. 6.9-2 Tab. 6.9-3 Tab. 6.9-4 Tab. 6.9-5 Tab. 6.10-1 Tab. 7.2-1 Tab. 7.2-2 Tab. 8.1-1 Tab. 8.1-2 Tab. 9.2-1 Tab. 9.2-2 Tab. 9.2-3 Tab. 9.2-4 Tab. 9.2-5 Tab. 9.4-1 Tab. 9.5-1 Tab. 9.5-2 Tab. 10.3-1 Tab. 10.4-1 Tab. 10.5-1 Tab. 10.5-2 Tab. 10.5-3 Tab. 10.5-4 Tab. 10.5-5 Tab. 10.5-6 Tab. 11.2-1 Tab. 11.3-1 Tab. 11.3-2 Tab. 11.3-3 Tab. 12.2-1 Tab. 12.5-1 Tab. 13.2-1 Tab. 13.2-2 Tab. 13.2-3 Tab. 13.3-1 Tab. 13.4-1 Tab. 13.4-2 Tab. 13.4-3 Tab. 13.4-4 Tab. 13.4-5 Tab. 13.4-6 Tab. 13.4-7 Tab. 13.4-8 Tab. 14.2-1 Tab. 14.3-1 Tab. 14.3-2 Tab. 14.3-3

Output in overburden and coal.......................................................................... 145 Output in overburden and coal.......................................................................... 145 Output in overburden and coal.......................................................................... 146 Output in overburden and coal.......................................................................... 147 Output in overburden and coal.......................................................................... 147 Production Schedule.......................................................................................... 148 Measures for MME ........................................................................................... 158 Measures MME for Sibovc ............................................................................... 162 Capacities .......................................................................................................... 166 Required installed capacity ............................................................................... 166 Number of auxiliary Equipment........................................................................ 172 Number of auxiliary Equipment up to 2012 ..................................................... 174 Annual Purchase of auxiliary Equipment up to 2017 ....................................... 176 Purchase of auxiliary Equipment between 2018 and 2028 ............................... 177 Purchase of auxiliary Equipment between 2029 and 2038 ............................... 178 Technical Data of Esch 10/70 ........................................................................... 179 Investments and Reinvestments for auxiliary Equipment................................. 182 Yearwise Investments for auxiliary Equipment in m€...................................... 182 Road construction.............................................................................................. 189 Further use of buildings for Sibovc................................................................... 193 Investments 2005 – 2008 surface facilities ....................................................... 205 Investment and cost calculation for infrastructure ............................................ 206 Lease prices....................................................................................................... 207 Required areas for workshops and warehouses ................................................ 207 Lease costs for workshops and warehouses ...................................................... 208 Lease costs for workshops, warehouses, offices and washrooms ..................... 208 Pump Capacity .................................................................................................. 213 Example for a Channel System ......................................................................... 214 Length of Channels ........................................................................................... 215 Price of Channels .............................................................................................. 215 Claim of building and farm Land...................................................................... 216 Area Balance in Sibovc and Costs .................................................................... 221 Households and other Facilities in the Village Hade 2003 ............................... 224 Timetable for the Resettlement of the remaining Part of Hade ........................ 230 Compensation for the Inhabitants of Hade........................................................ 231 Steps for a joint resettlement of a village.......................................................... 235 Cost Calculation for Resettlement of Properties with constructed Buildings... 237 Resettlement of Households and Land Claim................................................... 237 Resettlement of Public Facilities....................................................................... 238 Substitute Measures Infrastructure inside the Village and other Costs............. 238 Substitute measures for infrastructure outside the village ................................ 239 Claim of farmland ............................................................................................. 239 Provisional estimation of resettlement .............................................................. 240 Cost of resettlement - schedule ......................................................................... 242 Benchmark mining ............................................................................................ 245 Employees in Mirash /Bardh............................................................................. 247 Employees in Sibovc......................................................................................... 248 Number of employees ....................................................................................... 249

Contents of Figures Fig. 2-1 Fig. 4-1

Sibovc Concession Licence Area – Location Map................................................ 48 Stratigraphic Standard Profile of the Kosovo Basin (KEK 2003)......................... 54


Fig. 4-2 Fig. 4-3 Fig. 4-4 Fig. 4-5 Fig. 4-6 Fig. 4-7 Fig. 4-8 Fig. 4-9 Fig. 4-10 Fig. 4-11 Fig. 4-12 Fig. 4-13 Fig. 4-14 Fig. 5-1 Fig. 5-2 Fig. 5-3 Fig. 5-4 Fig. 5-5 Fig. 6-2 Fig. 6-3 Fig. 6-4 Fig. 6-5 Fig. 6-6 Fig. 6-7 Fig. 6-8 Fig. 8-1 Fig. 8-2 Fig. 8-3 Fig. 9-1 Fig. 10-1 Fig. 10-2 Fig. 10-3 Fig. 10-4 Fig. 10-5 Fig. 10-6 Fig. 10-7 Fig. 10-8 Fig. 10-9 Fig. 10-10 Fig. 10-11 Fig. 10-12 Fig. 10-13 Fig. 10-14 Fig. 10-15 Fig. 10-16 Fig. 10-17 Fig. 10-18 Fig. 10-19 Fig. 12-1

Typical vertical lithological sequence and Net CV distribution for the lignite deposition in the Sibovc Concession Area, Borehole G1-XXXIII3...................... 55 Histogram for the Interburden Distribution by Lignite Seam Thickness Increments of 20 m............................................................................... 57 Sibovc Concession Area, Lignite Seam –Interburden Thickness[m].................... 57 Correlation Problems of Interburden Layers ......................................................... 58 Lignite Thickness vs. Depth Plot........................................................................... 66 Block Model of the Sibovc Mining Concession area. Explanation see below...... 68 Sibovc Block Model Master Definition ................................................................ 69 Compositing by elevation...................................................................................... 70 Collapse structures from former underground mining NE of Hade (arial photograph)............................................................................................................ 73 Private coal mining near the western border of the Sibovc Field.......................... 76 Private coal mining area within the Sibovc Field.................................................. 76 Fritted, red colored clays in the hanging wall of the coal seam ............................ 77 Sibovc Concession Area, Ressource Classification .............................................. 79 Principal Scheme ................................................................................................... 84 Required general inclination of slopes with a safety factor of 1.2 ........................ 85 Sliding in the coal-uncovering cut......................................................................... 86 Geologically occurring weak zone in the overburden material............................. 87 Exposed parting plane with large polished surface ............................................... 87 Scheme of conveyor belts.................................................................................... 115 Scheme of working levels and equipment........................................................... 122 Workscheme / overburden – SRs 1300.24 .......................................................... 124 Free-cut angle horizontal view ............................................................................ 125 Free-cut angle horizontal view ............................................................................ 126 Scheme calculation of block length..................................................................... 127 Work scheme coal excavator............................................................................... 131 Energy distribution system .................................................................................. 168 35 kV power supply – coal extraction ................................................................. 169 35 kV power supply - overburden ....................................................................... 170 Scheme Esch 10/70.............................................................................................. 180 Mine office Bardh................................................................................................ 184 Mining Office (Gate 1) ........................................................................................ 185 Plan of Mine Office ............................................................................................. 186 Current Mine control centre Mirash .................................................................... 187 Survey workshops and warehouses ..................................................................... 194 New Central Auxiliary equipment workshop Bardh ........................................... 195 Mechanical workshop intervention ..................................................................... 195 Electrical workshop intervention Bardh .............................................................. 196 Electrical workshop Kosovomont ....................................................................... 197 Mechanical workshop Kosovomont 1 ................................................................. 197 Mechanical workshop Kosovomont 2 ................................................................. 198 Electrical and mechanical workshop ................................................................... 199 New warehouse Mirash ....................................................................................... 200 Warehouse idler and vulcanization...................................................................... 200 New central warehouse........................................................................................ 201 Electrical warehouse Bardh ................................................................................. 202 Mechanical warehouse Bardh.............................................................................. 202 Petrol Station Mirash........................................................................................... 203 Petrol Station Separation plant ............................................................................ 204 Plant scheme for wind erosion protection ........................................................... 220


Fig. 14-1 Fig. 14-2

Age structure ....................................................................................................... 244 Employees in Sibovc ........................................................................................... 248

List of Annexes Annexes to Geology: II/ 4.4-1

II/ 4.4-2

II/ 4.4-3

II/ 4.4-4

II/ 4.4-5

II/ 4.4-6

II/ 4.4-7

II/ 4.4-8

II/ 4.4-9 II/ 4.4-10 II/ 4.4-11 II/ 4.4-12

Sibovc Consession Area, Lignite Fm. – Topography and Borehole Location (with Seam Thickness [m]), 1:10,000 Zona e konsesionit të Sibovcit – Topografia dhe lokacionet e shpimeve ( me trashësi të shtresës [m]), 1:10,000 Sibovc Consession Area, Lignite Seam - Overburden Thickness [m], 1:10,000 Zona e Konsesionit Sibofc, Qymyri Fm. - Trashësia e Djerrinës [m], 1:10,000 Sibovc Consession Area, Lignite Seam - Overburden-To-Coal Ratio [cu m/t], 1:10,000 Zona e Konsesionit Sibofc, Qymyri Fm. - Raporti Qymyr - Djerrinë [cu m/t], 1:10,000 Sibovc Consession Area, Lignite Seam – Interburden Thickness [m], 1:10,000 Zona e Konsesionit Sibofc, shtresa Qymyrore - Trashësia e Ndërfut Jeve [m], 1: 10,000 Sibovc Consession Area, Lignite Seam, Top 0-20 m Slice – Interburden Thickness [m], 1:10,000 Zona e Konsesionit Sibofc, Shtresa Qymyrore, 0-20 m Prej Tavanit të Shtresës Qymyrore - Trashësia e Ndërfut Jeve [m], 1: 10,000 Sibovc Consession Area, Lignite Seam, Top 20-40 m Slice – Interburden Thickness [m], 1:10,000 Zona e Konsesionit Sibofc, Shtresa Qymyrore, 20-40 m Prej Tavanit të Shtresës Qymyrore - Trashësia e Ndërfut Jeve [m], 1: 10,000 Sibovc Consession Area, Lignite Seam, Top 40-60 m Slice – Interburden Thickness [m], 1:10,000 Zona e Konsesionit Sibofc, Shtresa Qymyrore, 40-60 m Prej Tavanit të Shtresës Qymyrore - Trashësia e Ndërfut Jeve [m], 1: 10,000 Sibovc Consession Area, Lignite Seam, >60 m Slice – Interburden Thickness [m], 1:10,000 Zona e Konsesionit Sibofc, Shtresa Qymyrore, >60 m Prej Tavanit të Shtresës Qymyrore - Trashësia e Ndërfut Jeve [m], 1: 10,000 Sibovc Consession Area, Lignite Seam - Ash Content [%],1:10,000 Zona e Konsesionit Sibofc, Qymyri Fm. - Përqindja e Hirit [%], 1:10,000 Sibovc Consession Area, Lignite Seam - Total Sulphur [%], 1:10,000 Zona e Konsesionit Sibofc, Qymyri Fm. - Sulfuri Total [%], 1:10,000 Sibovc Consession Area, Lignite Seam - Low Calorific Value [kJ/ kg], 1:10,000 Zona e Konsesionit Sibofc, Qymyri Fm. – Vlera Kalorike [kJ/ kg], 1:10,000 Sibovc Consession Area – Geological Cross Sections S1 & S2 with Differentiation of Overburden Layer, 1: 5,000/ 1:1,250 Zona e Konsesionit Sibofc -Profilet gjeologjike S1 & S2 mi diferencim të saktë të shtresës tavanore, 1: 5,000/ 1: 1,250


II/ 4.4-13 to 21

II/ 4.4-22 to 33

Sibovc Consession Area –Geological Cross Sections NS 1 to NS 9 (from Block –21 Model) with Low Calorific Value (for Humidity of 45 %), 1: 5,000 Zona e Konsesionit Sibofc - Profilet tërthore të Sibofcit NS1 dhe NS9 ( nga Bllokmodeli) me shpërndarje të vlerave kalorike ( për lagështi 45%) 1: 5,000 Sibovc Consession Area –Geological Cross Sections WE 1 to WE 12 (from Block Model) with Low Calorific Value (for Humidity of 45 %) 1: 5,000 Zona e Konsesionit Sibofc - Profilet tërthore të Sibofcit NS1 dhe NS9 ( nga Bllokmodeli) me shpërndarje të vlerave kalorike ( për lagështi 45%) 1:5,000

Annexes to Mining: Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II Part II

6.5-01 6.5-02 6.5-03 6.5-04 6.5-05 6.5-06 6.5-07 6.5-08 6.5-09 6.5-10 6.5-11 6.5-12 6.5-13 6.5-14 6.5-15 6.5-16 6.5-17 6.5-18 6.7-01 6.7-02 6.7-03 6.7-04 6.7-05 6.7-06 6.8-01 6.8-02 6.8-03 6.8-04 6.8-05 12.2.-01 12.3-01

Scheme of West Bank Part 1 Scheme of West Bank Part 2 Scheme of West Bank Part 3 Scheme of East Bank Part 1 Scheme of East Bank Part 2 Scheme of Excavation Part 1 Scheme of Excavation Part 2 Ramp Excavation Scheme of Dumping Slope System Mining Development Truck and Shovel Mining Development Overburden Level 1 Mining Development Overburden Level 2 Mining Development Overburden Level 3 Mining Development Overburden/Coal Level 4 Mining Development Coal Level 1 Mining Development Coal Level 2 Mining Development Coal Level 3 Mining Development Coal Level 4 Preparatory Works in the Period 2007-2008 Mining Development in the Year 2009 Mining Development in the Year 2010 Mining Development in the Year 2011 Mining Development in the Year 2012 Mining Development in the Year 2013 Mining Development in the Year 2018 Mining Development in the Year 2023 Mining Development in the Year 2028 Mining Development in the Year 2033 Mining Development in the Year 2038 Claim of land Recultivation

1 : 2000 1 : 2000 1 : 2000 1 : 2000 1 : 2000 1 : 2000 1 : 2000 1 : 2000 1 : 2000 1 : 10000 1 : 10000 1 : 10000 1 : 10000 1 : 10000 1 : 10000 1 : 10000 1 : 10000 1 : 10000 1 : 5000 1 : 5000 1 : 5000 1 : 5000 1 : 5000 1 : 5000 1 : 10000 1 : 10000 1 : 10000 1 : 10000 1 : 10000 1 : 10000 1 : 10000


List of Abbreviations a bcm bcm/h EN EnO ESTAP GWh IPP kt mt lcm m m² m³ mbcm mlcm MME mMSL mt NCV OCM RAC sqm TOR TPP TPS `000 bcm `000 lcm

year bank cubic meter bank cubic meter per hour European Norm Energy Office Energy Sector Technical Assistance Project Gigawatt-hours International Power Provider thousand tonnes million tonnes loose cubic meter million square meter cubic meter million bank cubic meter million loose cubic meters Main Mine Equipment (BWE, belt conveyor and spreader) meter above Mean Sea Level million tonnes Net Calorific Value Open Cast Mine Real Average Costs square meter Terms of Reference Thermal Power Plant Thermal Power Station thousand bank cubic meter thousand loose cubic meter


Glossary of Statistic Terms Minimum 25%-tile Median 75%-tile Maximum Midrange Midrange Range Interquartile Range Median Abs. Deviation

Mean Trim Mean (10%)

Standard Deviation Variance

Coef. of Variation Coef. of Skewness

minimum value lower quartile; 25 percent of the values are smaller than this number and 75 percent of the values are larger middle data value, 50 percent of the data values are larger than this number and 50 percent of the data are smaller than this number upper quartile; 75 percent of the values are smaller than this number and 25 percent of the values are larger than this number maximum value the value halfway between the minimum and maximum values = (Minimum + Maximum) / 2 separation between the minimum and maximum value. Range = Maximum - Minimum separation distance between the 25%-tile and 75%-tile.This shows the spread of the middle 50 percent of the data, similar to standard deviation, though this statistic is unaffected by the tails of the distribution Median Absolute Deviation is the median value of the sorted absolute deviations. It is calculated by 1. computing the data's median value 2. subtracting the median value from each data value 3. taking the absolute value of the difference 4. sorting the values 5. calculating the median of the values arithmetic average of the data Trim Mean is the mean without the upper five percent and lower five percent of the data, therefore, extreme value influence is removed. If there are fewer than 20 data points, the minimum and maximum data points are removed instead of the upper and lower five percent. square root of the variance

The Coefficient of Variation is calculated by dividing the standard deviation by the mean. If a "-1" is reported, the coefficient of variation could not be computed. The Coefficient of Skewness is calculated by

If a "-1" is reported, the coefficient of skewness could not be computed. The coefficient of skewness is computed only for the Z values.


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

1 Summary Part II Terms of Reference According to the Terms of Reference (TOR), chapter 2.1 the main goal of the Main Mining Plan for the New Sibovc Mine is: “… to provide security, both in the technical and economic terms, of future electrical power production in Kosovo, as defined in the “White Paper”, … through the guarantee the coal supply security and economical viability over the entire life of the existing power plants and the new power plants (approximately 30 years).” The Main Mining Plan “… has to contain all necessary facts, calculations and elements needed to guarantee sufficient coal production for Kosovo´s energy demand…”. (TOR, chapter 2.3.2) Thus, general geological aspects which do not affect the future coal production processes are not contained. As a result of the agreed final comments on the draft Main Mining Plan for New Sibovc Mine of May 2005 the project documentation consists of: • Executive Summary of all Parts • Part I Basic Investigations • Part II Technical Planning • Part III Environmental Impact Study • Part IV Economical and Financial Analysis • Appendices A, B, C and D The project was conducted in two stages: 1st stage: In the first stage (Part I) it was focused on developing different scenarios of mine development and to draw conclusions for the mining development of Sibovc on that basis. The objective was to obtain information on alternative developments in the mining sector and to make a decision on how to supply the power plants. In addition to the Sibovc Field, alternatives like „Field D“ and the „Southfield“ have been evaluated. 2nd stage: The second stage (Part II, III and IV) was focused on the detailed mine planning of coal extraction in Sibovc including determination of the required workforce and the accruing investments and costs. While the Part I addresses different scenarios of mining developments the Parts II up to IV deal with the chosen mining variant (which start from the existing mines Mirash/Bardh and advances in Northern direction of the Sibovc field). The work for the Part I of the main mine plan was mainly focused on: • survey possibilities of the future coal supply to the existing and new power plants, • compare different mining equipment alternatives,

Page 14 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Main Content and Results of Part I (the 1st Stage) Power Plant Concept and Coal Demand The current coal consumption level of the power plants amounts to 6-7mt/a. This level is not sufficient to secure the demand for electricity in Kosovo. Also in the coming years, the production could increase only insignificantly (to approx. 8.7 mt according to the Mid Term Plan). To meet the demand for electricity better, UNMIK committed to launch a project for the establishment of a new power plant. The detailed concept and the coal demand of the new power plant were not available at the time, when the work on the study had begun. Under consideration of the above, it was worked out that i.a. a new power plant could not be commissioned before 2012 at the earliest. The demand for raw coal should moderately increase to avoid a too high investment peak. Thus costs (in particular financing costs) could be kept low (see Part I). Alternatives of equipment After having analyzed various main mining equipment solutions and mining methods the following four Alternatives have been recognised as suitable: 1. 2. 3. 4.

Conventional bucket wheel excavator (BWE), belt conveyors and spreader Compact BWE, belt conveyors and spreader Truck and shovel (mobile equipment) Combination of BWE belt conveyors, spreader and truck and shovel

Comparing the real average costs the alternative 4 turned out as most suitable. The performance of truck /shovel should be limited of the work for achieving a constant extraction performance of the BWEs. That means the trucks and shovels work in areas where peaks of overburden occur. Opening –up / Mine development For the mine development and the opening up of the Sibovc field six variants have been investigated. • Var. 1 One single mine in Sibovc (as Var. 1.1 and 1.2) • Var. 2 Parallel mine development in Sibovc and Field D • Var. 3.1 Parallel mine development in Sibovc (South) and Sibovc (middle) • Var. 3.2 Parallel mine development in Sibovc (South) and Sibovc (North) • Var. 4 Parallel operation of two mines along a South-North demarcation line

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Var.1 is applicable, if the mine operator will take over the supply obligation for both the existing and the new lignite-fired power plants. While Variant 1.1 is a development from South to North the Variant 1.2 starts in the very North. The comparison between advantages / disadvantages favour Var.1.1 (against Var.1.2) provided the total resettlement can be done up in time. Two mine scenarios were discussed and despite of certain advantages of it regarding the attraction of private investors it was not given preference. Hence the Main Mine Plan Sibovc consists of a mining development beginning in Bardh/Mirash and heading in Northern direction.

Main Content and Results of the Second Stage (Part II) For the detailed preparation of the mining development, the following guideline has been laid down by the Ministry: a) Power generation forecast and yearly coal demand With the objective to make sufficient electricity available for the domestic market as quickly as possible and to make exports in addition to it, new power plant capacities up to 7 x 350 MW will be established. Preferentially, they can be erected at the locations of TPP A and TPP B.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Year

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 SUM

Lignite Demand existing TPP A

Lignite Demand existing TPP B1+B2

1.8 2.0 2.0 3.3 4.75 4.75 4.75 4.75 4.75 4.75 4.75 4.75 4.75 3.14 1.57

5.0 5.0 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 2.65

56.56

102.7

New TPP Kosovo B3-B6

2.71 5.42 5.42 5.42 5.24 5.24 5.42 8.13 10.84 10.66 10.66 10.84 10.66 10.66 10.66 10.66 10.84 10.66 10.66 10.66 10.66 10.84 10.66 10.66 10.66 10.66 10.84 246.4

New IPP C1 – C3

2.71 5.42 8.13 8.13 7.95 7.95 7.95 8.13 8.13 7.95 7.95 7.95 8.13 8.13 7.95 7.95 7.95 8.13 8.13 7.95 7.95 7.95 8.13 176.7

Other Lignite Consumers 0.1 0.1 0.1 0.1 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 14.0

Total Coal Demand 6.9 7.1 7.4 8.7 10.35 10.35 10.35 13.06 15.77 15.87 15.87 18.40 21.11 22.49 23.63 24.59 24.41 24.41 24.77 21.94 19.11 19.11 19.11 19.47 19.29 19.11 19.11 19.11 19.47 19.29 19.11 19.11 19.11 19.47 596.45

b) Resettlement This issue was discussed with the responsible authorities including the beneficiary and the European Agency. Resulting from these discussions a decision was made to assume the timely resettlement of Hade for the Main Mine Plan.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

c) Number of mines Considerations regarding a possible second mine are not subject of the second part of the study. d) Mine development scenario Subject of the Main Mine Plan is the development of the Sibovc coal field from the existing opencast mines of Bardh / Mirash. This shall be carried out with a long bench in parallel operation from the south to the north. The opencast mine Sibovc will supply coal to all customers. The assessed output of coal from the existing mines (Bardh/ Mirash) and the coal haulage required from the new mine is shown as follows: Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sum

Coal from Bardh Mt 6.9 7.1 7.4 8.7 7.9 3.2 2.5

43.7

Mirash

/ Coal from new Mine(s) Mt 0 0 0 0 2.45 7.15 7.85 13.06 15.77 15.87 62.15

Sum = Demand of Coal mt 6.9 7.1 7.4 8.7 10.35 10.35 10.35 13.06 15.77 15.87 105.85

One essential principle for granting a license for coal extraction is: The purpose of coal production is to ensure the short-term, mid-term and long-term fuel supply for the existing and future power plants with lignite. Therefore the licenses for coal mining should be compliant to the power generation licenses. The mining licenses should provide sufficient security of supply in term of coal quantities. The new investor should be able to receive a mining license over the total amount of mineable coal necessary over the total life time of the power plant to be supplied. License for Sibovc: In the case of new TPPs with 40 years life time and annual coal demand of 19 m t/a the total mineable coal reserves dedicated to the license would be 760 mt. To supply the existing TPPs Kosovo A and B with fuel till their decommissioning a license over max. 140 m t mineable reserves would be necessary in addition to the remaining reserves in the existing coal mines Bardh and Mirash. Due to the mineable amount of coal in Sibovc the following can be provided: Existing power plants and other consumer 140 mt New power plants (TPP B3 –B6) 430 mt New power plants (TPP C1 – C3 = IPP) 260 mt (remaining coal content).

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Geological Setting The fill of Kosovo Basin in the Sibovc Concession Area consists of Upper Cretaceous strata which are unconformably overlain by Tertiary clays in which lignite is interbedded. The Sibovc area was site of luxuriant vegetation growth that finally became overwhelmed by sedimentation and led to the formation of substantial stratiform lignite deposits of up to 90 m seam thickness. The average thickness is about 50 m. Towards the West the lignite deposition is tectonically bounded by the development of a series of predominantly NNW-SSE striking faults. The geological work for the Main Mining Plan for New Sibovc Mine reveals that the tectonic movements were already active during the lignite formation and controlled the deposition of organic material and anorganic clay. The eastern limit is characterized by sedimentological pinch-out. The bottom of the lignite prone Pliocene sequence is formed by massive green clay. Intercalation of lignite and clay with varying lignite content and subordinated ash layers are developed in the basal part of the overlying Lignite Formation. The middle and upper part of the Lignite Fm. is built by a frequently massive lignite seam. Intercalations of clay layers generally decrease upwards. Within the seam section generally Net CV is increasing upwards. Occasionally, the hanging wall contact of the Lignite Seam is gradually with a development of a thin transition from lignite to the grey clay. The terms “Lignite Fm.” and “Lignite Seam” were introduced for the Main Mining Plan for the New Sibovc Mine in order to define vertical upper and lower mining boundaries. Hereby, Lignite Fm. represents the litho-stratigraphic interval between the overlying massive grey clay and the bottom massive green clay. The lignite seam is defined for the section where the Interburden-to-Coal ratio is below 50% and the thickness of an individual clay interburden layer is below 5 m. The distribution of interburden layers that are larger than 0.5 m has been recorded for the boreholes in the Sibovc Concession Area Within the Lignite Seam interburden layers constitute 6.9% of the gross seam thickness whereby 53% are represented by layers under 1 m thickness. 30% are between 1 and 2 m, 17% are thicker than 2 m. The vertical distribution shows an increasing trend from top to bottom seam. Outside the Lignite Seam but still within the limits of the stratigraphic unit of the Lignite Formation the interburden volume is 65%. Maps of the interburden thickness distribution show a patchy distribution of high thickness values without any clear directional trends. Most of the high contour areas are generated by only one borehole recording. We can not distinguish whether the scattered and patchy contour pattern is caused by inconsistent qualities of borehole descriptions and/or by geological reasons, i.e. the clay intercalation has a very limited extent below the borehole spacing. Regardless of the causes it is obvious that a correlation of the interburden between the boreholes and a subsequent generation of predictive model cannot be realized. Page 19 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Petrographic analysis describe the lignite as xylit rich with small or big marshy coaly clay The medium content of the clay is 35-40%, and it appears in the form of independent grains or almost linked with organic material. Pyrite appears in the form of spherical impregnations grainsize around 25 microns. The Lignite Formation is overlain by grey clay which is partially described as marly or sandy. Layers with abundant fossil content are frequently mentioned but the borehole descriptions do not allocate the depths of these. Sporadically sand layers of up to several meters thickness occur apparently concentrated along the morphological highs. They may have been deposited as aeolian sands. However, detailed descriptions of the sedimentological texture are missing. Sand in the immediate hangingwall of the lignite has been only recorded in one borehole along the generated detailed cross-sections across the Sibovc Concession Area. In the river cuts of the Sitnitca and the Sibovc River no direct lignite-to-sand contact has been recorded in the boreholes. However, such setting cannot generally be excluded due to the limited areal extent of the sand bodies. The uppermost 10 m describe the weathering zone and consist of yellow clay (i.e. the weathering product of the grey clay) and of generally 2-3 m humus. Geological Modelling 443 borehole data (lithological descriptions, 334 with coal quality assays) were available for the area within Sibovc Concession Area Until the introduction of the regulation on classification and categorization of the hard raw minerals (Official gazette no.53 of 19/10/1979) the sampling intervals for coal analyses had not been uniform and been ranging between 0.50 and 26 m, commonly between 5-10 m. Large sample intervals (over 15m) are quite rare and include mainly the lowest parts of the coal seam, where the volume of interburden intercalations thicker than 0.50m increase. These intercalations are mainly removed from the quality analysis. The boreholes drilled after October 1979 have testing intervals between 4.0-15.0m, often 10.0m. Drilling with bentonite and water mud may have influenced substantially the natural moisture content of the coal as a consequence of the artificial increase of water. A detailed geological model has been generated for the Lignite Seam. It integrates all available sources as surface observations, borehole and seismic data. The results are documented on 1:10,000 maps and 1:5,000 cross-sections. For the Net Calorific Value Distribution, a 3D Block Model has been generated by using SURPAC. The block model provides comprehensive information to characterise the Lignite deposit within the Sibovc concession area. The following table summarizes splits by various categories and cut-offs.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Percentage of Total Seam Volume (990 mio tons)

Category

Average (kJ/kg)

1. 1000 kJ Increments 3000-4000 0.0 4000-5000 0.1 5000-6000 0.6 6000-7000 5.8 7000-8000 23.4 8000-9000 48.1 9000-10000 21.5 10000-11000 0.5 Total 100.0 2. Cut-off 5400 kJ <5400 0.2 =>5400 99.8 3. Minimum Input for TPP A (6270 kJ/kg) <6270 1.2 =>6270 98.8 4. Minimum Input for TPP B (6720 kJ/kg) <6720 3.5 =>6720 96.5 5. KEK Classification Scheme 0-5440 0.2 5440-6700 3.2 6700-7950 24.5 7950-9210 58.2 9210-11000 13.9 Total 100.0

3798 4639 5668 6675 7600 8510 9350 10113 8359 4953 8365 5802 8390 6289 8435 4974 6352 7478 8574 9525 8359

Historical underground mining uncontrolled coal fires affect the development of the new Sibovc Mine. Old underground structures have been detected in the southeastern part of the Sibovc field and are connected with the old mining structures which are currently exposed along the coal cuts in Mirash West and on the Mirash northern slope. The galleries probably reach to a zone about 2 km at North of the Village of Hade. The documented coal mining using galleries and shafts reach back to 1922. Underground mining was abandoned in 1966. The following table shows the overall coal production of the underground mine. There is no futher reliable documentation on the extension of the old underground mine or the information is at least incomplete. Coal production of old underground mining in the Kosovo Basin "Kosovo"

"Krusevac"

"Sibovac"

Years 1922 - 1966

years 1948 - 1966

Years 1952-1958

6.401.434 t

2.921.233 t

255.117 t

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Partially, the exploitation fields of the old underground mining were limited by faults. Under consideration of these production rates for the field “Kosovo” can be calculated an area of app. 5 km2 and for the field “Sibovac” of at least 2 km2. The minor production rates from the field “Sibovac” show that the excavation only took place near the surface. The evaluation of all available information proves the assumption that the extension of the galleries in a northward direction may be larger than supposed. Within a wide area a large amount of lignite in the Kosovo open pit mines is affected by spontaneous combustion which occurs in all locations where the coal is exposed to air or air can penetrate the underground and reach the coal Self-ignition is the consequence of the oxidation of coal, a process which is producing heat energy. If the energy production exceeds the amount of energy removed from the system, the coal will reach its ignition temperature, eventually. In a first phase coal fires take place within weakness zones like joints or slope failures or old mining structures, where enough oxygen can reach the surface of the coal and the heat is enclosed. The fire can be boosted by released methane. In the following stage the complete hanging layer is influenced by the heat. About 60% of total coal fires are concentrated near or within the roof strata, where the coal shows the best quality and discharges a great amount of energy. Old galleries from the ancient underground coal mining facilitate supplementary ventilation and therefore best conditions for oxygen inflow are given. Burned out galleries result in large cavities and therefore decrease stability of the slopes. The experiences from the BardhMirash mine proved that a lot of fires Bardh Mine were associated with slide faults and occurred also in other parts of the mine which remain exposed to air for a longer period as slopes (especially the central pillar in front of the face between the actual excavation areas) and dumped coal masses. Frequently the coal fires begin at the base of the dumps and affect the whole dump until it is burned out. The geological and geotechnical conditions in the future Sibovc Mine will be comparable due to also existing remains of the old underground mining. It is assumed that the potential danger for coal fires will be high as in the Bardh-Mirash mine. Further complications could result of the fact that the area of the future Sibovc mine was affected by illegal (private) coal mining. Due to the morphology and geology in the western part of the Sibovc Field the coal can be excavated without use of heavy equipment. Some valleys cut the overburden nearly completely facilitating the excavation only by manpower without excavators. Numerous small quarries and open shafts prove the extensive private coal excavation. In the most cases the quarries and shafts are not refilled and remain exposed for a long period. This fact and the unascertainable distribution of the private excavation localities retrieve an unpredictable potential of coal fire development in the future. The following counteractive measures could be advisable: • Direct fire fighting (small fires) • Excavation of local burning coal (hot spots) • Levelling of surface and drilling of injection holes • Injection of water or slurry to the fire centre • Surface sealing (excavation front, dumps) • Cooling with water spraying equipment • Inertisation

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

• •

Flooding (surface near galleries) Burnout control

Prevention of coal fires is synonymous with the avoidance of the contact of coal and oxygen. The most problematic locations of oxygen entry are the underground corridors. Cut old galleries have to be protected against ventilation. If an excavator hits a gallery, the entry should be closed as soon as possible with adapted material (clay or other impermeable material) to prevent further oxygen entry. These actions have to be taken permanently during the excavation process. Collapsed old galleries near the surface or shafts have to be inspected if oxygen can penetrate somewhere and where appropriate, openings need to be filled. In this context the underground mining map (Annex I/ 4.7- 1) e information where to aspect potential fires in the future. Self combustion and fires near the surface can be avoided minimising a permanent contact of the coal with atmospheric oxygen. Dumped coal should be sealed and the sealing should be reg ulary controlled for dehydration and crack formation. Slide faults can cause deep and complexcracks and are often the origin of coal fires within the Bardh Mine, which are very difficult to extinguish. Therefore it is essential to prevent land slides. Generally, the length of the excavation front has to be adapted to the yearly coal output. Thus, the time of exposition of the excavation front can be reduced. In the 1st halfyear of 2006 a project will be started by EAR for fire fighting in the Kosovo Coal Mines. Geological Resource Assessment The geological resources of the lignite deposit were computed in accordance with the UN International Framework Classification for Reserves/Resources of 1997 (UNFC). The lignite resources were classified applying the area-of-influence method with the following distances between points-of-observation: · · ·

Measured Indicated Inferred

Borehole distance <= 250 m 250 - 500 m > 500 m

radius of area-of-influence <=177 m 177 - 354 m > 354 m

According to the classification scheme 94% of the total area is classified as measured resources, the remaining 6% as indicated resources. The resource calculation is bounded to the concession areas of Sibovc. Losses of resources due to underground mine workings in the upper part of the seam in some isolated areas are not yet estimated since no accurate volume estimates are available yet. A specific gravity of 1.14 g/cm³ was applied in order to calculate the tonnage of lignite resources. This value is in accordance with former assumptions and allows a comparison of resource figures with various former studies.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

The volumetric calculation of geological resources for the Lignite Seam within the Sibovc Concession Area resulted in a total of 990 mt over an area of 19.7 km2. 931 mt (i.e. 94%) are classified as measured, 59 mt as indicated. The resource estimate includes the seam interburden since these intervals were chemically not evaluated and a correlation of the interburden between the boreholes and a subsequent generation of predictive model could not be realized. The volume of not mineable interburden is considered as the main uncertainty in the resource assessment. Further uncertainties in the resource estimate exist on the narrow fault blocks in the West of the Sibovc Concession Area. Here, uncertainties exist in the extent and size of faults which have controlled the seam development. Soil-mechanical Parameters For the determination of geotechnical parameters, all available data have been used (also from previous explorations) and also data which have been identified in the framework of the Main Mining Plan for New Sibovc Mine. To achieve a short-term improvement of the knowledge about the geological/soil-physical situation or the area of the Northern head slope of the Bardh opencast mine (towards the Sibovc field), 9 boreholes were drilled in 2003/2004 down to the floor of the coal seam. All drillings were sampled; the samples were and/or are still analysed in the laboratories of KEK, DMT and GMB to their soil-physical properties. The calculation methodology after BISHOP as yet apllied by KEK/INKOS does not reflect the actual conditions and is therefore not suited to guarantee a soil-mechanically safe operational management. The soil-mechanical recalculations were carried out by adopting the calculation method of BOROVICKA for circular cylindrical and polygonal sliding surfaces and the sliding block method. Analysis results of the core samples from the drilling made by the laboratories of GMB und KEK show the following parameter Soil-physical parameter c‘ ϕ‘ γ (kN/m²) (°) (kN/bcm) Gray and yellow clay – Overburden 14.3 16.2 17.5 2) (16) (30) (17.5) Coal seam 40 50 12.2 Green Clay (floor strata) 14 16 17.5 2) (16) (30) (17.5) Geological Layers

ϕR (kN/m²) 8 (8) 8 (8)

1)

cR (kN/m²) 5 (10) 5 (10)

1)

1) Residual shear resistance (resistance after a long sliding way)

Based on the analysis of available reports of the soil mechanical laboratory tests performed on samples from the drill holes SH 3, SH 4 und SH 5 the coefficient k (coefficient of water permeability) is: Overburden (grey und yellow clay) k = 4 * 10-10… 2.6 * 10-11 Green clay (floor strata) k ca. 4 * 10-11 Page 24 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

To ensure both a geotechnical safe and efficient opencast mine operation the following safety factors are regarded necessary from soil-mechanical aspects for the specific objects. • • • •

Single slopes Partial slope systems Total system Objects to be protected

Si > 1.05 Si > 1.20 Si > 1.20 Si > 1.30

Experiences, a. o. from the Mirash and Bardh opencast mines are used to dimension the Border Slope System. Based on the static stability investigations the following general inclinations for the slope systems were determined, among others t o ensure static stability of partial slope systems and the entire slope system. The soil-mechanical calculations base on the safety factor of Si > 1.20. • •

General inclination for the coal slope system General inclination for the slope system in the overburden

βG, coal < 22° βG, overburden < 10°

In order to prevent coal fires during the lifetime of the coal slope and the connected • endangering of the static stability of the coal head slope and • the resulting pollution the following can be done: In the overburden operation a general slope angle of β ≈ 15... 20° shall be produced by the large equipment. Directly afterwards, the general slope angle of β < 10° shall be produced by means of crawlers. It is known from practical soil-mechanical experiences in the existing opencast mines that slides may occur at the single slopes. Considering the above mentioned soil-physical parameter the following slope angles βerf are required in dependence on the slope height hBö. This ensures the static stability of the single slopes against slides on circular cylindrical and polygonal directed sliding surfaces in the long run: 0 m <hBö < 10 m 10 m < hBö < 15 m 15 m < hBö < 20 m

→ → →

βerf < 65° βerf < 40° βerf < 30°

An angle of 30° cannot be cut into the side slope by the existing excavators. The slope remains stable during the excavation process. However the slope stability reduces during the weeks especially under unfavourable climatic conditions (rainfalls and variations in temperature).This means that the presence in direct proximity to the slope has to be limited to the operationally required extent in any case. Therefore operating instructions have to be formulated in accordance with the actual conditions. Excavation and the subsequent transportation on a belt conveyor to the spreader cause changing of the soil-physical properties of the clay.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Taking into account the following changed soil-physical calculation parameter for the material to be dumped Angle of effective internal friction ϕ‘= 14° Effective cohesion c’ = 10 kN/m² Specific weight of earth-moist soil γ = 17.5 kN/m³ and carrying out static stability calculation on the basis of these values the following results are obtained: Assuming the dump slope angle of β ≈ 30° is achieved the dump will have a static stability of Si ≈ 1.0 with a height of hdump ≈ 12 m. A further increase in height of the dump will lead to slope failure. This slope failure will result in formation of shear planes (so-called polished surface planes). The material strength will decrease to residual shear strength in these shear planes. The dump „flows“ out and settles below a slope angle of β ≈ 6... 8°. The following measures for a safe operational management are proposed: 1) A detailed and continuously updated geological model which is approved by the responsible geologist must exist for the opencast mine operation (illustration in maps, sections and reports). 2) Each opencast mine requires data on the hydrological situation (f. e. location and direction of aquifers, data on the level of existing ground-water level; data have to be recorded in written form). 3) Actual soil-physical parameters are required for the important geological layers in the roof and floor of the coal seam. These parameters shall be continuously verified. Soil samples shall be investigated in a recognized soil-physical laboratory. The result shall be laid down in written form 4) The position of the mine is to be recorded in a layout plan in regular periods (results from flights of terrestrial surveying). 5) Due to the advancing mining slopes it is necessary to keep at least three representative geological profiles in which the achieved mining position have to be recorded in regular periods. Profiles shall be at right angle to the bench. 6) Position and progress of the head slopes shall be planned forward looking. The planed geometries shall be illustrated at least by one advance cut through the respective head slope. The cuts shall be in right angle to the head slope system. 7) The track lines of all cuts shall be entered into the a. m. layout plan. 8) A geotechnical expert shall prepare soil-mechanical static stability investigations for a) all single slopes of the mine, including the advancing slopes as well as the head slopes and b) the total slope system (containing also the partial systems). Resulting from the investigations on the static stability, specifications shall be formulated for the safe shaping of the single slopes and the entire slope system (including partial systems) with the specific technological conditions in mind. The results shall be set out in written form (expert’s report). 9) These expert’s reports shall be justified to representatives of the opencast mine, the justification shall be recorded in a minutes. 10) A geotechnical specialist is needed for the opencast mine, who, among others, supervises the implementation of the requirements from the a.m. geotechnical expert reports and the necessary measures for a safe geotechnical operational management.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

11) The geotechnical specialist shall perform regular inspections (at least twice or three times a week, or if required). These inspections shall be recorded (protocol). 12) A „control and supervision regime“ shall be elaborated for the mines. This document shall contain all specific operational points which shall control and supervise continuously the geotechnical conditions. The kind of control and the required reaction in case of deviations from the specifications shall be documented.

Technological Development of the New Sibovc Mine The development of the New Sibovc Mine starts from the existing opencast mines of Bardh / Mirash. Important preconditions determined for planning the development of the Sibovc mine are: a) Ensuring the defined coal supply t the power plants b) Take into consideration the release dates of the main mine equipment from Bardh/Mirash c) Preconditions for resettlement The mine development bases on the prepared geological model. It aims at mining the saleable product raw coal at most favourable costs. That means that essential changes of the targets and premises will lead also to corresponding changes in the mining concept and costs. The overburden removal operation ensures the uncovering of the necessary coal quantities for the supply to the power plant having regard to the geotechnical safety requirements (see chapter: soil mechanical parameters). It is agreed that the necessary resources will be made available, such as: • Qualified employees in the respective trades and • Sufficient financial means for the investment and maintenance Furthermore, it is assumed that all permits for the operation will be available in time. With regard to the mining technology, the present mining of the deposit will be continued whereby available equipment and a part of the KEK plants will be used to a great extent. Dumping of power plant ash in the mines lies in the responsibility of the power plants and is not included within the framework of Main Mining Plan for New Sibovc Mine. The capacity calculation and/or assessment of excavator capacities bases on the estimation of the principle capability of the equipment under the conditions of the Sibovc deposit, whereby a tolerance range is taken into account (lower and upper limit). The mass movements (especially overburden) resulting from the determined coal supplies are then compared with this capability in order to show the feasibility. All relevant influencing parameters are considered when determining the overburden and coal capacities. These influencing parameters are split into two columns: Firstly, the influencing factors, which determine the filling and the emptying of the excavator buckets. Resulting from this the load factor (and/or excavator effect) is yielded and the hourly capacity and Secondly, the time factors [time factor ηT], which determined the annual output capacity. Page 27 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

The following normal- and maximum capacities have been calculated for the planning of Sibovc:

1) Normal daily capacity Maximum daily capacity Normal weekly capacity Maximum weekly capacity Normal monthly capacity Maximum monthly capacity Normal annual capacity Maximum annual capacity

Operating VE time new BWE with 1560 bcm/h Tb VE 1,000 bcm h 19.2 29.95

with: 1950 bcm/h VE

VE SchRs 650 with: 800 bcm/h VE

with: 1,000 bcm/h VE

VE SRs 1300 with: 700 bcm/h VE

with: 850 bcm/h VE

1,000 bcm

1,000 bcm

1,000 bcm

1,000 bcm

1,000 bcm

37.44

15.36

19.2

13.44

16.32

21.6

33.70

42.12

17.28

21.6

15.12

18.36

110.4

172

215

88

110

77

94

128.2

200

250

102

128

89

109

385

600

750

308

385

270

327

484

755

944

387

484

338

411

4,266

6655

8318

3413

4266

2986

3626

5,474

8540

10670

4380

5474

3832

4653

The long-term planned overall capacity for the overburden operation is shown in the below table: Capability of Bucket Wheel Excavators in Overburden Operation

Reliable assumption VE SRs 1300 SRs 1300 New BWE SchRs 650 SUM

m bcm/a 3.6 3.6 8.3 4.3 19.8

Maximum assumption In 4.6 4.6 10.6 5.4 25.2

The listed equipment is therefore in principle capable of meeting the required coal supply of 19.1 to 24.8 mt per year (Ratio Overburden to Coal is 1.17 m³:1 t).

Page 28 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

The results for the pit system (up to the place of delivery power station) as nominal capacity are: Capability of Bucket Wheel Excavators in the Pit System

Reliable assumption VE m t/a SchRs 650 SRs 1300 SRs 1300 New SchRs 650 /SRs 1300 SUM

5.9 5.0 5.0 5.0 20.9

Maximum assumption in 7.3 5.9 5.9 5.9 25.0

The conveying capacity is assessed on the basis of: • Belt width • Belt troughing • Belt speed • Utilization ratio of belt width • Inclination and • Bulk density of material Coal – inclined belt conveyor The inclined coal belt conveyor is planned with an inclination of 1:6, i.e. about 10°. According to the belt speed, a 2.0 m wide belt conveyor can handle between 6900 and 8600 t/h coal per single conveyor. For a 1.8 m wide belt conveyor this would amount to 5500 t/h to 6900 t/h. Relations coal production to capability of long-distance belt conveyor: If all coal excavators would operate simultaneously with a capacity of 1200 t/h this would result in a production of 4800 t/h. Considering the unequal belt charge of all pit excavators of 2530 % there follows a necessary effective total belt capacity of 6240 t/h. This requirement is met by one single 1.8m belt conveyor with a belt speed of 6.55 m/s. Two long-distance belt conveyors lead to the power plants. Head belt conveyor: Two coal excavators charge the coal to one head belt conveyor. Calculating the short-term peak load (< 1h) of one single coal excavator with a Vth von ca.4000 lcm/h and an addition of 25% there results the dimension of the discharging belt conveyor of ca. 5000 lcm/h. Two excavators shall have the following size: 8000 lcm/h x 1.1 = 8800 lcm/h or 6600 t/h for one belt conveyor line This can also be met with a 1.8 m belt conveyor with a belt speed of 6.55 m/s. In principle there shall be a conveying reserve of 25% between belt conveyor and excavator and 10% between belt conveyor and spreader.

Page 29 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Except the new A2Rs B 8000, the available spreaders will be used for saving costs. These spreaders are the bottleneck in the conveying chain. Measures to stabilise / increase the capability should therefore be included in the refurbishment. Mine Planning The following was taken into consideration when the excavation boundary (upper edge of first level) was established: a) Course of concession line b) Permissible approach to villages c) Thickness of mineable coal seam at the boundary d) Necessary general inclination from geotechnical point of view e) Necessary minimum profile from technological point of view f) Requirements to bench lengths which are meaningful from technological point of view g) Ecological aspects Bench Design Position of benches The Sibovc field shows a varying thickness and a varying inclination of the bench and of the roof and floor of the seam. The benches must follow these inclinations with the least possible mining loss. 4 levels are needed for overburden removal with the 4th level (Overburden Level 4) provided as a mixed level for both overburden and coal mining. Coal mining is also implemented in 4 levels. Admissible inclination of benches The inclination possible to be managed by the machines is 1:33 for excavator operation. For the inclination of the benches inclinations of 1:40 were chosen in order to be able to follow the big inclinations of the terrain, roof and floor. Taking inclination for water drainage into consideration The planned inclinations provide water drainage. The minimum inclination should not be less than 1:150. A drainage ditch must be provided on the benches and pump stations shall be provided in the deep positions of the benches. Slope heights For the machines SRs 1300 and SchRs 650 slope heights of ca. 20 m have been planned. The new BWE operates with an average slope height of about 25 m. Greater slope heights can be carried out using the ramp excavation und interim bench. Division of Cuts During the period under review until 2038 there will mostly be parallel operation with varying advance at the ends of the bench according to the shape of the field. Overburden Levels 2 and 3 will be operated in parallel until the end of the field is reached. For the Overburden Level 1 and for the coal levels a turning point will be established north of Lajthisht (after 2045). Then the excavation of the field can be completed by turning round clockwise.

Page 30 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Overburden and Coal Levels are described in Annexes II/6.5-11 to -18 Mass Calculation On the basis of the topographic isoline maps, the existing borehole data submitted by KEK and the results of additional exploration measures a digital deposit model was prepared for the purpose of the computer-aided mass calculation. The technological mass calculation has been realised with MicroStation-Programs as well as specialised programs developed by Vattenfall on the basis of triangulation. The following data and criteria of mineability have been considered in the mass calculation: • • • •

Density of lignite 1.14 t/m³ Extraction of lignite from a thickness of at least 0.5 m Separate excavation of intercalations from a thickness of more than 0.5 m Consideration of a mining loss of 0.4 – 0.5 m at each strata boundary

Page 31 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Sector calculation of the entire field Section

1

2

3

4

5

6

7

8

Sum

Overburden - Levels Coal - Levels OverburCoal OverCoal den burden 10³m³ 10³t 10³m³ 10³t Overburden Interburden Underburden Coal Sum Overburden Interburden Underburden Coal Sum Overburden Interburden Underburden Coal Sum Overburden Interburden Underburden Coal Sum Overburden Interburden Underburden Coal Sum Overburden Interburden Underburden Coal Sum Overburden Interburden Underburden Coal Sum Overburden Interburden Underburden Coal Sum Overburden Interburden Underburden Coal Sum

45,054 0 0 4 656 45,058 656 55,661 0 0 739 5,684 56,400 5,684 100,137 0 0 1,114 9,321 101,251 9,321 132,603 0 0 1 4,383 132,604 4,383 166,865 0 0 264 17,034 167,129 17,034 105,633 0 0 2,891 23,404 108,524 23,404 59,518 0 0 3,219 30,139 62,737 30,139 84,014 0 0 2,560 18,789 86,574 18,789 749,485 0 0 0 0 0 10,792 109,410 760,277 109,410

0 0 0 0 7 408 10 0 425 0 1,447 1,209 2,656 0 1,896 1,925

11,018 11,018

23,261 23,261

84,649 84,649

110,760 3,821 110,760 0 2,035 1,327 123,282 3,362 123,282 11 1,688 9,536 99,986 11,235 99,986 401 2,355 11,218 138,839 13,974 138,839 332 2,302 13,294 128,596 15,928 128,596 751 0 12,131 0 38,519 0 0 720,391 51,401 720,391

Page 32 of 257

Sum Overburden 10³m³ 45,054 0 0 4 45,058 55,668 408 10 739 56,825 100,137 1,447 1,209 1,114 103,907 132,603 1,896 1,925 1 136,425 166,865 2,035 1,327 264 170,491 105,644 1,688 9,536 2,891 119,759 59,919 2,355 11,218 3,219 76,711 84,346 2,302 13,294 2,560 102,502 750,236 12,131 38,519 10,792 811,678

Sum Coal

O :C

10³t

11,674 11,674

3.86 : 1

28,945 28,945

1.96 : 1

93,970 93,970

1.11 : 1

115,143 115.143

1.18 : 1

140.316 140.316

1.22 : 1

123.390 123.390

0.97 : 1

168,978 168,978

0.45 : 1

147,386 147,386

0.70 : 1

829,802 829,802

0.98 : 1


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Preparatory Works in the Year 2007/2008 In 2007 the establishment of the operation position for Overburden Level 1 will start. Truck and Shovel as well as bulldozers will be used to remove ca. 2 million m³ of soil. The belt conveyor system for the overburden level will be established in two segments in the valley west of Hade in a V shape. The mass removal will start in 2007 with 1.6 m m³ and will continue in 2008 with 0.4 m m³. In 2008 the overburden excavators from the existing opencast mines will be used after having been refurbished and will start the development excavation in the transfer area of the opencast mine fields Bardh/Mirash up to the new field of Sibovc. After the excavators have started their operation there will be an adjustment period for improving the capacity until the time when they will have reached their full capacity, i.e. ca. 6 months. The utilization of the machines has been planned as followed: April 2008 – Excavator E9M SchRs 650 This efficient excavator is planned for utilization in the Overburden/Coal Level 4, where coal and overburden have to be excavated alternately. As this level has not been cut free yet, the operation will start in Overburden Level 1 with the excavation of the western wing of the belt conveyor system. In the period from 4/2008 to 9/2008 an amount of 1.8 m m³ will be excavated. From 10/2008 the excavation in Overburden/Coal Level 4 will start. The operation position in the northern slope of the Bardh/Mirash mine will be prepared using bulldozers and Truck and Shovel. May 2008 – Excavator E9M SRs 1300 This excavator is planned to work in Coal Level 2 due to its digging forces. Until the use of the scheduled Excavator E9B SRs 1300 in Overburden Level 1 , excavator E9M can start the ex-cavation in the eastern wing of the belt conveyor system. After use of Excavator E9B SRs 1300 in June 2009, the excavator will be transported to its place of operation in Coal Level 2. In 2008, about of 2.6 m m³ will be removed in Overburden Level 2. June 2008 – Excavator E9B SRs 1300 The excavator will be used in its new operation position in Overburden Level 2. The operation position in the northern slope of the Bardh/Mirash mine will be prepared using bulldozers and Truck and Shovel. West of Hade the bench will end on the grass. One bench will be used together with Overburden Level 1. The belt conveyor systems of both levels will be led around the Bardh/Mirash mines in southern direction and start the inside dumping in Mirash. September 2008 – new BWE The Overburden Level 3 is the level with the greatest thickness which goes over the whole length of the bench. The operation position in the northern slope of the Bardh/Mirash mines will be prepared using bulldozers and Truck and Shovel. There is a spreader dump in the western transition area of the Bardh mine. The heavily watersaturated clayey dump cannot be excavated any more. Therefore the excavator will have to make a new cut north of this dump. Discharge will take place in west-east direction. The excavator will operate in interim bench operation on a plane of 8 m be-low the belt conveyor systems. Before moving the belt conveyor system the slope must be levelled to an inclination of 1 : 3 and the belt conveyor system will then be moved over this inclination. This process

Page 33 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

will be repeated until the required bench height is reached. At the same time the general inclination of < 10° necessary from a geotechnical point of view must be kept. Mining Development in the Year 2009 The overburden removal of the development will continue in 2009 until the utilization of the opencast machines starts. Until use of Excavator E8B SRs 1300, Excavator E8M SRs 1300 will work in Overburden Le-vel 1. Afterwards, the excavator is shifted to Coal Level 2. The excavator in Overburden Level 1 will work exclusively at the eastern wing of the belt conveyor system. The residual overheights above Level 1 at the eastern wing will be removed by Truck and Shovel. The mine equipment from the Bardh/Mirash mines will also stop working step by step. They will be refurbished basically and travel to their new operation positions. The use of the machines is planned as follows: -

April 2009 – Excavator E10M SchRs 650

In the first coal level the major part shall be removed by the efficient mine excavator. The operation position in the northern slope of the Bardh/Mirash mines will be prepared using bulldozers and Truck and Shovel. The mining direction will be the same as with all the other levels – west-east. A belt wagon BRs 1600 will be used in Level 1 for the removal of the mine overburden. -

June 2008 – Excavator E8B SRs 1300 in overburden level 1 Excavator E 8M SRs 1300 transportation in coal level 2 The operation position in the northern slope of the Bardh/Mirash mines will be prepared using bulldozers and Truck and Shovel. The same machines as in Level 1 will be used. A belt wagon BRs 1600 will be used in Level 1 for the removal of the mine overburden. September 2008 – Excavator E10 B SRs 1300 The operation position in the northern slope of the Bardh/Mirash mines will be prepared using bulldozers and Truck and Shovel. In Level 3 the excavator will carry out the coal excavation of Level 4 at first until 2016. During this time the machine capacity will be sufficient for both levels. Level 4 will not be fully developed by then. The excavator can be used to excavate the coal in interim bench excavation south of the belt conveyor system. A belt wagon BRs 1600 will be used for this and the residual overburden. Mining Development in the Year 2010 The use of Truck and Shovel for supporting Overburden Level 1 will continue. The overburden levels will continue their development excavation. In Overburden Level 1 the excavator E 8B will work at the eastern wing of the belt conveyor system. Overburden Level 2 and 3 will work on a straight bench. In Level 4 the planned bench will have been reached with the new cut of the excavator in the western part. From this time the regular operation in overburden can start.

Page 34 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

The coal levels will still work with a shortened bench so that the full capacity cannot be reached. Mining Development in the Year 2011 The use of Truck and Shovel for supporting Overburden Level 1 will continue. In the Overburden Level 1 the excavator will start to work alternately at the western and eastern wing of the divided belt conveyor system. In the other overburden levels there will be a regular operation. In the coal extraction all levels will still work with shortened benches. Mining Development in the Year 2012 The use of Truck and Shovel for supporting Overburden Level 1 will continue. In the overburden levels the overburden machines will continue to work as planned. At the end of 2012 the bench in Coal Level 1 will be extended into the direction of the western boundary line. The other levels will still work with a shortened bench. Mining Development in the Year 2013 The use of Truck and Shovel for supporting Overburden Level 1 will continue. In the overburden levels the overburden machines will continue to work as planned. In 2013 the Coal Level 1 will have reached its planned bench in the area of the western boundary line. In Level 2 the cutting of the bench and the bench extension into the direction of the western boundary line will have started by which a regular operation in the main excavation levels of the coal is possible. By this the development operation for the mine can be regarded as finished. Mining Development in the Period 2014 â&#x20AC;&#x201C; 2018 The use of Truck and Shovel for supporting Overburden Level 1 will continue. In Overburden Level 1 the pivoting of the west and eastern wings of the belt conveyor system will almost be finished. Levels 2 to 4 will develop as planned. The head conveyors of Level 1 and 2 will still be on one bench. The Coal Levels 1 to 4 will reach their planned benches. In 2016 a newly built excavator SRs 1300 or equivalent will be used for Level 4. The excavator will mostly work in the west part of the deposit. In the east the belt conveyor system will be moved to the height of Level 3. Both bench conveyors will charge to one head conveyor system. Mining Development in the Period 2019 â&#x20AC;&#x201C; 2023 The use of Truck and Shovel for supporting Overburden Level 1 will continue. In Overburden Level 1 the bench will finally be straightened. In the west part there is a rise within the area of the hill of Shipitull in all levels. Owing to the increased cut height the ramp Page 35 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

excavation will have to start. The bench between Level 1 and 2 is divided so that the head conveyors will be separated in future. The Coal Levels 1 to 4 will continue their normal work on their planned benches. Mining Development in the Period 2024 - 2028 The use of Truck and Shovel for supporting Overburden Level 1 will continue. The major part of the mass extraction will be carried out during the period under review. In the Overburden Level 1 both belt conveyor systems will be pivoted separately. There will be a greater advance at the beginning and the end of the bench compared to the middle by which the shape of the terrain will adapt to the valley of Sibovc. The other overburden levels will pivot normally. In the west the benches will rise in the area of the hill of Shipitull. The Overburden Level 2 will reach the highest area of the hill. The coal levels will develop as planned. Towards the end of the period under review a new inclined conveyor system will be used for the coal transport. From this time the Coal Levels 1 and 2 will be on the same height so that one head conveyor can be used. At that time the distribution station within the area of the inclined conveyor of the Overburden/Coal Level 4 will also be rebuilt to fit the new inclined conveyor system. Mining Development in the Period 2029 - 2033 The use of Truck and Shovel to support Overburden Level 1 will come to an end during the period under review. During the period under review the excavation in the Overburden Level 1 immediately at the valley of Sibovc will finish. The other overburden levels will leave the hilly area of the village of Shipitulle. The coal levels will develop as planned. Coal Levels 3 and 4 will finally be converted to the new inclined conveyor system, too, and continue to charge to one head conveyor system. Mining Development in the Period 2034 â&#x20AC;&#x201C; 2038 Overburden will only be excavated in the Overburden Levels 2, 3 and 4. The Overburden Level 2 will end on the main part of the bench in the valley of Sibovc and will continue on a shorter bench in the west part in order to resume the excavation with a new cut in the north of Sibovc at a later time. Towards the end of the period under review the third overburden level will also reach the valley of Sibovc. After 2038 the mining direction will have to change from west-east to eastwest. The coal levels will develop as planned. In the Coal Level 3 the removal of overburden from the floor will become more and more necessary owing to the course of the bench.

Page 36 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Main Mine Equipment The condition of the main mining equipment was considered especially under the aspect, if the equipment should be used in Sibovc. In view of the high output performances, it is recommended to relocate all excavators of the type BWE SchRs 650 and BWE SRs 1300 and the spreaders of the types A2RsB-5200 and A2RsB-4400 to Sibovc. In addition the excavator E 7M is envisaged as floating machine. Technical Specification The technical specification describes the measures / standards needed for the main mining equipment in Sibovc. It is mainly focussed on the new equipment to be procured. This is a new equipment system of the 40000 mÂł/d size with a 2.0 m belt conveyor and the relevant spreader (approx. 8000 lcm/h theoretical capacity) as well as another excavator to be deployed in the pit. Mine Development The lacking advance in the preparation works of the opening-up of Sibovc is problematic. Therefore, a high capacity will be required right at the beginning of works. Already in 2008 a new equipment complex consisting of BWE, conveyor belt and spreader will have to be commissioned. Nevertheless considerable overburden removal works will be required using shovel / truck. This service should be contracted with third parties. The following main equipment will be used: Overburden - E 8B SRs 1300 - E 9B SRs 1300 - New BWE - E 9M SchRs 650 and in coal operation Coal - E 10M SchRs 650 - E 8M SRs 1300 - E 10B SRs 1300 - New SchRs 650 or SRs 1300 or equivalent (2016). In addition there are two spreaders A2RsB-5200 and one A2RsB-4400. The new spreader should have a capacity of 8000 lcm/h matching the new BWE. The capacity for overburden removal with the afore-mentioned equipment is calculated as follows: Reliable asMaximum assumpsumption tion VE in SRs 1300 SRs 1300 New BWE SchRs 650 SUM

m bcm/a 3.6 3.6 8.3 4.3 19.8

4.6 4.6 10.6 5.4 25.2

Page 37 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

The nominal capacity for the coal excavation in Sibovc amounts to: Reliable assumption VE m t/a SchRs 650 SRs 1300 SRs 1300 New SchRs 650 /SRs 1300 SUM

5.9 5.0 5.0 5.0 20.9

Maximum assumption in 7.3 5.9 5.9 5.9 25.0

Owing to the overburden to coal ratio of 1.2 m³ : 1 t, this equipment complex is suited for the long-term operation of Sibovc.

Development of employees The following tables and graph give a survey on the staffing: Year Sibovc per 01.01. + new staff from Mirash/Bardh - Fluctuation + newly employed/recruited Average of the year Sibovc per 31.12.

2007 01.01. 0

2009 31.12. 01.01. 1370

31.12.

500

870

630

10 10

10 10

10 10

250

1150 500

Year Sibovc per 01.01. + new staff from Mirash/Bardh - Fluctuation - redundancy to market Average of the year Sibovc per 31.12.

2008 31.12. 01.01. 500

2010 01.01. 2000

1685 1370

2011 31.12. 01.01. 2110

2000

2012 31.12. 01.01. 2800

31.12.

160

765

40

50 0 2055

75 0 2455

55 85 2750

2110

Page 38 of 257

2800

2700


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Administration Main Equipment+Belt Conveyor Auxiliary Equipment Workshops Other SUM Personnel

2012

2013

2014 270 1125

20152022 260 1090

20232032 270 1100

20332036 250 1080

20372038 250 1040

280 1220

275 1180

370 590 240 2700

370 570 235 2630

365 560 230 2550

360 530 210 2450

360 550 220 2500

360 510 200 2400

360 500 200 2350

Employees in the mines Kosovo 4000 3500

Employees in all mines

3000 2500 2000 1500

Sibovc

Employees in Mirash / Bardh per 01.01. Employees in Sibovc per 01.01. Staff per 01.01. - all Mines

Mirash / Bardh

1000 500 0 2006

2007

2008

2009

2010

2011

2012

Year

Further Energy Demand Feeding of power cables and lines shall guarantee a safe supply for the described mining concept for Sibovc. In the Sibovc mine a large part of the currently available mining equipment will be reused. It is important to consider that the equipment shall be rehabilitated and that the future annual capacity will be much higher than in the present Mirash and Bard mines.The long-term demand of installed energy is about 120 MW. Auxiliary Equipment For ensuring the production processes in the pit, a whole number of auxiliary machines and equipment are necessary. The auxiliary equipment is attached to the different operational sections and operated in one up to three shift operation according to requirement. A take-over of auxiliary equipment from the existing fleet for a further use in the Sibovc mine will not be possible or only in to limited extent. The further plans for the Sibovc mine assume a complete new auxiliary equipment fleet. Page 39 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

The optimal stock on auxiliary equipment in case of maximum production is shown in a Table below. Type Dozer Pipelayer Wheel Dozer Wheel Loader 17t Wheel Loader Excavator Loader Telescope Crane 90t Telescope Crane 60t Telescope Crane 45t Telescope Crane 30t Forklift 2t Forklift 5t Truck payload 12t, 3-axle Truck with hydraulic crane Truck with lifting Platform Dump Truck Cable reel Trailer Low Bed Trailer Fuel Truck Lubrication Truck Tractor Hydraulic Backhoe (crawler) Hydraulic Backhoe (wheel) Grader Trench Cutter Single Drum Roller Jeep Pick-up Jeep 12 seats Personnel Transporters (36 Minibus Ambulance Fire Fighting Truck Drilling Machine Workshop Container Mobile Workshop Mobile Lightings Winding Support Drum Vulcanisation Set Diesel Generator Water Truck Spraying Galleries Pumps

[ kW ] 230 - 300 180 250 180 120

Overb. 10 3 3 1

340 270 270 200

130 130 230

1

60t 180

1 1

200 180 - 200

1 1 1 2

160

1

Number of auxiliary Equipment Coal Stockp Drain. Maint. 6 6 2 2 3 2 1 2 1 1 1 3 2 2 3 1 1 4 2 1 1 1 1 1 1 1 3 1 1

150 100 75 100 140

1 3 2 1 4 1 2 1 3

3 2 1 4 1

0.5

2 1

2 1 1

3

2 1 4 10

Page 40 of 257

7 9

1 2 3 1 2 2

total 22 5 2 8 2 2 1 1 1 3 2 2 3 7 2 2 1 2 2 1 2 5 2 2 1 1 17 15 2 9 2 2 1 3 1 2 6 1 2 4 1 4 10


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

The establishment of the auxiliary equipment fleet will be adjusted to the development of capacity in the opencast mine. The first auxiliary machines have to be put in operation already before the heavy-duty equipment will start work to prepare their starting position The mobile auxiliary equipment has a smaller economic service life compared to the main equipment. Depending on the type of equipment and the conditions of use this time varies between 3 and 12 years. For special works, linked with large mass movements, the application of draglines has been foreseen. These machines can be variably used at reasonable costs and they can be shifted within the mine with low expenses. A transport crawler is required for the shifting of the belt driving station and other heavy assemblies up to a weight of 350 t. Such a transport crawler is available in the existing mines Bardh and Mirash. The transport crawler, financed by the EAR was delivered in 2003 and is in a good technical status. That’s why a general rehabilitation is not foreseen before recommissioning in the Sibovc mine. For further auxiliary equipment the total cost estimate is as follows: The investments/reinvestments for auxiliary equipment amount to 133 MEUR until 2038. About 26.5 MEUR are for initial investments, for rehabilitation measures of the heavy auxiliary equipment 2.1 MEUR and a sum of 104.1 MEUR for replacement investments. The replacement investments include a sum of 13.5 MEUR for the purchase of 3 new draglines. Yearwise Investments for auxiliary Equipment in m€: Year Investments

‘07 5.7

‘08 6.4

‘09 10.2

‘10 1.8

‘11 1.2

‘12 3.3

‘13 1.1

‘14 3.5

‘15 5.9

‘16 2.2

‘17 4.0

Year Investments

‘18 2.5

‘19 3.6

‘20 4.5

‘21 7.2

‘22 1.8

‘23 1.5

‘24 3.6

‘25 2.7

‘26 3.4

‘27 11.6

‘28 6.9

Year Investments

‘29 1.8

‘30 2.8

‘31 7.8

‘32 5.1

‘33 8.8

‘34 1.6

‘35 0.4

‘36 2.9

‘37 3.3

‘38 3.5

Infrastructure and Surface Facilities In principle it is not planned to install new surface facilities for various reasons; among others the available technical plants in Bardh/ Mirash, which are presently part of ongoing rehabilitation measures, the neighbourhood to Sibovc and the extensive investments, anyhow. It seems to be reasonable to use the available buildings and plants to a great extend also for the Sibovc opencast mine. The different buildings of the following departments of KEK were checked for a follow-up use: • Office Gate 1 • Mine „BARDH“ • Mine „MIRASH“ • SEPARATION PLANT • KOSOVAMONT Page 41 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

The following construction measures are required for preparing the development of the lignite opencast mines as well as for securing the auxiliary processes: • • •

Social facilities and administration Supply and disposal Workshops and warehouses

The determination of the investment costs for infrastructure for the Sibovc mine base on the assumption that the costs for the basic rehabilitation of the buildings and facilities which can be used for this mine are already contained in the scope of investment of the Mid Term Plan. Lease costs for workshops, warehouses, offices and washrooms Infrastructure and 20072009- 201420192024Surface Facilities 2008 2013 2018 2023 2028 [T€] [T€] [T€] [T€] [T€] Mine roads (gravel) 2.806 7.015 7.015 7.015 7.015 Mine roads (as800 250 250 250 250 phalt) Subtotal roads 3.606 7.265 7.265 7.265 7.265 Erection yards 200 500 500 500 500 Workshops and 2.040 5.100 5.100 5.100 5.100 Warehouses Mine offices 1.750 4.375 4.375 4.375 4.375 Washrooms and 1.426 3.564 3.564 3.564 3.564 Sanitary facilities Total

9.022

20.804

20.804

20.804

20.804

20292033 [T€] 6.391

20342038 [T€] 3.895

20072038 [T€] 41.152

250

250

2.300

6.641 500

4.145 500

43.452 3.200

5.100

5.100

32.640

4.375

4.375

28.000

3.564

3.564

22.810

20.180

17.684 130.102

Mine Dewatering The Kosova Basin includes a developed hydrological network with the main collector given by the river Sitnica. This river crosses the basin from south to north and drains off 80 % of the accumulating surface water northward. In the past years opencast mine dewatering was not sufficient due to the bad condition of the auxiliary equipment fleet. This lead to problems in the production process, since passing of the working benches and the mine access roads could not be guaranteed. However, drainage in Sibovc shall be improved as against the present status. The following works shall be realised for a sufficient dewatering: • Planned installation of main collecting ditches from the working levels and dump surfaces to the main drainage plants with continuous adjustment to the mining position • Establishment of the drainage of rainwater on all working levels • Discharging of permanent water accumulations on the dumps • Drainage of dammed up water at the slope foot of the inside dumps Page 42 of 257


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• • •

Maintenance of all ditch systems Installation and maintenance of sedimentation basins before feeding into rivers Use of the collected water to reduce dust formation /dust control

The costs were determined on the basis of length and number of drainage ditches. Basic prices are: 70 €/ m channel (concreted) 7 €/ m channel (not concreted) Due to the opencast mine advance (100 – 120 m per annum) there have to be installed the ditches for those lengths 1.5 times per year. These are 41.25 km per year. The annual expenses come to 288.7 T€/a. Length of Channels and Costs

Up to 2013 of 115 on km

Length ditches benches Length in km/a

19

20142018 127 km

20192023 147 km

20242028 164 km

20292033 164 km

20342038 135 km

25.4

29.4

32.8

32.8

27.0

Ditches in km/a

28.5

38.1

44.1

49.2

49.2

40.5

Price in 1000 €

199.5

266.7

308.7

344.4

344.4

283.5

SUM

Average

852 km

27.5 km 27.5

1278 km 8950

41.25 288.7

Mine Closure and Recultivation Planning The proposed main principles are: • The areas occupied by mining shall be recovered in such a way that the later use will be rather better than the original one. This efforts aim at enhancing the value of the areas compared with the actual state – at least however a similar scenery. • Areas which are no longer needed for mining activities shall be recultivated as soon as possible. If a final renaturing will not be possible, suitable temporary measures shall be taken like for example an interim greening. • Financial means will be reserved already during the active mining operations to ensure the proper closure of the mining field. This money will also be available in case of in-solvency for revitalisation. • Authorities and the concerned people (later users) are integrated in the process of planning and detailed shaping of the post-mining areas. This process shall start before dumping because it already defines the shape of the surface.

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Investment and Cost Calculation The following area balance is included in the financing model: Area Balance in Sibovc and Costs

Measures Production of Coal in t Claim of land in ha Return of areas in Sibovc

2007- 20092008 2013

20142018

20192023

20242028

2029- 20342033 2038

Sum

0.15 271 0

46.28 137 0

93.74 102 0

121.81 140 0

98.74 183 38

96.09 89 42

96.09 236 132

552.9 1158 212

0.4

0.3

0.4

0.5

0.3

0.5

2.4

0.5

1

2

0.1 16.6 33

0.2 17.9 32

Preparation of areas incl. 0 interim greening Planting (handing over of areas) Other Provisions * 0.02 2 Total in m â&#x201A;Ź

0.1 5.9 15

0.1 13.0 14

0.1 18.6 25

3.5

0.4 1.0 19.6 91.6 36 112 * escalated The main part is reserved for the provisions needed for the final shaping. This amount to be provided for the shaping of the post-mining landscape (until handing over and release from the mining authority) will come to about 0.15 â&#x201A;Ź/t coal.

Resettlement The resettlements and especially the resettlement of Hade village with its 2500 heads population have great influence to the future mining development. On the entire Sibovc field live approximately 5700 people in four villages and separate settlements. Hade is the largest village. There are two resettlement cases of Hade village: (a) the emergency evacuation of people living in the dangerous zone close to the unstable Northern slope of the existing Bardh and Mirash mines; (b) the resettlement of the remaining larger part of Hade outside the endangered zone. The (a) emergency resettlement has been started in 2002. This partial resettlement of village Hade was unavoidable since public safety must be ensured and the safety zone must be used for the final rehabilitation of the unstable Northern slope of the existing mines. Now, (June 2005) it is almost finished. The (b) resettlement of the larger remaining part of Hade has not been started yet. There are doubts that such resettlement could be undertaken by using emergency procedure. In the worst case such action might disturb the public acceptance for new lignite mining activities in Kosovo. A democratic socially acceptable resettlement procedure of the Hade village compliant to EU standards would take at least 8 years. Bad practise by the mining enterprise in the past caused a loss of trust by the villagers. There are still ongoing court challenges against KEK from prePage 44 of 257


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vious unsatisfactory resettlements of removed Southern parts of Hade village. Furthermore, the financing of the “remaining resettlement” is still not ensures yet [of the (b) resettlement]. So it is a very ambitious target to resettle Hade in time. Taking into account the above mentioned production level Hade should be resettled up to 2009 for overburden removal at the latest. In this period the removal of all basements and the transference of the land to KEK are included. Apart from the emergency resettlement the cost amounts to approximately 59 m€, which has to be paid mainly in the period from 2007 to 2009. It proportionally includes all measures for the deconstruction of the village and the establishment of a new social- and infrastructure. Allocated to 597 households, the sum is totally 100000 € per household. Furthermore, considerable resettlement costs are yielded with regard to the villages of Leskovic, Janina Voda and Sibovc. Time and costs resulting from the resettlement are shown in the following tables. a) Households Year of Reset- Households Payment per Investment tlement household Year No. 1000 € / no. m€ Hade 2007 -2009 597 90 53.7 Leskovcic 2027 - 2037 85 100 8.5 Janina Voda ca. 2027 7 100 0.7 Sibovc 2009 - 2032 54 100 5.4 Sum 743 68.3 b) Public facilities, infrastructure and land claim (farmland) Public Facilities Infrastructure Infrastructure Hade Leskovcic Janina Voda Sibovc Sum

m€ 1.02 0.21 0.02 2.1 3.35

(inside villages)

(outside villages)

m€ 4.19 0.98 0.09 0.75 6.01

m€ 0.82 0.94 0.31 1.50 3.57

Sum m€ 6.03 2.13 0.42 4.35 12.93

c) Land claim (farmland) The total land use is 1,158 ha of which 1,081 ha are farmlands. This land will be claimed according to the mine advance until 2038. The price assumed for compensation is 47,500 €/ha (4.75 €/m²). This comparably high price includes the full compensation for the harvests. Therefore costs of 51.4 m€ are yielded. The following costs will arise over a period of 30 years: 68.3 m€ for households 12.9 m€ for facilities and infrastructure Page 45 of 257


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51.4 m€ for claim of land 132.6 m€ Referring to the households the sum is ca. 178000 € and referring to the ca. 5200 inhabitants (until 2038) the sum is ca. 25000 Euro per person.

Environmental aspects The investigations did not indicate any obstacles to use the Sibovc coal field as fuel supplier for the existing or new planned power plants. The environmental impact is described in Part III of the Main Mining Plan.

Economic and financial analysis The calculations have been made in accordance with the usual European standards of IFRS (International Financial Reporting Standards). The economical and financial analysis is described in Part IV demonstrating that the mine development will be generally profitable. In this context it must be pointed out that high investments will be required during the opening-up phase.

License for coal extraction from Sibovc open cast mine Principle: The licenses for coal mining in the Sibovc field should be compliant to the power generation licenses and provide sufficient security of supply in term of coal quantities. With regard to the coal reserves, they should be sufficient to supply coal to the power plant over the entire service life of 40 years. It seems to be reasonable to limit mining licenses to the total amount of coal necessary for the entire service live period of a power plant. This ensures the best resources utilisation and minimises losses of coal. Further such approach allows keeping of the remaining geological reserves for future TPP projects. Sibovc license: Pursuant to the principle and considering the coal demand of the existing and new power plants the entire Sibovc field is required for the license. The mineable coal reserves amounts to about 830 mt. The following quantities can be supplied to: Existing power plants + external market 140 mt • New power plants (TPP B3 –B6) 430 mt • New power plants (IPP) 260 mt (remaining coal content).

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2 Introduction 2.1 Allocation and Geographical Overview The geological evaluation and interpretation for Part II “Main Mining Plan for New Sibovc Mine – Technical Planning” was conducted for the Sibovc Licence Area which covers some 19.7 km2 (Fig. 2.1-1). According to the Terms of References (TOR), chapter 2.1 the main goal of the Main Mining Plan for the New Sibovc Mine is: “… to provide security, both in the technical and economic terms, of future electrical power production in Kosovo, as defined in the “White Paper”, … through the guarantee the coal supply security and economical viability over the entire life of the existing power plants and the new power plants (approximately 30 years).” The Main Mining Plan “… has to contain all necessary facts, calculations and elements needed to guarantee sufficient coal production for Kosovo´s energy demand…”. (TOR, chapter 2.3.2) Thus, general geological aspects which do not affect the future coal production processes are not contained. These can be found in Part I “Main Mining Plan for New Sibovc Mine – Basic Investigations” and in the “Elaborat O klasifikaciji, kategorizaciji i proračunu reservi ugla eksploatacionog polja „Sibovac“ kosovskog ugljenog basena, Knjiga I, Tekst” (Rudarski Institute 1997)

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Fig. 2.1-1

Sibovc Concession Licence Area – Location Map

Morphologically the Kosova Coal Basin forms a extended valley where the differences in elevation do not exceed 80 m. Around the river Sitnica stretches a central plane part followed by a more hilly terrain nearing the mountains Çicavica Golesh and Sharr. The basin is surrounded by an elevated relief with Kopaonik massive, Kozic, Zhegovc Lisic in the East, Montenegro massive in the South and Çicavica, Golesh, Carnaleva as well as Sharr mountains in the West and Northwest. The mountains around reach elevations from 900 to more than 1600 m. The Sibovc Concession Area follows to the West roughly the limit of the lignite deposition; towards the North it extents to 4729000 Northing; in the Northeast it is defined by a Northwest-Southeast aligned diagonal in the main flow direction of the Sitnitca and is bend in the Southeast to a southernly direction along the border of the decoaled Brand mine; the southern boundary is long the Bardh-Mirash concession boundaries.

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2.2 Approach / Methodology In the first months of the project implementation major activities were undertaken to provide additional geophysical exploration works, process new and existing geological and exploration data, making field observations about the geological structures of the deposit and incorporate it into the model. In order to meet the tight time schedule for the preparation of the Draft Report we had to use a version of the geological model available in January 2005. Thus, some absolute figures and data regarding overburden and coal might slightly differ compared to the Main Mining Plan for New Sibovc Mine. Compared to the beginning of the work, the knowledge of the mining development, the part resettlement and financial analysis have been evaluated in more detail. These issues were particularly affected by the new defined coal demand on which the Main Mining Plan for New Sibovc Mine is based on. However, the description of the different alternatives and mining variants developed in both work stages will be helpful for an overall evaluation of the development possibilities and consequences in the coal mining and generation sector of Kosovo.

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3 Coal Demand and License for Coal Extraction 3.1 Forecast of Future Coal Demand On the basis of the targets set by the Ministry for Energy and Mining (from 2009 onwards), the following coal demand figures have been defined: Tab. 3.1-1

Year

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 SUM

Defined Coal Demand

Lignite Demand existing TPP A

Lignite Demand existing TPP B1+B2

1.8 2.0 2.0 3.3 4.75 4.75 4.75 4.75 4.75 4.75 4.75 4.75 4.75 3.14 1.57

5.0 5.0 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 2.65

56.56

102.70

New TPP Kosovo B3-B6

2.71 5.42 5.42 5.42 5.24 5.24 5.42 8.13 10.84 10.66 10.66 10.84 10.66 10.66 10.66 10.66 10.84 10.66 10.66 10.66 10.66 10.84 10.66 10.66 10.66 10.66 10.84 246.40 Page 50 of 257

New IPP C1 â&#x20AC;&#x201C; C3

2.71 5.42 8.13 8.13 7.95 7.95 7.95 8.13 8.13 7.95 7.95 7.95 8.13 8.13 7.95 7.95 7.95 8.13 8.13 7.95 7.95 7.95 8.13 176.70

Other Lignite Consumers

Total Coal Demand

0.1 0.1 0.1 0.1 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 14.00

6.9 7.1 7.4 8.7 10.35 10.35 10.35 13.06 15.77 15.87 15.87 18.40 21.11 22.49 23.63 24.59 24.41 24.41 24.77 21.94 19.11 19.11 19.11 19.47 19.29 19.11 19.11 19.11 19.47 19.29 19.11 19.11 19.11 19.47 596.45


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

The coal demand scenario set out in table above bases on the following principles and assumptions: • For the time 2005 up to 2007 the production level already planned is applied, that means 6.9 up to 7.4 mt/a will be provided. • The geological reserves of the existing mines come to about 43.7 mt (mineable). This is calculated from 2005 on (see Mid Term Plan). • Kosovo will export energy based on lignite (so it will enter in South East European Regional Market) • Construction of new TPPs (7*350 MW-units) mainly for electricity supply into REM (Regional Electricity Market). The start of production of new Thermal Power Plants is 2012 • The grid of the REM will be reinforced to allow power transmission The assessed output of coal from the existing mines (Bardh/Mirash) and the coal haulage required from the new mine(s) is shown as follows:

Tab. 3.1-2

Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sum

Coal haulage required from new mines

Coal from Bardh Mt 6.9 7.1 7.4 8.7 7.9 3.2 2.5

43.7

Mirash

/ Coal from new Mine(s) Mt 0 0 0 0 2.45 7.15 7.85 13.06 15.77 15.87 62.15

Page 51 of 257

Sum = Demand of Coal mt 6.9 7.1 7.4 8.7 10.35 10.35 10.35 13.06 15.77 15.87 105.85


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

3.2 License for Coal Extraction from Sibovc Open Cast Mine One essential principle for granting a license for coal extraction is: The purpose of coal production is to ensure the short-term, mid-term and long-term fuel supply for the existing and future power plants with lignite. Therefore the licenses for coal mining should be compliant to the power generation licenses. The mining licenses should provide sufficient security of supply in term of coal quantities. The new investor should be able to receive a mining license over the total amount of mineable coal necessary over the total life time of the power plant to be supplied. License for Sibovc: In the case of new TPPs with 40 years life time and annual coal demand of 19 m t/a the total mineable coal reserves dedicated to the license would be 760 mt. To supply the existing TPPs Kosovo A and B with fuel till their decommissioning a license over max. 140 m t mineable reserves would be necessary in addition to the remaining reserves in the existing coal mines Bardh and Mirash. Due to the mineable amount of coal in Sibovc the following can be provided: • Existing power plants and other consumer 140 mt • New power plants (TPP B3 –B6) 430 mt • New power plants (TPP C1 – C3 = IPP) 260 mt (remaining coal content).

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4 Geological Conditions 4.1 Introduction The basement of the Kosovo Basin in the Sibovc Concession Area and the exposed surrounding areas to the West are built up by Palaeozoic to Mezozoic crystillane rocks (Fig. 4.1-1). The basin fill consists of Upper Cretaceous strata which are unconformably overlain by Tertiary clays in which lignite is interbedded. The Sibovc area was site of luxuriant vegetation growth that finally became overwhelmed by sedimentation and led to the formation of substantial stratiform lignite deposits of up to 90 m seam thickness. Towards the West the lignite deposition is tectonically bounded by the development of a series of predominantly NNW-SSE striking faults. The geological work for the Main Mining Plan for New Sibovc Mine reveals that the tectonic movements were already active during the lignite formation and controlled the deposition of organic material and anorganic clay (Annex II/4.4-12). These findings differ to the previous geological model (Rudarski Institute 1997) which assumes purely post depositional tectonic movements. Thus, in that model depth differences at top or base of the Lignite Formation and thickness variations were attempted to explain by extensive faulting. The eastern limit is characterized by sedimentological pinch-out. The characteristic development of the overburden section is shown on the two cross-sections in Annex II/4.4-12.

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Fig. 4.1-1

Stratigraphic Standard Profile of the Kosovo Basin (KEK 2003)

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4.2 Sedimentology and Petrography of the Pliocene Lignite Deposit in the Sibovc Area A characteristic vertical development for the Pliocene lignite deposition is shown in Fig. 4.2-1 for borehole G1-XXXIII3.

Fig. 4.2-1

Typical vertical lithological sequence and Net CV distribution for the lignite deposition in the Sibovc Concession Area, Borehole G1-XXXIII3.

Overlying the massive footwall green clay interbedded lignite and clay with varying lignite content and subordinated ash layers are developed and form the basal part of the Lignite Formation. The middle and upper part of the Lignite Fm. is built by a frequently massive lignite seam with generally upwards decreasing intercalation of clay layers. Within the seam section generally Net CV is increasing upwards. Occasionally (as in the shown borehole) the hangingwall contact of the Lignite Seam is gradually with a development of a thin transition from lignite to the grey clay. The terms “Lignite Fm.” and “Lignite Seam” were introduced for the Main Mining Plan for New Sibovc Mine in order to define vertical upper and lower mining boundaries. Hereby, the Lignite Fm. represents the litho-stratigraphic interval between the overlying massive grey clay and the bottom massive green clay. The lignite seam is defined for the section where the Interburden-to-Coal ratio is below 50% and the thickness of an individual clay interburden layer is below 5 m. Page 55 of 257


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It should already be mentioned here, that “… clay intercalations more than 0.50 m have been mainly removed from the [coal quality] samples…” (Rudarski Institute 1997). Consequently, main properties as Net CV are not known. The distribution of interburden layers that are larger than 0.5 m has been recorded for the boreholes in the Sibovc Concession Area (Appendix B, Table 4.2-1), which is summarized Tab. 4.2-1 and Fig. 4.2-2. Tab. 4.2-1

Summary of Interburden Occurences thicker than 0.5 m in the Sibovc Concession Area

Seam Increments

Interburden Layers 0.5 to <1.0m

Interburden Layers 1.0 to <2.0m

Interburden Layers =>2.0m

Cumulative Thickness [m]

Interburden to Coal Ratio [%]

Slice 0 to <20m

127

66

43

327.6

4.1

Slice 20 to <40m

169

81

47

361.1

5.3

Slice 40 to <60m

195

124

68

536.6

11.3

76

54

26

207.3

12.9

Total Lignite Seam

567

325

184

1432.6

6.9

Lignite Fm. Outside Seam

252

277

296

1611.6

65.4

Slice >60 m

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Fig. 4.2-2

Histogram for the Interburden Distribution by Lignite Seam Thickness Increments of 20 m

Within the Lignite Seam interburden layers constitute 6.9% of the gross seam thickness whereby 53% are represented by layers under 1 m thickness. 30% are between 1 and 2 m, 17% are thicker than 2 m. The vertical distribution shows an increasing trend from top to bottom seam. The 0-20 m slice has only 4% interburden increasing to 13% for the deepest interval. Outside the Lignite Seam but still within the limits of the stratigraphic unit of the Lignite Formation the interburden volume is 65%. This figure stresses the undertaken necessary mining boundary definitions for the mineable Lignite Seam against the stratigraphic unit. The interburden thickness has been mapped for the Lignite Seam Fig. 4.2-3 and Annex II/4.44 and for the 20 m increments (Annexes II/4.4-5 to –8).

Fig. 4.2-3

Sibovc Concession Area, Lignite Seam –Interburden Thickness[m] Page 57 of 257


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Already on Fig. 4.2-3 which displays lumped interburden layers regardless their stratigraphic position a patchy distribution of high thickness values without any clear directional trends can be observed. Most of the high contour areas are generated by only one borehole recording. As expected that is even more pronounced on the maps for the 20 m slices. We can not distinguish whether the scattered and patchy contour pattern is caused by inconsistent qualities of borehole descriptions and/or by geological reasons, i.e. the clay intercalations have a very limited extent below the borehole spacing. Regardless of the causes it is obvious that a correlation of the interburden between the boreholes and a subsequent generation of predictive model cannot be realized. The following figure illustrates the correlation problems between boreholes which are actually closer spaced than on the average.

Fig. 4.2-4

Correlation Problems of Interburden Layers

A B C

Layers do not extent between two boreholes Different details in description (interburden not recorded) No unique solution for correlation (alternatives shown as red lines)

We understand the produced interburden distribution map as guidelines to indicate the possibility of the development of interburden layers. A predictive model could only be generated

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during accurate recording of the geological situation during the movement of the excavation front and by gathering closer spaced additional boreholes. Petrography analyses of the coal (compiled from Rudarski Institute 1997) Reliable petrographic analysis is available from three boreholes. They qualify the lignite as xylit rich with small or big marshy coal “proslojcima”. The medium content of the clay is 3540%, and it appears in the form of independent grains or almost linked with organic material. The pyrite appears in the form of spherical impregnations grain-size around 25 microns. The following table shows the results of quality and quantity of the analysis.

Tab. 4.2-2 Petrographic Analysis Sample No. (1) (2) (3) (4) (5) (6) (7)

Borehole DJ4-XXXXIV DJ4-XXXXIV DJ4-XXXXIV DJ4-XXXIII4 DJ4-XXXIII4 DJ4-XXXV DJ4-XXXV

From (md) 7.6 19.8 24.2 44.5 48.0 6.7 24.1

To (md) 7.8 20.0 24.5 44.7 48.2 6.8 24.4

Material and Sample No. Volume % ______________________(1)____(2)_____(3)_____(4)_____(5)____(6)_____(7)____________ Tekstinit 9.5 31.5 35.5 20.5 18.5 16.0 32.5 Ulminit 6.0 18.0 17.5 17.0 21.0 5.5 18.0 Atrinit 11.0 11.5 12.5 11.5 12.5 12.0 11.0 Densinit 2.5 2.0 5.0 3.5 4.5 0.5 3.0 Gelinit 0.5 1.0 1.5 2.5 2.0 0.5 Liptinit 2.0 3.0 4.5 4.0 3.5 4.5 3.5 Inertinit 3.5 3.5 2.0 1.0 2.5 1.5 Clay 63.5 28.5 21.5 49.5 34.5 59.0 26.5 Pyrite 1.5 1.0 0.5 1.0 0.5 3.5

4.3 Development of the Overburden Section The characteristic development of the overburden section is shown on the two cross-sections in Annex II/4.4-12. Page 59 of 257


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The Lignite Formation is overlain by grey clay which is partially described as marly or sandy. Layers with abundant fossil content are frequently mentioned but the borehole descriptions do not allocate the depths of these. Sporadically sand layers of up to several meters thickness occur apparently concentrated along the morphological highs. They may have been deposited as aeolian sands. However, detailed descriptions of the sedimentological texture are missing. Sand in the immediate hangingwall of the lignite has been only recorded in one borehole along the cross-sections (SbDJ6XXXIII0). In the river cuts of the Sitnitca and the Sibovc river no direct lignite-to-sand contact has been recorded in the boreholes. However, such setting cannot generally be excluded due to the limited areal extent of the sand bodies. The uppermost 10 m describe the weathering zone and consist of yellow clay (i.e. the weathering product of the grey clay) and of generally 2-3 m humus.

4.4 Geophysical Exploration Work Performed From the eight seismic 2D profiles acquired during the seismic survey from June 21, 2004 to July 03, 2004 by DMT Lines01 and 07 are located in the Southwest of the Sibovc Concession Area. The geological interpretation of these lines is included in the Main Mining Plan for New Sibovc Mine – Part I. The results of the survey reveal that seismic provide a high quality method for the investigation of the structural setting of the lignite seam and tectonics in areas which are not affected by mining or advanced sliding.

4.5 Available Borehole Data 443 borehole data (lithological descriptions, assay data) were available for the area within Sibovc Concession Area (Appendix B: Tab. App-B-4.5-2) After applying the auditing methodology as described in the Main Mining Plan for New Sibovc Mine – Part I, seven boreholes were removed from the active database. They represented extreme deviations in the surface elevation or lignite depth compared to adjacent boreholes. 436 boreholes remained as “active” data in the borehole database. Page 60 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

A total of 217,395.30 m were drilled by these boreholes. The total depth is ranging between 6.80 m and 200.50 m with an average at 103.26 m. On the average the boreholes were drilled to some five meters into the green clay. 41 holes were not drilled to the base of the seam. The top of the seam has been encountered between 2.30 m and 137 m md (measured depth) with an average at 43.85 m. The base was penetrated between 3.00 and 193.20 m md with an average at 93.20 m. The structural position for the top of the seam is between 494.60 and 623.10 mMSL (meter above mean sea level) with an average at 550.28 mMSL. The elevation for the base is between 530.90 and 663.30 mMSL with an average at 594.00 mMSL. The seam thickness is between 0 and 93.30 m. The average is at 51.07 m. Drillhole locations, depths and thickness for the Lignite Fm. and Lignite Seam are given in Appendix B:Tab. App-B-4.5-1 of the Main Mining Plan for New Sibovc Mine.

4.5.1 Coal Qualities from Borehole Data For 334 boreholes in the Sibovc Concession Area coal quality data were available as paper copies. All were digitally recorded. The coal quality sample data and thickness weighted averages per borehole for Ash, Net CV and Total Sulphur (counted on 45% moisture) are listed in Appendix B: Tab. App-B-4.5-2 of the Main Mining Plan for New Sibovc Mine.

4.5.1.1 Sampling and Analysis Methods (compiled from Rudarski Institute 1997) Until the introduction of the regulation on classification and categorization of the hard raw minerals (Official gazette no.53 of 19/10/1979) the sampling intervals for coal analyses had not been uniform and been ranging between 0.50 and 26 m, commonly between 5-10 m. Large sample intervals (over 15m) are quite rare and include mainly the lowest parts of the coal seam, where the volume of interburden intercalations thicker than 0.50m increase. These intercalations are mainly removed from the quality analysis. The boreholes drilled after October 1979 have testing intervals between 4.0-15.0m, often 10.0m. The samples for chemical analyses were taken from the drillcores. They were taken from the entire sample interval and the samples were packed into plastic bags. The size of the samples was depending on the coal seam quality and drill diameter. Afterwards, the coal samples have been transferred to the unit for sample preparation where the samples were treated as follows: drying, grinding, and finally quartering of the grinded sample until obtaining sample amounts sufficient for at least two identical samples. The first sub-sample was used for chemical analyses and the second one for eventual arbitral control.

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Drilling with bentonite and water mud may have influenced substantially the natural moisture content of the coal as a consequence of the artificial increase of water. However, part of the moisture from the sample was removed by evaporation process depending upon prevailing weather conditions since the recovery of the sample from the drillcore up to the start of sample preparation in the lab was consuming indefinite time intervals. Coal samples acquired from the geological exploration drills include several examination processes: not fully technical analyses, fully technical analyses, chemical analyses of the coal and ash, as well as ash solubility. The not-fully technical analyses imply the determination of the moisture content (V), ash content (P), combustion material (S.m.) and lower heating value. Moisture, ash, and combustion material are stated as percentage, while the heating value is shown in KJ/kg. The fully technical analyses include moisture content, ash content, fixed Carbon volatile matter, combustion material, total sulphure, sulphure in the ash, and lower heating value. All mentioned parameters are shown in percents except the heating value which is shown in Kcal/kg, respectively in KJ/kg. Chemical analyses of the coal and ash include the determination of the SiO2, Al2O3, Fe2O3, CaO, MgO, SO3, TiO2, Ns2O, and K2O. All mentioned analyses are determined on the basis of the following standards: FULL TECHNICAL ANALYSIS Moisture Ash Remaining coke Volatile material Combustion material Bottom heating value Total sulphide Sulphide in the ash Combustion sulphide

gravimetric method gravimetric method gravimetric method gravimetric method calculation method calorimeter bomb gravimetric method gravimetric method calculation method

JUS.B.H8.311 JUS.B.H8.312 JUS.B.H8.317 JUS.B.H8.317 JUS.B.H8.318 JUS.B.H8.315 JUS.B.H8.313

CHEMICAL ANALYSIS OF THE ASH COAL Determination SiO2 Determination Fe2O3 Determination Al2O3 Determination CaO Determination MgO Determination SO3 Determination TiO2 Determination Na2O Determination K2O

gravimetric method gravimetric method gravimetric method gravimetric method gravimetric method gravimetric method photometric method hot-photometric method hot-photometric method Page 62 of 257

JUS.B.H8.360 JUS.B.H8.362 JUS.B.H8.364 JUS.B.H8.365 JUS.B.H8.366 JUS.B.H8.369 JUS.B.H8.363 JUS.B.H8.368 JUS.B.H8.368


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Besides the described methods for the above mentioned parameters spectrophotometric atomic absorption and hot atomic absorption methods were also applied.

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4.6 Geological Model A detailed geological model has been generated for the Lignite Seam. It integrates all available sources as surface observations, borehole and seismic data. The results are documented in the following maps and cross-sections: Main Mining Plan for New Sibovc Mine –Part II, Annexes to Geology •

II/4.4-1

II/ 4.4-2

II/ 4.4-3

II/ 4.4-4

II/ 4.4-5

II/ 4.4-6

II/ 4.4-7

II/ 4.4-8

• • •

II/ 4.4-9 II/ 4.4-10 II/ 4.4-11

II/ 4.4-12

Sibovc Consession Area, Lignite Fm. – Topography and Borehole Location (with Seam Thickness [m]), 1:10,000 Sibovc Consession Area, Lignite Seam - Overburden Thickness [m], 1:10,000 Sibovc Consession Area, Lignite Seam - Overburden-To-Coal Ratio [cu m/t], 1:10,000 Sibovc Consession Area, Lignite Seam – Interburden Thickness [m], 1:10,000 Sibovc Consession Area, Lignite Seam, Top 0-20 m Slice – Interburden Thickness [m], 1:10,000 Sibovc Consession Area, Lignite Seam, Top 20-40 m Slice – Interburden Thickness [m], 1:10,000 Sibovc Consession Area, Lignite Seam, Top 40-60 m Slice – Interburden Thickness [m], 1:10,000 Sibovc Consession Area, Lignite Seam, >60 m Slice – Interburden Thickness [m], 1:10,000 Sibovc Consession Area, Lignite Seam - Ash Content [%],1:10,000 Sibovc Consession Area, Lignite Seam - Total Sulphur [%], 1:10,000 Sibovc Consession Area, Lignite Seam - Low Calorific Value [kJ/ kg], 1:10,000 Sibovc Consession Area – Geological Cross Sections S1 & S2 with Differentiation of Overburden Layer, 1: 5,000/ 1:1250

Main Mining Plan for New Sibovc Mine –Part I, Annex • •

I/ 4.6-1 I/ 4.6-2

Depth Structure Map: Top Lignite Seam [m] Depth Structure Map: Base Lignite Seam [m]

For the Net Calorific Value Distribution a 3D Block Model has been generated (see chapter 4.6.3). The applied Methodology during the Modelling is described in Main Mining Plan for New Sibovc Mine – Part I

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4.6.1 Structural Model In the Sibovc Concession Area the structural dip at top lignite is low with overwhelming values below 5º. Steeper dipping is indicated along two SW-NE alignments which are believed to represent erosional channels. The erosion is also seen on the depth structure map at Top lignite, the isochore map and even expressed on the low CV map (Annex II/4. 4- 11). The mapped area is characterised by a NNW-SSE striking basin. Along the axis the seam thickness reaches up to 70-80 m. The coal basin is delineated to the West by a series of stepping fault blocks which separate the Tertiary fill from the Mesozoic basement. The lignite pinch-out to the NE appears to be a unconformal without recognized boundary faults. Cross-faults which strike roughly perpendicular to the basin axis are developed in the North of the Sibovc Concession Area. The cross-plot lignite thickness versus depth (Fig. 4.6-1) reveals a strong correlation which indicates that subsidence and very likely faulting took already place during the lignite deposition. If the movements were commencing later the data would show high scattering. The seismic data indicate a highly faulted area along the Mirash northern slope directly to the south of Hade. It appears to be affected by reverse faults and a dense succession of normal faults creating a “collapse” structure.

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Fig. 4.6-1

Lignite Thickness vs. Depth Plot

The following table provides structural characterisation data for the evaluated areas: Tab. 4.6-1

Structural Characterisation of the Sibovc Concession Area

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4.6.2 Coal Quality Distribution Model For the model of the coal quality distribution length weighted averages have been calculated from the assay data within the Lignite Seam on a single borehole basis. Vertical profiles of the net calorific value assay data are included in the geological crosssections from the 3D Block Model (Annexes II/4. 4- 13 to II/4. 4- 33). The Sibovc Concession Area is characterised by the following quality populations: Tab. 4.6-2

Sibovc Concession Area, Average Coal Qualitiesfor the Lignite Seam from Geological Model Grid

Univariate Statistics - Coal Qualities From Geological Model Grid Sibovc Ash Content Net CV Total Sulphur [%] [kJ/kg] [%] Samples 8115 8115 8115 Minimum: 25%-tile: Median: 75%-tile: Maximum:

11.29 14.28 15.33 16.87 38.19

1748 7834 8296 8657 9683

0.69 0.95 1.07 1.19 2.93

Midrange: Range: Interquartile Range: Median Abs. Deviation:

24.74 26.90 2.59 1.20

5716 7935 823 402

1.81 2.25 0.23 0.12

Mean: Trim Mean (10%): Standard Deviation: Variance:

15.86 15.64 2.31 5.35

8146 8214 762 580561

1.09 1.08 0.20 0.04

Coef. of Variation: Coef. of Skewness:

0.15 1.88

0.09 -1.72

0.18 1.66

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4.6.3 3D Block Model of Net Calorific Value Distribution 4.6.3.1 Model Parameter and Methodology

Fig. 4.6-2

Block Model of the Sibovc Mining Concession area. Explanations see below.

The Sibovc Block Model is a spatially-referenced database that provides a multitude of querying and reporting possibilities. Information contained in the Block Model may be retrieved as text reports or may be accessed interactively supplying colour coded representations. Records in the Block Model are related to discrete volume elements or blocks. Each block of the Sibovc Block Model assumes values for each of the coal quality parameters, (net calorific value, ash content and total sulphur content). These values were applied to the entire volume represented by each block. Fig. 4.6-3 gives a summary of the Sibovc Block Model Master definition, and its details of the attribute types (coal quality parameters).

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Fig. 4.6-3

Sibovc Block Model Master Definition

A block size of 50m x 50m x 10m has been selected to consider borehole spacing and previous grid modelling concepts. Sub-blocking has been performed to enable creation of smaller blocks of 25m x 25m x 5m, if necessary. The chosen parameters allow the model to more effectively represent the various constraints which are applied during the course of modelling. Constraints are spatial delimitations which determine the shape of the Block Model and the ranges which have to be filled by interpolating values. The Sibovc Block Model Master has been constrained by the Structural Model which contains information of Sibovc concession area (polygonal line – string file) Seam base (surface – digital terrain model, DTM file) Seam top (surface – digital terrain model, DTM file) “Interburden” boreholes, i.e. assigned gaps in sampling (23 solids – 3DM file) Topography with mining situation of 2012 (surface – digital terrain model, DTM file) Fault west1 (vertical surface – digital terrain model, DTM file) In preparation for populating the Sibovc Block Model with data, elevation composites of sample data taken from the coal table of the Geological Database have to be produced. For this reason an elevation range of 430,620,10 was specified with an extent of 5 and a type of “+/-“ (Fig. 4.6-4). This means between 430m and 620m (above mean sea level) a composite was formed for every 10m. The usage of “+/-“method ensures that a range of 5m is applied both below and above the nominal elevation. The resulting grades are weighted by length and stored in 20 string files (one string file for each nominal elevation).

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Fig. 4.6-4

Compositing by elevation (with a range of elevation between 430 and 620,stepwidth 10 m, an extent of 5 and a type of “+/-“; see text for further explanation).

The 20 string files which store the elevation sample data were used to estimate values of each appropriate block of the Block Model based on the weighted values of data points closest to the central point of the blocks. In this case the weighting is the result of kriging the data points to provide the best linear unbiased estimator. The required variogram parameters have been developed from a Geostatistical study. Variogram model / kriging run parameters and additional search parameters have been used to estimate values for each coal quality parameter (net calorific value, ash content, total sulphur content):

Additional search parameters: Ellipsoid parameters: - Bearing of the major axis: 172 - Isotropic search ellipsoid Other interpolation parameters: - Max search distance: - Max vertical search distance:

900 005

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An interpolation was made considering the fault west 1 (Fig. 4.6-2) separating the Sibovc concession area into two subranges, the Sibovc west and the Sibovc east one. The suggested vertical dislocation of the coal seam along fault west1 substantially affects the interpolation. Therefore the interpolation has been processed separately in the two subranges. The block model provides comprehensive information to characterise the Lignite deposit within the Sibovc concession area. The following table Tab. 4.6-3 summarizes splits by various categories and cut-offs. The horizontal sections are included in Appendix B of the Main Mining Plan (Geological Database). Tab. 4.6-3

Block Model â&#x20AC;&#x201C; volume report of several categories

Category

Percentage of Total Seam Volume (990 mio tons)

1. 1000 kJ Increments 3000-4000 0.0 4000-5000 0.1 5000-6000 0.6 6000-7000 5.8 7000-8000 23.4 8000-9000 48.1 9000-10000 21.5 10000-11000 0.5 Total 100.0 2. Cut-off 5400 kJ <5400 0.2 =>5400 99.8 3. Minimum Input for TPP A (6270 kJ/kg) <6270 1.2 =>6270 98.8 4. Minimum Input for TPP B (6720 kJ/kg) <6720 3.5 =>6720 96.5 5. KEK Classification Scheme 0-5440 0.2 5440-6700 3.2 6700-7950 24.5 7950-9210 58.2 9210-11000 13.9 Total 100.0

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Average (kJ/kg) 3798 4639 5668 6675 7600 8510 9350 10113 8359 4953 8365 5802 8390 6289 8435 4974 6352 7478 8574 9525 8359


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

4.7 Other Aspects Influencing the Development of the New Sibovc Mine 4.7.1 Former Underground Mining Compared with the situation in the Bard-Mirash mine and the resulting problems, remains of the old underground mining will also have an impact on geotechnical conditions and mine planning in the future Sibovc Mine. Old underground structures have been detected in the southeastern part of the Sibovc field and are connected with the old mining structures which are currently exposed along the coal cuts in Mirash West and on the Mirash northern slope. The galleries probably reach to a zone about 2 km at North of the Village of Hade. First attempts to reach the seam were made along river erosion channels which cut the coal seam. In areas of the seam which were affected by erosion it can be mixed completely or at least partly with humus strata resulting in a decrease of the coal quality. Therefore, the initial excavation of the stalls began about 7 meters under the roof of the seam. In the proximity of the riverbanks water handling was difficult. At a later stage vertical shafts were deepened. The documented coal mining using galleries and shafts reach back to 1922

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Fig. 4.7-1

Collapse structures from former underground mining NE of Hade (arial photograph)

For the stabilisation of the galleries with a height of 2 m and width of 3 m was used a wooden timber set support system. The parallel galleries had a distance of 20 m one to each other, every 100 m a cross cut was excavated and they followed the given directions of the separations planes. The old roadways were driven parallel to the joint system within the mine. The galleries were widened to caverns with intervals of 7-20 m and the coal was broken from the roof. Due to this method sections of the galleries show a low stability and there is a potential danger of collapse of the undermined levels under load if they are not already broken or refilled. In the area North-Western of Hade these caverns frequently collapsed forming more or less round craters, which show a regular alignment (Fig. 4.7-1). The dimension of the undermined area in the Sibovc Field has been calculated considering the following factors: • Calculation of the excavated coal during 1922 to 1966 • Existing underground mining maps of the Mirash mine • Position of the old shafts • Site visits of the Sibovc Field for a specific delimitation of the underground mines

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• • • • • •

Determination of the mining methods by means of the characteristics of exposed galleries Interpretation of aerial photographs for the acquisition of typical structures (patterned alignment of collapse structures) Interpretation of seismic investigations Acquisition of the fault pattern Acquisition of topographic elements and natural boundaries (old bed of the river Sitnitca, location of villages) Extension regarding the maximum practicable distance between shafts and galleries

The underground mining was abandoned in 1966. The following table shows the overall coal production of the underground mine. There is no futher reliable documentation on the extension of the old underground mine or the information is at least incomplete. Coal production of old underground mining in the Kosovo Basin "Kosovo"

"Krusevac"

"Sibovac"

Years 1922 - 1966

years 1948 - 1966

Years 1952-1958

6.401.434 t

2.921.233 t

255.117 t

Tab. 4.7-1

Coal production of old underground mines within area investigated. (source: INKOS)

Partially, the exploitation fields of the old underground mining were limited by faults. Under consideration of these production rates for the field “Kosovo” can be calculated an area of app. 5 km2 and for the field “Sibovac” of at least 2 km2. The minor production rates from the field “Sibovac” show that the excavation only took place near the surface. The evaluation of all available information proves the assumtion that the extension of the galleries in a northward direction may be larger than supposed. In the past inhabitants noticed noises from the underground (hammering, picking) about 2 km in the North of the Village of Hade. Nearby there was probably a shaft, which could have functioned as entrance to the underground mine system. This shaft strengthens the presumption of such a large extension. The largest distance between a shaft and the outermost galleries did not exceed 700 meters for technical reasons. Annex I/4.7-1 shows the complete undermined area how it can be supposed under consideration of all aforementioned arguments and facts.

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4.7.2 Uncontrolled Coal Fires 4.7.2.1 Development and locations of coal fires Within a wide area a large amount of lignite in the Kosovo open pit mines is affected by spontaneous combustion which occurs in all locations where the coal is exposed to air or air can penetrate the underground and reach the coal Self-ignition is the consequence of the oxidation of coal, a process which is producing heat energy. If the energy production exceeds the amount of energy removed from the system, the coal will reach its ignition temperature, eventually. In a first phase coal fires take place within weakness zones like joints or slope failures or old mining structures, where enough oxygen can reach the surface of the coal and the heat is enclosed. The fire can be boosted by released methane. In the following stage the complete hanging layer is influenced by the heat. About 60% of total coal fires are concentrated near or within the roof strata, where the coal shows the best quality and discharges a great amount of energy. Old galleries from the ancient underground coal mining facilitate supplementary ventilation and therefore best conditions for oxygen inflow are given. Burned out galleries result in large cavities and therefore decrease stability of the slopes. The experiences from the BardhMirash mine proved that a lot of fires Bardh Mine were associated with slide faults and occurred also in other parts of the mine which remain exposed to air for a longer period as slopes (especially the central pillar in front of the face between the actual excavation areas) and dumped coal masses. Frequently the coal fires begin at the base of the dumps and affect the whole dump until it is burned out. The geological and geotechnical conditions in the future Sibovc Mine will be comparable due to also existing remains of the old underground mining. It is assumed that the potential danger for coal fires will be high as in the Bardh-Mirash mine. Further complications could result of the fact that the area of the future Sibovc mine was affected by illegal (private) coal mining (Fig. 4.7-2 and 4.7-3 ). Due to the morphology and geology in the western part of the Sibovc Field the coal can be excavated without use of heavy equipment. Some valleys cut the overburden nearly completely facilitating the excavation only by manpower without excavators. Numerous small quarries and open shafts prove the extensive private coal excavation. In the most cases the quarries and shafts are not refilled and remain exposed for a long period. This fact and the unascertainable distribution of the private excavation localities retrieve an unpredictable potential of coal fire development in the future. A secondary effect is the fritting of the clay in the seam roof. Due to the heat the material becomes dehydrated and oxidised and takes a red colour (Fig. 4.7-4). The hardness of the fritted clay allows a use as gravel to improve the stability of transport roads within the mine.

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Fig. 4.7-2

Private coal mining near the western border of the Sibovc Field

Fig. 4.7-3

Private coal mining area within the Sibovc Field

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Fig. 4.7-4

Fritted, red colored clays in the hanging wall of the coal seam

4.7.2.2 Counteractive Measures The responsible personnel should attend to the prevention of coal fires, but if they occur nevertheless the procedures for coal fire extinguishing and thus saving coal resources have to be adapted to the exploitation operations and to be done by the mines staff during the current mining activities. Convenient extinguishing technologies have to be selected depending on the coal fire type and under consideration of the local geotechnical conditions. The extended use of water in most cases may cause landslides. The following methods could be advisable: • Direct fire fighting (small fires) • Excavation of local burning coal (hot spots) • Levelling of surface and drilling of injection holes • Injection of water or slurry to the fire centre • Surface sealing (excavation front, dumps) • Cooling with water spraying equipment • Inertisation • Flooding (surface near galleries) • Burnout control

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4.7.2.3 Prevention of coal fires Prevention of coal fires is synonymous with the avoidance of the contact of coal and oxygen. The most problematic locations of oxygen entry are the underground corridors. Cut old galleries have to be protected against ventilation. If an excavator hits a gallery, the entry should be closed as soon as possible with adapted material (clay or other impermeable material) to prevent further oxygen entry. These actions have to be taken permanently during the excavation process. Collapsed old galleries near the surface or shafts have to be inspected if oxygen can penetrate somewhere and where appropriate, openings need to be filled. In this context the underground mining map (Annex I/ 4.7- 1) e information where to aspect potential fires in the future. Self combustion and fires near the surface can be avoided minimising a permanent contact of the coal with atmospheric oxygen. Dumped coal should be sealed and the sealing should be reg ulary controlled for dehydration and crack formation. Slide faults can cause deep and complexcracks and are often the origin of coal fires within the Bardh Mine, which are very difficult to extinguish. Therefore it is essential to prevent land slides. Generally, the length of the excavation front has to be adapted to the yearly coal output. Thus, the time of exposition of the excavation front can be reduced. In the 1st semester of 2006 a project will be started by EAR for fire fighting in the Kosovo Coal Mines. The results of this project shall, so far as the instructions will be carried out strictly, achieve sustained success and lead to a significant reduction of coal fires.

4.8 Geological Resource Assessment 4.8.1 Classification and Calculation Method The geological resources of the lignite deposit were computed in accordance with the UN International Framework Classification for Reserves/Resources of 1997 (UNFC). The technical cut-offs were adjusted to the geological situation of the deposit. Meaning that in compliance with the UNFC – particularly referring to the function of the Competent Person – the geological assurance was evaluated in order to define acceptable limits for inter- and extrapolation of geological data. The lignite resources were classified applying the area-of-influence method with the following distances between points-of-observation: · · ·

Measured Indicated Inferred

Borehole distance <= 250 m 250 - 500 m > 500 m

radius of area-of-influence <=177 m 177 - 354 m > 354 m

A limitation of the inferred resource area is established by the concession boundary or the structural boundaries of the coal basin. The resulting classification for the Sibovc Concession Area is shown in Fig. 4.8-1.

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4729000 Lignite Pinch-out

4728000

TPP B

Lajthisht

4727000

Sibovc Janjina Voda

4726000 Palaj

4725000

Indicated Spacing 250-500

Hade Outside Dump

4724000

177

Mesozoic Outcrop

Measured Spacing <=250

4723000 Outside Dump Dump

7500000 0

Fig. 4.8-1

7501000

7502000

7503000

7504000

0

7505000

500 1000 1500 2000

Sibovc Concession Area, Ressource Classification

The Sibovc Concession Area is relatively dense sampled by boreholes. Main parts are covered by a regular North-South, West-East orientated 250x250 m borehole spacing. Infill drilling took place mainly South of the village Sibovc and between Hade and Palaj. Along the northeastern concession boundary ehere the seam thickness decreases to less than 30 m the spacing is larger than 250 m but still below 500 m. According to the classification scheme 94% of the total area are classified as measured resources, the remaining 6% as indicated resources. No cut-off for minimal thickness of the seam is required as the lignite seam is always well above the technical mineability. Also a cut-off for the thickness of partings was not applicable for the evaluated concession areas. The boundaries of the seam at the top and the floor are lithologically defined and also established by the sampled seam section. The calculation of resources defines solely “geological resources” or “in-situ-resources”. The resource figures are not considering any factors based on the mineability, such as mining losses or dilution. Page 79 of 257


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The resource calculation is bounded to the concession areas of Sibovc. Losses of resources due to underground mine workings in the upper part of the seam in some isolated areas are not yet estimated since no accurate volume estimates are available yet. A specific gravity of 1.14 g/cm³ was applied in order to calculate the tonnage of lignite resources. This value is in accordance with former assumptions and allows a comparison of resource figures with various former studies.

4.8.2 Lignite Resources The volumetric calculation of geological resources for the Lignite Seam within the Sibovc Concession Area resulted in a total of 990 mt over an area of 19.7 km2. 931 mt (i.e. 94%) are classified as measured, 59 mt as indicated. The resource estimate includes the seam interburden. As explained in chapters 4.2 and 4.5.1.1 these intervals were chemically not evaluated and thus, no coal quality data are available which would allow to assess whether the have do be excavated seperatly or could be included as dilution material. It was explained in chapter 4.2 that “…a correlation of the interburden between the boreholes and a subsequent generation of predictive model cannot be realized”. Consequently, no reliable estimate of the interburden volume can be provided. From the borehole data it may be guestimated that the maximum portion of interburden layers thicker than 0.5 m is in a range of 7% of the total lignite resource. The volume of not mineable interburden is considered as the main uncertainty in the resource assessment. Further uncertainties in the resource estimate exist on the narrow fault blocks in the West of the Sibovc Concession Area. Here, uncertainties exist in the extent and size of faults which have controlled the seam development.

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4.9 Further exploration for the new Sibovc Mine The seismic lines over the South of the Sibovc Concession Area proved that reflection seismic surveys provide clear definitions for both hanging- and footwall vertical boundaries of the lignite seam in exploration areas which are not affected by mining or advanced sliding. The lateral continuations of these interfaces will allow to detected and describe tectonic structures which would remain ambiguous from the interpretation of borehole data alone. The future mining areas should be examined with geological and geophysical methods under special regard of geotechnical conditions and the coal quality. The investigations should include: • •

• • • • • •

Detailed lithological and structural recording of outcrop setting during progressing excavation process including detailed description of interburden layers, Borings executed with three drilling rigs for the examination of 2500 m of core material each year. For a reliable geological prognosis, in any case the respective borings should penetrate the whole seam till the lying green clay of the foot wall is reached. On demand (e.g. in the range of faults) the boring grid should be closer for obtaining more structural information (recognition of small size structures), Registration of the strike and dip of the seam. This allows a better planning of the excavation, Determination of the coal quality on the basis of the samples from the new borings, Investigation of the whole future field by line seismics, E-W orientated 2D seismic line investigation for the verification of the extent and throw of the faults, Hydrogeological evaluation in the boreholes, Geotechnical investigations including valuation of the parting plane texture.

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5 Soil-mechanical Parameters 5.1 General For the determination of geotechnical parameters, all available data have been used (also from previous explorations) and also data which have been identified in the framework of the Main Mining Plan for New Sibovc Mine. To achieve a short-term improvement of the knowledge about the geological/soil-physical situation or the area of the Northern head slope of the Bardh opencast mine (towards the Sibovc field), 9 boreholes were drilled in 2003/2004 down to the floor of the coal seam. All drillings were sampled; the samples were and/or are still analysed in the laboratories of KEK, DMT and GMB to their soil-physical properties. The soil-physical investigation results of the a.m. 9 boreholes can also be used for the establishment of a soil-mechanical model and the specific static stability calculations for Sibovc due to the analogue geology of the coal fields. Update of soil-mechanical slope calculations and geotechnical safety concept The original soil-mechanical calculations by KEK / INKOS base on the calculation method according to BISHOP. The soil-mechanical parameters for the top overburden and coal used in the former calculation originate from the exploration report dating back to nineteen seventies. Newer findings and investigations were not available. No information was available about the strength parameters of the underclay. The calculation methodology after BISHOP does not reflect the actual conditions and is therefore not suited to guarantee a soil-mechanically safe operational management. The soilmechanical recalculations were carried out by adopting the calculation method of BOROVICKA for circular cylindrical and polygonal sliding surfaces and the sliding block method. To compensate the missing soil-physical properties it was necessary to make assumptions and derive the relevant parameters on the basis of experience with similar material.

5.2 Soilphysical Parameter The soil-mechanical examinations base on the soil-physical data which are already available in-situ and actual investigation results recorded in the following expert papers: • • •

Soil-mechanical expert opinion about the static stability of the advancing slope system in the Bardh mine in Kosovo dated 06.12.2002 1. Supplement dated 09.01.2003 to the „Soil-mechanical expert opinion about the static stability of the advancing slope system in the Bardh mine in Kosovo dated 06.12.2002“ 2. Supplement dated 23.01.2003 to the „Soil-mechanical expert opinion about the static stability of the advancing slope system in the Bardh mine in Kosovo dated 06.12.2002“ Page 82 of 257


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First intermediate analysis results of the core samples from the drilling made by the laboratories of GMB und KEK show a partly conformity with the previously used soil-physical calculation parameter. The following table contains the soil-physical parameters which were bases for the soilmechanical calculations of the slopes and slope systems. The figures in brackets represent the analyses of the laboratory samples of the three drillings SH 3, SH 4 and SH 5 for comparison. Tab. 5.2-1

Soil-mechanical Parameters Soil-physical parameter Geological Layers c‘ ϕ‘ γ (kN/m²) (°) (kN/bcm) Gray and yellow clay – Overburden 14.3 16.2 17.5 2) (16) (30) (17.5) Coal seam 40 50 12.2 Green Clay (floor strata) 14 16 17.5 2) (16) (30) (17.5)

ϕR (kN/m²) 8 (8) 8 (8)

1)

cR (kN/m²) 5 (10) 5 (10)

1)

1) Residual shear resistance (resistance after a long sliding way)

1) The residual shear strength (i.e. the residual strength against shearing after extended shearing, ε > 15%) 2) The figures in brackets represent the soil physical investigations of the soil samples from drillings SH3, SH4 and SH5. They represent a partial result originating from statistical evaluations. These values show a good conformity with the previously used soil-physical parameters. The tendency noticed is that the parameters of the three drillings show more favourable values. Therefore the soil-mechanical investigation results are more on the safe side.

Based on the analysis of available reports of the soil mechanical laboratory tests performed on samples from the drill holes SH 3, SH 4 und SH 5 the coefficient k (coefficient of water permeability) is: Overburden (grey und yellow clay) k = 4 * 10-10… 2.6 * 10-11 Green clay (floor strata) k ca. 4 * 10-11

5.3 Soil mechanical Calculation Methods The necessary soil-mechanical static stability calculations for the geological deposition conditions in the slopes and slope systems of the opencast mines are carried out using the soilstatically tested calculation methods according to BOROWICKA (circular cylindrical and polygonal sliding surfaces) and the BLOCK METHOD (internal Software of Vattenfall Europe Mining AG). For reasons of comparison, the methods according to BISHOP and KREY/BRETH (for circular cylindrical) are used for the calculations of static stability. These are methods, which deliver plausible and realistic results within the framework of the soilmechanical examinations for the opencast mines of Vattenfall Europe Mining AG are which are cut out for such deposits.

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Fig. 5.3-1

Principal Scheme

The static stability calculation consider both circular cylindrical sliding surfaces (KZP) and geologically occurring plain, possibly polygonal directed weak zones (VG) in the cohesive layers of the overburden and the floor. If location and direction of fissures in the coal and geological faults in the overburden are known they are not taken into account for the static stability calculations.

5.4 General Stability Factors To ensure both a geotechnical safe and efficient opencast mine operation the following safety factors are regarded necessary from soil-mechanical aspects for the specific objects. It should be taken into account, that the chosen safety factor is decisively determined by the state of knowledge about geological and hydrological situation and by statistically valid and/or not valid soil-physical calculation parameters. The better the knowledge about the respective objest the lower the necessary safety factor to be chosen. A different selection of the safety factor may also be possible between the advancing mining and dump slopes and the rim slopes. In many cases lower safety factors are possible if the advancing extraction and dumping slopes have only a short lifetime. • • • •

Single slopes Partial slope systems Total system Objects to be protected 1)

Si > 1.05 Si > 1.20 Si > 1.20 Si > 1.30

1) Theses are objects to be considered within the framework of static stability calculations as for example roads, rivers, buildings nearby the upper surface edge and the used large opencast mine equipment

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5.5 Soilmechanical Calculations for Border Slope Systems Experiences, a. o. from the Mirash and Bardh opencast mines are used to dimension the Border Slope System. Based on the static stability investigations the following general inclinations for the slope systems were determined, among others t o ensure static stability of partial slope systems and the entire slope system. The soil-mechanical calculations base on the safety factor of Si > 1.20. • •

General inclination for the coal slope system General inclination for the slope system in the overburden

Fig. 5.5-1

βG,coal < 22° βG,overburden < 10°

Required general inclination of slopes with a safety factor of 1.2

The above defined angels are valid for an overburden and coal thickness of 70 m. In order to prevent coal fires during the lifetime of the coal slope and the connected • endangering of the static stability of the coal head slope and • the resulting pollution the following can be done: In the overburden operation a general slope angle of β ≈ 15... 20° shall be produced by the large equipment. Directly afterwards, the general slope angle of β < 10° shall be produced by means of crawlers.

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5.6 Soilmechanical Calculations for Advance Slope Systems The specifications made in the above item shall also be used for the design of the advancing slopes of the opencast mine.

5.7 Static Stability of Single Slopes It is known from practical soil-mechanical experiences in the existing opencast mines that slides may occur at the single slopes. The following picture shows such a slide.

Fig. 5.7-1

Sliding in the coal-uncovering cut

These slides are caused by single slopes that are too high and cut too steep. Polygonally directed weak zones with low strengths (polished surfaces) are occurring in certain areas which are predestined for the formation of slides (see picture below).

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Fig. 5.7-2

Geologically occurring weak zone in the overburden material

Fig. 5.7-3

Exposed parting plane with large polished surface

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Another important factor for reducing the static stability is the jointing of the top clay. Partly, these joints act as available sliding surfaces on which the slopes fail suddenly, unexpectedly and rapidly. Considering the above mentioned soil-physical parameter the following slope angles βerf are required in dependence on the slope height hBö. This ensures the static stability of the single slopes against slides on circular cylindrical and polygonal directed sliding surfaces in the long run: 0 m <hBö < 10 m 10 m < hBö < 15 m 15 m < hBö < 20 m

→ → →

βerf < 65° βerf < 40° βerf < 30°

An angle of 30° cannot be cut into the side slope by the existing excavators. The slope remains stable during the excavation process. However the slope stability reduces during the weeks especially under unfavourable climatic conditions (rainfalls and variations in temperature).This means that the presence in direct proximity to the slope has to be limited to the operationally required extent in any case. Therefore operating instructions have to be formulated in accordance with the actual conditions.

5.8 Soilmechanical Calculations for Dumping Slope Systems Excavation and the subsequent transportation on a belt conveyor to the spreader cause changing of the soil-physical properties of the clay. Taking into account the following changed soil-physical calculation parameter for the material to be dumped Angle of effective internal friction ϕ‘= 14° Effective cohesion c’ = 10 kN/m² Specific weight of earth-moist soil γ = 17.5 kN/m³ and carrying out static stability calculation on the basis of these values the following results are obtained: Assuming the dump slope angle of β ≈ 30° is achieved the dump will have a static stability of Si ≈ 1.0 with a height of hdump ≈ 12 m. A further increase in height of the dump will lead to slope failure. This slope failure will result in formation of shear planes (so-called polished surface planes). The material strength will decrease to residual shear strength in these shear planes. The dump „flows“ out and settles below a slope angle of β ≈ 6... 8°. The a.m. results have to be taken into account in the practical operation when producing the dump.

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5.9 Geotechnical Requirements to a Safe Operational Management 1) A detailed and continuously updated geological model which is approved by the responsible geologist must exist for the opencast mine operation (illustration in maps, sections and reports). 2) Each opencast mine requires data on the hydrological situation (f. e. location and direction of aquifers, data on the level of existing ground-water level; data have to be recorded in written form). 3) Actual soil-physical parameters are required for the important geological layers in the roof and floor of the coal seam. These parameters shall be continuously verified. Soil samples shall be investigated in a recognized soil-physical laboratory. The result shall be laid down in written form 4) The position of the mine is to be recorded in a layout plan in regular periods (results from flights of terrestrial surveying). 5) Due to the advancing mining slopes it is necessary to keep at least three representative geological profiles in which the achieved mining position have to be recorded in regular periods. Profiles shall be at right angle to the bench. 6) Position and progress of the head slopes shall be planned forward looking. The planed geometries shall be illustrated at least by one advance cut through the respective head slope. The cuts shall be in right angle to the head slope system. 7) The track lines of all cuts shall be entered into the a. m. layout plan. 8) A geotechnical expert shall prepare soil-mechanical static stability investigations for a) all single slopes of the mine, including the advancing slopes as well as the head slopes and b) the total slope system (containing also the partial systems). Resulting from the investigations on the static stability, specifications shall be formulated for the safe shaping of the single slopes and the entire slope system (including partial systems) with the specific technological conditions in mind. The results shall be set out in written form (expert’s report). 9) These expert’s reports shall be justified to representatives of the opencast mine, the justification shall be recorded in a minutes. 10) A geotechnical specialist is needed for the opencast mine, who, among others, supervises the implementation of the requirements from the a.m. geotechnical expert reports and the necessary measures for a safe geotechnical operational management. 11) The geotechnical specialist shall perform regular inspections (at least twice or three times a week, or if required). These inspections shall be recorded (protocol). 12) A „control and supervision regime“ shall be elaborated for the mines. This document shall contain all specific operational points which shall control and supervise continuously the geotechnical conditions. The kind of control and the required reaction in case of deviations from the specifications shall be documented.

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6 Technological Development of the Sibovc Mine 6.1 Preconditions Subject of the hereinafter described Main Mine Plan is the development starting from the existing opencast mines of Bardh / Mirash. This opencast mine will supply coal to all customers in Kosovo. Important preconditions determined for planning the development of the Sibovc mine are: a) Ensuring the defined coal supply t the power plants b) Take into consideration the release dates of the main mine equipment from Bardh/Mirash c) Preconditions for resettlement a) Targets for coal output The most important item for developing the mining concept is the extraction of the planned coal output. The annual outputs for Sibovc base on the planned power plant concept (see chapter 3) and the residual coal output from the Mirash/Bardh mines. For the period of parallel operation of Bardh/ Mirash and Sibovc the following results: Tab. 6.1-1

2005 2006 2007 2008 2009 2010 2011 SUM

Coal Output (Part 1: in the „extended“ Development Period)

Coal to TPP A incl. run-of-mine coal 1.6 1.8 2.1 3.4 5.05 5.05 5.05 56

Coal to TPP B

Coal from Mirash/Bardh

SUM Coal from Sibovc

5.3 5.3 5.3 5.3 5.3 5.3 5.3 56

6.9 7.1 7.4 8.7 7.9 3.2 2.5 77

0 0 0 0 2.45 7.15 7.85 161

Further more, the following coal output from the new opencast mine is scheduled on the basis of the power plant planning defined by the Ministry for Energy and Mining:

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Tab. 6.1-2

Coal output from Sibovc in regular operation

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 SUM (2012-2038)

Coal to TPP A and other Consumer 5.05 5.05 5.15 5.15 5.15 5.15 3.64 2.07 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 271

SUM (2005-2038)

69.96

Coal to TPP B (B1 – B6) 8.01 10.72 10.72 10.72 10.54 10.54 10.72 13.43 16.14 15.96 15.96 16.14 13.31

Coal to additional TPP

10.66 10.66 10.66 10.84 10.66 10.66 10.66 10.66 10.84 10.66 10.66 10.66 10.66 10.84

2.71 5.42 8.13 8.13 7.95 7.95 7.95 8.13 8.13 7.95 7.95 7.95 8.13 8.13 7.95 7.95 7.95 8.13 8.13 7.95 7.95 7.95 8.13

1965

1533

349.79

176.7

SUM Coal from Sibovc

13.06 15.77 15.87 15.87 18.40 21.11 22.49 23.63 24.59 24.41 24.41 24.77 21.94 19.11 19.11 19.11 19.47 19.29 19.11 19.11 19.11 19.47 19.29 19.11 19.11 19.11 19.47 1555 552.75 Sibovc + 43.7 = 596.45 from all Mines

b) Release of the Main Mine Equipment The main equipment use in the existing mines was planed considering of the following aspects: • technological aspects (overburden removal, uncovering and extraction of coal) • soil-mechanical aspects (flattening of border slope systems, safeguarding of advance conditions between the single working fronts) • technical aspects (capability of main equipment regarding the mechanical and electrical status)

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organisational aspects (capability of support operations, like dewatering, auxiliary equipment, road construction, availability of spare parts)

Special attention was paid to an earliest possible release of equipment that was intended for a further use in the follow-up field. These machines can only be released for rehabilitation from mid of 2007 which is mainly due to their low present capacity. The table below illustrates the utilization time of the single machines according to Quarters. The belt wagons are released parallel with the coal excavators. The coal excavators are decommissioned stepwise within the period from 2009 to 2011 according to the declining capacity in the Mirash/Bardh mines (see Mid Term Plan). Tab. 6.1-3

Release Time for Main Mine Equipment 2005

E1M E2M E3M E4M E5M E6M E7M E8M E9M E10M E1B E2B E4B E6B E7B E8B E9B E10B P1M P3M P4M P1B P2B P3B

2006

2007

2008

2009

2011

2010

1

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

1

2

3

X X X X X X X X X X X X X X X X X X X X X X X X

X X X X X X X X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X X X X

X X X X

X X X X

X X X X

X X X X

X X X X

X X X X

X X X X

X X X X

X X X X

X X X X

X X X X X X X X X X X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X X X X X

X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

X X X X X X X X X X X X

X X X X X X X X X X

X X X X X X X X X X X X X X

X X X X X X X X X X X X

X X X X X X X X X X X X

X X X X X X X X X X X X

X X X X X X X X X X X X

X X X X X X X X X X X X

X X X X X X X X X X X X

X X X X X X

X X X X

X X X X

X X X X

4

1

2

3

X X X X X X X X X X X X X X X X X X X X X

X X X X X

X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

The equipment used in the mining field shall be refurbished after releasing. This measure aims at achieving a considerable increase in the hourly capacity and reliability. Such a refurbishment will last at least for 6 months (incl. acceptance of extra costs). It would be advisable to calculate 8 to 9 months, since then only „normal costs“ are incurred. The following utilization times were taken as basis:

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4


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

1. SchRs 650 2. SRs 1300.26 3. SRs 1300.24 4. SchRs 650 5. SRs 1300.24 6. SRs 1300.24

E 9M E 8M E 9B E 10M E 8B E 10B

April 2008 with spreader P 4M A2RsB-5200.55 May 2008 with spreader P 1B A2RsB-4400.60 June 2008 April 2009 June 2009 Sept. 2009 resp. April 2011 (with P 3M A2RsB-5200)

c) Preconditions for the resettlement Precondition for the planned opencast mine development is the resettlement of the village of Hade because the mine will be developed starting from the existing northern rim slope of Bardh / Mirash (with long bench). After having started the detailed project work the Consultant expressed their concerns that the complete resettlement of Hade will be accomplished in time and made clear that considerable financial means have to be made available for a timely resettlement. This issue was discussed with the responsible authorities including the Ministry for Energy and Mining. Resulting from this discussion a decision was made to require the timely resettlement of Hade for the Main Mine Plan work. Following this, the resettlement including the deconstruction and removal of the building foundations has to be finished until 2010. This also includes the acquisition of land by KEK.

6.2 General Remarks on Mine Development The mine development bases on the prepared geological model. It aims at mining the saleable product raw coal at most favourable costs. That means that essential changes of the targets and premises will lead also to corresponding changes in the mining concept and costs. The overburden removal operation ensures the uncovering of the necessary coal quantities for the supply to the power plant having regard to the geotechnical safety requirements (see chapter: soil mechanical parameters). It is agreed that the necessary resources will be made available, such as: • Qualified employees in the respective trades and • Sufficient financial means for the investment and maintenance Furthermore, it is assumed that all permits for the operation will be available in time. With regard to the mining technology, the present mining of the deposit will be continued whereby available equipment and a part of the KEK plants will be used to a great extent. The following items regarding mining operation as for example: • Employment of labour / organisation • Auxiliary equipment • Drainage • Resettlement and • Recultivation are described in separate chapters.

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Dumping of power plant ash in the mines lies in the responsibility of the power plants and is not included within the framework of this Main Mining Plan for New Sibovc Mine.

6.3 Technological Equipment Parameter The basic technology is among others determined by the constructive parameters of the available large opencast mine equipment. Furthermore, the construction data of the new bucket wheel excavator for overburden removal have to be taken into account. Based on the preliminary investigations, an excavator of the size 40,000 bcm/d with 30 -35 m cutting height seems to be technically and economically reasonable. For planning purposes the following parameters are used: Tab. 6.3-1 Type

Basic Geometry of the Bucket Wheel Excavators Length of Width of Height of Bucket machine machine machine wheel diameter

SchRs 650 (E 9M, E10M) SRs 1300.24 (E8B, E9B and E10B) SRs 1300.26 (E 8M) New BWE Tab. 6.3-2 Type

m 141

m 24

M 36

m 10.56

Mid of bucket wheel to mid of excavator m 36

125

22

32

9

36.5

82.5

135

22

32

9

36.96

92

ca. 150

ca. 25

ca. 40

ca. 12

ca. 44

ca. 100

Cutting Heights and block Width of Excavators Max. Max. cutting height cutting depth m

m

Mid of excavator to mid of discharge chute m 90

Block width m

45 1) SchRs 650 28 5 (E 9M, E10M) SRs 1300.24 26 (24) 5 37 (E8B, E9B and E10B) 37 / 45 SRs 1300.26 26 5 New BWE ca. 32 ca. 3 (5) ca. 43 1) 1) in case of shifting operation /reconstruction of belt conveyor every 2 blocks

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Tab. 6.3-3 Type

Maximum Inclination of working Levels and Curve Radii of Excavators Smallest curve Max. Max. cross incliAdmissible incliradius longitudinal incli- nation nation for transnation port m -

SchRs 650 (E 9M, E10M) SRs 1300.24 (E8B, E9B and E10B) SRs 1300.26

60

1 : 25

1 : 25 1)

1 : 20

80

1 : 33 1: 20

1 : 20 or 1 : 33

1 : 20

80 ca. 80

1: 20 or 1 : 33 1: 20 or 1 : 33

1 : 20

New BWE

1 : 33 1 : 20 1 : 33 1 : 20

or equivalent

1 : 20 1)

as resulting inclination

6.4 Capability / Capacity Calculation for MME 6.4.1 Capability of Excavators The capacity calculation and/or assessment of excavator capacities bases on the estimation of the principle capability of the equipment under the conditions of the Sibovc deposit, whereby a tolerance range is taken into account (lower and upper limit). The mass movements (especially overburden) resulting from the determined coal supplies are then compared with this capability in order to show the feasibility. All relevant influencing parameters are considered when determining the overburden and coal capacities. These influencing parameters are split into two columns: Firstly, the influencing factors, which determine the filling and the emptying of the excavator buckets. Resulting from this the load factor (and/or excavator effect) is yielded and the hourly capacity and Secondly, the time factors [time factor ΡT], which determined the annual output capacity. The following scheme gives an overview over the calculation method.

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Princple Calculation Scheme of effective Capacity of Tb = TbA - Ts

VE = Ve * Tb

Tb = TbA * EtaTA Ve = Vth * EtaB

EtaB = fbu * fload

Subdivision of T

b

Tb = Tk - Tp -Ts

or

Tb = Tk * EtaT

or

Ve = Vtheo * fload

Vtheo = Vth * fbu

Vth = Vbu * nbu* 60

Ts = Tb * s Ts = TbA * sA

TbA = Tk -Tp Tb =Tb1+Tb2+Tb3+Tb4

T b1

planned

not plan ned

High Cut

Tp = Tp1 +Tp2 +Tp3

T b2

Ts = Ts1 +Ts2 +Ts3+Ts4+Ts5

Deep Cut

T p1 Working time r egime (shift use)

T b3 special oper ation (reduced perfor mance)

T p2

T b4 double r emoved masses

Tran sport

T p3 Planned Maint e nance

Fig. 6.4-1

Principle Capacity Calculation Method

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T s1 technical breakdowns on BWE T s2 standstill, operational reasons on BWE T s3 standstill caused by conveyor sy stem T s4 standstill by mining system / Environm. T s5 other stan dstills


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

First column: The load factor â&#x20AC;&#x201C; Expression of the hourly capacity Basis of the calculation is the theoretical capacity level of the single machines which is determined by the construction/mechanical engineering.. This theoretical digging capacity (Vth in lcm/h) is determined from the bucket size (Vbu) and the bucket discharges (nd). In most cases, the manufacturer specifies it as round value and it includes a volume portion of the cell space of the bucket wheel. The theoretical digging capacity (Vth in lcm/h and Vtheo in bcm/h or t/h)

Vth = Vbu x nd x 60 Tab. 6.4-1 Typ

Theoretical Digging Capacity in lcm/h Volume Number Rotation of of Bucket buckets buckets wheel

Vbu lcm

nbu -

Ubu 1 / min

Number of bucket discharges nd 1 / min

Calculated theoretical digging Capacity Vth(calc) lcm/h

Theoretical Capacity according documentation Vth lcm/h

SchRs 650 (E 9M, E10M) SRs 1300.24 (E8B, E9B and E10B) original currently SRs 1300.26 original currently New BWE

0.65

21

5.15

108

4212

4212

0.52

18

128.6

4011

4000

0.52 0.52 0.52 1.3

21 23 23 18 - 21

7.14 /5.857 7.5 5.857 7.5 ca. 4.28

157.5 134.7 172.5 ca. 77

4914 4203 5382 6000

Comparison: SRs 1300.24 Germany

0.63

14

6.5

91

3440

4200 6000

3500

The mineable solid and compact masses are of special practical interest. In order to take this into account the loosening of the excavated material (overburden or coal) inside the digging tool has to be considered. This value mainly depends from the excavated material itself and to a certain extent from the form of the cut (kind of excavation) and the bucket form. For the conditions in Sibovc the following can be applied: Tab. 6.4-2 Type

SchRs 650 (E9M,E10M)

SRs 1300.24

Theoretical Capacity of Excavators in bcm/h resp. t/h Material Theoretical loosening loosening (transport digging in bucket /dumping) Capacity Vth fd fbu lcm/h lcm/bcm lcm/bcm (1.4) Overburden 4212 1.55 (Clay) (1.52-1.55) Coal 1.7 (1.4) Overburden 4000 1.55 Page 97 of 257

Theoretical Capacity Vtheo bcm/h 2700

t/h 2800

2580


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

(E8B,E9B,E10B)

SRs 1300.26 (E 8M) New BWE

Comparison: SRs1300 Germany

(Clay) Coal Overburden (Clay) Coal Overburden Coal

4200 ca.6000

Overburden

3500

Coal

3500

(1.52-1.55) (1.4) (1.52-1.55) (1.4) (1.52-1.55) (1.4)

1.7 1.55

2680 2700

1.7 1.55

2800 ca. 3900

1.7

1.55

ca. 4000

2260

(1.52-1.55) 1.7 2350 Please note: the loosening factors vary and cannot be calculated safely. Therefore the theoretical capacity (in bcm/h or t/h) is a round value.

The effective capacity Ve

Ve = Vth x fbu x fload Ve = Vtheo x fload Considerations of the effective capacity focus on the present capacity level for reasons of comparison. It has to be born in mind when considering these figures that the previously realised capacities were negatively influenced by the insufficient technical status and the inadequate organisation and lack of motivation. This capacity level which is considered too low shall be raised step-by-step by means of implementing several measures. This should already be performed within the period of the mid term plan (see study). One example for the reduced capacity was the fact that excavation was not continuously carried out in full block operation (partly due to instable and failing slopes). Moreover, the discharging system (belt conveyor and spreader) cut down the possible excavator capacity. Further reductions were caused by the excavation of slide masses. Before their use in Sibovc, all machines will be refurbished. This measure aims at improving the realisable load factor directly. The human factor has a decisive influence on the actual result (effective capacity). In order to allow for this fact and the specific conditions, a minimum and a maximum bucket filling (loading factor) is indicated. Tab. 6.4-3 Type

Effective Capacity of Excavators - Overburden Theoretical Validity Capacity

Vtheo SchRs 650

bcm/h 2700 bcm/h

SRs 1300.24

2580 bcm/h

Currently Plan Mid term Min MMP Max MMP Currently (2004) Page 98 of 257

Load factor

Effective Capacity *

fload

Ve

% 23% 27% 30% 37% 18%

bcm/h 615 bcm/h 740 bcm/h 800 bcm/h 1000 bcm/h 470 bcm/h


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

(E8B,E9B,E10B)

2700 bcm/h

SRs 1300.26

Plan Mid term Min MMP Max MMP Currently

22% 27% 33% 15%

575 bcm/h 700 bcm/h 850 bcm/h 400 bcm/h

Plan Mid term Min MMP Max MMP Min MMP Max MMP

21% 26% 31% 40% 50%

575 bcm/h 700 bcm/h 850 bcm/h 1560 bcm/h 1950 bcm/h

Average* Max

53% 66%

1200 bcm/h 1500 bcm/h * round values

(E 8M)

New BWE

3900 bcm/h

Comparison SRs 1300 Germany

2260 bcm/h

The comparison with bucket wheel excavators in Germany reveals that further capacity increases would be possible in case of good working conditions. This cannot be assumed for the conditions in Kosovo within the period under review. Additionally, a relatively high portion of ramp excavation is to be accomplished in Sibovc which lowers the excavator effects. It was considered that selective mining / quality management will slightly reduce the excavator effect in the coal operation. Tab. 6.4-4 Type

Effective Capacity for Excavator - Coal Theoretical Capacity Validity

Vtheo

-

Load factor

Effective Capacity

fload

Ve

% 43% 54% 37%

t/h 1200 t/h 1500 t/h 1000 t/h

SchRs 650

t/h 2800 t/h

SRs 1300.24

2680 t/h

Min MMP Max MMP Min MMP

2800 t/h

Max MMP Min MMP

45% 36%

1200 t/h 1000 t/h

Max MMP

43%

1200 t/h

Average Max

76% 89 %

1800 t/h 2100 t/h

(E8B,E9B,E10B)

SRs 1300.26 (E 8M)

Comparison SRs 1300 Germany

2350 t/h

The human factor plays an important role for the loading factor. For the long-term planning it is assumed that • qualified / experiences personnel is employed • the personnel is better motivated than presently and • losses due to missing spare parts or bad work organisation will be reduced

Page 99 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Second column: Time factor The annual capacity (VE) achievable is determined by the actual operating hours (Tb) depending primarily on the chosen operation regime (planned working and maintenance time) and the unscheduled stops (down-times).

VE = Ve x Tb VE = Ve x Tk x ηT Tk = Tb + Ts + Tp VE = Ve x (Tk-Tp) x ηTA The table below which contains the range of planned operating time assumes the following premises: The calendar time of 8,760 h per year is assumed as potential working time • a 3-weeks general repair is scheduled • per working week, two shifts are reserved for short maintenance / inspection / function tests and shifting operation • Unscheduled stops/accidents are taken into account with 5% - 7% of the possible working time (Tk – Tp) • Handing over of shifts is performed on the equipment It is furthermore differentiated between a so-called normal and maximum capacity. This enables consideration of influencing factors like: • Meteorological conditions (stop due to fog, continuous rain, extreme freeze and wind) • Utilization of shift working time (usual rate is 80% -90%) • Time needed for auxiliary works / smaller shifting operations and transports • Human factor (efforts of personnel / work organisation) and • Reserve time. All these influences are also taken into account for the so-called maximum capacities. In case of a lot of unfavourable factors occurring exceptionally in one year, the achievable operating time reduces towards the normal value.

Page 100 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

The following table includes the absolute efficient working time: Tab. 6.4-5

Validity

Planned Working Time Tb of single Equipment

Calendar time Tk h 24

Normal-daily capacity Maximum daily capacity Normal weekly 168 capacity Maximum weekly capacity 730 Normal monthly capacity Maximum monthly capacity Normal annual 8760 capacity Maximum annual capacity

Avail able work ing time TbA h 24

Downtimes (additional)

Operating time

Temporal rate of utilization

Tadd h 4.8

Tb h 19.2

ΡT % 80

24

2.4

21.6

90

110.4

65.7

128.2

76.3

385

52.7

134.4 24 151.2 23

480

95

557

73

4620

354

5808

334

Function tests, shift change Smaller down-times Reserve Like daily, otherwise additional: 2 * 8 h/week for repair / maintenance or reserve and 7% / 5% unscheduled down-time as week but in addition: shifting/

reconstruction belt con- 484 veyors, shifting, meteorology (6d / 4d) In addition: 4266 3x7 d general repair and 1x7 d reserve in normal 5474 case

Page 101 of 257

66.3

48.7 62.5


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Basing on the above mentioned down-times /operating times the following normal- and maximum capacities result for the planning of Sibovc: Tab. 6.4-6

Normal Capacity and maximum Capacity - Overburden

1) Normal daily capacity Maximum daily capacity Normal weekly capacity Maximum weekly capacity Normal monthly capacity Maximum monthly capacity Normal annual capacity Maximum annual capacity

Operating VE time new BWE with 1560 bcm/h Tb VE 1,000 bcm h 19.2 29.95

with: 1950 bcm/h VE

VE SchRs 650 with: 800 bcm/h VE

with: 1,000 bcm/h VE

VE SRs 1300 with: 700 bcm/h VE

with: 850 bcm/h VE

1,000 bcm

1,000 bcm

1,000 bcm

1,000 bcm

1,000 bcm

37.44

15.36

19.2

13.44

16.32

21.6

33.70

42.12

17.28

21.6

15.12

18.36

110.4

172

215

88

110

77

94

128.2

200

250

102

128

89

109

385

600

750

308

385

270

327

484

755

944

387

484

338

411

4,266

6655

8318

3413

4266

2986

3626

5,474

8540

10670

4380

5474

3832

4653

1) after Refurbishment

There is only a low interdependence between the systems due to the relatively low number of machines and the mine development planned in detail resulting in a very low reduction the overall of capacity (low system interdependence).

Page 102 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

The long-term planned overall capacity for the overburden operation is show in the below table: Tab. 6.4-7

Capability of Bucket Wheel Excavators in Overburden Operation

Reliable assumption VE m bcm/a 3.6 3.6 8.3 4.3 19.8

SRs 1300 SRs 1300 New BWE SchRs 650 SUM

Maximum assumption In 4.6 4.6 10.6 5.4 25.2

The listed equipment is therefore in principle capable of meeting the required coal supply of 19.1 to 24.8 mt per year (Ratio Overburden to Coal is 1.17 mÂł:1 t).

Capability of coal operation Tab. 6.4-8

Capability of Excavators in Coal Operation

Operating time

1) Normal daily capacity Maximum daily capacity Normal weekly capacity Maximum weekly capacity Normal monthly capacity Maximum monthly capacity Normal annual capacity Maximum annual capacity

1200 t/h VE 1000 t 23.0

SchRs 650 with 1200 t/h VE 1000 t 23.0

1500 t/h VE 1000 t 28.8

3* SRs 1300 SchRs 650 min VE 1000 t 80

21.6

25.9

25.9

32.4

90

110

110.4

110

132

132

165

462

561

128.2

128

153

153

192

537

651

385

385

462

462

577

1617

1963

484

484

580

580

726

2032

2466

4266

4260

5120

5120

6399

17900

21759

5474

5470

6560

6560

8211

22970

27891

Tb h 19.2

SRs 1300 with: 1000 t/h VE 1000 t 19.2

21.6

Page 103 of 257

and 1* max VE 1000 t 97.8


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

When using three excavators in the coal operation with capacities of excavators of the type S SRs 1300 and one excavator of the type SchRs 650 it would be theoretically possible to extract up to 27.9 m t coal and 25 mt, respectively, when taking into account inter-dependencies. This means that one excavator has to be purchased because only three bucket wheel excavators from the Mirash / Bardh mine are available for the coal operation in Sibovc. This can be other SRs 1300 or an excavator like the SchRs 650. Only three coal excavators would not meet the demanded capacity and in case of an accident in the coal operation reduced output would result for a limited period. The alternative deployment of an available excavator of the type SRs 400 as a fourth machine would not fill this gap. [Reason: The annual output capacity of such an excavator of the SRs 400 type is under the given conditions between 2.6 to 3.3 m t/a. Calculation: Vth = 2600 lcm/h Vtheo = 1530 t/h fload = 0.4 Ve = 612 t/h Tb = 4266 – 5474 h/a VE = 2.6 – 3.3 mt/a The before mentioned data are annual specifications which are only valid if the supply in every single week would be guaranteed. Reduced supplies of coal even in such small units of time like weeks will inevitably result in losses of the annual output capacity. The variations in the output during the year shall be taken into account for the entire system. The more uneven the possible coal supply to the consumers, the more unscheduled additional stops will occur. Comparisons with other brown coal districts show that further approximately 10-15% which will be lost. That applies to normal basic load operation without unusual requirements to the quality management. This is accepted for Sibovc. The following results for the pit system (up to the place of delivery power station) as nominal capacity: Tab. 6.4-9

Nominal Capacity of the Pit System

Reliable assumption VE m t/a SchRs 650 SRs 1300 SRs 1300 New SchRs 650 /SRs 1300 SUM

5.9 5.0 5.0 5.0 20.9

Maximum assumption in 7.3 5.9 5.9 5.9 25.0

Page 104 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

6.4.2 Capability of Belt Conveyors The conveying capacity is assessed on the basis of: • Belt width • Belt troughing • Belt speed • Utilization ratio of belt width • Inclination and • Bulk density of material The capability of the belt conveyor with a belt troughing of 36° is determined according to the following relation:

me = V e x ρ l Ve = A x vc x fi x 3600 Ve = we* x we x (390 + 725* tan φ) x vc x fi we = 0.9 x wc - 0.05 ρl … density of the conveyed material, loose Ve …effective conveying capacity on the belt A … bulk surface of the conveyed material vc …speed of the belt conveyor fi … factor considering belt inclination we …effective belt width wc …belt width φ …. angle of repose

in t/lcm in lcm/h in m² in m/s in m in m in °

Density and maximum belt inclination for the conveyed material: Tab. 6.4-10

Bulk Density, Angle of Repose and Inclination of Belt Conveyor

Material Overburden, dry Overburden, wet Coal

Bulk density t/lcm 1.6 – 1.7 1.7 – 1.8 0.75

Angle of repose ° 15 4 15

Page 105 of 257

Maximum inclination ° 17 10 - 15 18 - 20


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Tab. 6.4-11

Factor fi for Considering the Inclination

Inclination βc fi

0° 1

12° 0.97

15° 0.93

18° 0.89

20° 0.85

22° 0.84

25° 0.78

Example for determining capacity of the 1,800 mm belt conveyor: Effective belt width we = 0.9 x 1.8m + 0.5 = 1.57 m Vc … 5.24 m/s φ … 15° conveying capacity (φ = 15°) Ve = 1.572 x (390+725 tan 15°) x 5.24 fi = 7546 x fi lm³/h conveying capacity (φ = 4°) Ve = 1.572 x (390+725 tan 4°) x 5.24 fi = 5692 x fi lm³/h conveying capacity (φ = 0°) Ve = 1.572 x (390+725 tan 0°) x 5.24 fi = 5037 x fi lm³/h Summarizing, the following results for a 1.8 m belt conveyor at 36° belt troughing angle considering the bench inclination: Tab. 6.4-12

Possible Conveying Capacity for the 1.8 m Belt Conveyor, loose

Angle of repose φ ° 0°

Bulk surface

Belt inclination

A m² 0.2670

0.3017

10°

0.3545

15°

0.4000

βc ° 0° 10° 15° 0° 10° 15° 0° 10° 15° 0° 10° 15°

Factor Conveying capacity, loose fi 1.00 0.98 0.93 1.00 0.98 0.93 1.00 0.98 0.93 1.00 0.98 0.93

Belt speed 1.00 m/s 961.311 1086.274 1276.417 1440.150

in vc 5.24 m/s 5,037 4,936 4,684 5,692 5,578 5,293 6,688 6,554 6,220 7,546 7,395 7,018

lcm/h 5.85 m/s 5,624 5,511 5,230 6,355 6,228 5,910 7,467 7,318 6,944 8,424 8,255 7,834

6.55 m/s 6,296 6,170 5,855 7,115 6,973 6,617 8,360 8,193 7,775 9,433 9,244 8,772

To illustrate the conveying capacity in bank condition, the loosening factor 1.4 lcm/bcm is considered for the overburden in Sibovc:

Page 106 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Tab. 6.4-13

Eff. Conv Capacity Ve in bcm/h of the 1.8 m Belt Conveyor (Overburden)

Angle of repose φ ° 0°

Bulk surface

Belt inclination

A m² 0.2670

0.3017

10°

0.3545

15°

0.4000

βc ° 0° 10° 15° 0° 10° 15° 0° 10° 15° 0° 10° 15°

Tab. 6.4-14

Factor Conveying capacity, loose fi 1.00 0.98 0.93 1.00 0.98 0.93 1.00 0.98 0.93 1.00 0.98 0.93

Belt speed 1.00 m/s 961.311 1086.274 1276.417 1440.150

in vc 5.24 m/s 3,598 3,526 3,346 4,066 3,984 3,781 4,777 4,681 4,443 5,390 5,282 5,013

bcm/h 5.85 m/s 4,017 3,936 3,736 4,539 4,448 4,221 5,333 5,227 4,960 6,017 5,896 5,596

6.55 m/s 4,497 4,407 4,182 5,082 4,981 4,726 5,971 5,852 5,554 6,739 6,603 6,266

Possible Conveying Capacity for the 2.0 m Belt Conveyor, loose

Angle of repose φ °

Bulk surface

Belt inclination

Factor Conveying capacity, loose

A m²

βc °

fi -

Belt speed 1.00 m/s

vc 5.24 m/s

5.85 m/s

6.55 m/s

0.3318 0.4970

1.00 0.98 0.93 1.00 0.98 0.93

1194.375

15°

0° 10° 15° 0° 10° 15°

6,258 6,133 5,820 9,376 9,188 8,720

6,987 6,847 6,498 10,467 10,258 9,734

7,823 7,666 7,275 11,720 11,485 10,900

1789.306

Page 107 of 257

in

lcm/h


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Tab. 6.4-15

Eff. Conv. Capacity Ve of the 2.0 m Overburden Belt Conveyor in bcm/h

Angle of repose φ °

Bulk surface

Belt inclination

Factor Conveying capacity, loose

A m²

βc °

fi -

Belt speed 1.00 m/s

vc 5.24 m/s

5.85 m/s

6.55 m/s

0.3318 0.4970

1.00 0.98 0.93 1.00 0.98 0.93

853.125

15°

0° 10° 15° 0° 10° 15°

4,470 4,381 4,157 6,697 6,563 6,228

4,991 4,891 4,641 7,476 7,327 6,953

5,588 5,476 5,196 8,371 8,203 7,786

1278.076

in

bcm/h

Coal – belt conveyors: Belt width: 1.8 m Angle of repose φ = 15° Ve = 1.572 x (390+725 tan 15°) x 5.24 fi Ve = 1440.15 x 5.24 x fi = 7,546 x fi in lcm/h me = ρl x Ve ρf = 1.14 t/bcm ρl = 0.75 t/lcm loosening factor log-distance belt conveyor: fl = ρf / ρl = 1.52 lcm/bcm me = 7,546 x fi x 0.75 [t/h] me = 5,660 x fi [t/h] A horizontally positioned 1.8 m belt conveyor is capable of conveying approximately 5,660 t/h with a belt speed of 5.24 m/s. This means that two coal excavators can charge on head belt conveyor. In case of a speed of 5.85 m/s the conveying capacity will increase to 6,318 t/h and in case of a speed of 6.55 m/s to 7,075 t/h. Considering the inclination the following results: Tab. 6.4-16

Conveying Quantity of a 1.8 m Coal Conveyor in t/h

Angle of repose φ °

Bulk surface

Belt inclination

Factor Conveying quantity me

A m²

βc °

fi -

Belt speed 1.00 m/s

vc 5.24 m/s

5.85 m/s

6.55 m/s

15°

0.4000

0° 10° 12° 20°

1.00 0.98 0.97 0.85

1080.112

5,660 5,547 5,490 4,811

6,318 6,191 6,128 5,370

7,075 6,933 6,862 6,014

Page 108 of 257

in

t/h


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Tab. 6.4-17

Conveying Quantity of a 2.0 m Coal Belt Conveyor (wc = 1.75 m) in t/h

Angle of repose φ °

Bulk surface

Belt inclination

Factor Conveying quantity me

A m²

βc °

fi -

Belt speed 1.00 m/s

vc 5.24 m/s

5.85 m/s

6.55 m/s

15°

0.4970

0° 10° 12° 20°

1.00 0.98 0.97 0.85

1341.980

7,032 6,891 6,821 5,977

7,850 7,693 7,614 6,672

8,790 8,614 8,526 7,471

in

t/h

Coal – inclined belt conveyor The inclined coal belt conveyor is planned with an inclination of 1:6, i.e. about 10°. According to the belt speed, a 2.0 m wide belt conveyor can handle between 6,900 and 8,600 t/h coal per single conveyor. For a 1.8 m wide belt conveyor this would amount to 5,500 t/h to 6,900 t/h. Relations coal production to capability of long-distance belt conveyor: If all coal excavators would operate simultaneously with a capacity of 1,200 t/h this would result in a production of 4,800 t/h. Considering the unequal belt charge of all pit excavators of 25-30 % there follows a necessary effective total belt capacity of 6,240 t/h. This requirement is met by one single 1.8m belt conveyor with a belt speed of 6.55 m/s. Two long-distance belt conveyors lead to the power plants. Head belt conveyor: Two coal excavators charge the coal to one head belt conveyor. Calculating the short-term peak load (< 1h) of one single coal excavator with a Vth von ca.4,000 lcm/h and an addition of 25% there results the dimension of the discharging belt conveyor of ca. 5,000 lcm/h. Two excavators shall have the following size: 8000 lcm/h x 1.1 = 8,800 lcm/h or 6600 t/h for one belt conveyor line. This can also be met with a 1.8 m belt conveyor with a belt speed of 6.55 m/s.

6.4.3 Capability of Spreaders In principle there shall be a conveying reserve of 25% between belt conveyor and excavator and 10% between belt conveyor and spreader. Except the new A2Rs B 8000, the available spreaders will be used for saving costs. These spreaders are the bottleneck in the conveying chain. Measures to stabilise / increase the capability should therefore be included in the refurbishment.

Page 109 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Tab. 6.4-18

Comparison of possible Volume Streams

Vth 1)

planned Ve (> 1 d)

E 8M SRs 1300

lcm/h 4,200

bcm/h 850

lcm/h 1,300

Ve peak, estimated (15 min) lcm/h 4,000

E 9B SRs 1300

4,000

850

1,300

4,000

new BWE

6,000

1,950

2,960

6,000

E 9M SchRs 650

4,212

1,000

1,530

4,200

Volume Stream of Excavator

Belt System 1800 mm 1800 mm 2000 mm 1800 mm

Volume Stream of Belts 2)

Spreader

lcm/h 4,684 – 7,546 4,684 – 7,546 5,820 – 8,720 4,684 – 7,546

Nominal Capacity Spreader 1) lcm/h

P 4M

5,200

P 1B

5,000

new A2RsB

8,000

P 3M

5,200

1) Nominal capacity 2) With 5.24 m/s. Depends on inclination of belt and bulk material. Misalignment of belt reduces capacity additionally.

6.5 Mine Planning 6.5.1 Follow-up to mining in Bardh/ Mirash The planning was made to directly follow up mining operations of Bardh/ Mirash. The Mid Term Plan includes: Tab. 6.5-1

Overburden and Coal Output in Mirash / Bardh Overburden [ mbcm ]

thereof

Coal [ mt ]

thereof

thereof

Advance Widening Widening total Slope North South

Bardh

Mirash

Southeast (Reserve)

6.9

2.0

4.9

0.5

2.6

7.1

0.35

6.78

2.4

1.4

7.4

1.36

6.04

3.2

3.2

0.8

8.7

3.45

5.25

0.5

2.1

-

-

7.9

3.08

4.85

-

0.8

0.8

-

-

3.2

0.28

2.91

-

-

-

-

-

-

2.5

-

2.51

56.8

31.1

25.7

41.4

8.7

6.7

43.7

10.5

33.2

total

Bardh

Mirash

2005

14.4

6.9

7.5

12.0

0.5

1.9

2006

18.2

9.0

9.2

13.0

2.6

2007

14.1

7.9

6.2

10.3

2008

7.2

5.7

1.5

2009

2.1

1.6

2010

0.8

2011

total

Page 110 of 257

0.5


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

6.5.2 Excavation Boundary/ Boundary Line The following was taken into consideration when the excavation boundary (upper edge of first level) was established: a) Course of concession line b) Permissible approach to villages c) Thickness of mineable coal seam at the boundary d) Necessary general inclination from geotechnical point of view e) Necessary minimum profile from technological point of view f) Requirements to bench lengths which are meaningful from technological point of view g) Ecological aspects Altogether the excavation boundary or the technological depletion boundary represents a compromise between the criteria mentioned above. The following applies to the single criteria: For a) Concession line The partial field of Sibovc has already been foreseen for excavation. This area is defined by a limitation line. The limitation of the excavation area planned in the Main Mine Plan is within this area. For b) Approach to villages The relocation of villages within this field has already been taken into consideration As for villages at the edge of the future opencast mine minimum distances of 100 m to the residential buildings have been kept. This applies to buildings for which a building permit is available and which have been entered in the available maps. Near the village of Shipitulle little coal losses have been accepted to keep the infrastructure. The same applies to the southern part of the eastern boundary line. The viability of the village of Palaj has been kept. For c) Thickness of mineable coal seam at the boundary The coal seam takes a V form towards the edge so that the horizontal distance, e.g. at the western boundary line between 20 and 50 m seam thickness, is merely 100 to 200 m. Insofar the margin for selecting the boundary line is relatively small. Nevertheless, when it comes to a decision between a possibly complete use of the geological deposit and the economic aspects we recommend using the isoline of 20 m coal thickness. This value was used for planning in Sibovc. In addition to that it has been taken into consideration that belt lengthening or shortening is not always necessary and the head conveyors with a straight position can be constructed with a justifiable number of single conveyors.

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For d) Geotechnical safety All slope systems comply with the requirements regarding the stability required from a geotechnical point of view. i.e.: • general inclination / overburden system < 10° • overburden (single slope) < 45° (few exceptions) • general inclination / coal < 22° • coal (single slope) < 75° to 20m or < 70° to 25m To e) Requirements regarding the bench length There are requirements regarding the spontaneous ignition of coal slopes that are there for too long a time as well as the manageable belt length of the belt conveyor systems. The chosen form of excavation complies with the requirements necessary regarding the bench lengths. This statement applies to the planned excavation output of the opencast mine. Spontaneous ignition of coal slopes: In the coal slope there is the danger of spontaneous ignition in case the lifetime of a coal slope is too long (much longer than 3 months). This danger is not to be expected for the planned parameters for the active coal levels. This can be explained by the example of the first coal level: The bench length of the first, i.e. the longest, coal level is between 2.7 and 3.2 km (mostly about 2.9 km). In the most unfavourable case the following applies when a 20 m slope is used: • Cut height: 20 m • Block width: 37 m • Volume for 1 block: 2.368 m m³ = 20m x 37m x 3200m • Coal content: 2.70 mt/block = 2.368 m m³ x 1.14 t/m³ • Annual output: 19.11 mt/a • Number of blocks per year: 7.078 blocks per year = 19.11 mt / 2.7 mt • Time of excavation: 1.7 months = 12 months / 7.078 Therefore in the most unfavourable case a block circle takes 1.7 months or 7.35 weeks. In such a time period no spontaneous ignition will develop in the coal seam (with stable slopes). Moreover the block width can be reduced up to 20 m without any considerable output losses. Then the time necessary for one block circle is merely 1 month (by calculation 0.92). In the normal case the excavation time is much shorter because: • the coal levels 2 to 4 have a shorter bench length than the upper first coal level • the coal levels are somewhat shorter on average • the thickness is not always 20 m • the annual output is partly higher than 19.11 m t/a Annual mine advance: In relation to the whole deposit the annual mine advance is 100 to 150 m. (Rough calculation for better understanding: 800 mt / 19 mt/a = 42 a Total mine advance over the deposit for ca. 800 mt: 5,000 m 5,000 m / 42 a = 120 m/a) Page 112 of 257


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In the first three decades of mining the advance is ca. 110 m/a. When the geotechnical specifications of the slope design are followed, there is then no noteworthy danger of a spontaneous ignition for the normal side slope in the selected parallel operation. As far as the geotechnical specifications for slope design are kept, there is no relevant danger of spontaneous ignition for the normal side slope in the chosen parallel operation. For f) Ecological aspects It is recommended to consider the boundary line in the north of the deposit compared to the original boundary (see chapter 9). For g) Necessary minimum profile from technological point of view In addition to that minimum distances have been taken into consideration owing to the constructive dimensions of the excavation machines. The slope design is specified in the annexes: Schemes of Westbank Scheme of Westbank Part 1 (Annex 6.5-1): Part 1 is the scheme of the area with an overburden thickness of < 40 m. The head convey-ors for Overburden 1 and 2 are positioned on one level. The coal is up to the height of Overburden Level 3 so that there is a general inclination of 22o for the coal slope. Along the upper edges of the berms a drainage ditch and embankment are provided. Within the area of the belt conveyor system there is a sand-washed gravel road (4 m wide with passing places). Scheme of Westbank Part 2 (Annex 6.5-2): Part 2 is the scheme of the area with an overburden thickness of < 80 m. The head convey-ors for Overburden 1 and 2 are positioned on one level. The cut height of the single levels is increased by ramp excavation. Here, too, a drainage ditch and embankment are provided along the upper edges of the berms. The same applies to the sand-washed gravel road (4 m with passing places). Scheme of Westbank Part 3 (Annex 6.5-3): Part 3 is the scheme of the area with an overburden thickness of > 80 m. The cut height of the single levels is increased by ramp excavation. Overburden 1 and 2 are divided into two berms. Drainage ditch, embankment and sand-washed gravel road are also provided. Schemes of Eastbank Scheme of Eastbank Part 1 (Annex 6.5-4): Eastbank Part 1 is the scheme of the area with an overburden thickness of < 20 m and a coal thickness of 40 und 60 m. The head conveyor for Overburden 3 ends on the grass. The head conveyor for Overburden/Coal Level 4 positioned one level below is equipped with a distribution station above the inclined coal conveyor to distribute coal and overburden.. The head conveyors for Coal Level 1 and 2 run on separate benches. The Coal Levels 3 and 4 charge to one head conveyor. Page 113 of 257


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Along the upper edges of the berms a drainage ditch and embankment are provided. Within the area of the belt conveyor systems asphalt/concrete roads are provided (4 m wide with passing places). Scheme of Eastbank Part 2 (Annex 6.5-5): Eastbank Part 2 is the scheme of the area with an overburden thickness of 20…40 m and a coal thickness of 20…40 m. The head conveyors for Overburden 3 and 4 are placed on separate levels. The head conveyor for Overburden/Coal Level 4 is equipped with a distribution station above the inclined coal conveyor to distribute coal and overburden. The Coal Levels 1 and 2 come together on one bench. Therefore the coal is charged to one head conveyor. The Coal Levels 3 and 4 also charge to one head conveyor. Along the upper edges of the berms a drainage ditch and embankment are provided. Within the area of the belt conveyor systems asphalt/concrete roads are provided (4 m wide with passing places).

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6.5.3 Conveyor Belts

Fig. 6.5-1

Scheme of conveyor belts

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Type of conveyor belts For the planning of the Sibovc Main Mine Plan we chose belt conveyor systems with steel rope belts. They have the following advantages over textile belts: • long lifetime (> years) • less risk of misalignment • less wear and thus a better utilization time of conveying system Thus the disadvantage of the higher investment costs is compensated very well. The idler stations should be constructed of three parts. The troughing angle is 36°. Length of conveyor belts The belt lengths in the overburden area are from < 2 to max 3.5 km. Being in horizontal position, these belt lengths can be managed by one drive station. Nevertheless it is planned to divide the long benches using additional drive stations. Thus the system can be operated in a cost-efficient way from an energetic point of view because only one of the two parts of the belt conveyor system will be in operation almost half of the time. There will also be a higher flexibility.

6.5.4 Bench Design Position of benches The Sibovc field shows a varying thickness and a varying inclination of the bench and of the roof and floor of the seam. The benches must follow these inclinations with the least possible mining loss. Taking both the cut height and the capacity of the machines into consideration, 4 levels were provided for overburden removal with the 4th level (Overburden Level 4) provided as a mixed level for both overburden and coal mining. Coal mining is also implemented in 4 levels. Admissible inclination of benches The inclination possible to be managed by the machines is 1:33 for excavator operation. For the inclination of the benches inclinations of 1:40 were chosen in order to be able to follow the big inclinations of the terrain, roof and floor. This maximum inclination puts very high demands to keeping the heights of the benches which can only be achieved by continuous checks. In the direction of mining it is possible to achieve a greater decrease or increase of the bench using the step excavation which is used for moving the belt conveyor system. In the direction of the bench the inclination must always be kept. Taking inclination for water drainage into consideration The planned inclinations provide water drainage. The minimum inclination should not be less than 1:150. A drainage ditch must be provided on the benches and pump stations shall be provided in the deep positions of the benches. Slope heights

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For the machines SRs 1300 and SchRs 650 slope heights of ca. 20 m have been planned. The new BWE operates with an average slope height of about 25 m. Greater slope heights can be carried out using the ramp excavation und interim bench excavation (annex 6.5-8). During ramp excavation the main machine cuts a ramp of 8…10 m thickness above the level of the belt conveyor system. The loading unit continues to travel on the level of the belt conveyor system. The slope height above the ramp is 20 m. The ramp is excavated in a second block. During interim bench excavation the excavator is moved to the other side of the belt conveyor system (remove segments, remove belt and safeguard with soil for travelling of machine, travelling of machine, close belt conveyor system again). The excavator travels over a ramp to an auxiliary bench which can be positioned ca. 8 m below the bench. The loading unit remains on the level of the belt conveyor system.

6.5.5 Division of Cuts Terrain morphology There is a hilly area starting at the village of Hade immediately north of the Mirash mine stretching in northern direction up to Lajthisht in the east and Shipitulle in the west which is followed by a steep transition into a valley in the north with the main village of Sibovc. Another hill continues north of Sibovc. The eastern boundary line has an almost continuous small overburden thickness (20…40 m) which is favourable for the coal transport in the east. The western boundary line starts with a small overburden thickness (20 m) and reaches its maximum (90 m) near the village of Shipitulle. In this area the coal seam increases to ca. 20 m so that the coal reaches into the overburden levels. Mining development During the period under review until 2038 there will mostly be parallel operation with varying advance at the ends of the bench according to the shape of the field. Overburden Levels 2 and 3 will be operated in parallel until the end of the field is reached. For the Overburden Level 1 and for the coal levels a turning point will be established north of Lajthisht (after 2045). Then the excavation of the field can be completed by turning round clockwise. Truck and Shovel Operation position of Overburden Level 1 – Annex 6.5.-10 For establishing the two bench belt conveyor systems in the valley west of Hade a total of 2 m m³ of overburden must be removed of which 1.6 m m³ will be removed in 2007 and 0.4 m m³ in 2008. Operation position of Overburden 2, 3, 4, Coal 1, 2, 3, 4: For preparing the operation positions for the Sibovc field from the final positions of Bardh and Mirash a Truck and Shovel operation of 0.1 m m³ each is planned. This will make room for the first construction of the belt conveyor systems and the bench levelling necessary for this. Overburden above Overburden Level 1: From 2008 to 2030 there will be a total of ca.12.0 m m³ overburden above Level 1. If it will be removed in parallel to Level 1, a maximum of 0.76 m m³/year have to be excavated. If the excavation is designed constantly, ca. 0.5 m m³/year has Page 117 of 257


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to be excavated. Excavation and dumping will be carried out by Truck and Shovel. Dumping will be carried out within the area of the active dumping benches. In the beginning dumping will also be possible in the eastern part of the Mirash mine. Mine overburden: After the mine excavators and belt wagons have dumped the residual overburden of the mine (overburden and interburden) behind the belt conveyor system it will be excavated and transported by Truck and Shovel. This applies in particular for Levels 1 and 2. From Level 3 it might be possible to dump the overburden on the floor by removing it and dumping it twice. In Level 4 the residual overburden (interburden and underburden) will be dumped onto the floor in general. Overburden levels Overburden Level 1 (E8B SRs 1300) – Annex II/ 6.5-11 The first level starts at the village of Hade. The bench cannot follow the inclination of the valley west of Hade. Therefore the first level starts with two conveyors that will be constructed in a V shape at the valley side. The excavation is implemented in east-west direction. Overburden Level 1 will end in front of the valley with the village of Sibovc in 2032. Areas above Overburden Level 1 will be excavated using Truck and Shovel. Excavator E8B SRs 1300 will only be available from June 2009. Till then, excavators E9M SchRs 650 and E8M SRs 1300 will be used. E9M SchRs 650 will work in the overburden Level 1 within the period from April – July 2008 and transported afterwards to the Overburden/Coal Level 4. E8M SRs 1300 will work in the Overburden Level 1 from May 2008 to May 2009 and shifted to Coal Level 2 afterwards. Because of the higher digging forces as compared to E8B this excavator is better suited for working in the coal operation. Overburden Level 2 (E9B SRs 1300) – Annex II/ 6.5-12 West of Hade the bench ends on the grass and rises from here to the hill of Hade. Just as Level 1, Overburden Level 2 does also not reach the east boundary line. Excavation is implemented in east-west direction. Within the area of the west boundary line the bench will be brought together with Level 1 over a larger area so that both head conveyors can be positioned on one bench. The conveyors will only be separated at the rise of the hill of Shipitull. Overburden Level 2 also ends in front of the valley of Sibovc. Behind the valley there will be a new cut and the hilly area will be excavated. Areas above the possible cut height of Level 2 will be excavated using Truck and Shovel. Overburden Level 3 (new BWE) – Annex II/ 6.5-13 The entire bench is being excavated in the main overburden level. Discharge is carried out up to the village of Lajthisht in west-east direction. Parts of Overburden Level 3 end in the valley of Sibovc. From this time (after 2038) the direction of mining will be changed into east-west direction up to the end of the Sibovc field. Overburden/Coal Level 4 (E9M SchRs 650) – Annex II/6.5-14 The bench cannot follow the big changes of inclination of the seam roof. Therefore Level 4 is a mixed level for both overburden and coal. Thus the bench is as far below the coal roof as possible. The discharge is carried out in west-east direction during the entire operation time of the opencast mine. For the respective inclined coal conveyor a distribution drive station is set up above the inclined conveyor from which the coal can be charged to the inclined conveyor and Page 118 of 257


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the overburden to the overburden belt conveyor system and then to the spreader. The average share of coal is one third of the masses excavated on Level 4. Coal Levels Coal Level 1 (E10M SchRs 650) – Annex II/ 6.5-15 Level 1 is the main coal extraction level. Partly occurring roof overburden and interburden are dumped by the excavator behind the belt conveyor system and then discharged by Truck and Shovel. A band wagon BRs 1600 is necessary for dumping. The transport is carried out in west-east direction as is the case for all coal levels, and then via the head belt conveyor system to the inclined belt conveyors. From here the coal goes to the power plants. An old underground mine exists in the south-western part of the Sibovc field. This mine may affect the excavation process. The influences were considering the equipment parameters. Coal Level 2 (E8M SRs 1300) – Annex II/ 6.5-16 Level 2 starts the excavation on an independent bench. After an advance of 1100 m the bench is brought together with the one of Level 1 in the eastern area so that both belt conveyor systems on the head bench charge to one head conveyor. The overburden of the mine which was dumped by the excavator on a belt wagon BRs 1600 before will be discharged by Truck and Shovel as far as possible on Level 2, too. Coal Level 3 (E10M SRs 1300) – Annex II/ 6.5-17 In the eastern part of the deposit the bench goes near the floor. From about 2030 it will be necessary to remove and dump also the overburden of the floor in order to allow the course of the bench which also requires a belt wagon BRs 1600. The machines on Level 3 use the same belt conveyor system as Level 4. Coal Level 4 (new SRs 1300 or similar machine) – Annex II/ 6.5-18 Level 4 will mainly be positioned in the western part of the deposit. Because it does not spread so widely in the first years the excavation can also be carried out by the excavator of Level 3 which works in interim bench excavation. From 2016 the use of a new machine such as SRs 1300 or a similar machine will be necessary. The coal below the bench can be excavated in interim bench excavation. It is supposed that 70% of the coal can be excavated from below Level 4. After 2038 Coal Level 4 will be closed. Capacity compensation On the levels where the benches are brought together at the boundary line the machines can help each other if capacity is needed. This applies in particular to Overburden Levels 1 and 2, Coal Levels 1 and 2 as well as 3 and 4. Overburden Level 2 can be used to compensate the capacity distribution of the excavators regarding the varying thickness of the coal. Appropriate adaptations are possible for short- and medium-term planning.

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6.5.6 Mass Calculation On the basis of the topographic isoline maps, the existing borehole data submitted by KEK and the results of additional exploration measures a digital deposit model was prepared for the purpose of the computer-aided mass calculation. The technological mass calculation has been realised with MicroStation-Programs as well as specialised programs developed by Vattenfall on the basis of triangulation. The following data and criteria of mineability have been considered in the mass calculation: • • • •

Density of lignite 1.14 t/m³ Extraction of lignite from a thickness of at least 0.5 m Separate excavation of intercalations from a thickness of more than 0.5 m Consideration of a mining loss of 0.4 – 0.5 m at each strata boundary

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Tab. 6.5-2

Sector calculation of the entire field

Section

1

2

3

4

5

6

7

8

Sum

Overburden - Levels Coal - Levels OverburCoal OverCoal den burden 10³m³ 10³t 10³m³ 10³t Overburden Interburden Underburden Coal Sum Overburden Interburden Underburden Coal Sum Overburden Interburden Underburden Coal Sum Overburden Interburden Underburden Coal Sum Overburden Interburden Underburden Coal Sum Overburden Interburden Underburden Coal Sum Overburden Interburden Underburden Coal Sum Overburden Interburden Underburden Coal Sum Overburden Interburden Underburden Coal Sum

45,054 0 0 4 656 45,058 656 55,661 0 0 739 5,684 56,400 5,684 100,137 0 0 1,114 9,321 101,251 9,321 132,603 0 0 1 4,383 132,604 4,383 166,865 0 0 264 17,034 167,129 17,034 105,633 0 0 2,891 23,404 108,524 23,404 59,518 0 0 3,219 30,139 62,737 30,139 84,014 0 0 2,560 18,789 86,574 18,789 749,485 0 0 0 0 0 10,792 109,410 760,277 109,410

0 0 0 0 7 408 10 0 425 0 1,447 1,209 2,656 0 1,896 1,925

11,018 11,018

23,261 23,261

84,649 84,649

110,760 3,821 110,760 0 2,035 1,327 123,282 3,362 123,282 11 1,688 9,536 99,986 11,235 99,986 401 2,355 11,218 138,839 13,974 138,839 332 2,302 13,294 128,596 15,928 128,596 751 0 12,131 0 38,519 0 0 720,391 51,401 720,391

Page 121 of 257

Sum Overburden 10³m³ 45,054 0 0 4 45,058 55,668 408 10 739 56,825 100,137 1,447 1,209 1,114 103,907 132,603 1,896 1,925 1 136,425 166,865 2,035 1,327 264 170,491 105,644 1,688 9,536 2,891 119,759 59,919 2,355 11,218 3,219 76,711 84,346 2,302 13,294 2,560 102,502 750,236 12,131 38,519 10,792 811,678

Sum Coal

O :C

10³t

11,674 11,674

3.86 : 1

28,945 28,945

1.96 : 1

93,970 93,970

1.11 : 1

115,143 115.143

1.18 : 1

140.316 140.316

1.22 : 1

123.390 123.390

0.97 : 1

168,978 168,978

0.45 : 1

147,386 147,386

0.70 : 1

829,802 829,802

0.98 : 1


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Fig. 6.5-2

Scheme of working levels and equipment

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6.5.7 Overburden Removal 6.5.7.1 Excavation Head block advance The overburden excavators operate in head block advance. Excavator SRs 1300 is used as an example for explaining the excavation process. The excavator works with a block width of 37 m. A slope height of 20 m is possible when the necessary slope angle in the overburden of 45° is kept. After one block has been completely excavated, the excavator travels to another place and another block with a width of 37 m can be excavated. Afterwards the belt conveyor system will be moved by 74 m and the excavator starts a new cut (see figure).

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Fig. 6.5-3

Workscheme / overburden â&#x20AC;&#x201C; SRs 1300.24

Division of slices and slope design The division of slices is used to establish the slope angles of the working slope and side slope. Page 124 of 257


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The machine starts with the excavation of the top slice. The slice height of the top slice is 0.7 times the bucket wheel diameter. By moving the machine by the cutting depth each the slice is excavated cut by cut until the crawler has reached the foot of the working slope. The block length to be reached by this results from the dimensions of the machines, the slope angle and the cutting height. The excavator then travels back to the beginning of the slice positioned below and excavates with the same block length. The normal slices have a height of 0.5 times the bucket wheel diameter. The bottom slice is at the same time the level on which the excavator operates. For a more exact excavation of this level the slice height must be limited to 0.25 times the bucket wheel diameter and is to be excavated with the help of an instructor. Furthermore, the slice height of 0.25 dA improves the free-cut angle in the lowest slice, because in the lower part the width of the boom construction decreases and therefore the free-cut angle reduces, too.

Fig. 6.5-4

Free-cut angle horizontal view

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0.5d A

0.25d A

Fig. 6.5-5

Free-cut angle horizontal view

The side slope shall be carried out by various slewing operations of the bucket wheel boom during the excavation of the single slices. The top slice will be excavated to the maximum using an angle of 90°. The slewing angles will be calculated on the basis of the slope height, the single slice heights and the side slope angle and must be provided for a safe slope design. Excavator SRs 1300 is used as an example for the calculations. The parameters for the other excavators will then be specified accordingly. Slope calculations for bucket wheel excavator SRs 1300.24: Fixed values: Bucket wheel diameter Boom length Pivot point from axis Height of pivot point Half crawler length

9.0 37.56 2.04 12.09 12.5

m m m m m

= da = lR = lRA = hRA = 0.5 lRaup

Calculation of block length (slice advance) Slope angle 45 o =β Slope height 20 m = hBö Height of top slice 5.5 m = hS Foreland / crawler – BUK 2 m = vRaup

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lVS

vRa up Fig. 6.5-6

lVS

Scheme calculation of block length

lVS = lR ² − (hBö − hs + 0.5dA − hRA)² + lRA = 39m bBö = (hBö − hS + 0.5dA − w) / tan β − u + v = 18.7m u = 0.5dA(1 − sin β ) sin β = 1.74m w = 0.5dA(1 − cos β ) = 1.23m v = 0.5dA sin β

(horizontal boom length from excavator axle)

lVS = lRH + 0.5 dA - 0.5 lRaup - bBö - vRaup = 10 m

(Block length = slice advance)

(slope height)

Calculation of division of slices / side slope Free-cut angle / conveyor Free-cut angle / gear

48o 40o

= hS = hS

The Slewing angle must be greater than the Free-cut angle. If φ < α, the Slice height must be reduced to 0.25 da.

bS = hS / tan β

(slice width)

lRH = lR ² − (hrad − hRA)² + lRA ϕ = arcsin((lRH 1 − ∑(bS )) / lRHn)

(wheel boom / horizontal)

(slewing angle)

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Tab. 6.5-3

Division of slices / overburden – SRs 1300

Slice height hS

Height of wheel axle hRad

Slice width bS

6.3 m 4.5 m 4.5 m 2.4 m 2.3 m 20.0 m

18.2 13.7 9.2 6.8 4.5

4.5 4.5 2.4 2.3

Tab. 6.5-4

Slewing angle φ

39.1 39.57 39.49 39.23 38.8

90 61 50 45 41

Block length and division of slices / overburden SchRs 650

Machine parameters

Slope geometry Calculation

Wheel boom horizontal lRh

Bucket wheel diameter Boom length Pivot point from axis Height of pivot point Half crawler length Free-cut angle / conveyor Free-cut angle / gear

10.56 35.5 1.4 13.9 12.5 40 40

M M M M M o o o

Slope angle

45

max. slope height

23 M

Block length Slice height

= da = lR = lRA = hRA = 0.5 lRaup

11.0 M

=β = hBö max

= lVS

Slewing angle φ

7.4

90

o

5.0

59

o

5.0

47

o

2.6

42

o

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(= 0.25 da)

(= 0.25 dA) (= 0.25 dA)


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Tab. 6.5-5

Block length and divisions of slices –new BWE

Machine parameters Bucket wheel diameter Boom length Pivot point from axis Height of pivot point Half crawler length Free-cut angle / conveyor Free-cut angle / gear

Slope geometry Calculation

12.0 41.0 3.0 13.14 15.91 40 40

m m m m m

= da = lR = lRA = hRA = 0.5 lRaup

o o o

Slope angle

45

max. slope height

27 m

=β = hBö max

Block length

8 m

Slice height

Slewing angle φ

8.4

90

o

6.5

56

o

6.5

43

o

3.6

37

o

= lVS

( = 0.25 da)

6.5.7.2 Dumping To provide the stability of the dump slopes as a whole a minimum general inclination value must be kept (item 5.7). From a general inclination of 6° the slope starts to flow out. To provide sufficient safety a general inclination of < 5° is specified for planning purposes. In order to achieve a safety towards flowing-out of the cohesive soil for the single slopes, the heights of the single slopes have to be limited. The soil types of the Sibovc mine stand safely up to a slope height of 12 m with a stability of 1.0 with the assumed geophysical parameters taken into consideration. When the slopes are higher, “flowing-out” of the slope up to half the slope height with an inclination of 6…8o is possible. Therefore the slope geometry is designed as provided in Annex 6.5-9. The spreaders are positioned on the deep dumping side where they can provide a sufficient foreland for the deep dumping. In the high cut slope a “flowing-out” of the slope must not be allowed because otherwise the belt conveyor system is in danger. Therefore the height of the high cut slope is limited to 8 m. Owing to the boom length of the spreaders A2RsB 4400.60 (58 m) and A2RsB 5200.55 (54 m) a block width of ca. 20 m is possible. The block width of the high dumping also determines the block width of the deep dumping and thus the move width of the belt conveyor sys-tem. The spreader travels very close to the belt conveyor system (21 m from the sleeper edge of the belt conveyor system to the outside edge of the crawler track). For the deep dumping the spreader travels on a wide track (35 m). The deep dumping slope can be established with the maximum permissible height of 12 m. Therefore a “flowing out” of the slope must be taken into consideration for which a natural flowing-out up to an inclination of Page 129 of 257


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6° up to half the slope is assumed. The space required for this is 50 m. Another 10 m are assumed as a safety distance up to the next deeper spreader slope. This slope system is considered the minimum slope system in order to comply with the general inclination of the dumping system with an angle of 5°. The single heights of the slopes must be kept. If the slopes begin to move, slided faces are created which are more unstable afterwards.

6.6 Lignite Operation Coal mining on the mixed level Overburden/Coal Level 4 The coal roof in the Sibovc field is very much inclined. The bench cannot follow these inclinations. Therefore the decision was made to establish one level for the excavation of overburden and coal. The course of the bench is mostly below the coal roof. About 2/3 of overburden and 1/3 of coal is excavated. A decision had to be made for the transport, i.e. whether to construct two belt conveyor systems – one for overburden and one for coal – or only one belt conveyor system. The advantages are in favour of one belt conveyor system. Overburden and coal are excavated alternately slice by slice. If two belt conveyor systems were set up, the discharge would have to change from one to the other systems. Moreover the short boom of the charging conveyor requires a belt wagon to charge to the conveyor which is far away from the excavator. Therefore twice the number of belt conveyor systems would be necessary for the bench and the head conveyor. Using only one belt conveyor system provides a sufficient gap for a change-over between overburden and coal at the belt distribution point. The belt distribution point is a drive station with distribution device above the respective inclined coal conveyor. Using the distributor either coal is supplied to the inclined conveyor or overburden to the head conveyor which goes up to the spreader. An excavator SchRs 650 is used for the mixed level owing to its higher capacity compared to a SRs 1300. To changeover between coal extraction and overburden removal, the belt conveying is stopped during the changeover operation for a short-term (brake of 3 min; ca. 1,000 m empty belt speed of 5.24 m/s). A block has a content of ca. 7,400 bcm (block width: 37 m; block height: 20 m; block advance: 10 m). For each block coal and overburden conveyance has to be changed twice (layer boundary in the block, change to a new block). With an average capacity of an excavator of ca. 1,000 bcm/h, the time for the changeover between overburden and coal is < 1 min/h (0.08 %). Nevertheless, if performance problems will occur due to selective winning, the excavator E7M SRs 470 is kept as reserve. This excavator was not taken into consideration in the capacity planning. So the E 7M provides an additional digging capacity. Normal coal mining As in the overburden operation the machines work in head block advance with a block width of 37 m. After two blocks have been excavated the belt conveyor system is moved. The work scheme for coal mining is shown in the following figure.

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Fig. 6.6-1

Work scheme coal excavator

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The basic principles established for the slice excavation apply to the coal, too. In coal mining slope angles of 65° have been assumed so that the following block lengths and divisions of cuts are possible: Tab. 6.6-1

Block length and division of slices / coal – SchRs 650

Machine parameters

Slope geometry Calculation

Bucket wheel diameter Boom length Pivot point from axis Height of pivot point Half crawler length Free-cut angle / conveyor Free-cut angle / gear

= da = lR = lRA = hRA = 0.5 lRaup

o o o

65

max. slope height

25 m

= hBö max

Block length

17 m

= lVS

Slice height

Slewing angle φ

7.4 m

90

o

5.0 m

69

o

5.0 m

62

o

2.6 m

59

o

(= 0.25 dA)

20.0 m

Block length and division of slices / coal – SRs 1300

Machine parameters

Slope geometry Calculation

m m m m m

Slope angle

Sum:

Tab. 6.6-2

10.56 35.5 1.4 13.9 12,5 40 40

Bucket wheel diameter Boom length Pivot point from axis Height of pivot point Half crawler length Free-cut angle / conveyor Free-cut angle / gear

8.4 37.56 2.04 12.09 12.5 54 46

m m m m m

= da = lR = lRA = hRA = 0.5 lRaup

o o o

Slope angle

65

max. slope height

22 m

= hBö max

Block length

18 m

= lVS

Slice height

Slewing angle φ

Sum:

5.5 m

90

o

4.0 m

70

o

4.0 m

63

o

4.0 m

58

o

2.5 m 20.0 m

56

o

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6.7 Stockpile Operation To stock coal and blend a homogenous coal quality according to the power plant parameters stockpiles are installed upstream the power plants. These stockpiles are installed directly at the power plant sites and belong to the responsibility of the opencast mine department.

Blocks 3, 4 and 5

6.7.1 Stockpile TPP A

Separation A

TPP A

T Blocks 1, 2 and 3

SHT-2b

Mirash-West Mirash-Southeast SHT-15

SHT-5.13

MK 2

MK 1 T ..... Truck Loading Point ... Active Belt Conveyors ... Passive Belt Conveyors

Fig.: 6.7-1

Scheme Stockpile A

The stockpile provides the respective coal quantities and qualities for the power plant TPP A and other consumers (heating purposes). It consists of four parallel arranged stockpile sections (at surface) with a maximum total volume of 560000 t. The total filling for a continuous handling amounts to 400000 t. The stockpiles are equipped with 2 combined stacker-reclaimers of the company TUSLA (MK 1 and MK 2), whereby each of the machines operates 2 stockpile sections. The capacity of one machine is 1,800 t/h both for stacking and reclaiming. Due to the combined stacker-reclaimer operation the following functions can be fulfilled: • stacking • reclaiming • by-pass operation Page 133 of 257


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• mass stream separation (by-pass operation and stacking) • by-pass operation and reclaiming The belt conveyor distribution system of Separation Plants A was very complex. In the past, a lot of connected consumers were supplied with different coal qualities via this distribution system. Parallel to the decommissioning of some of the consumers, belt conveyors and belt conveyor systems have also been put out of operation. In a first process, the coal is crushed in several steps down to a grain size of 30 mm. After the crushing, the coal can directly be transported to the power plant and the stockpile for stacking, respectively. It is recommended to blend a homogenous coal quality in three phases. • Control of equipment use in the opencast mine by precise extraction and pre-blending of different coal qualities • Blending of mass streams from the various mining fields • Blending within the stockpile cross section by slice-wise stacking In separation plant TPP A it is furthermore possible to produce and load pre-dried lump coal for sale (road transportation by trucks). The demand for TPP A and other consumer is planned with about 5.0 mt per year. The daily demand comes to 10 up to 15 kt. So in this case the normal filling level of 400 kt corresponds to a coal reserve of 26 up to 40 days (at most). This is regarded as sufficient.

6.7.2 Stockpile TPP B

t es W sh ri a h M ard B

Fig.: 6.7-2

TPP B

The coal is transported via two stationery belt conveyors to the stockpile.

MK B

MK A

Scheme of Stockpile TPP B

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After crushing to a grain size of 30 mm the coal can be directly transported to the power plant and the Stockpile for stacking, respectively. The Stockpile consists of four parallel arranged stockpile sections (at surface) with a maximum total volume of 500000 t. The optimal total filling for a continuous handling amounts to 350000 t. For a daily coal demand of ca. 10,000 t per block the coal reserves will last for 18 days in case of optimal filling level and a relatively high demand. According to the planned performance the yearly average coal demand for TPP B1+B2 in future is 5.3 mt or 15 kt per day. Hence on average the coal will be sufficient for 23 days. The stockpiles are equipped with 2 combined stacker-reclaimers of the company MAN (MK A and MK B), whereby each of the machines operates 2 stockpile sections. The capacity of one machine is 1,800 t/h both for stacking and reclaiming. The two machines can supply coal to both of the blocks. Furthermore it is also possible to directly supply coal to the power plant blocks from the mine without intermediate stacking. In this process, too, the combined stacker-reclaimer equipment is integrated in the mass flow. So it will be possible to blend a homogenous coal quality in a sufficient manner. Extension of capacity The construction of new power plant units requires an extension of the capacity of the stacker-reclaimers. The construction and, most of all, the concrete technical specification of these machines depend on the local conditions, the boiler design and mostly on the operation (utilization time) of the single power plant units. Financing and tendering shall therefore be done in parallel with the power plant. The following applies to the dimensioning: TPP B3 to B6 Period: 2013 to 2018 from 2020 Annual demand: 5.24 mt 10.66 mt Relevant daily demand (Dimensioning) 18 kt/d 36 kt/d Total operating time 19.2 h/d 19.2 h/d Time needed to empty stockyard (40%) 7.68 h/d 7.68 h/d Necessary hourly capacity 2,350 t/h 4,700 t/h A total of 2,350 t/h or from 2020 about 4,700 t/h are necessary for the system. For dimensioning the single machines the number (position, alternatives) and utilization shall also be taken into consideration. In the case of a failure of one machine it should be possible to cover the normal consumption of the power plant with increased efforts (organisation of operational process), i.e. the following applies to the two new units: Annual demand: 5.24 mt Daily average 14.36 kt/d Time needed to empty stockyard 10 h/d Necessary hourly capacity 1,436 t/h Widening factor 1.25 Theoretical capacity 1,800 t/h (single machine)

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Therefore in the second step of the TPP B four machines with 1,800 t/h each should be available (in addition to the already existing stacker of TPP B1+2). They can be used for normal repairs but also for special requirements regarding the coal quality management at times. When three reclaimers are in operation the newly built power plant can be supplied with 3x1,436 t/h =4300 t/h or 33 kt/d. The average demand of all four new power plant units amounts to 10.84 mt/a / 365 d/a = 30 kt/d. Remote belt conveyor system to TPP Kosovo B The planned consumption amounts to a total of 15.5 to 16.64 mt/a. The 16.64 mt occur only in 2 years. Because the power plant works with 4 units in base load operation (moderate fluctuations), the following can be assumed for dimensioning: relevant annual demand TPP B ca. 16 mt/a. relevant monthly demand ca. 1.48 mt/month relevant weekly demand ca. 350 kt/week relevant daily demand of TPP B ca. 56 kt/d technical/organisational availability 21.6 h/d supply time from the mine at 80% 17.28 h/d necessary charge to belt conveyor systems 3,240 t/h number of belt conveyor systems 2

The dimensioning of the single belt conveyor systems must include planned downtimes and technical breakdowns for which the coal consumption per week is a decisive criterion. We propose to make a supply by one belt conveyor system possible for one week. Because this will be a rather rare occasion, the following is provided for calculation: relevant annual demand TPP B ca. 16 mt/a. relevant weekly demand 350 kt/week 72% utilization of time etaT ( T) supply time 121 h/week (17.28 h/d) necessary supply of belt conveyor system ca. 2,890 t/h widening factor 1.25 theoretical capacity per belt conveyor TPP B ca. 3,600 t/h The theoretical capacity of the two belt conveyor to TPP B1 to 6 should also amount to 3,600 t/h (each) or 7,200 t/h in total. Using both systems results in 5,780 t/h. The daily demand of the power plant of 56 kt can then be supplied, if necessary, in 10 operating hours. Remote belt conveyor system to IPP The commission of an additional TPP (IPP) is planned for the year 2016. From 2018 the demand per year will be 8.1 mt. relevant weekly demand IPP 180 kt/week 72% utilization of time etaT ( T) supply time 121 h/week (17.28 h/d) Page 136 of 257


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necessary supply of belt conveyor system ca. 1,500 t/h widening factor 1.25 theoretical capacity per belt conveyor system IPP ca. 1,875 t/h Two belt conveyor systems with the respective theoretical capacity of > 1,875 t/h should be provided for the raw coal stockyard of the new power plant (IPP). In addition to that the appropriate stacker-reclaimers shall be provided. Comparison of the possible capacities of the Sibovc mine: Tab. 6.7-1

Overview of mine potential and power plant requirerment

Potential of mine

Requirement of TPP B1 to B6 16 mt/a 1) ca. 56 kt/d 17.28 h/d 1) 3,240t/h 2,600 t/h

Requirement of IPP

Relevant yearly output 23.6 (24.1) Relevant daily output ca. 103 kt/d Relevant operating time 21.6 h/d Max hourly output 4,800 t/h (4x1200) Output implementation in 4,800 t/h 21.6 h/d Theor. capacity 9,400 = 4 x 2,350 7,200 t/h t/h (2 Conv. Belts (4 BWE) each 3600 t/h)

8.1 mt/a 1) ca. 28 kt/d 17.28 h/d 1) 1,620 t/h 1,300 t/h

Average daily output at 66 kt/d 24.1 mt/a Average output 18.76 mt/a for TPPs from 2025 51.4 kt/d

22 kt/d

ca. 44 kt/d

3,750 t/h additional conv. belt capacity

10.66 mt/a 8.1 mt/a 29.2 kt/d 22.2 kt/d 1) not necessarily at the same time

Interpretation: As the table shows, the whole system adds up (the isochronous annual requirement of 24 mt merely occurs in 4 years). The important thing is that the potential of the mine of max. 103 kt/d faces a demand of 84 kt/d (+ run-of-mine coal). This is acceptable. It must also be taken into consideration that there is a more uniform demand from the power plant compared to the excavation in the opencast mine or, in other words, the utilization time of the opencast machines is shorter than the operating time of the boilers. With respect to the maximum hourly demand the mine capacity seems to be a bit tight. Since a peak demand can be compensated from the stockyards and the high demand does not occur over the entire operating time of the mine, the opencast mine should not be dimensioned any bigger. In single cases the excavator E8M can be used for coal mining in addition to the other machines. Inclined conveyor system, distribution and charging belts to the power plant The distribution of the coal starts on the inclined conveyors. The inclined conveyors and the other charging conveyors are provided twice which helps to ensure the supply of the power plants also in case of repair or breakdown of a belt conveyor system. Page 137 of 257


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In order to be able to charge to both conveyors, the charging stations (last head conveyor, inclined coal conveyor and transfer conveyor to the connection conveyors to the power plant) shall be equipped with a distribution device which can be used to charge on one discharging conveyor each. So there are three belt conveyor systems which supply the power plant. They change with the reconstruction of the inclined conveyor system: The first inclined conveyor system is installed in the transfer area from Bardh to Mirash. The existing conveyor routes will be used further on and replaced by new belt equipment. After charging to the inclined conveyors these charge to a double intermediate conveyor up to the distribution point for the power plants TPP A and TPP B. When the inclined conveyor system will be reconstructed in 2026, the new inclined conveyors will charge to about the middle of the present connection conveyors to the power plant TPP B. The conveyors will be separated at the transfer point. The southern part of the former charging conveyors to the power plant TPP B will be changed in the conveying direction and will become the intermediate conveyor to the location of the power plant TPP A. The connection conveyor to the location of the power plant TPP A remains as it is. The third inclined conveyor system will be constructed shortly after the end of the period under review in 2039 at the inflection point of the eastern boundary line of the Sibovc mine. The basic arrangement of the belt conveyor system will remain unchanged. The connection conveyors to the power plant TPP B will be shortened and the inter-mediate conveyors to the location of TPP A will be extended. There will be the following belt lengths: Tab. 6.7-2

Belt Length of charging conveyor to the power plant

Belt position / inclined conv. 1

Name Inclined conveyors Intermediate conveyors Connection conv. TPP A Connection conv. TPP B Sum

Length 2 2 2 2

Belt position / inclined conv. 2

Name Inclined conveyors Intermediate conv. TPP A Connection conv. TPP A Connection conv. TPP B Sum

2009 to

x x x x

700 280 3,300 2,600 6,880

2026 to

Length 2 x 2 x 2 x 2 x

2026

m m m m m 2039

850 m 1,260 3,300 2,040 7,450

Number of drive stations 2 pcs. 2 pcs. 4 pcs. 2 pcs. 10 pcs.

m m m m

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Number of drive stations 2 pcs. 2 4 2 10

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Belt position / inclined conv. 3

Name Inclined conveyors Intermediate conv.TPP A Connection conv. TPP A Connection conv. TPP B Sum

2039 till

Length 2 x 2 x 2 x 2 x

end

780 m 2,140 3,300 1,160 7,380

m m m m

Number of drive stations 2 pcs. 2 4 2 10

pcs. pcs. pcs. pcs.

6.8 Opening-up Operation 6.8.1 Preparatory Works in the Year 2007/2008 Technological main emphasis In 2007 the establishment of the operation position for Overburden Level 1 will start. Truck and Shovel as well as bulldozers will be used to remove ca. 2 million m³ of soil. The belt conveyor system for the overburden level will be established in two segments in the valley west of Hade in a V shape. The mass removal will start in 2007 with 1.6 m m³ and will continue in 2008 with 0.4 m m³. In 2008 the overburden excavators from the existing opencast mines will be used after having been refurbished and will start the development excavation in the transfer area of the opencast mine fields Bardh/Mirash up to the new field of Sibovc. After the excavators have started their operation there will be an adjustment period for improving the capacity until the time when they will have reached their full capacity, i.e. ca. 6 months.

The utilization of the machines has been planned as followed: April 2008 – Excavator E9M SchRs 650 This efficient excavator is planned for utilization in the Overburden/Coal Level 4, where coal and overburden have to be excavated alternately. As this level has not been cut free yet, the operation will start in Overburden Level 1 with the excavation of the western wing of the belt conveyor system. In the period from 4/2008 to 9/2008 an amount of 1.8 m m³ will be excavated. From 10/2008 the excavation in Overburden/Coal Level 4 will start. The operation position in the northern slope of the Bardh/Mirash mine will be prepared using bulldozers and Truck and Shovel. May 2008 – Excavator E9M SRs 1300 This excavator is planned to work in Coal Level 2 due to its digging forces. Until the use of the scheduled Excavator E9B SRs 1300 in Overburden Level 1, excavator E9M can start the excavation in the eastern wing of the belt conveyor system. After use of Excavator E9B SRs 1300 in June 2009, the excavator will be transported to its place of operation in Coal Level 2. In 2008, about of 2.6 m m³ will be removed in Overburden Level 2. Page 139 of 257


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June 2008 – Excavator E9B SRs 1300 The excavator will be used in its new operation position in Overburden Level 2. The operation position in the northern slope of the Bardh/Mirash mine will be prepared using bulldozers and Truck and Shovel. West of Hade the bench will end on the grass. One bench will be used together with Overburden Level 1. The belt conveyor systems of both levels will be led around the Bardh/Mirash mines in southern direction and start the inside dumping in Mirash. September 2008 – new BWE The Overburden Level 3 is the level with the greatest thickness which goes over the whole length of the bench. The operation position in the northern slope of the Bardh/Mirash mines will be prepared using bulldozers and Truck and Shovel. There is a spreader dump in the western transition area of the Bardh mine. The heavily watersaturated clayey dump cannot be excavated any more. Therefore the excavator will have to make a new cut north of this dump. Discharge will take place in west-east direction. The excavator will operate in interim bench operation on a plane of 8 m be-low the belt conveyor systems. Before moving the belt conveyor system the slope must be levelled to an inclination of 1 : 3 and the belt conveyor system will then be moved over this inclination. This process will be repeated until the required bench height is reached. At the same time the general inclination of < 10° necessary from a geotechnical point of view must be kept. Parameters for the period under review: Tab. 6.8-1

Overb. [10³m³] Coal [10³t]

Overb. [10³m³] Coal [10³t]

Output in overburden and coal in 2007/08 Truck+Shov. Overburden Levels Sum over Level Overb.in Level 1 Level 2 Level 3 Level 4 1 Coal 2,425 0 2,602 2,230 2,273 2,767 12,295 146 146 Coal Levels Sum Level 1 Level 2 Level 3 Level 4 0 0 0 0 0 0 0 0 0 0 Sum Overb. 12,295 Sum Coal 146 O:C -

6.8.2 Mining Development in the Year 2009 Technological main emphasis The overburden removal of the development will continue in 2009 until the utilization of the opencast machines starts. Until use of Excavator E8B SRs 1300, Excavator E8M SRs 1300 will work in Overburden Level 1. Afterwards, the excavator is shifted to Coal Level 2. The excavator in Overburden Level 1 will work exclusively at the eastern wing of the belt conveyor system. The residual overheights above Level 1 at the eastern wing will be removed by Truck and Shovel. Page 140 of 257


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The mine equipment from the Bardh/Mirash mines will also stop working step by step. They will be refurbished basically and travel to their new operation positions. The use of the machines is planned as follows: -

April 2009 – Excavator E10M SchRs 650

In the first coal level the major part shall be removed by the efficient mine excavator. The operation position in the northern slope of the Bardh/Mirash mines will be prepared using bulldozers and Truck and Shovel. The mining direction will be the same as with all the other levels – west-east. A belt wagon BRs 1600 will be used in Level 1 for the removal of the mine overburden. -

June 2008 – Excavator E8B SRs 1300 in overburden level 1 Excavator E 8M SRs 1300 transportation in coal level 2 The operation position in the northern slope of the Bardh/Mirash mines will be prepared using bulldozers and Truck and Shovel. The same machines as in Level 1 will be used. A belt wagon BRs 1600 will be used in Level 1 for the removal of the mine overburden. September 2008 – Excavator E10 B SRs 1300 The operation position in the northern slope of the Bardh/Mirash mines will be prepared using bulldozers and Truck and Shovel. In Level 3 the excavator will carry out the coal excavation of Level 4 at first until 2016. During this time the machine capacity will be sufficient for both levels. Level 4 will not be fully developed till then. The excavator can be used to excavate the coal in interim bench excavation south of the belt conveyor system. A belt wagon BRs 1600 will be used for this and the residual overburden. Parameters for the period under review Tab. 6.8-2

Overb. [10³m³] Coal [10³t]

Overb. [10³m³] Coal [10³t]

Output in overburden and coal in 2009 Truck+Shov. Overburden Levels Sum over Level Overb.in Level 1 Level 2 Level 3 Level 4 1 Coal 976 0 4,460 4,460 9,090 4,150 23,136 337 337 Coal Levels Sum Level 1 Level 2 Level 3 Level 4 0 0 0 0 0 708 912 433 60 2.113 Sum Overb. 23,136 Sum Coal 2,450 O:C 9.4 :1

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6.8.3 Mining Development in the Year 2010 Technological main emphasis The use of Truck and Shovel for supporting Overburden Level 1 will continue.

The overburden levels will continue their development excavation. In Overburden Level 1 the excavator E 8B will work at the eastern wing of the belt conveyor system. Overburden Level 2 and 3 will work on a straight bench. In Level 4 the planned bench will have been reached with the new cut of the excavator in the western part. From this time the regular operation in overburden can start. The coal levels will still work with a shortened bench so that the full capacity cannot be reached. Parameters for the period under review

Tab. 6.8-3

Overb. [10³m³] Coal [10³t]

Overb. [10³m³] Coal [10³t]

Output in overburden and coal in 2010 Truck+Shov. Overburden Levels Sum over Level Overb.in Level 1 Level 2 Level 3 Level 4 1 Coal 567 0 4,460 4,460 9,090 4,150 22,727 1,268 1,268 Coal Levels Sum Level 1 Level 2 Level 3 Level 4 0 0 0 0 0 1970 2538 1206 167 5.882 Sum Overb. 22,727 Sum Coal 7,150 O:C 3.2 :1

6.8.4 Mining Development in the Year 2011 Technological main emphasis The use of Truck and Shovel for supporting Overburden Level 1 will continue. In the Overburden Level 1 the excavator will start to work alternately at the western and eastern wing of the divided belt conveyor system. In the other overburden levels there will be a regular operation. In the coal extraction all levels will still work with shortened benches.

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Parameters for the period under review Tab. 6.8-4

Overb. [10³m³] Coal [10³t]

Overb. [10³m³] Coal [10³t]

Output in overburden and coal in 2011 Truck+Shov. Overburden Levels Sum over Level Overb.in Level 1 Level 2 Level 3 Level 4 1 Coal 136 72 4,460 4,460 9,090 4,150 22,368 2,247 2,247 Coal Levels Sum Level 1 Level 2 Level 3 Level 4 38 21 12 0 72 2629 1896 938 140 5,603 Sum Overb. 22,440 Sum Coal 7,850 O:C 2.9 :1

6.8.5 Mining Development in the Year 2012 Technological main emphasis The use of Truck and Shovel for supporting Overburden Level 1 will continue. In the overburden levels the overburden machines will continue to work as planned. At the end of 2012 the bench in Coal Level 1 will be extended into the direction of the western boundary line. The other levels will still work with a shortened bench. Parameters for the period under review Tab. 6.8-5

Overb. [10³m³] Coal [10³t]

Overb. [10³m³] Coal [10³t]

Output in overburden and coal in 2012 Truck+Shov. Overburden Levels Sum over Level Overb.in Level 1 Level 2 Level 3 Level 4 1 Coal 136 197 4,460 4,460 9,090 4,150 22,493 2,247 2,247 Coal Levels Sum Level 1 Level 2 Level 3 Level 4 105 58 34 1 197 5685 3234 1639 255 10,813 Sum Overb. 22,690 Sum Coal 13,060 O:C 1.7 :1

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6.8.6 Mining Development in the Year 2013 Technological main emphasis The use of Truck and Shovel for supporting Overburden Level 1 will continue. In the overburden levels the overburden machines will continue to work as planned. In 2013 the Coal Level 1 will have reached its planned bench in the area of the western boundary line. In Level 2 the cutting of the bench and the bench extension into the direction of the western boundary line will have started by which a regular operation in the main excavation levels of the coal is possible. By this the development operation for the mine can be regarded as finished. Parameters for the period under review Tab. 6.8-6

Overb. [10³m³] Coal [10³t]

Overb. [10³m³] Coal [10³t]

Output in overburden and coal in 2013 Truck+Shov. Overburden Levels Sum over Level Overb.in Level 1 Level 2 Level 3 Level 4 1 Coal 580 243 4,460 4,460 9,090 4,150 22,984 2,102 2,102 Coal Levels Sum Level 1 Level 2 Level 3 Level 4 119 74 51 75 319 6,306 4,124 2,645 594 13,668 Sum Overb. 23,303 Sum Coal 15,770 O:C 1.5 :1

6.9 Regular Operation 6.9.1 Mining Development in the Period 2014 – 2018 Technological main emphasis The use of Truck and Shovel for supporting Overburden Level 1 will continue.

In Overburden Level 1 the pivoting of the west and eastern wings of the belt conveyor system will almost be finished. Levels 2 to 4 will develop as planned. The head conveyors of Level 1 and 2 will still be on one bench. The Coal Levels 1 to 4 will reach their planned benches. In 2016 a newly built excavator SRs 1300 or equivalent will be used for Level 4. The excavator will mostly work in the west part of the deposit. In the east the belt conveyor system will be moved to the height of Level 3. Both bench conveyors will charge to one head conveyor system. Page 144 of 257


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Parameters for the period under review Tab. 6.9-1

Overb. [10³m³] Coal [10³t]

Overb. [10³m³] Coal [10³t]

Output in overburden and coal in 2014-2018 Truck+Shov. Overburden Levels Sum over Level Overb.in Level 1 Level 2 Level 3 Level 4 1 Coal 2,939 1,485 22,300 22,300 45,450 20,750 115,223 8,447 8,447 Coal Levels Sum Level 1 Level 2 Level 3 Level 4 592 464 428 1.209 2,693 30,411 25,876 22,347 6,658 85,293 Sum Overb. 117,917 Sum Coal 93,740 O:C 1.3 :1

6.9.2 Mining Development in the Period 2019 - 2023 Technological main emphasis The use of Truck and Shovel for supporting Overburden Level 1 will continue.

In Overburden Level 1 the bench will finally be straightened. In the west part there is a rise within the area of the hill of Shipitull in all levels. Owing to the increased cut height the ramp excavation will have to start. The bench between Level 1 and 2 is divided so that the head conveyors will be separated in future. The Coal Levels 1 to 4 will continue their normal work on their planned benches. Parameters for the period under review Tab. 6.9-2

Overb. [10³m³] Coal [10³t]

Overb. [10³m³] Coal [10³t]

Output in overburden and coal in 2019-2023 Truck+Shov. Overburden Levels Sum over Level Overb.in Level 1 Level 2 Level 3 Level 4 1 Coal 2,934 2,421 22,300 22,300 45,450 20,750 116,156 4,821 4,821 Coal Levels Sum Level 1 Level 2 Level 3 Level 4 686 564 1,170 1,537 3,959 38,336 30,722 33,629 14,301 116,989 Sum Overb. 120,114 Sum Coal 121,810 O:C 1.0 :1

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

6.9.3 Mining Development in the Period 2024 - 2028 Technological main emphasis The use of Truck and Shovel for supporting Overburden Level 1 will continue. The major part of the mass extraction will be carried out during the period under review.

In the Overburden Level 1 both belt conveyor systems will be pivoted separately. There will be a greater advance at the beginning and the end of the bench compared to the middle by which the shape of the terrain will adapt to the valley of Sibovc. The other overburden levels will pivot normally. In the west the benches will rise in the area of the hill of Shipitull. The Overburden Level 2 will reach the highest area of the hill. The coal levels will develop as planned. Towards the end of the period under review a new inclined conveyor system will be used for the coal transport. From this time the Coal Levels 1 and 2 will be on the same height so that one head conveyor can be used. At that time the distribution station within the area of the inclined conveyor of the Overburden/Coal Level 4 will also be rebuilt to fit the new inclined conveyor system. Parameters for the period under review Tab. 6.9-3

Overb. [10³m³] Coal [10³t]

Overb. [10³m³] Coal [10³t]

Output in overburden and coal in 2024-2028 Truck+Shov. Overburden Levels Sum over Level Overb.in Level 1 Level 2 Level 3 Level 4 1 Coal 3,813 1,582 22,300 22,300 45,450 20,750 116,195 11,681 11,681 Coal Levels Sum Level 1 Level 2 Level 3 Level 4 570 360 652 792 2.374 31,776 18,447 26,238 10,598 87,059 Sum Overb. 118,569 Sum Coal 98,740 O:C 1.2 :1

6.9.4 Mining Development in the Period 2029 - 2033 Technological main emphasis The use of Truck and Shovel to support Overburden Level 1 will come to an end during the period under review.

During the period under review the excavation in the Overburden Level 1 immediately at the valley of Sibovc will finish. The other overburden levels will leave the hilly area of the village of Shipitulle.

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The coal levels will develop as planned. Coal Levels 3 and 4 will finally be converted to the new inclined conveyor system, too, and continue to charge to one head conveyor system. Parameters for the period under review Tab. 6.9-4

Overb. [10³m³] Coal [10³t]

Overb. [10³m³] Coal [10³t]

Output in overburden and coal in 2029-2033 Truck+Shov. Overburden Levels Sum over Level Overb.in Level 1 Level 2 Level 3 Level 4 1 Coal 1,234 6,419 15,986 22,120 41,445 21,606 108,810 16,208 16,208 Coal Levels Sum Level 1 Level 2 Level 3 Level 4 646 1,421 4,352 353 6,772 33,932 18,012 21,050 6,889 79,882 Sum Overb. 115,582 Sum Coal 96,090 O:C 1.2 :1

6.9.5 Mining Development in the Period 2034 – 2038 Technological main emphasis Overburden will only be excavated in the Overburden Levels 2, 3 and 4. The Overburden Level 2 will end on the main part of the bench in the valley of Sibovc and will continue on a shorter bench in the west part in order to resume the excavation with a new cut in the north of Sibovc at a later time. Towards the end of the period under review the third overburden level will also reach the valley of Sibovc. After 2038 the mining direction will have to change from west-east to east-west. The coal levels will develop as planned. In the Coal Level 3 the removal of overburden from the floor will become more and more necessary owing to the course of the bench. Parameters for the period under review Tab. 6.9-5

Overb. [10³m³] Coal [10³t]

Overb. [10³m³] Coal [10³t]

Output in overburden and coal in 2034-2038 Truck+Shov. Overburden Levels Sum over Level Overb.in Level 1 Level 2 Level 3 Level 4 1 Coal 0 8,321 0 13,414 31,752 19,366 72,854 17,781 17,781 Coal Levels Sum Level 1 Level 2 Level 3 Level 4 800 1,632 5,890 100 8,421 35,221 17,808 20,405 4,875 78,309 Sum Overb. 81,275 Sum Coal 96,090 O:C 0.8 :1 Page 147 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

6.10 Production Schedule Tab. 6.10-1 Level Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

Production Schedule

Truck Overb. 10³m³ 1,600 825 976 567 136 136 580 600 600 600 579 560 560 560 560 560 696 763 763 763 763 763 763 472 0 0 0

15,740

Level 1 Overb. 10³m³ 2,602 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 2,606 0 0 0 0 0 0 22,300

Overburden Levels Level 2 Level 3 Overb. Overb. 10³m³ 10³m³ 2,230 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,460 4,720 4,286 4,286 4,367 4,327 3,777 3,128 516 429 125,727

2,273 9,090 9,090 9,090 9,090 9,090 9,090 9,090 9,090 9,090 9,090 9,090 9,090 9,090 9,090 9,090 9,090 9,090 9,090 9,090 9,090 9,090 7,542 8,220 8,220 8,374 8,297 7,242 6,084 5,573 4,635 257,348

Coal Levels Level 4 Overb. 10³m³ 2,767 4,150 4,150 4,150 4,150 4,150 4,150 4,150 4,150 4,150 4,150 4,150 4,150 4,150 4,150 4,150 4,150 4,150 4,150 4,150 4,150 4,150 4,470 4,302 4,302 4,383 4,342 3,790 3,223 5,006 4,164 127,897

Coal 10³t 146 337 1,268 2,247 2,247 2,102 2,095 2,095 2,095 1,411 751 751 751 751 751 1,817 2,336 2,336 2,336 2,336 2,336 2,336 2,929 3,625 3,625 3,693 3,659 3,625 3,616 3,409 3,473 67,286

Level 1 Overb. 10³m³ 0 0 38 105 119 97 97 115 138 146 133 138 137 137 141 128 110 110 110 112 111 122 137 137 139 138 137 139 191 195 3,557

Coal 10³t

Level 2 Overb. 10³m³

708 1,970 2,629 5,685 6,306 4,942 4,942 5,850 7,068 7,608 7,411 7,722 7,664 7,664 7,874 7,155 6,122 6,122 6,122 6,254 6,188 6,546 7,022 7,022 7,154 7,088 7,022 7,020 6,979 7,111 186,972

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0 0 21 58 74 75 75 89 108 116 112 117 116 116 104 81 69 69 69 71 70 213 377 377 384 380 377 372 249 254 4,593

Coal 10³t 912 2,538 1,896 3,234 4,124 4,213 4,213 4,987 6,025 6,439 6,125 6,382 6,334 6,334 5,548 4,154 3,554 3,554 3,554 3,630 3,592 3,574 3,593 3,593 3,660 3,626 3,593 3,588 3,468 3,533 123,569

Level 3 Overb. 10³m³ 0 0 12 34 51 64 64 76 92 132 235 245 243 243 206 147 126 126 126 128 127 624 1,193 1,193 1,215 1,204 1,193 1,191 1,140 1,162 12,590 *

Coal 10³t

Level 4 Overb. 10³m³

Coal 10³t

Sum Overb. 10³m³

1,600 10,695 433 0 60 23,136 1,206 0 167 22,727 938 0 140 22,368 1,639 1 255 22,493 2,645 75 594 23,059 3,586 196 1,033 23,192 3,586 196 1,033 23,192 4,245 232 1,223 23,272 5,129 280 1,478 23,358 5,801 305 1,891 23,419 6,545 310 2,798 23,509 6,819 323 2,915 23,542 6,768 321 2,893 23,536 6,768 321 2,893 23,536 6,730 263 2,801 23,571 5,908 178 2,386 23,457 5,055 153 2,042 23,380 5,055 153 2,042 23,380 5,055 153 2,042 23,380 5,164 156 2,086 23,390 5,109 154 2,064 23,385 4,472 97 1,590 22,719 3,799 34 1,072 23,008 3,799 34 1,072 21,154 3,871 34 1,092 18,897 3,835 34 1,082 18,722 3,799 34 1,072 16,548 3,824 32 1,062 14,169 4,432 0 822 12,675 4,515 0 838 10,839 130,532 4,067 44,538 659,308 until start new SRs 1300, excavation with E10B

Sum Coal 10³t 0 146 2,450 7,150 7,850 13,060 15,770 15,870 15,870 18,400 21,110 22,490 23,630 24,590 24,410 24,410 24,770 21,940 19,110 19,110 19,110 19,470 19,290 19,110 19,110 19,110 19,470 19,290 19,110 19,110 19,110 19,470 552,897


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

7 Main Mining Equipment 7.1 Technical Status of existing Main Mining Equipment 7.1.1 Technical Status of Excavators SRs 1300 und SchRs 650 a) Steel Construction and Mechanical Engineering Main bearing structure The main bearing structure is in a sufficient condition. Larger damage was not noticed. All machines have extensive starting corrosion which gives no cause for concern at the moment. It shall be considered that under the climatic conditions prevailing in Kosovo there will be an annual reduction in thickness of up to 0.1 mm caused by corrosion. For a medium- and/or long-term deployment, a complete corrosion protection is therefore urgently necessary for each of the equipment. Auxiliary structure Auxiliary structures such as catwalks, stairs, leaders and platforms have partially substantial damages. These damages have no direct influence on the efficiency of the equipment, but they involve dangers for the service personnel. Mechanical engineering Very critical is the condition of wear parts and their insufficient stock reserve, like for example crawler base pads, ripper teeth and chains at the shovels, scrapers and side sealings. The lubrication plants of the SRs 1300 were partly overhauled in the last years but are however in an unsatisfactory maintenance condition. This is particularly problematic in the undercarriage part of the two SchRs 650. The brake assemblies at different drives are out of function. Limit switch systems are essentially in function, but have defects due to a bad maintenance condition. Hereby, defects mainly occur at the system rope tearing and tensioning at the E9B, which cannot be activated due to unsatisfactory adjustment of the ropes "wheel boom hoist". A drive at the wheel belt of E8M is missing (broken shaft of the belt conveyor drum). Up to the realization of a comprehensive mechanical reconstruction for medium- and/or longterm further deployment, a substantial restriction of the equipment availability shall be taken into account as wall as substantially increased running costs for maintenance.

b) Electrical Equipment The technical condition of the electrical equipment on the bucket wheel excavators of the type SRs 1300 and SchRs 650 is characterized by Year of construction, Operation years in the mines/pits including maintenance and Rehabilitation measures of selected electrical equipment in the years 2001 to 2005 The electrical equipment and electronic devices of the excavators as: 6kV-bench cable und cable drums, Medium voltage systems „6kV AC“ with battery plant 110V DC,

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Logic control (relay- or PLC-Systems) and low voltage systems „230V/400V AC “including lighting technology; Drive systems (400V AC-motors, travel- und slewing gear with rectifier DC), Limit switches, buttons, local-control-boxes, Cable and cable run and Cabins und electric houses are corresponding with the state of the art of the 80 years. The electrical equipment still in operation does not correspond any longer to the valid European standards. Especially preventive measures for persons and plants in accordance with the standard DIN VDE 0100 are in no way given, e.g.: The roofs and windows of the electrical houses are leaky during precipitation (rain and snow). The electrical plants like for example switch cabinet cubicles and electrical operation rooms and terminal boxes of 6 kV-incoming supply and motors are not locked and/or not equipped with safe locking system. The low voltage switch systems do not have shock protection. The medium voltage switch systems are not sufficiently equipped with arc shield. The 6 kV-high-voltage terminal boxes have no sufficient arc voltage protection and they are in a very bad technical repair. Most of the high -voltage protective relays are defective. The medium- and low-voltage systems at the bucket wheel excavators no longer correspond no to the valid European Norms and therefore the latest state of the art. In addition, electrical as well as electronic safety equipment, buttons, synchros and local control boxes are worn out and partly no more in function for different reasons (missing spare parts, deficient maintenance). According to rough estimations, more than 40 to 55 % of the sensors are ready for operation. The sensors in the field area are an important prerequisite for indicating safe operating and status condition (monitoring in the excavator operator cabin. The cables and cable routes have been strongly due to environmental impacts (e.g. ozone) and technological conditions (e.g. contamination, mechanical cramping and distortion of cables). The electrical drive units (starter, motor and thrustor), for example for conveyor belts, hoisting winches, tensioning devices, auxiliary motors and oil pumps, have a very limited availability and reliability. Motors can only be repaired with large expenses. Thrustors with the mechanical part of the brake are mainly not functioning and/or partly not reliable in their function. In line with this the electrical drives are not applicable for a safe operation. In the years 2000 to 2003, mainly material for the most urgent repairs in the opencast mines was purchased by the Consultants of the EAR, so for example high- and low-voltage cables, 6kV-protection relays and circuit-breakers, switchgears in container design for power supply and belt conveyors and spare motors. The bucket wheel excavators of the type SRs 1300 are distinguished according to the carried out retrofitting measures as follow: Main cabin new in ergonomic shape (to be accomplished in 2005) travel gear drive and slewing gear drive with 3-phase current motors and frequency converter, PLC (Programmable Logic Controller), Limit switch (end position, lever arm, pull cord), Lubrication plant;

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

The bucket wheel excavators of the type SchRs 650 (manufactured in 1986 and 1987) are equipped with a PLC System and rectifier (DC technology) and are mostly worn out. Original spare parts and building elements are not available for those obsolete machines.

Bucket Wheel Excavator SRs 470 und SRs 315 a) Steel Construction and Mechanical Engineering Main bearing structure The main bearing structures of the devices are in an insufficient condition. There are particularly serious damages at the steel structure at the main undercarriage of the E2B. The equipment is to be rehabilitated in a short-term and/or taken out of operation. Furthermore, tears are continuously occurring at all machines, particularly in the connecting sheets, in the undercarriage and slewing device of the loading boom, in diagonals of the superstructure as well as the bucket wheel head in nearly all devices. Pivot bearings at the tie bars are worn out. Corrosion caused material attenuation in the intersections. Auxiliary structures Auxiliary structures such as catwalks, stairs, leaders and platforms have partially substantial damages. These damages have no direct influence on the efficiency of the equipment, but they involve dangers for the service personnel.

Mechanical engineering Mechanical engineering can be evaluated similar to the condition of the main bearing- and auxiliary structure. Main assemblies such as pulleys and gearboxes are not grease- and/or oilproof. To a large extent the brake systems at the drives are missing and/or inefficient. Clutches are not covered. Wear parts like crawler base pads and buckets exceeded the wear limit. The central lubrication plants are not functioning. Side sealings and scrapers are ineffective and/or missing. Due to the critical state of the e-plants a numerous limit switches are not in function. Until decommissioning of these devices (devices will not be used in the new opencast mine field) continuous restrictions in the equipment availability have to be taken into account which are only hardly calculable and which incur high running maintenance costs. b) Electrical Engineering The condition of each of these excavators can be assessed as „equally bad“ because they are the oldest opencast mining machines (1965- 1978). Repairs and rehabilitation measures for the electrical equipment have not been carried out so far. These machines will not be used in the new opencast mine field. According to the present planning these opencast mine machines will be in operation until 2011 or will be replaced by released overburden excavators. The electrical equipment in the E-houses like the high- and low-voltage systems is in a bad condition. They do not comply with international standards and are a considerable danger for the personnel. The plants should be stabilized in short-term within the framework of running maintenance to such an extent that it will be possible to operate the devices with justifiable risk until decommissioning. The main components of the electrical equipment shall then be replaced within the scope of complex maintenance measures.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Conclusion: Under consideration of the equipment condition, but mainly due to the too low capacity potential (regarding output quantity and stripping performance), it is not foreseen to use the excavators of the type SRs 470 / 315 in the Sibovc Field. Furthermore this has advantages regarding warehouse management and interchangeability.

7.1.2 Technical Status of Belt Conveyor Systems a) Steel Construction and Mechanical Engineering Except the newly reconstructed drive stations D1 and TP1, all other belt conveyor parts are in a deficient condition. The drives at the drive stations (ATS) are very sensitive due to their lifetime. Brake systems and protective covers are missing, lubrication systems are not functioning. Drums are highly worn out and mostly have no rubber coating. Catwalks, stairs, leaders and platforms have partially substantial damages and/or are missing. In the transfer and charging sections sealings are defective and/or missing. Scrapers are partly ineffective which causes considerable contamination. At the bearing steel structure large areas with corrosion are visible. The steel construction of about 20 % of the bearing frame sections is bended. In particular, ties show larger damages due to corrosion. The return rolls are worn to a great extent. Conveyor belts show considerable defects at the edges. Resulting from misalignment, the belt edges are partly worn by more than 150 mm. The average length of belt parts is by far below half of the length for new belts. That means, a number of additional joints (distances partly only 12 - 30 m) have to be provided with all known disadvantages regarding reliability, higher running costs and uncertain plant availability. b) Electrical Engineering The electrical equipment has been in operation since the 70ies and 80ies. It must be assessed that the condition of electrical equipment (except D1, TP1 and T1) is unsatisfactory on all belt conveyors. The electrical equipment still in operation does not correspond any longer to the valid European standards. Especially preventive measures for persons and plants in accordance with the standard DIN VDE 0100 are in no way given e.g.: The roofs and windows of the electrical houses are leaky during precipitation (rain and snow). The electrical plants like for example switch cabinet cubicles and electrical operation rooms and terminal boxes of 6 kV-incoming supply and motors are not locked and/or not equipped with safe locking system. The low voltage switch systems do not have shock protection. The medium voltage switch systems are not sufficiently equipped with arc shield. The 6 kV-high-voltage terminal boxes have no sufficient arc voltage protection and they are in a very bad technical repair. Most of the high -voltage protective relays are defective. The medium- and low-voltage systems at the bucket wheel excavators no longer correspond no to the valid European Norms and therefore the latest state of the art.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

In addition, electrical as well as electronic safety equipment, buttons, synchros and local control boxes are worn out and partly no more in function for different reasons (missing spare parts, deficient maintenance). According to rough estimations, more than 40 to 55 % of the sensors are ready for operation. The sensors in the field area are an important prerequisite for indicating safe operating and status condition (monitoring in the excavator operator cabin. The cables and cable routes have been strongly due to environmental impacts (e.g. ozone) and technological conditions (e.g. contamination, mechanical cramping and distortion of cables). The electrical drive units (starter, motor and thrustor), for example for conveyor belts, hoisting winches, tensioning devices, auxiliary motors and oil pumps, have a very limited availability and reliability. Motors can only be repaired with large expenses. Thrustors with the mechanical part of the brake are mainly not functioning and/or partly not reliable in their function. In line with this the electrical drives are not applicable for a safe operation. The electrical equipment at the belt tripper car are totally worn out and do not correspond to the valid European standards. Especially preventive measures for persons and plants in accordance with the standard DIN VDE 0100 are in no way given. The electrical equipment on the belt conveyor and the mobile transfer conveyor should be stabilized in short-term within the framework of running maintenance to such an extent that it will be possible to operate the devices with justifiable risk until reconstruction and/or decommissioning.

7.1.3 Technical Status of Spreaders a) Steel Construction and Mechanical Engineering Main bearing structure The main bearing structure of the A2Rs 4400 and the 5200 are in a satisfying condition. Except some bent diagonals in the discharge booms no signs of larger damage were found. In different places large areas with corrosion are visible, especially at the discharge booms, junctions, tie bars and the carrying rope of the discharge boom suspension of the A2 RsB 4400. Numerous bent diagonals, tears and large-area corrosion damages can be found at the A2 RsB 2500. It shall be considered that under the climatic conditions prevailing in Kosovo there will be an annual reduction in thickness of up to 0.1 mm caused by corrosion. If disregarded, this leads to nicks and/or attenuations of the cross-sections as well as the reduction of the fatigue strength. For a medium- and/or long-term deployment, a complete corrosion protection is therefore urgently necessary for each of the equipment. Auxiliary structures: Auxiliary structures such as catwalks, stairs, leaders and platforms have partially substantial damages. These damages have no direct influence on the efficiency of the equipment, but they involve dangers for the service personnel. Mechanical engineering The central lubrication plants of the machines are partly not functioning. This is especially dangerous for the area of the travelling gear and the slewing ball bearings. Almost all drives work without any functioning brake system. Crawler base pads are in a bad condition and reached the wear limit. Scrapers are ineffective and/or missing.

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Until a general mechanical reconstruction for a medium- and/or long-term deployment of these devices continuous restrictions in the equipment availability have to be taken into account which are only hardly calculable and which incur high running maintenance costs. b) Electrical Engineering

The electrical equipment has been in operation since the nineteen 80ies. It can be characterized as follows: The electrical equipment still in operation does not correspond any longer to the valid European standards. Especially preventive measures for persons and plants in accordance with the standard DIN VDE 0100 are in no way given, e.g.: The roofs and windows of the electrical houses are leaky during precipitation (rain and snow). The electrical plants like for example switch cabinet cubicles and electrical operation rooms and terminal boxes of 6 kV-incoming supply and motors are not locked and/or not equipped with safe locking system. The low voltage switch systems do not have shock protection. The medium voltage switch systems are not sufficiently equipped with arc shield. The 6 kV-high-voltage terminal boxes have no sufficient arc voltage protection and they are in a very bad technical repair. Most of the high -voltage protective relays are defective. The medium- and low-voltage systems at the bucket wheel excavators no longer correspond no to the valid European Norms and therefore the latest state of the art. In addition, electrical as well as electronic safety equipment, buttons, synchros and local control boxes are worn out and partly no more in function for different reasons (missing spare parts, deficient maintenance). According to rough estimations, more than 40 to 55 % of the sensors are ready for operation. The sensors in the field area are an important prerequisite for indicating safe operating and status condition (monitoring in the excavator operator cabin. The cables and cable routes have been strongly due to environmental impacts (e.g. ozone) and technological conditions (e.g. contamination, mechanical cramping and distortion of cables). The electrical drive units (starter, motor and thrustor), for example for conveyor belts, hoisting winches, tensioning devices, auxiliary motors and oil pumps, have a very limited availability and reliability. Motors can only be repaired with large expenses. Thrustors with the mechanical part of the brake are mainly not functioning and/or partly not reliable in their function. In line with this the electrical drives are not applicable for a safe operation.

7.1.4 Technical Status of Belt Wagons Steel Construction and Mechanical Engineering Main bearing construction The main bearing structure of the belt wagons is in a bad condition. A number of damages were found at the bearing structure, e. g.: Pivot bearings of booms are worn out Twisted pin locks Rusty guy ropes Page 154 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Twisted and/or missing diagonal bars Cracks of 2- and 4-wheel bogies Booms are partly completely out of shape Defective repair of steel construction Large areas with corrosion are visible. Auxiliary structure: Auxiliary structures such as catwalks, stairs, leaders and platforms have partially substantial damages. These damages have no direct influence on the efficiency of the equipment, but they involve dangers for the service personnel. Mechanical engineering Lubrication systems at the equipment are partly not functioning. Drums and idlers are in a bad mechanical condition. The same applies for crawler base pads and tensioning devices at the belts and travelling gears. Contamination is due to missing scrapers and side sealings. Limit switches are partly ineffective or not in function. Until decommissioning of these devices continuous restrictions in the equipment availability have to be taken into account which are only hardly calculable and which incur high running maintenance costs. Electrical Engineering The belt wagons „BRs 1600“ have been in operation since 1979 and/or 1982 and the belt wagons „BRs 1200“ since 1964 and/or 1974. Lifetime of the belt wagons and the imperfect maintenance and repair of the equipment resulted in the unsatisfactory technical condition of the electrical equipment. The building structures of the E-houses are completely worn (roofs, walls, doors), i.e. in case of precipitation like rain or snow they are leaky. The switch systems (MV, LV) and electrical equipment still in operation does not correspond to the valid European standards and involve a considerable danger for the operating and service personnel. The electrical equipment on the belt wagons shall be stabilized for safety reasons so that it will be possible to operate these machines with a minimum justifiable risk until decommissioning.

7.1.5 Technical Status of Stacker / Reclaimer Stockpile Plant B Steel Construction and Mechanical Engineering The Stacker/Reclaimer A received a basic mechanical repair including a complete corrosion protection in 2004 and is in a mechanically good condition. The Stacker/Reclaimer B will receive a comparable basic mechanical repair including a complete corrosion protection in the year 2005 like the equipment A. For both devices reserve building groups of mechanical engineering are missing, so that in case of breakdown of assemblies’ downtimes have to be taken into account until completion of the repair. At the drive stations of the belt conveyor plants the drives are strongly trouble-prone due to their lifetime. The drives at the drive stations of the belt conveyor plants are very sensitive due to their lifetime. Brake systems and protective covers are missing, lubrication systems are partly not functioning. Drums are highly worn out and mostly have no rubber coating. A lot of Page 155 of 257


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idlers are worn. Continuous replacement is necessary. For a long-term operation it is necessary to systematically replace the belt drives by a new generation. This replacement should be carried out parallel with an electrical reconstruction. Due to their lifetime and continuous repair, crushers are in a condition ready for operation. Reserve assemblies are urgently required to reduce repair times and unexpected downtimes. Owing to their lifetime, a number of material guidance systems is to a great extend worn out; the most frequent occurring damage is leakage at the seam joints and transfer points. Almost all sealings at chutes, transfer points and material guidance systems are insufficiently effective. To continue ling-term operation continuous replacement of sealing elements is necessary which have to be standardized according to installation places. A dust reduction system for all transfer points is at present planned, financed by EAR funds. Electrical Engineering: The electrical equipment of Stacker/Reclaimer A was completely rehabilitated in 2004 and has been in a good condition since then. A similar measure for rehabilitating the electrical equipment will be implemented for Stacker/Reclaimer B in May 2005. Reserve assemblies are available (stored) for both of the equipment so that in case of electrical failures a direct replacement of defective assemblies can be carried out. The electrical equipment on the belt conveyors are very frequently subject to breakdowns owing to their service life. The electrical equipment on the belt drive station should be stabilized in short-term within the framework of running maintenance to such an extent that it will be possible to operate the devices with justifiable risk until a necessary reconstruction. Stockpile Separation Plant A a) Steel Construction and Mechanical Engineering Reserve assemblies of mechanical engineering are missing for both of the devices Stacker/Reclaimer 1 and 2. In case of assembly breakdown downtimes have to be taken into account until completion of the repair. For continuing a medium-term operation restrictions in equipment availability and high running costs for the maintenance are to be considered. At the drive stations of the belt conveyors the drives are highly susceptible to failure due to their lifetime. Brake systems and protective covers are missing; lubrication plants are partially not functioning. Drums are highly worn out and mostly have no rubber coating. A lot of idlers are worn. Continuous replacement is necessary. For continuing a medium-term operation restrictions in equipment availability and high running costs for the maintenance are to be considered. Due to their lifetime and continuous repair, crushers and vibration screens are in a condition ready for operation. Reserve assemblies are urgently required to reduce repair times and unexpected downtimes. Owing to their lifetime, a number of material guidance systems is to a great extend worn out; the most frequent occurring damage is leakage at the seam joints and transfer points. Almost all sealings at chutes, transfer points and material guidance systems are insufficiently effective. To continue ling-term operation continuous replacement of sealing elements is necessary which have to be standardized according to installation places. A dust reduction system for all transfer points is at present planned, financed by EAR funds.

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b) Electrical Engineering According to the present planning, the two machines will be in operation until decommissioning of Power Plant „Kosova A“. The condition of the entire E-equipment of both Stacker/Reclaimer is to be assessed unsatisfactory. For a medium-term operation, restrictions in the equipment availability and high running costs for maintenance have to be taken into account. The electrical equipment still in operation does not correspond any longer to the valid European standards. Especially preventive measures for persons and plants in accordance with the standard DIN VDE 0100 are in no way given e.g.: The low voltage switch systems do not have shock protection. The medium voltage switch systems are not sufficiently equipped with arc shield. The 6 kV-high-voltage terminal boxes have no sufficient arc voltage protection and they are in a very bad technical repair. Most of the high -voltage protective relays are defective. The medium- and low-voltage systems at the bucket wheel excavators no longer correspond no to the valid European Norms and therefore the latest state of the art. In addition, electrical as well as electronic safety equipment, buttons, synchros and local control boxes are worn out and partly no more in function for different reasons (missing spare parts, deficient maintenance). According to rough estimations, more than 40 to 55 % of the sensors are ready for operation. The sensors in the field area are an important prerequisite for indicating safe operating and status condition (monitoring in the excavator operator cabin. The cables and cable routes have been strongly due to environmental impacts (e.g. ozone) and technological conditions (e.g. contamination, mechanical cramping and distortion of cables). The electrical drive units (starter, motor and thrustor), for example for conveyor belts, hoisting winches, tensioning devices, auxiliary motors and oil pumps, have a very limited availability and reliability. Motors can only be repaired with large expenses. Thrustors with the mechanical part of the brake are mainly not functioning and/or partly not reliable in their function. In line with this the electrical drives are not applicable for a safe operation. According to information of personnel there are only rare spare parts available for the converters of slewing- and travelling gear. The E house is partly without isolation and air conditioning system which causes temperature problems in the summer season. The electrical locking system „Excavator-Belt conveyor“ is also in a bad repair (cable drums defective) or partly not functioning. The 6 kV-incoming feeder is needed to be completely overhauled (strongly twisted feeder, cable drums are defective). The electrical equipment on the belt drive station should be stabilized in short-term within the framework of running maintenance to such an extent that it will be possible to operate the devices with justifiable risk until decommissioning. The expenses of Stacker/Reclaimer and belt conveyor system shall be within the following scope: Spare parts for MV- and LV-plants (e.g. protection relays, relays, circuit breakers, motors, electronic assemblies) Control devices (e.g. limit switches, buttons, switches, terminal boxes, local control boxes) Thrustors and parts of the mechanical brake Cables and lighting equipment Rehabilitation of the 6 kV-bench terminal boxes Rehabilitation of E-houses at selected areas (e.g. roofs, doors) Page 157 of 257


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7.2 Rehabilitation Measures for MME 7.2.1 Measures for Excavators At the E8M the missing drive at the wheel belt shall be completed. Bucket wheel drives shall be replaced due to increasing breakdowns. The following measures are planned: Tab. 7.2-1

Measures for MME

Type E9M

SchRs 650

E10M

SchRs 650

E8M

SRs 1300

E9B

SRs 1300

E10B

SRs 1300

E8B

SRs 1300

Measures Replacement of hoisting ropes wheel boom Refurbishment of lubrication plants FW Replacement of worn out assemblies Replacement of hoisting ropes wheel boom Refurbishment of lubrication plants FW Replacement of worn out assemblies Installation twin drive wheel belt Horizontal alignment of driverâ&#x20AC;&#x2122;s cabin Overhaul of wheel boom hoist Replacement of worn out assemblies Replacement of bucket wheel drive Replacement of worn out assemblies Replacement/Renewal of the Main Control Cabin and electrically drive for travel gear drive and slewing drive (with converter) Replacement of bucket wheel drive Replacement of worn out assemblies Replacement/Renewal of the Main Control Cabin and electrically drive for slewing drive (with converter) Replacement of bucket wheel drive Replacement of worn out assemblies Replacement/Renewal of the Main Control Cabin and electrically drive for travel gear drive

Year Not fixed Not fixed

Not fixed

2005

2005

2006

The expenses for running maintenance per excavator up to a complete reconstruction amount to average 0.380 MEUR per year. Necessary Expenditure of the Rehabilitation Needs for Electrical Equipment A concept including the necessary demand for new technical equipment for the mentioned bucket wheel excavators shall be planned by the engineering personnel taking into account safety- and cost-relevant aspects. The planning document is to be provided until June 2005. The budget should be available before December 2005. The selected electrical rehabilitation measures for the excavators represent minimum requirements which are needed till the end of the operation. Page 158 of 257


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Spare parts according to priorities for excavators of the type SRs 1300 comprise: Spare parts for MV- and LV-plants (e.g. protection relays, relays, circuit breakers, motors, electronic assemblies) Control devices (e.g. limit switches, buttons, switches, terminal boxes, local control boxes) Thrustors and parts of the mechanical brake Cables and lighting equipment Rehabilitation of the cable drums and 6 kV-bench terminal boxes Rehabilitation of E-houses at selected areas (e.g. roofs, doors) Necessary expenses [related to 3 years]: max. 0.60 MEUR Spare parts according to priorities for excavators of the type SchRs 650 comprise: Exchange of the PLC Systems from type S 5 on S 7 Selected spare parts for MV- and LV-plants Selected spare parts for control units Cables and lighting equipment Motors and thrustors Necessary expenses: min. 0.40 MEUR

7.2.2 Measures for Belt Conveyor Systems Mechanic: In 2004, the drive stations D1 and TP1 were mechanically repaired within the framework of a complete electrical reconstruction. Station T1 will be repaired in April 2005. These mechanical repairs are only limited to repair of catwalks and the replacement of worn out mechanical assemblies. The rehabilitation of the mechanical engineering by drives of the new generation is not planned. Repairs at all the other stations and belt conveyor systems are limited to the running repairs. The running maintenance expenditures per 2,000 m conveying distance are on the average 0.28 MEUR per year. Electric: For the rest of the deployment of the belt conveyors including the mobile transfer conveyor until the closure of the opencast mines it is only reasonable to carry out the necessary running maintenance measures in order to ensure equipment safety and availability to a great extend. The following priorities shall be made when planning the running maintenance: Motors and thrustors (complete), see above listed The outdoor plants like lighting, limit switches, buttons and transmitter technology Refurbishment of the electrical houses (as makeshift). A concept including the necessary demand for new technical equipment for the belt conveyors including the mobile transfer conveyor shall be planned by the engineering personnel taking into account safety- and cost-relevant aspects. The planning document is to be provided until June 2005. The budget should be available before December 2005. Necessary expenses [related to 5 years]: 0.60 MEUR. The budget for the necessary expenditures of the mentioned equipment including the mobile transfer conveyor shall be applied for as follows: Outside facilities 0.08 MEUR Page 159 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

-

Low-voltage plant High-voltage plant Slewing and travelling gear

0.12 MEUR 0.22 MEUR 0.20 MEUR

7.2.3 Measures for Spreaders Mechanic The spreaders can be operated until the planned shifting on the premise that the safety installations and the lubrication plants are maintained step-by-step and the running maintenance is carried out continuously. Based on the results from a safety inspection in 2001, the steel construction of the spreaders P1B, P2B and P3B was repaired and all limit switches were replaced. Except the running maintenance repairs, further necessary measures are not planned at present. The running maintenance expenditures per spreader until a complete reconstruction come to average 0.18 MEUR per year. Electric: The deployment of the spreaders in a new mining field requires a complete reconstruction of the electro-technical equipment. For the rest of the deployment of the spreaders until the closure of the opencast mines it is only reasonable to carry out the necessary running maintenance measures in order to ensure equipment safety and availability to a great extend. The following priorities shall be made when planning the running maintenance: Selected spare parts for MV- and LV-switch gears as switchers, contactors, relays, ... Motors and thrustors (complete), The outdoor plants like lighting, limit switches, buttons and transmitter technology Cables Refurbishment of the electrical houses (as a makeshift). A concept including the necessary demand for new technical equipment for the spreaders shall be planned by the engineering personnel taking into account safety- and cost-relevant aspects. The planning document is to be provided until June 2005. The budget should be available before December 2005. Owing to the very bad technical condition of the steel construction, mechanical engineering and electrical equipment of this equipment class it is only reasonable to carry out the necessary running maintenance measures in order to ensure equipment safety and availability to a great extend. The budget for the spreaders shall be applied for as follows: Outside facilities 0.05 MEUR Low-voltage plant 0.09 MEUR High-voltage plant 0.10 MEUR Slewing and travelling gear 0.08 MEUR Necessary Expenses [related to 5 years]:

Page 160 of 257

max. 0.32 MEUR.


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

7.2.4 Measures for Belt Wagons Mechanic Continuous maintenance is required to operate belt wagons until their decommissioning. Missing assemblies shall be dismounted from decommissioned devices and rehabilitated. Maintenance concentrates on removing damages at the steel construction, repair of lubrication plants and scraper system as well as replacement of crawler base pads. Two of the belt wagons in the Bardh mine were repaired as a result from a safety inspection in 2001. The running maintenance expenditures per belt wagon come to average 0.07 MEUR per year. Electric A concept including the necessary demand for new technical equipment for the belt wagons shall be planned by the engineering personnel taking into account safety- and cost-relevant aspects. The planning document is to be provided until June 2005. The budget should be available before December 2005. The budget for the belt wagons shall amount to the following: Necessary expenses [related to 5 years]: 0.13 MEUR.

7.2.5 Measures for Stacker / Reclaimer (Stockpile Equipment) Separation Plant B In 2005 Stacker/Reclaimer B in Separation Plant B will be rehabilitated. This measure will only include a basic mechanical maintenance including a complete corrosion protection. By means of these measures the equipment will be put into a good mechanical condition. For both of the Stacker/Reclaimer A and Stacker/Reclaimer B as well as the belt conveyor system reserve assemblies for the mechanical engineering are missing. Downtimes have to be taken into account in case of failure of assemblies which will last until completion of repair. The running maintenance expenditures will amount to ca. 0.48 MEUR per year for Separation Plant A and 0.35 MEUR per year for Separation Plant B. The rehabilitation of the electrical equipment on the Stacker/Reclaimers in the Separation Plant A belongs to maintenance measures which are important in order to ensure equipment safety and availability to a great extend. A concept including the necessary demand for new technical equipment for the Stacker/Reclaimer shall be planned by the engineering personnel taking into account safetyand cost-relevant aspects. The planning document is to be provided until June 2005. The budget should be available before December 2005. The scope of expenditures for the Stacker/Reclaimer shall comprise the following: Spare parts for MV- and LV-plants (e.g. protection relays, relays, circuit breakers, motors, electronic assemblies) Control devices (e.g. limit switches, buttons, switches, terminal boxes, local control boxes) Thrustors and parts of the mechanical brake Cables and lighting equipment Rehabilitation of the 6 kV-bench terminal boxes Motors Page 161 of 257


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Necessary Expenses [related to 5 years]:

0.40 MEUR.

The scope of expenditures for the belt conveyor plants shall comprise the following: Spare parts for MV- and LV-plants (e.g. protection relays, relays, circuit breakers, motors, electronic assemblies) Control devices (e.g. limit switches, buttons, switches, terminal boxes, local control boxes) Thrustors and parts of the mechanical brake Cables and lighting equipment Rehabilitation of the 6 kV-bench terminal boxes Motors Necessary Expenses [related to 5 years]: 0.80 MEUR. A dust reduction system for all transfer points to be financed by EAR is planned at present and it is expected that installation for Plant B will be in 2005 and for Plant A in 2006. After decommissioning of Power Plant A the dust reduction system can be dismounted and installed then at other necessary transfer points.

7.2.6 Conclusion for the Field Sibovc All bucket wheel excavators of the size classes SRs 1300 and SchRs 650 can be taken into consideration for a further operation in a follow-up field due to their condition and capacity parameters. Within the framework of a complex repair the following measures have to be implemented (please see table below). Tab. 7.2-2

Measures MME for Sibovc

E9M

SchRs 650 [1519-21]

E10M

SchRs 650 [1516-18]

E8M

Type

SRs 1300 [19020]

Measures Complete corrosion protection; Reconstruction bucket wheel head; complete electrical reconstruction including crawler-mounted cable (reel); Replacement of travel gear units; Rehabilitation of steel construction; Complete corrosion protection; Reconstruction bucket wheel head; complete electrical reconstruction including crawler-mounted cable (reel); Replacement of travel gear units; Replacement of scraper- and sealing systems; Complete corrosion protection; Reconstruction bucket wheel head; complete electrical reconstruction including crawler-mounted cable (reel); Replacement ball track and ring gear excavator superstructure; Rehabilitation of steel construction;

Page 162 of 257

Year III/2007 up to at the end of I/2008

III/2008 up to at the end of I/2009

II/2007 up to II/2008


EAR-Project: EuropeAid/116986/D/SV/KOS

E8B

E10B

E9B

Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Complete corrosion protection; SRs 1300 complete electrical reconstruction including crawler-mounted cable (reel); [19009] Rehabilitation of steel construction; Complete corrosion protection; SRs 1300 complete electrical reconstruction including crawler-mounted cable (reel); [19010] Replacement ball track and ring gear excavator superstructure; Rehabilitation of steel construction; Complete corrosion protection SRs 1300 complete electrical reconstruction including crawler-mounted cable (reel); [19008] Rehabilitation of steel construction; Replacement of scraper- and sealing systems

IV/2007 up to II/2008

I/2009 up to III/2009

IV/2008 up to II/2009

SRs 470 / 400 and SRs 315 The bucket wheel excavators SRs 470, SRs 400 and SRs 315 are not applicable for a long-term operation. Owing to existing damages at the steel construction and the condition of the mechanical and electrical assemblies, respectively, these excavators shall be decommissioned step-by-step until 2010/11. Belt Conveyor Because of the output capacities of the heavy opencast mine machines, only the lines with 1,800 mm belt width are used in the new mine. At present there are operated two of it in the active mines with 5 drive stations each having 2 x 800 kW drives, and 853 frame sections with a total length of 5,988 m. In the already decommissioned belt conveyors to Power Plant TPP A (5.12 und 5.13) with a belt width of 1,800 mm, there are used belt drives with 2 x 800 kW gears and 1 x 800 kW gears. The complete mechanical construction of 6 of the decommissioned drive stations was disassembled to get spare parts. After a reconstruction the released belt conveyors of the Mirash mine can be shifted to the follow-up mine. To ensure the necessary availability of the plants, the following are the minimum measures to be carried out: Complete reconstruction of the drive stations (electrical equipment, corrosion protection, steel construction, gears and drums) Replacement and/or repair of defective frame sections using available reserves Replacement of ca. 50 % of the idlers superstructure Replacement of ca. 70 % of the idlers substructure Replacement of 100 % of the belts Reconstruction (or purchase) of the unshiftable 1,800 mm frame sections of the overburden conveyor lines in the Mirash mine (E9M, E10M) to shiftable frames of use of them in stationery systems. Complete electrical and mechanical reconstruction of the Feeding hopper car [FHC]; Complete electrical and mechanical reconstruction of the Belt Tripper car [BTC];

For the establishment or the procurement of a conveying line with an operating life greater than 10 years a new investment is recommended comprising all modern elements of the conveying engineering adjusted to the technical standard of the reconstructed opencast mining equipments Page 163 of 257


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(excavators, spreaders and information and instrumentation and control). The advantages lie in a high reliability and low maintenance costs compared to reconstructed equipment. Because after the development of the first opening up figure the distances to bridge are lager than conveyor belts are available, new investments shall be developed in advance and planned technically compatible. Spreader It is intended to only use the large spreaders with a capacity of 5000 lcm/h in the new mine. or the use in the new mine. Spreaders of smaller capacity have to be scrapped. Before the spreaders are re-used again, they have to be rehabilitated with the following key issues: Complete electrical reconstruction Complete corrosion protection Steel construction refurbishment Refurbishment of travelling gears Overhaul of conveyor systems Replacement of belt cleaner and sealing systems Complete electrical reconstruction including crawler-mounted cable reel car Belt Wagon Only the belt wagons of the type BRs 1600 are foreseen to operate in the Sibovc field.

7.3 Technical Specification of Main Mining Equipment The technical specifications are attached in Appendix C.

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8 Power Supply System and Electrical Equipment 8.1 Future Energy Demand Feeding of power cables and lines shall guarantee a safe supply for the described mining concept for Sibovc. In the Sibovc mine a large part of the currently available mining equipment will be reused. It is important to consider that the equipment shall be rehabilitated and that the future annual capacity will be much higher than in the present Mirash and Bard mines. The following will be supplied in the Sibovc opencast mine: a) Overburden operation in four overburden levels with the following equipment: • 2 excavators SRs 1300 • 1 new bucket wheel excavator • 1 excavator SchRs 650 • 2 spreader A2Rs B 5200 • 1 spreader A2Rs B 4400 • 1 new spreader (for new BWE) • 3 Esch b) Coal operation in four levels with the following equipment: • 3 excavators SRs 1300 • 1 new excavator SchRs 650 or SRs 1300 or equivalent • 3 BRs 1600 c) Stockpile operation (located TPP A and B) with: • 2 Stacker / Reclaimer TPP A / IPP • 2 Stacker / Reclaimer TPP B1+B2 • 4 Stacker / Reclaimer TPP B3+B6 d) Overburden conveyor belt system e) Coal conveyor belt system (benches and long-distance conveyors) f) Mine Office • Office buildings at Gate 1, Mirash and in Bardh g) Workshop h) Warehouse The following table gives a survey on the capacities. Page 165 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Tab. 8.1-1

Capacities

Designation

2012

2013 - 2015

2020 - 2023

> 2025

Prod. Energy

610 MW 678 MW 350 MW 0 0 MW 1.71 t/MWh 7.5 mMWh

610 MW 678 MW 700 MW 0 0 MW 1.67 t/MWh 9.2 mMWh

0 678 MW 1,400 MW 1,050 MW 680,45 MW 1.57 t/MWh 15.3 mMWh

0 0 1,400 MW 1,050 MW 2,45 MW 1.55 t/MWh 12-12.2 mMWh

Demand Coal Coal Demand TPPs

13.1 mt 12.8 mt

15.8 mt 15.4 mt

24.4 – 24.8 mt 23.9 – 24.3 mt

19.1 – 19.5 mt 18.6 – 19 mt

Production OCM (all Mines) thereof Bardh/Mirash Necessary Energy demand –installed (high efficiency) Installed for OCM required continuously

35.6 mt

38.9 – 39.1 mt

48.1 – 49.2 mt

42.6 – 38 mt

85 MW

100 MW

150 MW

120 MW

100 MW 40-50 MW

115 MW 55-60 MW

160 MW * 75 MW *

120 MW 60 MW

TPP A TPP B1+B2 TPP B3-B6 TPP C (IPP) SUM TPP Factor TPPs

*only temporary The required installed capacity for the devices is estimated as following: Tab. 8.1-2 Description

Required installed capacity

Operating time

E 8M E 9B New E 9M

SRs 1300 SRs 1300 BWE SchRs 650

Year 2008 - 2038 2008 - 2038 2008 - 2038 2008 - 2038

Installed capacity per machine kW 1,650 1,650 2,100 1,700

P 4M P 1B new P 3M

A2Rs B-5200 A2Rs B-4400 A2Rs B-8000 A2Rs B- 5200

2008 - 2038 2008 - 2038 2008 - 2038 2011 - 2038

800 800 1,200 800

1 1 1 1

5,000 5,000 5,000 5,000

E 10M SchRs 650 E 8B SRs 1300 E 10B SRs 1300 New SRs 1300 or equivalent

2009 - 2038 2009 - 2038 2009 - 2038 2016 - 2038

1,700 1,650 1,650 1,650

1 1 1 1

5,000 5,000 5,000 5,000

Overburden Belt Conveyor

2008 - 2038

1,600

26 km

6,000

Page 166 of 257

Number of Equipment

Operating hours

1 1 1 1

5,000 5,000 5,000 5,000


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Coal Belt Conveyor

2009 - 2038

1,600

27 km

6,000

TPP A with 2 Stacker / Reclaimer TPP B1 + B2 with 2 Stacker / Reclaimer TPP B (B3 – B6) with 4 Stacker / Reclaimer New TPP (IPP) with 2 Stacker / Reclaimer

2008 - 2019

800

2

6,000

2008 - 2024

800

2

6,000

2012 - 2038

1,600

4

2016 - 2038

(800)

(2)

6,000

Mine Office Workshop Warehouse other

2008 - 2038 2008 - 2038 2008 - 2038 2010 - 2038

300 800 250 250

1 1 1 1

3,500 6,000 4,000 4,000

The long-term demand of installed energy is about 120 MW.

8.2 Investment for Electrical System Summarizing, the following basic investments are assumed: Phase 1: Installation of a secondary power supply from the existing transformer station of „Palaj“ by means of a 35 kV overhead transmission line to be new installed and a new 35 kV Power Supply with 6 kV distribution and 6 kV bench cable including cable boxes. Estimated Costs: 0.75 m€

This capacity will be sufficient to supply power to two opencast mine machines with the attached conveyor systems and an assembly yard and/or corresponding auxiliary facilities. Phase 2: Extension of the 110/35 kV Power Supply New construction of a 110 kV / 35 kV transformer station for Sibovc with a capacity of 3 x 31.5 MVA including a 110 kV overhead line Estimated Costs: 7.0 m€ Phase 3: 35 kV Power Supply with 6 kV distribution: - Completion of 4 x 35/ 6 kV each of 2 x 8 MVA Power Stations - Installation of a uniform SFT-Technology (transportable units) - 6 kV bench cables with clamp cable boxes and cable trestles Estimated Cost: 4.0 m€

An overview of the energy distribution system for the new mine Sibovc is shown in the figure below: Page 167 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Fig. 8.2-1

Energy distribution system

For an overview of the 35 kV power supply (coal) see the following schema:

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Fig. 8.2-2

35 kV power supply – coal extraction

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

A scheme of power supply for overburden removal is shown below:

Fig. 8.2-3

35 kV power supply - overburden

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

9 Auxiliary Equipment 9.1 Assessment of Technical Status in the Existing Mines A complete auxiliary equipment fleet is available in the Bardh and Mirash mines. In 2000/2001 and 2004 an extensive rehabilitation of the auxiliary equipment fleet was realized with the help of KfW and EAR funds. Some of the old equipment have been commissioned in the 80â&#x20AC;&#x2122;s and is more than 20 years old. Nevertheless, the predominant part of the auxiliary equipment is in a strong technical status. From 2007 overburden production in the Bardh and Mirash mines will considerably decline. First overburden lines will be put out of operation; the number of operation points will be reduced. In the existing mine, coal production will go on with full capacity until 2008 and in 2009 and 2011 with reduced capacity. Parallel with the decline in capacity, a part of the auxiliary equipment can be put out of operation. At the time of decommissioning a part of the auxiliary equipment will have exceeded its normative service life. Prolongation of the normative service life is not recommended due to the difficult conditions and the rather poor maintenance. Moreover, the further use of selected auxiliary equipment is intended for recultivation-, securing and wrapping measures over the year 2011. Substitute investments for worn out auxiliary devices are not planned within the medium-term planning. The result is, that a take-over of auxiliary equipment from the existing fleet for a further use in the Sibovc mine will not be possible or only in to limited extent. The further plans for the Sibovc mine assume a complete new auxiliary equipment fleet.

9.2 Auxiliary Equipment and Devices for the Sibovc Mine 9.2.1 Maximal Demand of auxiliary Equipment For ensuring the production processes in the pit, a whole number of auxiliary machines and equipment are necessary. The auxiliary equipment is attached to the different operational sections and operated in one up to three shift operation according to requirement. The following table illustrates the optimal stock on auxiliary equipment in case of maximum production. The given engine performance and number of equipment is based on the special application condition in the existing mines and the experiences from other mines with comparable deposit properties.

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Tab. 9.2-1

Number of auxiliary Equipment Type

Dozer Pipelayer Wheel Dozer Wheel Loader 17t Wheel Loader Excavator Loader Telescope Crane 90t Telescope Crane 60t Telescope Crane 45t Telescope Crane 30t Forklift 2t Forklift 5t Truck payload 12t, 3-axle Truck with hydraulic crane Truck with lifting Platform Dump Truck Cable reel Trailer Low Bed Trailer Fuel Truck Lubrication Truck Tractor Hydraulic Backhoe (crawler) Hydraulic Backhoe (wheel) Grader Trench Cutter Single Drum Roller Jeep Pick-up Jeep 12 seats Personnel Transporters (36 Minibus Ambulance Fire Fighting Truck Drilling Machine Workshop Container Mobile Workshop Mobile Lightings Winding Support Drum Vulcanisation Set Diesel Generator Water Truck Spraying Galleries Pumps

[ kW ] 230 - 300 180 250 180 120

Overb. 10 3 3 1

340 270 270 200

130 130 230

1

60t 180

1 1

200 180 - 200

1 1 1 2

160

1

Number of auxiliary Equipment Coal Stockp Drain. Maint. 6 6 2 2 3 2 1 2 1 1 1 3 2 2 3 1 1 4 2 1 1 1 1 1 1 1 3 1 1

150 100 75 100 140

1 3 2 1 4 1 2 1 3

3 2 1 4 1

0.5

2 1

2 1 1

3

2 1 4 10

Page 172 of 257

7 9

1 2 3 1 2 2

total 22 5 2 8 2 2 1 1 1 3 2 2 3 7 2 2 1 2 2 1 2 5 2 2 1 1 17 15 2 9 2 2 1 3 1 2 6 1 2 4 1 4 10


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

The calculation of the auxiliary equipment fleet bases on the following: Dozers 1 per working level in overburden, coal and dumping operation 6 for the stockpiles 2 for special works 2 as reserve in case of repair measures (corresponds 10% of fleet) For levelling work which will not be carried out continuously it is not intended to use dozers. Such peak capacities shall be put out to tender and awarded to contractors for cost reasons (single lots and/or framework contracts). Personnel Transporters

2 for excavation site overburden 2 for excavation site coal 2 for dumping site and recultivation 1 for dewatering 2 as reserve in case of repair measures or breakdowns In addition to these big personnel transporters (36 seats) smaller jeeps and microbuses are foreseen for the shift change and for the different departments for transportation. 4-Wheel-Drive is urgent necessary for all cars and busses under consideration of the heavy material properties particular in overburden operation.

9.2.2 Yearwise Development of Auxiliary Equipment Fleet The establishment of the auxiliary equipment fleet will be adjusted to the development of capacity in the opencast mine. The first auxiliary machines have to be put in operation already before the heavy-duty equipment will start work to prepare their starting position. In 2012, the full equipment capacity will be installed both in the overburden- and coal operation. This means that until this date the auxiliary equipment fleet shall be completed. From this period, a constant auxiliary equipment fleet will be in operation. The following table shows the development of the auxiliary equipment fleet up to a maximum size.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Tab. 9.2-2

Number of auxiliary Equipment up to 2012

Type Coal Output [mt] Overburden [mbcm Dozer Pipelayer Wheel Dozer Wheel Loader 17t Wheel Loader Excavator Loader Telescope Crane 90t Telescope Crane 60t Telescope Crane 45t Telescope Crane 30t Forklift 2t Forklift 5t Truck payload 12t, 3Truck with hydraulic Truck with lifting PlatDump Truck Cable reel Trailer Low Bed Trailer Fuel Truck Lubrication Truck Tractor Hydraulic Backhoe Hydraulic Backhoe Grader Trench Cutter Single Drum Roller Jeep Pick-up Jeep (12 seats)

2007 0 1.6 1

Personnel Transporters (36

1

Minibus Ambulance Fire Fighting Truck Drilling Machine Workshop Container Mobile Workshop Mobile Lightings Winding Support Drum Vulcanisation Set Diesel Generator Water Truck Spraying Galleries Pumps

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1

2008 0.1 10.7 7 1 1 3 1 1 1 1 1 1 1 1 1 2 1 1 1 1 1 1 1 2 1 1 1 5 5 1 3 1 1 1 2 1 1 2 1 1 2 1 2 3

2009 2.4 23.2 15 4 2 6 2 2 1 1 1 2 2 2 2 5 2 2 1 2 2 1 2 4 2 2 1 1 12 10 2 6 2 2 1 3 1 2 4 1 2 3 1 3 7

2010 7.1 22.7 17 4 2 7 2 2 1 1 1 3 2 2 3 6 2 2 1 2 2 1 2 4 2 2 1 1 14 12 2 7 2 2 1 3 1 2 5 1 2 4 1 4 8

Page 174 of 257

2011 7.8 22.4 18 4 2 7 2 2 1 1 1 3 2 2 3 6 2 2 1 2 2 1 2 4 2 2 1 1 14 12 2 7 2 2 1 3 1 2 5 1 2 4 1 4 8

2012 13.1 22.5 22 5 2 8 2 2 1 1 1 3 2 2 3 7 2 2 1 2 2 1 2 5 2 2 1 1 17 15 2 9 2 2 1 3 1 2 6 1 2 4 1 4 10


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

The mobile auxiliary equipment has a smaller economic service life compared to the main equipment. Depending on the type of equipment and the conditions of use this time varies between 3 and 12 years. Partly, longer service life may also be possible. Thereafter, the auxiliary equipment is technically worn out and shall be replaced. When using the equipment it shall be assumed that a new and technically improved generation may be available on the market. A technical specification of these equipments for the planning of Sibovc seems to be not useful. The following service life was assumed for the single auxiliary equipment classes: • • • • • • •

Pumps Cars and Busses Ancillary Equipment Dozer, Wheel Loader, Trucks Special Trucks, Drilling Machine Backhoes, Grader Temporarily used Equipment

3 Years 6 Years 6 Years 6 Years 8 Years 8 Years 10 – 20 Years

The following tables illustrate the number of the auxiliary equipment to be purchased annually. The bold number show the initial purchased machine up to completion of the auxiliary equipment fleet; the other numbers (from 2013) are replaces equipments.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Tab. 9.2-3

Annual Purchase of auxiliary Equipment up to 2017

Type Dozer Pipelayer Wheel Dozer Wheel Loader 17t Wheel Loader Excavator Loader Telescope Crane 90t Telescope Crane 60t Telescope Crane 45t Telescope Crane 30t Forklift 2t Forklift 5t Truck payload 12t, 3-axle Truck with hydraulic Truck with lifting PlatDump Truck Cable reel Trailer Low Bed Trailer Fuel Truck Lubrication Truck Tractor Hydraulic Backhoe Hydraulic Backhoe Grader Trench Cutter Single Drum Roller Jeep Pick-up Jeep (12 seats) Personnel Transporters Minibus Ambulance Fire Fighting Truck Drilling Machine Workshop Container Mobile Workshop Mobile Lightings Winding Support Drum Vulcanisation Set Diesel Generator Water Truck Spraying Galleries Pumps

200 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1

‘08 6 1 2 1 1

1

‘09 8 3 1 3 1 1

1 1 1 1 3 1 1

‘10 2

‘11 1

1

‘12 4 1 1

‘13 1 1 1

‘14 6

‘15 8

2 1

1 3 1 1

‘16 2

1 1 1 1 1 1 1

1

1 1 1 1 1

1

1 1

1

1 1

1

1

‘17 1

1 1

3 1 1 1 1

1 1 1

1 1

1 1 1 1 1 1 1 1 1 1

1 1

1 2 1 1 1

4 4 1 2 1

7 5 1 3 1 1

1 1

1

1 1 1 1 1 1 3

1 2

1

1

1 1

1

2 2

3 3

1

2

1

1

1 1

1

1

1

1

2

1

1 1

1 1

1

1 3

1 6

1 1

1

1 4

1 1

1 1

Page 176 of 257

1

2 2

1

1

6

7 5 1

1

1 1

3

4 4 1

1 2 1 1

1

3


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Tab. 9.2-4

Purchase of auxiliary Equipment between 2018 and 2028

Type Dozer Pipelayer Wheel Dozer Wheel Loader 17t Wheel Loader Excavator Loader Telescope Crane 90t Telescope Crane 60t Telescope Crane 45t Telescope Crane 30t Forklift 2t Forklift 5t Truck payload 12t, 3-axle Truck with hydraulic crane Truck with lifting Platform Dump Truck Cable reel Trailer Low Bed Trailer Fuel Truck Lubrication Truck Tractor Hydraulic Backhoe (crawler) Hydraulic Backhoe (wheel) Grader Trench Cutter Single Drum Roller Jeep Pick-up Jeep (12 seats) Personnel Transporters Minibus Ambulance Fire Fighting Truck Drilling Machine Workshop Container Mobile Workshop Mobile Lightings Winding Support Drum Vulcanisation Set Diesel Generator Water Truck Spraying Galleries Pumps

‘18 4

‘19 1

1

1 1

‘20 6 1 2 1

‘21 8 3 1 3 1

‘22 2

‘23 1

1

1 1

‘24 4 1

‘25 1 1 1

‘26 6

‘27 8

‘28 2

2 1

1 3 1

1

1

1

1

1 1 1

1 1 1

1 1

1 1

1 1

1

1 1

1

1

1 1

1

1 1 1 3 1

1 1

1 1

1 1

1

1 1

1 1

1

1 1

2 1 1

3 3

1 1

1

1

1 3 3

1 1 1

2

3

4 4 1 1 1

7 5 1

2 2

4 4 1

2 1

1

1

1

7 5 1 1 1 1 1

2 2 2

1 1

1

6

1 1

1

1 2

1

1 1

1 1

1 1

1 3

1 6

1

1

1

2

1

1

1 1

1 1

1 1

1 1

1 3

1 6

1

Page 177 of 257

3

6

1 1 1 1 1 1


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Tab. 9.2-5

Purchase of auxiliary Equipment between 2029 and 2038

Type Dozer Pipelayer Wheel Dozer Wheel Loader 17t Wheel Loader Excavator Loader Telescope Crane 90t Telescope Crane 60t Telescope Crane 45t Telescope Crane 30t Forklift 2t Forklift 5t Truck payload 12t, 3-axle Truck with hydraulic crane Truck with lifting Platform Dump Truck Cable reel Trailer Low Bed Trailer Fuel Truck Lubrication Truck Tractor Hydraulic Backhoe (crawler) Hydraulic Backhoe (wheel) Grader Trench Cutter Single Drum Roller Jeep Pick-up Jeep (12 seats) Personnel Transporters Minibus Ambulance Fire Fighting Truck Drilling Machine Workshop Container Mobile Workshop Mobile Lightings Winding Support Drum Vulcanisation Set Diesel Generator Water Truck Spraying Galleries Pumps

‘29 1

1

‘30 4

‘31 1

1

1 1

‘32 6 1 2 1

‘33 8 3 1 3 1

‘34 2

‘35 1

1

1

‘36 4 1

‘37 1

1

1 1

1

1

‘38 6

2 1

1

1

1 1 1

1 1 1 1 1 1

1

1

1 1 1 3 1

1 1

1

1 1

1 1 1

1 1

1

1

1

1 1

1 1

2 1 1 1

4 4 1 2 1

7 5 1 1

1

1

1

1 1

1

1 2

1

1 1

1 1

1 6

1 1

1 3

1

3 3 3

1 1 1

1

1

3 3

2 1

1 1 1

4 4 1 2 1

1

1

3

Page 178 of 257

1

1

1

1

1

1 1

1 6

1 6

1 1

1

1

3


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

9.3 Heavy Auxiliary Equipment for Sibovc Mine 9.4 Draglines For special works, linked with large mass movements, the application of draglines has been foreseen. These machines can be variably used at reasonable costs and they can be shifted within the mine with low expenses. The following works can be done by draglines: • Cutting of overheights • Movement of sliding masses • Design of ramps • Cleaning of surface in the area of villages • Design of water collecting basins It is proposed to use 3 draglines in the Sibovc mine as heavy auxiliary machines. After an appropriate rehabilitation these machines can be moved from the existing mines of Mirash and/or Bardh. There it will not be necessary to purchase new ones. At present 6 draglines are in operation in the existing mines. Except the ESch 10/70 in the Mirash mine which was technically overhauled, all draglines are in a bad repair. In addition to ESch 10/70 two smaller draglines (A12 ESch 6/45 and A7 ESch 6/45) has been selected from technical reasons for a further use in the Sibovc Mine. The two ESch 6/45 shall be rehabilitated before use in Sibovc; for each of the machines an investment of 0.8 MEUR was calculated. After 20 years of operation of the draglines in the Sibovc opencast mine it is planed to replace these machines. It is proposed to completely change to the equipment class with bucket content of 10 m³. Investments of 4.5 MEUR per device (price basis 2005) shall be planned. Tab. 9.4-1

Technical Data of Esch 10/70

Bucket Volume Boom Length Max. Cutting Height Max. Cutting Depth

Ground Pressure Service Weight Installed Power Time per Pass

10 m³ 70 m 34° 30° 26° 22° 17° 12° Operation Transport 135°

35 m 30 m 25 m 20 m 15 m 10 m 0.94 kp/cm² 1.49 kp/cm² 767 t 1,460 kW 54 s

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Fig. 9.4-1

Scheme Esch 10/70

9.4.1 Transport Crawler A transport crawler is required for the shifting of the belt driving station and other heavy assemblies up to a weight of 350 t. Such a transport crawler is available in the existing mines Bardh and Mirash. The transport crawler, financed by the EAR was delivered in 2003 and is in a good technical status. Thatâ&#x20AC;&#x2122;s why a general rehabilitation is not foreseen before recommissioning in the Sibovc mine. Replacement within the period under review is not taken into consideration due to the discontinuous use of the transport crawler. After 25 years, a rehabilitation of the transport crawler shall be carried out with an investment volume of ca. 20% of the new value.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

9.4.2 Derricks Large cranes will be needed for the assembly of the heavy equipment of the new opencast mine. Two Derrick cranes from the 70ies are still available on the assembly yard/stockyard nearby Bardh. It is not sure if the equipment is ready for operation. Parallel to mobile cranes for the assembly of the equipment to be purchased it will be required to use also Derricks or equivalent machines. The rehabilitation of the available Derricks shall be checked. Investments of at least 0.1 MEUR are necessary for each of the Derricks.

9.5 Investment and Cost Calculation for Auxiliary Equipment Based on the average prices of the single auxiliary equipment types (price basis 2004) and the annual number of machines, the investments were determined according to equipment type and year. The investments/reinvestments for auxiliary equipment amount to 133 MEUR until 2038. About 26.5 MEUR are for initial investments, for rehabilitation measures of the heavy auxiliary equipment 2.1 MEUR and a sum of 104.1 MEUR for replacement investments. The replacement investments include a sum of 13.5 MEUR for the purchase of 3 new draglines. A slight reduction of the investments within the developing phase can be achieved by a further use of selected auxiliary machines from the existing mines of Mirash and Bardh. At present it is assumed that the auxiliary equipment in Bardh und Mirash will be worn out at the time of the decommissioning and cannot be further used. A revision shall be made at a later date.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Tab. 9.5-1

Investments and Reinvestments for auxiliary Equipment

Type Dozer Pipelayer Wheel Dozer Wheel Loader 17t Wheel Loader Excavator Loader Telescope Crane 90t Telescope Crane 60t Telescope Crane 45t Telescope Crane 30t Forklift 2t Forklift 5t Truck payload 12t, 3-axle Truck with hydraulic crane Truck with lifting Platform Dump Truck Cable reel Trailer Low Bed Trailer Fuel Truck Lubrication Truck Tractor Hydraulic Backhoe Hydraulic Backhoe (wheel) Grader Tab. 9.5-2

Investment 41.0 8.9 3.4 9.0 2.3 1.0 2.0 1.9 1.7 3.2 0.2 0.3 2.0 3.5 1.3 3.0 0.4 0.9 1.1 0.6 1.4 3.0 1.2 1.1

Type Trench Cutter Single Drum Roller Jeep Pick-up Jeep 12 seats Personnel Transporters Minibus Ambulance Fire Fighting Truck Drilling Machine Workshop Container Mobile Workshop Mobile Lightings Winding Support Drum Vulcanisation Set Diesel Generator Water Truck Spraying Galleries Pumps

Investment 0.8 0.3 3.1 2.6 0.4 3.9 0.4 0.2 0.4 4.8 0.2 1.3 1.2 0.4 0.6 0.6 0.1 0.1 1.5

Dragline ESch 10/70 Reha Transport Crawler Reha Derricks

15.1 0.4 0.1

Yearwise Investments for auxiliary Equipment in m€

Year Investments

‘07 5.7

‘08 6.4

‘09 10.2

‘10 1.8

‘11 1.2

‘12 3.3

‘13 1.1

‘14 3.5

‘15 5.9

‘16 2.2

‘17 4.0

Year Investments

‘18 2.5

‘19 3.6

‘20 4.5

‘21 7.2

‘22 1.8

‘23 1.5

‘24 3.6

‘25 2.7

‘26 3.4

‘27 11.6

‘28 6.9

Year Investments

‘29 1.8

‘30 2.8

‘31 7.8

‘32 5.1

‘33 8.8

‘34 1.6

‘35 0.4

‘36 2.9

‘37 3.3

‘38 3.5

For auxiliary equipment, the running cost for service fluids and maintenance shall be taken into calculation. These were determined on the basis of specific parameter. • • •

Energy for draglines Fuel and lubrication Maintenance of auxiliary equipment

- 0.9 kWh / bcm overburden - 30 % of costs for energy in the mines - 4 ct / bcm (overburden and coal)

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

10 Infrastructure and Surface Facilities 10.1 General Principles In principle it is not planned to install new surface facilities for various reasons; among others the available technical plants in Bardh/ Mirash, which are presently part of ongoing rehabilitation measures, the neighbourhood to Sibovc and the extensive investments, anyhow. It seems to be reasonable to use the available buildings and plants to a great extend also for the Sibovc opencast mine. The different buildings of the following departments of KEK were checked for a follow-up use: • Office Gate 1 • Mine „BARDH“ • Mine „MIRASH“ • SEPARATION PLANT • KOSOVAMONT -------------------------------------------------------The following construction measures are required for preparing the development of the lignite opencast mines as well as for securing the auxiliary processes: Social facilities and administration change- and washrooms with sanitary facilities (wash places and toilets) administration building canteen facilities for medical care parking places Supply and disposal transfer stations and switch plants for power supply of the opencast mine equipment and surface facilities supply of drinking water, disposal of wastewater data transmission fire extinguishing ponds, building for fire brigade roads (public roads, plant roads, roads on working levels of excavators spreaders) assembly yards Workshops and warehouses main mechanical workshop main electrical workshop central auxiliary equipment workshop vulcanizing workshop mechanical and electrical workshop (for immediate repairs) petrol stations wash places or vehicles central warehouse and various small warehouses of the departments Page 183 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

10.2 Social facilities and administration 10.2.1 Mine Offices For the future main administration ca. 250 office workplaces are necessary which can be located in the area of the daily facilities of the Bardh mine and the present main administration. The office building of Mirash having a total area of 714 m² can also be used for a short-term period (only barrack). About 60 employees can work on an office area of ca. 600 m². The workshops, the future Central workshop and the warehouses have integrated office complexes for the production planning- and management staff. Presently available office spaces: Office building in Mirash Office building in Bardh Head office KEK Mechanical + E-workshop Kosovomont Total

Fig. 10.2-1

60 employees 55 employees 85 employees 50 employees 250 employees

Mine office Bardh

The administration department is located in the office building of the daily facilities of Bardh. This office building includes among others a canteen, a large-size meeting room as well as toilets and a washroom. The building was reconstructed in the past years. On an office area of ca. 550 m² 55 employees can work.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

The single-floor building of the main administration complex of the mines have a total area of ca. 915 m² including the canteen. About 85 employees can work on the ca. 730 m² office area. This building consists of a light-weight timber construction (barracks) and is rather inappropriate for an expected residual life of 20 years.

Fig. 10.2-2

Mining Office (Gate 1)

To centralize the administration a new office building for ca. 150 employees is assumed useful for the opencast mine of Sibovc. This building shall be erected new or leased. The price for a new building would come to 4.70 m €. The investment appraisal bases on leasing of the building.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

14,18 m

reception

restrooms

secretary pool

25,00 m

washroom

10,82 m

Mine Office

canteen coffee shop

meeting room

10,82 m

27,72 m

10,82 m

49,36 m

Fig. 10.2-3

Plan of Mine Office

The above layout plan is an example for an office building in modular design. According to the number of personnel to be accommodated those buildings can be constructed up to a height of 3 floors and/or extended by modules. This design can be used for a lifetime of up to 30 years, smaller units consisting of only few modules can be moved flexibly.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

10.2.2 Mine Control Centre

Fig. 10.2-4

Current mine control centre of Mirash

For the Sibovc mine, a new control centre including the corresponding technical equipment shall be constructed. A sum of ca. 150,000 € (incl. control centre Hard- and Software) shall be planned.

10.2.3 Washrooms and Sanitary Facilities The wash- and locker rooms are attached decentralized to the respective operation unit in an appropriate size. Central washing facilities exist in the mechanical workshop at Kosovomont, Separation plant as well as at the daily facilities of the Bardh mine. The washing facilities are mostly integrated in the changing rooms and have only cold water connection (Bardh village). Kosovomont and Separation plant have separate wash- and change rooms. In addition to the available 1,400 wash- and changing room places (see Mid Term Plan) another 500 new places shall be provided for and/or leased. The investment costs for such a facility will come to 1.8 m €. The investment appraisal for Sibovc includes leasing prices for washrooms with a corresponding standard (showers with warm water, washing places, lockers and toilets).

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

10.3 Supply and Disposal 10.3.1 Transformer Station Power supply for the Sibovc opencast mine is carried out via the available 110/35 kV transformer station at PALAJ. For the final development of the opencast mine field a new 110/35 kV transformer station is required in the direct neighbourhood of the opencast mine. The power supply for the opencast mine equipment is performed by means of mobile „35 kV Power Supply with 6kV distribution“ units. Input supply between Power supply units and opencast mine equipment is made by 6kV bench cable and/or 6kV bench cable windable on drums. The concept of power supply is described under item “Power Supply System and Electrical Equipment”.

10.3.2 Erection Yards It is not planned to provide a new large assembly yard for the Sibovc mine because an erection site is available in Bardh village. For large repairs, operative assembly yards shall be provided with the following requirements: - horizontal level - effective size of area: 100 m x 80 m 25.00 cm base gravel 0/56 mm - basement: 25.00 cm antifreeze layer 0/32 mm 0.5 m foot width - installation of a ditch: 0.5 m deep, - drainage ditch around repair ground with connection to River and/or collection basin with pump - connection to access road - connection of media to the repair ground with power and water - use of mobile cranes Containers are provided for construction site management (responsible for installation: contractors). About 100,000 € per big repair shall be planned.

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

10.3.3 Road Construction Survey The following network of roads can be installed for a new opencast mine: 1. 2. 2.1 2.2

Relocation of public roads (see item 17 Resettlement) Mining roads (opencast mine) Roads on the single working levels of the opencast mine equipment (Plant roads) Access roads)

Categorization of road construction Tab. 10.3-1

Road construction

Designation

Mine operating roads, each on 4 working levels Access roads Municipal roads

Length of the road [m]

Wide of the road [m]

Type of road

4

Planned utilisation (years) <3

Excavator bench

3,000

Dump bench

1,500

4

<3

gravel

Head conveyor

2,000

4

>3

6

>3

asphalt with passing places asphalt

6

>3

asphalt

Main accesses each 5,000m in intended for a 2008, 2011, 2014, long-term use 2017 Connecting roads Corresponding to between the loca- the dislocation of tions locations

gravel

Plant roads Parallel to the belt conveyor systems, construction of plant roads 4 m wide are planned as gravel roads on the single working levels. In case of a lifetime greater than 3 years, these roads will be covered by an asphalt cover.

The roads constructed in Macadam-design (First layer 16 cm chippings with grain size 60-90 mm; Second layer 9 cm chippings with grain size 30-60 mm) in the Bardh and Mirash mines in 2004 have not proved successful on the existing subsoil (clay) and the difficult dewatering conditions. Therefore, the gravel roads on cohesive soils shall be constructed as follows: 10.00 cm 20.00 cm 30.00 cm 1 layer 60.00 cm

gravel base gravel base anti-freeze layer Geovlies-mats Sum

0/32 mm, sand washed 0/56 mm 0/32 mm

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A unit price of 12.00-16.00 €/m² shall be calculated for the cost determination of the gravel roads. Because an amount of ca. 50 % of the gravel material can be recovered the specific price will come to 9.45 €/ m². The following system of operating roads will be required in the opencast mine (depending on the bench lengths): Excavator bench on 4 working levels, ca. 3 km long and 4 m wide (gravel) Dump bench on 4 working levels, 1.5 km long and 4 m wide (gravel) Head conveyor on 4 working levels, ca.2 km long and 4 m wide with passing places (asphalt) Owing to the opencast mine advance and the connected shifting operations, about 27 km of gravel roads have to be built (until 2032). From 2033 to 2038, only 20 km of gravel roads will have to be built per year. The main accesses along the head conveyors are made of asphalt. At the beginning of the opening of the mines about 8 km have to be constructed. During regular operating, these roads will be extended on each working level by 100 - 120 m (totally about 0.5 km per year). Access roads Roads and main accesses intended for long-term use (lifetime >3 years) shall be furnished as asphalt roads with the following layers:

4.00 cm 4.00 cm 8.00 cm 20.00 cm 44.00 cm 80.00 cm

bitumen surface bitumen binder layer bituminous base gravel base antifreeze layer Total

0/11 mm 0/16 mm 0/32 mm 0/56 mm (compaction EV2 > 180 MN/m²) 0/32 mm

Due to opposing traffic the roads shall be 6 m wide. Costs will arise at an amount of 25.00 €/m² (construction mainly with local contractors). Due to the opencast mine advance, the access roads are integrated in the cost model as follows: 2008 5 km Asphalt road 2011 5 km Asphalt road 2014 5 km Asphalt road 2017 5 km Asphalt road From 2018, expenditures for asphalt road construction are calculated including a distance of 5 km every 5 years. For road construction the existing building materials (limited availability of broken brick, ash concrete) can be used. In any case a geotextile and a drainage layer shall be used in the upper layers because it can be water-absorbing depending on the firing temperature. Page 190 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

10.4 Workshops and Warehouses 10.4.1 Principles The mining company KEK owns a number of decentralized located main-and operating workshops and stockyards which can be used owing to the low distance to the new opencast mine field of Sibovc. The rehabilitation of buildings intended for use at Sibovc is part of the Mid Term Plans. During normal operation of Sibovc the existing buildings have to be maintained. An administration building, a 500-person washing room and a mine control centre are planned to be built new. Currently the following infrastructure elements support the maintenance process. Auxiliary equipment workshops (total 5 locations): − − − − −

Workshop (small) and yard Bardh (south-western slope Bardh), also the vulcanizing facility of the Bardh operation is located here Workshop and yard Mirash (Northern slope Mirash West, surface site of old underground mine) Workshop and yard Kosovomont (Mirash Brand Field) Rubber tired vehicles yard (Mirash gate) Workshop separation plant

Main equipment workshops (total 7 locations): −

Mechanical workshop Bardh (South of Bardh village, large construction cranes for main mine equipment on site), also the idler repair facility of the Bardh operation is located here − Electrical workshop Bardh, also a second building for electrical rehabilitation is at the same location (Western slope Bardh) − Mechanical workshop Mirash (Northern slope Mirash West) − Electrical workshop Mirash (Northern slope Mirash West) − Mechanical workshop Kosovomont − Electrical workshop Kosovomont − Electrical and mechanical workshop separation plant, idler repair Warehouses (total 11 locations with one more under construction): − − − − − − −

Warehouse electrical Bardh (Western slope Bardh) Warehouse mechanical Bardh (Western slope Bardh) Warehouse protective equipment Bardh (Western slope Bardh) Warehouse aux equipment Bardh (Western slope Bardh) Fuel station Mirash (Northern slope Mirash West) Warehouse electrical Kosovomont Warehouse mechanical Kosovomont Page 191 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

− − − − −

Fuel station separation plant Warehouse idler and vulcanization separation plant Warehouse mechanical and electrical temporary Mirash at the gasification plant Warehouse office supply at gate 01 There is a new warehouse under construction at the Mirash office building

Basing on the prepared maintenance concept for the Bardh and Mirash opencast mines the following available capacities will be rehabilitated and made available for Sibovc: From these 24 locations with support functions in a first business reengineering effort 11 locations will remain. These are: Auxiliary equipment workshops: (1) New Central Auxiliary equipment workshop including warehouse (Bardh Southwestern slope) - completion in 2005 Main equipment workshops: (1) Mechanical workshop Intervention (South of Bardh village) (2) Electrical workshop Intervention (Western slope Bardh) (3) Electrical workshop Kosovomont (4) Mechanical workshop Kosovomont (5) Workshop separation plant Warehouses: (1) Warehouse Bardh (Western slope Bardh) (2) Fuel station Mirash (Northern slope Mirash West) (3) New warehouse Mirash (currently under construction at the Mirash office building) – completion in 2005 (4) New central warehouse at Kosovomont (5) Idler repair workshop separation plant

For implementing an effective maintenance, a central inventory management including a EDPsystem for acquiring, keeping and managing the inventory is planned. For registering the material it will be necessary to introduce a code system. The following table summarizes all existing buildings of the single departments of KEK which will be used in future.

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Tab. 10.4-1

Further use of buildings for Sibovc

Building

Designation

Departments of CPD KEK

Auxiliary equipment New central aux. Workshop Workshop Mechanical workshop Intervention Electrical workshop intervention Main equipment workshops

Electrical workshop Mechanical workshop

Warehouses

SEPARATION DEPARTMENT

New warehouse

M.S. "MIRASHI"

Warehouse idler and vulcanization

SEPARATION DEPARTMENT

Warehouse electrical Bardh

M.S. "BARDHI"

Warehouse mechanical Bardh

Mine control centre

M.S. "BARDHI" MAINTENANCE DEPARTMENT "KOSOVAMONT" MAINTENANCE DEPARTMENT "KOSOVAMONT" M.S. "BARDHI"

Mine control centre

M.S. "MIRASHI"

Office Building

M.S. "MIRASHI"

Office Building

M.S. "BARDHI"

Mining Office

Petrol Station

KEK Gate 01 MAINTENANCE DEPARTMENT "KOSOVAMONT" M.S. "MIRASHI"

Petrol Station

SEPARATION DEPARTMENT

Mechanical workshop Intervention

M.S. "BARDHI"

Electrical workshop intervention

M.S. "BARDHI" MAINTENANCE DEPARTMENT "KOSOVAMONT" SEPARATION DEPARTMENT

Warehouse for workshops

Mine Offices

Mechanical + Electrical Workshop Petrol Station / Fuel Depot

Washrooms and Sanitary Facilities

M.S. "BARDHI" M.S. "BARDHI" MAINTENANCE DEPARTMENT "KOSOVAMONT" MAINTENANCE DEPARTMENT "KOSOVAMONT"

Electrical + Mechanical Workshop

New central warehouse

Mine Control Centre

M.S. "BARDHI"

Mechanical workshop Electrical and mechanical workshop

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The planned site of the workshop- and stockyard complex is illustrated in the following picture: Workshop

Leshkoshiq

TPP A

Workshop (Aux. Equipm.) Warehouse

Hade

Nakarade

Lismir

Bardh Fig. 10.4-1

Fushe Kosove

Survey workshops and warehouses

10.4.2 Central- and Plant Workshops New central auxiliary equipment workshop The future new auxiliary equipment workshop is at the territory of the present daily facilities of Bardh Western slope. The massif hall with portal crane is a new building and shall be completed in 2005. The workshop contains the required warehouse for auxiliary equipment. This workshop can be used by the Sibovc opencast mine.

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Fig. 10.4-2

New Central Auxiliary equipment workshop Bardh

Mechanical workshop intervention The mechanical workshop intervention (South of Bardh village) is at present used as mechanical workshop for the Bardh opencast mine. The workshop is among other equipped with lathes and drilling machines.

Fig. 10.4-3

Mechanical workshop intervention

For a later use as workshop it is necessary to install the already planned heating and to reconstruct the sanitary facilities. The outside area of the workshop includes a large unpaved storage area with 2 large Derrick-cranes. At this place it will be possible to assemble the new equipment system (new BWE). To be able to carry out this assembling work it is required to rehabilitate the available Derricks. For this, investments of 0.1 m € per Derrick were calculated (see under item Auxiliary Equipment). Additionally another 0.1 m € are required to maintain the existing plant.

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Electrical workshop intervention The electrical workshop intervention (South of Bardh village) is used as electrical workshop for the Bardh opencast mine. In the eastern part of the building, the metrological department is located. The 3-nave hall consists of a reinforced concrete skeleton construction with wall made of brickworks and/or large glazing at the long sides. The individual workshops are accessible form the central corridor.

Fig. 10.4-4

Electrical workshop intervention Bardh

The building is heated. The toilets are reconstructed at present. It can be assessed that the building is in a relatively good condition. Electrical workshop Kosovomont The workshop complex Kosovomont is 3 km away from the opencast mine nearby the place of Palaj. The Electrical workshop Kosovomont belongs to the future Central Workshop of the opencast mines. In 2004, the existing hall was extended by a built-on structure for expanding the repair capacities. In the same year, the entire heating system of the hall including the heating pipelines from Kosovo B power plant were overhauled and/or refurbished.

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Fig. 10.4-5

Electrical workshop Kosovomont

Mechanical workshop Kosovomont

It is intended to extent the mechanical workshop of the Kosovomont site as future Central workshop for the opencast mine Sibovc. On an area of ca. 10,000 m² the necessary departments for the central workshop are located in 3 naves; among others metal cutting, (lathing, milling, drilling), grinding shop, welding shop, hardening shop Since 2002, considerable investments have been made for modernising the machine park (a. o. CNC-control for milling machines, drilling equipment and gear milling machine).

Fig. 10.4-6

Mechanical workshop Kosovomont 1

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The building condition is assessed well. The heating of the halls was overhauled and/or completely renewed in 2004. The internal transportation in the hall is made via floor-controlled hall cranes and two railway tracks which are connected to the separate warehouse and the building for sandblasting/corrosion protection. The hall complex has a massive three-floor extension with office workplaces for the technical work preparation and administration. In the ground floor there is the changing room for ca. 200 employees.

Fig. 10.4-7

Mechanical workshop Kosovomont 2

In front of the office extension of the hall complex there is a gravel-paved parking area (ca. 35 m x 50 m) for 2 new workshop mobiles, 2 new workshop trailers as well as 1 Unimog and one 90t-crane. Outside the building of the mechanical workshop there is a storage ground with portal crane. The blasting plant (including corrosion protection) is not in operation at present. The Mid Term Plan contains a description of the necessary measures to be taken for further operation. The available document assumes, that these measures will be realised until the beginning of operation in the Sibovc-Field (see Mid Term Plan).

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Electrical and mechanical workshop separation plant

Fig. 10.4-8

Electrical and mechanical workshop

In 2004, the production capacities of electrical and mechanical maintenance of Kosovo A and B were brought together and concentrated in the electrical and mechanical workshop at the site of the Separation plant. Here, repair capacities are concentrated for idlers and vulcanization as well as the refurbishment of old gears and couplings of the mines and power plants. The massive building (length 49.4 m x width 23.0 m x height 6.2 m) with overhead light is heated and in a good repair. In this building there are the electrical and mechanical workshops as well as changing facilities for originally 500 employees with separate washing facilities as well as 20 shower installations with warm water connection.

10.4.3 Warehouses New warehouse Mirash The warehouse at Mirash (area ca. 1,800 m²) is located in the area of the daily facilities of Mirash. The outdoor facilities and a paved road shall be finished in 2005.

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Fig. 10.4-9

New warehouse Mirash

Warehouse idler and vulcanization separation plant The Warehouses idler (length 60.4 m, width 12.2 m, height 4.0 m) and vulcanization (length 15 m, width 9.3 m, height 2.6 m) are in the direct neighbourhood of the mechanical and electrical workshop Separation plant. The warehouses are in a good repair. It is envisaged that this will be the central warehouse for idlers. The outside facilities are paved.

Fig. 10.4-10

Warehouse idler and vulcanization

New central warehouse Kosovomont In the concept it is intended to use a massive building complex nearby Kosovomont which is completed to 70 % as central warehouse. The building was erected before 1990 and is only

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partly roofed at present. To complete the building, about 2 mâ&#x201A;Ź are planned within the period of the Mid Term Plan.

Fig. 10.4-11

New central warehouse

Warehouses for workshops Kosovomont The building complex of the mechanical workshop comprises a warehouse (ca. 15 m x 110 m), of which only ca. 1/3 is roofed incompletely (only roof without walls). The size of the storage areas is considered sufficient. The storage capacities of the electrical workshop are within the building complex of the workshop as well as on an open storage place and are also considered sufficient. Electrical warehouse in Bardh The electrical warehouse is on the territory of the daily facilities. Directly besides the building there is a paved storage ground. The single-floor massive warehouse has a roofed ramp. The building also contains the warehouse for protective clothing. The required financial means for the maintenance of the building were already planned in the Mid Term Plan.

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Fig. 10.4-12

Electrical warehouse Bardh

Mechanical warehouse in Bardh The mechanical warehouse (length 72.4 m, width 24.0 m, height 5.0 m, area 1,775 m²) of the Bardh mine is an unheated two-nave hall consisting of a steel construction lined with aluminium sheet. Inside the hall there are two heated massive installations (ca. 35 m²) for the warehousemen. The warehouse complex also contains a warehouse (ca. 700 m²) for car service. The required financial means for the maintenance of the building were already planned in the Mid Term Plan.

Fig. 10.4-13

Mechanical warehouse Bardh

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10.4.4 Petrol Station / Fuel Depot At present, there are two petrol stations in the Mirash opencast mine and in the Separation Plant.

Fig. 10.4-14

Petrol Station Mirash

The Mirash petrol station has three tap connections, the tanks having a content of (total content 126,038 l): V 1 47,721 l V 2 47,804 l V 3 30,513 l Daily consumption is ca. 6,000 l Diesel for vehicles of Bardh and Mirash opencast mines as well as Kosovomont. A petrol station and a lubricants warehouse belong to the Separation plant and supply all vehicles and auxiliary equipment of Separation plant and Kosova B. The three available tanks have a content of: V 1 10,000 l V 2 20,000 l V 3 10,000 l

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Fig. 10.4-15

Petrol Station Separation plant

Both of the petrol stations neither meet the environmental requirements (no oil separators, missing tank pits) nor will be applicable for the long-term operation of Sibovc. Instead a new petrol station shall be planned and installed in the area of the new central auxiliary equipment workshop in Bardh. The sum to be calculated for this is ca. 250 000 â&#x201A;Ź. The new petrol station shall have two pieces of tanks with a content of 50 000 l each for Diesel fuel and piece of tank for petrol. The investment appraisal contains: roof for petrol station, building, foundation working for site pavement, canalization with separation units, automatic tank appliance with card reader, telephone connection, power supply and lightning protection.

10.5 Investment and Cost Calculation for Infrastructure a) Investments Infrastructure measures in connection with the relocation of the villages of Hade, Leskovcic and Sibovc are already considered in the project part Resettlement. This chapter includes also new roads which will become necessary due to the resettlement. The determination of the investment costs for infrastructure for the Sibovc mine base on the assumption that the costs for the basic rehabilitation of the buildings and facilities which can be used for this mine are already contained in the scope of investment of the Mid Term Plan. In line with this, the following listed buildings were not taken into account for investments:

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Tab. 10.5-1

Investments 2005 – 2008 surface facilities

Surface facilities

2005-2008 Price in [€]

Workshops New central Auxiliary equipment workshop Mechanical workshop intervention Electrical workshop intervention Electrical workshop Kosovomont Mechanical workshop Kosovomont Electrical and mechanical workshop Separation plant Subtotal Workshops Warehouses New warehouse Mirash Warehouse idler and vulcanization Separation plant New central warehouse Kosovomont Warehouse for workshops Kosovomont Warehouse electrical Bardh Warehouse mechanical Bardh Subtotal Warehouses Washrooms and sanitary facilities Western slope Bardh Mechanical workshop Intervention Mechanical workshop Kosovomont Electrical workshop Kosovomont Electrical and mechanical workshop Separation plant Subtotal Washrooms and sanitary facilities Total

1,260,000 448,000 25,000 20,000 985,000 50,000 2,788,000 30,000 0 2,000,000 0 25,000 5,000 2,060,000 180,000 80,000 120,000 120,000 360,000 860,000 5,708,000

Assumptions for calculation of investment costs for infrastructure Access Roads: 2008 5 km Asphalt road 2011 5 km Asphalt road 2014 5 km Asphalt road 2017 5 km Asphalt road 2022 5 km Asphalt road repair and/or new construction 2027 5 km Asphalt road repair and/or new construction 2032 5 km Asphalt road repair and/or new construction 2037 5 km Asphalt road repair and/or new construction

Workshops and Warehouses Computer equipment + Server for 80 employees: 80 employees á 1,500 €/ 3 years per year

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40,000 €

750 T€ 750 T€ 750 T€ 750 T€ 600 T€ 600 T€ 600 T€ 600 T€


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Mine Offices Computer equipment +Server 200 employees: 200 employees á 1,500 €/ 3 years per year

100,000 €

Mine Control Centre: 2013

1 piece

150,000 €

Petrol Station/ Fuel Depot: 2010

1 piece

250,000 €

Tab. 10.5-2

Investment and cost calculation for infrastructure

Infrastructure and Surface Facilities

20072008

20092013

20142018

20192023

20242028

20292033

Access roads (asphalt)

[T€] 750

[T€] 750

[T€] 1,500

[T€] 600

[T€] 600

[T€] 600

[T€] 600

[T€] 5,400

80

200

200

200

200

200

200

1,280

200 0

500 150

500 0

500 0

500 0

500 0

500 0

3,200 150

Washrooms and sanitary facilities

0

0

0

0

0

0

0

0

Petrol station

0

250

0

0

0

0

0

250

1,030

1,850

2,200

1,300

1,300

1,300

1,300

10,280

Workshops and Warehouses Mine offices Mine control centre

Total

200342038

20072038

b) Operating costs The investment appraisal for Sibovc includes costs in the amount of the leasing costs for the required spaces for Administration, Workshops and Warehouses, Washrooms and Sanitary Facilities. Assumptions for the cost calculation of operating costs infrastructure Mine Roads: 2008 2009-2038

2007-2032 2033-2038 Assembly yards: 2007-2038

8 km Asphalt road (head conveyor) 0.5 km Asphalt roads/year (extension of head conveyor) per year 27 km gravel roads/year (excavator and dump benches) per year 20 km gravel roads/year per year Operative assembly yard for general repair per year

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800 T€ 50 T€ 1,403 T€ 779 T€

100 T€


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Mine Offices: The calculation of the required office workplace space bases on an average demand of a total area of 31.90 m² per workplace (15.3 m² office area and 16.6 m² partly area for equipment rooms, floors and toilets). Tab. 10.5-3

Lease prices

Sum lease per workplace €/ per month

Sum lease per workplace €/ per year

Description

Lease prices €/ m²

Surface [m²]

Office space

6.80 €

15.30 m²

104.04 €

1,248.48 €

Functional rooms (equipment, toilets, floors)

2.30 €

16.60 m²

38.18 €

458.16 €

Cleaning

0.10 €

31.90 m²

3.19 €

38.28 €

31.90 m²

145.41 €

Sum lease / workplace Sum lease / workplace - rounded

1,744.92 € 1,750.00 €

From totally 2,500 employees of the Sibovc opencast mine, ca. 500 employees require and office workplace in the administration. Ca. 500 office workplaces 1,750 €/ lease for workplace

per year:

875,000 €

Workshops and Warehouses: The calculations for areas of workshops and warehouses base on the available areas which are included in the Mid Term Plan within the framework of the realization of the maintenance concept. Tab. 10.5-4

Required areas for workshops and warehouses Location

Surface [m²]

No.

Designation

1 2 3 4 5 6 7 8 9 10 11 12

New central Auxiliary Workshop Western slope Bardh Mechanical workshop Kosovomont Electrical workshop Kosovomont Electrical and mechanical workshop Separation plant Mechanical workshop Intervention South of Bardh village Electrical workshop intervention Western slope Bardh New warehouse under construction Mirash Warehouse idler and vulcanization separation plant Warehouse electrical Bardh Western slope Bardh Warehouse mechanical Bardh Western slope Bardh New central warehouse Kosovomont Warehouse for workshops Kosovomont

2,000 10,000 4,500 1,140 2,450 1,500 1,900 880 350 1,780 5,000 1,600

Total Workshops and Warehouses

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Tab. 10.5-5

Lease costs for workshops and warehouses

Lease price/ €/ m²

Description

Workshops heated Warehouses, not heated

Surface [m²]

3.50 0.80

Sum lease €/ per month

21,590 11,510

Total Workshops and Warehouses

The following lease costs result: Lease for workshops and warehouses

Sum lease € / per year

75,565 9,208

906,780 110,496

84,773

1,017,276

per year

1,020,000 €

Washrooms and Sanitary facilities: From the total number of 2,500 employees of the Sibovc opencast mine, about 1,800 need washroom with shower facilities.

1,800 washroom places lease per month: lease per year: Tab. 10.5-6

33 €/ workplace 396 €/ workplace

712,800 €

Lease costs for workshops, warehouses, offices and washrooms

Infrastructure and Surface Facilities

20072008

20092013

20142018

20192023

20242028

20292033

20342038

20072038

Mine roads (gravel) Mine roads (asphalt) Subtotal roads Erection yards

[T€] 2.806 800 3.606 200

[T€] 7.015 250 7.265 500

[T€] 7.015 250 7.265 500

[T€] 7.015 250 7.265 500

[T€] 7.015 250 7.265 500

[T€] 6.391 250 6.641 500

[T€] 3.895 250 4.145 500

[T€] 41.152 2.300 43.452 3.200

Workshops and Warehouses

2.040

5.100

5.100

5.100

5.100

5.100

5.100

32.640

Mine offices

1.750

4.375

4.375

4.375

4.375

4.375

4.375

28.000

Washrooms and Sanitary facilities

1.426

3.564

3.564

3.564

3.564

3.564

3.564

22.810

Total

9.022

20.804

20.804

20.804

20.804

20.180

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11 Mine Dewatering 11.1 General Information The Kosova Basin forms a smoothly shaped plain that is bordered by hills and mountains. This basin includes a developed hydrological network with the main collector given by the river Sitnica. This river crosses the basin from south to north and drains off 80 % of the accumulating surface water northward. Major tributary rivers in the vicinity of the site are river Drenica in the west and river Lab in the east. The Sitnica run-off of water varies between a minimum of 0.5 – 1.5 m³/sec and a maximum of 50 – 120 m³/sec with an average of 5 – 10 m³/sec. In flooding periods, the course of the river reaches a width of up to 1000 m in the flooding areas. On 3 May 1958 a maximum run-off for river Sitnica near to the mines was measured with 90.3 m³/sec. Because not being available the usual basis to assess the quantities of water discharged by tributary rivers and creeks was prepared as catchment area map shown in following figure. Using run-off coefficients allows first assessments on the quantities of water to be delineated when opening up a mining field. The following figure shows in different colours and numbers a subdivision into different drainage areas when the mine develops towards the north.

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Fig.: 11.1-1

Catchment Areas

Starting the mining activities from the existing mines in the south means that the current drainage areas of Bardh and Mirash mines (1000 in the figure) have to be drained further on. The area 300 will be excavated from the downstream resulting in an early additional drainage area Page 210 of 257


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of about 3.6 km² with the run-off directed towards the mine face. Using the precipitation values mentioned above will result in some 90000 m³ of water to be drained per month and a peak water yield of 104000 m³/day with a precipitation of 64 mm/d. Excavation in the areas east (200) and west (500) will shrink those drainage areas from aside resulting in normal increasing mine drainage needs in the course of excavation. Further development into the north will affect the drainage areas of Sibovc River (400) and river Sitnica (100) in both cases from an upstream position. Special drainage will be needed as soon as the Sibovc River itself is reached by the excavation. At that point in time first a deviation of the tributary run-off in the southwest toward the north will be needed and later on a total deviation of Sibovc River is recommended to allow discharge from the catchment area west to the mine. Perhaps parts of the existing Iper-Lepens water canal can be used for this future deviation.

11.2 Dewatering Measures / Dimensioning of Dewatering Elements In the past years opencast mine dewatering was not sufficient due to the bad condition of the auxiliary equipment fleet. This lead to problems in the production process, since passing of the working benches and the mine access roads could not be guaranteed. In 2003, measures were intensified to produce ditches to collect and drain water. However, drainage in Sibovc shall be improved as against the present status. Basically, groundwater pumpage by means of filter wells or a groundwater blocking by means of sealing wall can be excluded. Therefore, the planning of the dewatering is restricted to the drainage of the surface water and the collection and drainage of the pit water. Drainage measures aim at preventing water from flowing into the opencast mine and to keep the benches dry and collect the water in ditches, respectively, for discharge. The following works shall be realised for a sufficient dewatering: • Planned installation of main collecting ditches from the working levels and dump surfaces to the main drainage plants with continuous adjustment to the mining position • Establishment of the drainage of rainwater on all working levels • Discharging of permanent water accumulations on the dumps • Drainage of dammed up water at the slope foot of the inside dumps • Maintenance of all ditch systems • Installation and maintenance of sedimentation basins before feeding into rivers • Use of the collected water to reduce dust formation /dust control Ditch System Drainage ditches shall be installed on all working levels (mining and dump side). An appropriate downward gradient is to be considered toward the bench ends. The water shall be connected in equalizing basins at the bench ends and supplied alternatively by way of pipelines or open Page 211 of 257


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collecting ditches of the main dewatering. These ditches along the working levels shall be renewed regularly according to the opencast mines advance. The ditches shall be produced by means of the available auxiliary equipment, like universal excavators, dozers and wheel loaders. A massive development of the ditches and equalizing basins is not envisaged. The following regular ditch profile is proposed regardless of the size of the catchment area: • • • •

Bed width Ditch depth Gradient Inclination of the ditch slope

≥ 0.5 m (effective) 0.5 - 1.0 m (effective) min. 1 : 200 ca. 45° (in cohesive material)

Another important point is the production of ditches along the access roads into the opencast mine. Hereby, the removal of the backwater is of special importance to increase the lifetime and improve the conditions of the accesses. Along ramps with a larger downward gradient, wooden weirs shall be inserted in the road ditches to reduce the flow velocity of the water and therefore the mass discharge from the road subsoil. Apart from the production of the ditches special importance shall be also attached to the clearing of working levels and the maintenance of the ditch systems. Flat and slightly grading working levels simplify the water supply to the installed ditches. Parallel to this the ditch systems shall be maintained permanently. It suggested establishing a mobile group for these works, so that damages at the ditches can be recognized and repaired. Central Drainage Plants / Pump Sumps The surface dewatering by ditches accumulates the rainfall water in the pump sumps and pump it out in case of excess of the storage capacity. The storage capacity of the sumps was dimensioned to accumulate as maximum the rainfalls of one day. The pumps were designed in that way that they could master a maximum of two-day rainfalls under consideration of the accumulation capacity of the pump sumps. One additional pump per pump sump should be reserved in the number of pumps which are required for the pumpage of surface water.

The drainage basins shall be produced in deep cut excavation with the help of main equipment. Pumps The great main drainage systems of the mine shall be equipped with 5 powerful high-pressure pumps each according to the following basic principle: Pumps 1+2: normal operation Pump 3 + 4: support of pumps 1 and 2 in case of heavy rainfall Pump 5: reserve The change-over to high-pressure pumps is due to the increasing lifting height (max. 130 – 150 m). There are recommended pumps with a capacity of 180 m³/h (90 kW) each. In order to specify the pumps it is necessary to know the quality of the water to be pumped. Page 212 of 257


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Additionally, so-called “Söffel”-pumps (for lifting height up to 25m) are required. These will be applied on the working benches at the excavation site and on the dumping site. Therefore, procurement of 5 new pumps each with 180 m³/h will become necessary for the main drainage systems. Moreover, 15 smaller pumps are proposed. Tab. 11.2-1

Pump Capacity

Söffel - pumps Overburden 1 -4 Duming Site 1-4 Coal Stockpile Sum

4 4 4 3 15

High-pressure Pumps [m³/h ] 1 * 180 2 * 180 2 * 180 0 5 * 180

Mine Water Purification The water pumped from the drainage ditches, shows increased contents of chloride and sulphate as well as clear contents of suspended materials, consisting of dust or organic suspended matters. When discharging the water, special attention shall be drawn to separate the suspended materials by a sufficient residence time in sedimentation basins. A first sedimentation takes place in the main drainage ditches. However, since these installations are frequently shifted, it will be necessary to install additional sedimentation basins on the surface level before feeding the water into the rivers. These basins are made in the form of ground basins that are integrated in the course of the ditches. At a length of at least 100 m, the bed of such a basin shall be flat on a width of at least 50 m, in order to achieve a clear reduction of the flow velocities. When entering a basin, the water stream shall be distributed as wide as possible to achieve a good sedimentation result. The discharge of a basin has the form of an earth dam, which is fixed by a possibly wide overflow. The installations shall be controlled quarterly. The settled particles shall be removed regularly once a year in the autumn before the beginning of the rainy period. The removed material shall be examined by sampling in particular for contents of heavy metals and hydrocarbon connections. If there are not any distinctive features, the material can be built into the dump bodies. If contaminants are determined for example in cases of damages or accidents during the operation, the material shall be disposed separately. Additional Actions / High Water Protection Special drainage measures are required in the north-east of the deposit – mainly in the transfer zone of the areas 400 to 600. However, this does not belong to the scope of this Main Mine Plan.

Particular precautions with regard to flood control are not foreseen.

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11.3 Investment and Cost Calculation for Dewatering The costs were determined on the basis of length and number of drainage ditches. Basic prices are: 70 € / m channel (concreted) 7 €/m channel (not concreted) The following is representative for one year: The following table includes not concreted channels or collecting and discharging surface water in normal operation: Tab. 11.3-1

Example for a Channel System

Number of the channel 1) CO-1 (Overburden) CO-2 CO-3 CO-4´ CC-1 (Coal bench) CC-2 CC-3 CC-4 CS-1 (Dumping Site) CS-2 CS-3 CS-4 Total 1)

Length of the channel (km) 3.0 2.8 3.1 2.9 2.6 2.5 2.3 2.3 1.4 1.4 1.6 1.6 77

Price in 1000 €

Type of the channel Not concreted Not concreted Not concreted Not concreted Not concreted Not concreted Not concreted Not concreted Not concreted Not concreted Not concreted Not concreted

192.5

C … Channel O … Overburden C … Coal S … Spreader E … East W … West

Especially in autumn and spring, these not concreted channels shall be maintained. During one calendar year, they have to be installed new due to the block-wise advance of the slope systems. Due to the opencast mine advance (100 – 120 m per annum) there have to be installed the ditches for those lengths 1.5 times per year. These are 41.25 km per year. The annual expenses come to 288.7 T€/a.

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Tab. 11.3-2

Length of Channels Up to 20142013 2018 115 km 127 km Length of ditches on benches Length in km/a 19 25.4

20192023 147 km

20242028 164 km

20292033 164 km

20342038 135 km

29.4

32.8

32.8

27.0

Ditches in km/a

28.5

38.1

44.1

49.2

49.2

40.5

Price in 1,000 €

199.5

266.7

308.7

344.4

344.4

283.5

SUM

Average

852 km

27.5 km 27.5

1278 km 8950

41.25 288.7

Additionally, concreted channels shall be used at the head slopes: Tab. 11.3-3

Price of Channels

Number of the channel CE-1 (head wall East) CE-2 CE-3 CE-4´ CW-1 (head wall West) CW-2 CW-3 CW-4 CW-5 CW-6 CW-7 Total

Length of the channel (km) 2.8 2.4 1.5 1.3 2.8 2.4 1.5 1.3 0.5 0.5 0.5 17.5

Price in 1000 €

Type of channel concreted concreted concreted concreted concreted concreted concreted concreted concreted concreted concreted

1,225

These channels will be developed parallel with the advance of the opencast mine (in steps) The annual development / extension come to ca. 1.2 km. Annual costs are incurred of ca. 84,000 €.

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12 Mine Closure and Recultivation Planning 12.1 Principles The proposed main principles are: • The areas occupied by mining shall be recovered in such a way that the later use will be rather better than the original one. This efforts aim at enhancing the value of the areas compared with the actual state – at least however a similar scenery. • Areas which are no longer needed for mining activities shall be recultivated as soon as possible. If a final renaturing will not be possible, suitable temporary measures shall be taken like for example an interim greening. • Financial means will be reserved already during the active mining operations to ensure the proper closure of the mining field. This money will also be available in case of in-solvency for revitalisation. • Authorities and the concerned people (later users) are integrated in the process of planning and detailed shaping of the post-mining areas. This process shall start before dumping because it already defines the shape of the surface.

12.2 Present Land Use The Sibovc field contains a geological reserve of ca. 990 mt on an area of 19.7 km2. To meet the demand for run-of-mine coal at an amount of 553 mt, the area claimed for mining will come to 11.58 km² within the period until 2038 (see following table): Tab. 12.2-1

Claim of building and farm Land

Period

land use ha

2007-2008 2009-2013 2014-2018 2019-2023 2024-2028 2029-2033 2034-2038 Sum

of it building land ha 271.0 137.0 102.0 140.0 183.0 89.0 236.0 1158.0

27.500 11.169 0.000 2.049 11.854 16.030 7.908 76.510

of it farmland ha 243.500 125.831 102.000 137.951 171.146 72.970 228.092 1,081.490

12.3 Mine Closure Plan Recultivation of the Sibovc field is closely connected with the fields of Bardh and Mirash.

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After depletion of the existing mines of Bardh and Mirash, large residual pits remain. The establishment of larger final areas within the operating period of the opencast mines will not be possible. This is due to the low overburden: coal ratio as well as in the material properties of the overburden. The following residual pits will remain in the area of the opencast mines: • A wide and deep residual pit in the western area of the mining field (mining area of the Bardh opencast mine and the western part of the Mirash opencast mine) • A landfill site in the former Mirash-Brand mining field in the responsibility of the KTA • The ash dump in the former Mirash-East mining field in the responsibility of KEK • An almost closed dump area in the eastern parts of the Mirash opencast mine, which borders the landfill site. In the areas directly contacting the landfill site there are installed large corridors due to the flat slope angle. It is envisaged that the coal mining is continued in the follow-up field of Sibovc after depletion of the existing opencast mines. This opencast mine will be developed from the northern rim slope system of the existing opencast mines. It is planned to use this overburden masses to fill the depleted area of the existing mines. This offers optimal opportunities for shaping the final areas. Moreover, outside dumps can be avoided. As it is mentioned in the Mid Term Plan the existing mines are responsible to shape the residual pit safely until the residual area is closed finally by the follow-up mine. The following measures will be taken: • The natural overburden slopes along the southern rim slope system shall be shaped safely. • The coal slopes along the southern rim slope system shall be flattened and covered by overburden material. This measure serves the extinguishing of existing and/or the prevention o new coal fires. A corresponding dumping technology of the overburden masses of Sibovc helps to reducing the expense for those measures considerably. • The seam floor shall be continuously covered by cohesive overburden material. This measure also serves the prevention / extension of further coal fires and can be further optimized by a selective dumping of the overburden material from Sibovc. • The drainage of the residual area shall be continued. This refers to the main drainage system on the lowest floor level and the drainage from the southern rim slope system by means of suitable drainage ditches. Those ditches shall be installed on all berms of the southern rim slope system. Extension of the ditches will not be required. A collection basin shall be installed at the deepest point of each of the berms from which the water is fed by pipelines and/or collection ditches to the main drainage system. After dumping of the main drainage system by masses from the Sibovc mine, a new drain-age system shall be installed and operated. After closure of the residual area by spreading the overburden material from the Sibovc mine, the areas shall be intended for agricultural use to provide substitute areas for claimed ones. Connection of the dump area at the same surface level is recommended for the large residual pit in the west of the mining field, without re-shaping the former hillside near Hade. The final dump surface should be slightly inclined to enable good access conditions for agricultural machines as well as a natural drainage into the direction of the Sitnica and Drenica-Rivers. Page 217 of 257


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The final shaping of the eastern dump side is only possible after decommissioning of the storage sites. Both storage sites are planned with an operating period of at least 15 years. Only afterwards, a complete closure of the marginal corridors will be possible. This can be accomplished both with the overburden from Sibovc and the recovery of the ash dump of TPP A. The preferred alternative is the recovery of the ash dump of TPP A on the mining field D for refilling the marginal corridors. The basic sealing for the masses to be installed is provided by the inside dump masses. The masses lying below the ash on the outside dump can be used as final cover layer and/or as recultivation layer. Due to the long period until a final shaping of this area, an interim solution is recommended comprising to partly fill the corridors depending on the set-up of the ash dump.

12.4 Concept of Post-Mining Use for the Fields Bardh, Mirash and Sibovc a) Principles and Preconditions for a detailed Reclamation Planning The changeover from the Bardh/Mirash dump into the Sibovc field will start after 2020. The shaping of the final surface of the opencast mines of Bardh, Mirash and Sibovc will be considered as a whole. However, the following area balance (item 12. 5) contains only the return of areas of Sibovc.

The concept for the post-mining landscape contains the following aspects: • Demand for uses (agriculture, forestry, building site …) • Area use is dependent on the available soils (quality) • Possibilities for shaping by means of the used equipment • Cost/benefit Due to the large quantity of minable coal, it will not be possible to fill up the entire opencast mine. Therefore, a lake will be established in the north of the Sibovc field. To return as much areas as possible, the final surface shall be as deep as possible with regard to the surrounding terrain. In line with this, two connecting points to the existing rivers are of importance. In the southeast of Bardh, directly at the Bardh village there should be maintained a surface height of 550 mMSL. In the northeast of Sibovc there is a run-off to the Sitnica River with a height of 540 mMSL. The boundary of the residual lake is south of the villages of Sibovc und Lajthisht. The water table of this lake will be at ca. 535 mMSL (ca. 5 m below surface level). The slope to the residual lake will have a general inclination of 1 : 6. Single slopes will be flattened to inclina-tions of 1 : 7 (8o).The wave breaking area of the residual lake will be protected against erosion by means of rock fill. Main aim for shaping the post-mining field is to provide a high share of areas which allow for an agricultural use. In general, the dump area shall represent a high-value landscape element in which agricultural use and habitat for local fauna and flora will exist in parallel. Bases for achieving these goals: • Ensuring a maximum possible inclination of 1 : 20 (3°), maximum 1 : 12.5 (4.5°), which allow for a cultivation with agricultural machines

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• • • • • •

Ensuring discharge of excess surface water by a minimum surface inclination of 1 : 200 Collection and discharge of surface water by installation of ditches and storage basins and their connection to the existing rivers Installation of windbreak belts as a natural boundary for reducing wind erosion Plantation of trees and shrubs for shaping a varied landscape Conservation of parts of the outside dump in the present form as refuge area for the presently existing and adjusted flora and fauna. Installation of roads and accesses

To ensure minimum inclinations of 1 : 200 even after completion of settlements in the field, an inclination of 1 : 150 will be planned. Considering this inclination the terrain rises from the future residual pit in the north into southern direction and from the river connection at Bardh in the south-west into northern direction. Therefore the terrain lies below the original surface especially in the area of the hill nearby Hade. The connection to the natural terrain is ensured. Lateral slopes have a general inclination of 10° according to the mine planning. The single slopes shall be flattened to an inclination of 1 : 7 (8°) and planted with trees and shrubs. All areas with coal shall be covered by a sufficient amount of overburden. b) Soil Improvement Measures The areas are flattened after dumping to be prepared for recultivation. The final shape of the surface should both consider a smoothly wavy structure and the free discharge of the water. After the levelling works have been finished, deep ploughing shall be carried out with a penetration depth of 0.5 m. That applies in particular to surfaces which were finished during rainy seasons. In principle, soil-improving measures are necessary only in to limited degree for the agricultur-ally used surfaces because the available overburden material is rather fertile. To raise the yield it is possible to apply fertilising measures like manure, slurry or mineral fertilizer. c) Interim Greening and Erosion Protection Measures For the later management it is assumed that the plots will have an average size of approx. 5 10 hectares. Provided that there is a rectangular sketch this corresponds to a dimension of 500 * 150 m. A windbreak belt shall be installed between the individual plots with a width of approx. 5m. Its function comprises both erosion protection and a natural boundary between the plots. A multi-line arrangement of different wood is recommended, as it is represented in the following illustration. This system can also be realised along the farm roads.

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Trees (1st size) nd Trees (2 size) Shrubs

3.50 m

Fig. 12.4-1

Plant scheme for wind erosion protection

Fast-growing tree species are especially suitable as windbreak belts, like for example poplars or robinias (Robinia Rectissima) and bushes. An integration of fruit trees is possible as well. It is suggested to install stone fruit meadows and/or carry out afforestation for steeper areas, where farming by means of machines will not be possible. d) Irrigation and Dewatering Measures

Along the windbreak belts, paths and roads, ditches shall be installed for surface drainage. The size of the ditches shall be chosen according to the respective catchment area. The following standard values shall be considered: • • • •

Bed width Ditch depth Gradient Inclination of the ditch slope

0.5 m – 1.0 m, effective ca. 1 m min. 1 : 200 ca. 45°

In suitable distances these ditches shall be widened to storage basins in order to be able to store the water for a limited period of time in case of heavy rainfalls. The single ditches shall be finally connected to collecting ditches discharging the yielded rainwater from the outside dump with a steeper gradient. These ditches shall be installed in a solid construction. The flow velocity of the water shall be reduced by means of check dams and stilling basins. An open ditch with downward gradient towards the Sitnica-River shall be installed at the floor point of the outside dump.

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In suitable distances these ditches shall be widened to storage basins in order to be able to store the water for a limited period of time in case of heavy rainfalls. The single ditches shall be finally connected to collecting ditches discharging the yielded rainwater from the outside dump with a steeper gradient. These ditches shall be installed in a solid construction. The flow velocity of the water shall be reduced by means of check dams and stilling basins. An open ditch with downward gradient towards the Sitnica-River shall be installed at the floor point of the outside dump.

12.5 Investment and Cost Calculation The following area balance is included in the financing model: Tab. 12.5-1

Area Balance in Sibovc and Costs

Measures Production of Coal in mt Claim of land in ha Return of areas in Sibovc Preparation of areas incl. interim greening Planting (handing over of areas) Other Provisions * Total in m €

2007- 20092008 2013

20142018

20192023

20242028

2029- 20342033 2038

Sum

0.15 271 0

46.28 137 0

93.74 102 0

121.81 140 0

98.74 183 38

96.09 89 42

96.09 236 132

552.9 1,158 212

0

0.4

0.3

0.4

0.5

0.3

0.5

2.4

0.5

1

2

3.5

0.1 16.6 17.7

0.2 17.9 19.4

0.4 19.6 22.5

1.0 91.6 98.5

0.02 0.02

0.1 5.9 6

0.1 13.0 13.1

0.1 18.6 18.7

* escalated

Investments for auxiliary equipment are already included in chapter 13 “Auxiliary Equipment”. Additional investments are: Levelling Interim greening Soil preparation / nutrient enrichment Road construction (farm roads with 60 cm bed depth, 3 m wide) Others Sum

620 € / ha 160 € / ha 490 € / ha 630 € / ha 190 € / ha (+ 10 %) 2,090 € /ha

The main part is reserved for the provisions needed for the final shaping. This amount to be provided for the shaping of the post-mining landscape (until handing over and release from the mining authority) will come to about 0.15 €/t coal.

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13 Resettlement 13.1 General Remarks / Situation 13.1.1 General Conditions Mainly large families with own agricultural enterprises are living in the concerned area of Sibovc, whose main incomes are secured by the production and sales of agricultural products. The social conditions of the population in this area are complicated and can be compared with the average living conditions in the Kosovo. The average net wages are about 150-200 â&#x201A;Ź/ month. According to LSMS (Living Standard Measurement Survey 2000), 12 per cent of population in Kosovo is extremely poor and another almost 40 per cent is poor. The average net wages are higher for men than for women and higher in the private sector than in the public sector (LSMS 2000). The most important forms of land use are agriculture and forestry. However their importance is decreasing. Approximately 60 % of the population living in the region are farmers and have own land adjacent to their homes. Nevertheless, the development of the mining industry has a social effect, too. It provides jobs with higher and securer income than it is possible by the cultivation of own land. For some families, agriculture remains the most important income source now as before. But in the majority of households, one family member is employed with KEK. The resettlement of the villages will change the rural structure with regard to the number and size of agricultural enterprises. Resettlers, whose income does not to 100% originate from agriculture, are more easily ready to move to a prepared resettlement site with infrastructure or to build a big house without farmlands at a decentral site. Some resettlers use the resettlement effect to separate from the large family (extended family). For example, two-room flats in the town are offered to adult family members using this occasion to set up a family. The presently frequent family size of 10-12 members will reduce to a family size of 5-7 members.

13.1.2 Legal Resettlement Regulations At present, the old resettlement law dating back to the Serbian era is still applicable. A new law is only available in a draft version. Therefore, all issues relevant to resettlement have to be decided by the Parliament, which can be a very lengthy process. To ensure the legal bases of lignite extraction and the required land purchase in the future Sibovc field it is necessary to declare this area as reserved mining area. This pre-requisite was established with the UN-Resolution dated 18.11.2004: Page 222 of 257


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The Special Representative of the UN-Secretary-General decided about the evacuation of theHade village and related government decisions on a zone of special interest and property assessment criteria which are included in the „Executive decision No. 2004/28 from the 18th of Nov 2004”: (1) The villages of Hade/Ade, Sibovc/Sibovac, Leskovcic/Leskovcic and Cërkvena Vodic/Crkvena Vodica in the Obiliq/ć Municipality are recognized as constituting a zone of special interest for the economy of Kosovo. (2) Effective as of the date of signature of the present Executive Decision, no further construction activities shall be undertaken in the villages constituting the zone of special interest for the economy of Kosovo. (3) In the event that economic considerations warrant mining activities in the zone of special interest for the economy of Kosovo, natural and legal persons whose validly registered property rights may be affected by such mining activities shall be entitled to reasonable compensation based on the assessment criteria for property in the villages concerned as established by the Government of Kosovo. The decision to declare the concerned areas as zone of special national interest provides the legal basis for the claim of the areas in the Sibovc field for mining and for the resettlement of the mentioned villages.

13.2 Resettlement of Hade 13.2.1 Conditions / Situation in Hade The village of Hade has a population about 2,500 inhabitants and is located at the north edge of the Bardh/ Mirash mine, above a steep slope endangered by sliding. In the interest of public safety and lignite supply security, a part of the village has to be resettled before the planned mining works and safety measures can be continued. All inhabitants of Hade, especially the families living close to the mine edge, have been informed about the necessity of a resettlement. This zone was declared a safety (emergency) zone and the original 65 families (now numbering 118) have been ordered by UNMIK in March 2004 to vacate the zone by December 2004. Last registration of property of the village Hade (dated 22.05.2003), enforced by the Independent Housing Inspection Team (IHIT), had the following results:

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Tab. 13.2-1 Designation

Households and other Facilities in the Village Hade 2003 Total number

Houses Auxiliary objects Houses waiting to be finished House bases Burned objects (damaged by war) Service facilities (stores) Muslim Mosque School

329 29 5 11 118 5 1 1

Despite the forthcoming resettlement, new houses have been built. At the time of inventory taking by KEK 330 built-up plots were counted. Now there are about 700 houses thereof 111 in the safety zone. In the annual budget of the Government of Kosovo for 2004, funds were made available for emergency resettlement, which were not called due to the slow return of the questionnaires submitted to the affected people. However, the resettlement of the safety zone of Hade shall be completed within the 1st halfyear of 2005. Property Situation According to information of the Kosovo land registry dated February 2005 there are 708 builtup estates in Hade. The estates affected by resettlement are mainly private property. The food stores were established by private initiative and will be compensated as such. The compensation of Serbian property located within the cadastral district of Hade has to be negotiated with the relevant owner. State property in Kosovo is administered by KTA - Kosovo Trust Agency.

13.2.2 Buildings in Hade After the war a great deal of Hade was destroyed. In 1999 the houses were reconstructed (e.g. roof, windows, ceilings). In addition to this new houses have been constructed. 90% of the buildings constructed in the last few years have two storeys and rough upper floor. Most of the new houses are not plastered so that the red brickwork is visible. The school building of Hade was built after the war and is a two-storey building with hipped roof. A sport yard belongs to the school grounds. Lunch facilities (school canteen) are not available there.

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The mosque has a base area of approx. 16m x 12m. The construction method is the same as applied for the residential buildings, only the used building materials are of higher quality. The safety zone (emergency resettlement) between the high-voltage transmission line located at the mine edge in northern direction to the east-west main road comes to approx. 500 m. Therefore the mosque is part of the safety zone. The cemetery of Hade is located in the northern area of the village. The land swap of a cemetery is property of the municipality. It assigns adequate areas to individual families and/or road sections within the cemetery area. Each family carries out grave maintenance and cares for the surroundings itself. A cemetery hall does not exist at the Muslim cemetery. The prayer for the dead is given in the mosque and/or at the grave. Construction method and current condition of the buildings The residential buildings are usually constructed by the house owners on their own and/or by smaller building firms using domestic building materials.

The carcass (rough building) consists of a reinforced concrete skeleton which is filled with red bricks. Usually brick ceilings are used. The two-storey residential buildings mostly have a quadratic base area with the dimensions of 9 x 9 m. The reinforced concrete skeleton construction method is used for the reason of loamy to clayey subsoil which dries out in summer up to 10 m deep, then forming fissures in the earth surface. In autumn these fissures fill with water and mud. Due to the alternation of frost and thaw in extremely cold winters, the subsoil is permanently loosened requiring reinforced concrete framework foundation with anchored skeleton. Agriculturally used buildings (sheds for cows and small domestic animals as well as barns) are to be considered separately. Obviously, the farms are relatively small (mostly 1-3 cows) because large sheds are not existing. Stockpiling of hay is carried out in the form of hay barns and/or in one-storey, massive buildings with walls on three sides (also reinforced concrete skeleton with brickwork and light roof covering).

13.2.3 Valuation of Compensation The valuation of the estates will be carried out by a Commission under the head of the Government. The inventory of the houses, gardens and agriculturally used areas has been taken by experts, among others by KEK experts. The Government Working Group (GWG) â&#x20AC;&#x201C; from the Ministry of environment and spatial planning (MESP) - has established the Professional Working Group (PWG) represented by competent institutions in July 2004. This interdisciplinary body consists of an architect, a civil engineer, two lawyers, three surveyors, two agricultural experts and three economists. They developed the rules for compensation for the affected people. These rules have been put into effect by the government and published on 9.7.2004: Page 225 of 257


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(1)

Criteria for evaluation of the constructed buildings in the village Hade based on the following parameters: • Real calculation of the construction price on the level of the market cost of construction of Kosova • Executed contracts of MESP for construction of the residences.

In analysis of above listed parameters a price of 350 €/m² for turn-key condition residential properties was established. In case of only partial construction this price will be multiplied with a factor reflecting the level of completion. (2)

Criteria for evaluation of the construction land and agricultural land based on the following parameters: • Transaction contracts in two municipalities: Fushë Kosovë and Kastriot (Obiliq) signed after June 1999. • KEK compensation contracts towards persons of the same category. • The real market price for the category and position as village Hade and the possibility of buying under the similar conditions.

In analysis of above listed parameters a price of 23 €/m² for residential sites was established. Agricultural property was divided in 9 categories as listed below: Class I 5.00 €/m² Class II 4.75 €/m² Class III 4.50 €/m² Class IV 4.25 €/m² Class V 4.00 €/m² Class VI 3.75 €/m² Class VII 3.50 €/m² Class VIII 3.25 €/m² Infertile land 3.25 €/m² The evaluation of the crop considers both the crop itself and the category of agricultural property. Based on experience of former programs the working group decided to multiply the total compensation with a resettlement factor of 1.1. When establishing the criteria for the economic and business buildings a social coefficient is not taken into calculation (for instance the loss of working position). The special commission should consider this issue. The criteria for the differentiation between the construction and agricultural land are based on the Cadastre Law. Construction land is the area of the construction registered in cadastre documents + 500 m² construction land. Questionnaires were distributed to the inhabitants of the safety zone in order to determine the resettlement wishes and types of compensation. The questionnaires identified four options for the residents of Hade: Page 226 of 257


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• • • •

Cash compensation for assets (replacement value) and land Relocation to new individual housing within the municipality Relocation to collective housing (apartment) in an urbanized part of the municipality Land for compensation within the municipality

According to the report of Ministry for environment and regional planning, only 24 questionnaires were returned until 01.03.2005. These 24 families have the following requests: • 6 families: a flat within the city of Obiliq and financial compensation of the property in form of money • 15 families: financial compensation of the property in form of money • 3 families: resettlement to countryside (compensation in form of plots) The people living in the emergency zone have two temporary options: • Those who find a flat for rent, will be subsidized for an agreed period of time and expenses covered for the time it takes to develop permanent housing sites (6 months to a year) • Those who cannot find a flat for rent, will be resettled to a new collective shelter (two multi-family apartment houses), until permanent housing will be available; thereafter the shelters will be used for emergency use. For the further resettlement of the village of Hade, the compensation process for the affected people shall be arranged as follows: • Evidence of property by the Cadastre office • Determination of the land price, house price, price of the garden and farmland by experts of the Governmental commission • Preparation of an offer for resettlement according to the evaluation of the questionnaire by the commission • When the offer is accepted, the compensation will be carried out as set out in the offer. If no agreement can be achieved, legal proceedings will be taken to clarify the amount of compensation According to statements of the representative of the Real Estate Department of KEK, the following offer has been submitted to the affected people: • Cash compensation for house and land • House (same value as the existing one) with a 500m² land swap • Private-property flat The people are meeting these promises of KEK with mistrust as some legal proceedings on non-fulfilled promises are still pending.

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13.2.4 Locations for Resettlements of Hade For the emergency resettlement of Hade, the municipality of Obiliq offered the inhabitants building plots at the local connection road from Mitrovica to Pristina: • 2 estates in the city of Obiliq for the building of apartment houses – 2 apartment buildings with 80 flats • Building plots in the village of Lazarevo (for single houses) – total area ca. 64.8 ha • Building plots at cemetry of Milosevo (for single houses) – total area ca. 30.8 ha • Building plots in Shkabaj – housing estate at a total area of ca. 67.6 ha. The previous talks with the inhabitants of Hade showed that they favour the village of Shkabaj as substitute place. The management of KEK informed the governmental committee, that plans are developed to reclaim (recultivate) abandoned opencast mine areas and overburden dumps by filling of the deep areas and removing the overburden. Within a short time sufficient agriculturally used areas and building sites could be provided by this process for the inhabitants of Hade and the other villages to be resettled. Unfortunately, the resettlement committee was not in-formed about this. So, this has not been taken into account in the present plans.

13.2.5 Resettlement Process To observe the work of the Resettlement Committee of Hade, an Inter-Ministerial Working Group was created on 02.03.2004 under the head of the Ministry of Environment and Regional Planning. The Committee is led by the Head of the division for Development Policies. The Department of Construction and Housing is responsible for implementation. Members of the Resettlement Committee are representatives of the village of Hade, the municipality of Obiliq, KEK and Government experts. The plan prepared by the Resettlement Committee to ensure the temporary relocation of the people living in the emergency zone and permanent resettlement of the entire population by December 2005 was adopted on 14.04.2004. The Resettlement Committee of Hade already took the following actions in the last few months: • Completion of inventory taking of buildings and structures (December 2002) in May 2003 • The Cadastre office had to complete a survey of the area (approx. 1.800 ha) by the end of July 2004 • Design of a GIS system has been recommended by the Governmental Commission. • Questionnaires were distributed to the residents of Hade to obtain information about the household composition, alternative housing and compensation / resettlement preferences. Page 228 of 257


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• • • •

To establish criteria and norms for compensation, an Assessment Commission was created on 22.06.04. Four possible resettlement sites within the municipality have been identified, where collective or individual homes can be constructed or land swapped. For all these options, the evidence of property is required. On 20/06/04, 25 households and village representatives were informed that no compensation would be paid for construction initiated after that date. To discuss the options, preferences and timing, the Committee has held more than 20 small meetings with residents.

As quick as possible, further campaign shall be organised and realised by the mining company and the Governmental Committee to inform the inhabitants about the timing for resettlement, the compensation principles and standards, compensation options and their implications and the support of the mining company. A new census of inhabitants using direct interviews shall be conducted. The results shall be recorded in a data base and linked with the information about the properties. The questionnaires shall obtain reasonable data about household income sources and levels. Within interview process, each household shall be offered a binding proposal with regard to the resettlement options. An additional recommendation of the World Bank Mission is the introduction of the GIS as main element of the resettlement and data management.

13.2.6 Resettlement Procedure Planning of the basic principles for the resettlement should be socially acceptable. To re-organise the process, 4 principles are recommended: • The resettlement committee shall be transparent in all of its operations. All ideas, procedures, constraints and implications shall be discussed with all people concerned. The committee shall, for example, inform the people about the fact that the resettlement process may last for more than one year. • The committee shall negotiate with the inhabitants of Hade to divide them into two groups – those who live in the safety zone and those who live in the other. • A non-official representative (normal citizen without a professional relationship to the municipality) of the village shall participate in the Assessment Commission. In addition, each committee which carries out assessments should include one resident member. • KEK shall be actively engaged in the resettlement process, as partner in an information sharing capacity. In coordination with the resettlement committee, KEK shall conduct an information campaign that informs residents of the village about the steps they have taken to protect the village and what next steps will be taken and when to expansion of the mining area will take place. Page 229 of 257


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13.2.7 Time Scheduling for Resettlement Measures A democratic socially acceptable resettlement procedure compliant to EU law would take at least 8 years. For Hade, this period will not be available. The resettlement of the families living within the safety zone of Hade must be completed within the first half-year of 2005. The remaining part shall be cleared until 2009 if the mining development shall be followed. This also includes the land purchase by the mining company. Therefore it is necessary to have a tight project organisation with responsibilities and freedom of action for the head of the project. Since all documents from the Cadastre office in Kosovo are not complete it is necessary to resurvey all estates. This Process shall be accelerated. Obviously, there exist estates of Serbians living outside the Kosovo. The Cadastre office was not able to give specifications with regard to procedure and compensation method. Furthermore, financing of the resettlement (Hade as a whole) is not ensured. Among others it is very important that the government shall support the resettlement process by reducing bureaucratic constraints and granting resident an incentive bonus or trying to find an own solution in order to avoid problem cases. A joint resettlement of all families of Hade will not be possible from the point of view of the Consortium for reasons of time. The following organisation procedure is recommended for the resettlement of the remaining part of Hade: Tab. 13.2-2 Year

2005-2006 2005-2009 2005 2005-2007 2006-2007 2005-2008 2009 End of 2009

Timetable for the Resettlement of the remaining Part of Hade Measure

Detailed information of the inhabitants, distribution of questionnaires Establishment of a local consulting office for the inhabitants (attend to the return of the questionnaires among others, determine demand for estates and flats/apartment buildings) Finish of stocktaking of estates by Cadastre office Financial assessment of estates by a working team Preparation of a socially acceptable offer for each household (assistance for looking for estates and/or flat.) Negotiations with the concerned people Look for estates, planning and building of private houses/apartments Resettlement of the last inhabitants until 30/06/09 Finishing of land purchase by mining company, Completion of deconstruction works incl. basements of buildings

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13.2.8 Status of the Hade Resettlement To ensure follow-up mining activities, Hade was declared as a zone of national interest in November 2004. The organised resettlement of a part of the village directed by the Ministry for Regional Planning started at 18.11.2004. Resettlement sites At a site in Obiliq, two apartment houses with totally 80 flats will be constructed. The building works started at 15.10.2004. Until the beginning of February 2005 the ground floor was completed. At the site for private houses in Shkabaj „Hade 2“ (total area of ca. 67 ha) building works started at 07.12 2004. The foundation works were completed at the end of January 2005. Due to the outside temperatures and snow the works had to be postponed at both of the sites until March 2005. Stocktaking for resettling of the safety zone 98 (454 members) of the 111 registered families (500 members) living in the safety zone of Hade have already been resettled until end of February 2005. In addition to the registered 11 families, another 25 families /102 members) were resettled. 20 families (87 inhabitants) shall be resettled within the next weeks, 5 of it (14 members) refuse to be resettled.

The Government Working Group of the MESP has determined the compensation for totally 117 owners according to the agreed upon criteria as follows: Tab. 13.2-3

Compensation for the Inhabitants of Hade

Description

Compensation in €

Buildings Building land Agricultural land Resettlement coefficient Total

4,178,081 940,268 120,492 523,884 5,762,725

Since inhabitants of Hade do not agree with the compensation criteria, there are totally 80 judicial complaint procedures. Bad practise by the mining enterprise in the past caused the loss of trust by the villagers. There are still ongoing court challenges against KEK from previous unsatisfactory resettlements of removed Southern parts of Hade village. The total area of Hade is ca. 491.2 ha. Until 28.06.2004 the Cadastre office registered the area of the safety zone with ca. 30.5 ha and 300 buildings. Until 26.08.2004 the following state of work regarding the surveying of the estates was reported by the Cadastre office to the Ministry for environment and regional planning: 196 households with residential buildings Page 231 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

38 households with only buildings 20 households with garden land 254 households Resettlement of the residual village The other property owners of Hade were informed about the resettlement and the further steps in a meeting with the Government Working Group. Surveying activities and stocktaking for valuation of the property have to be carried out. The property owners have requirements with regard to employment time payment.

The surveying of the remaining households for the Cadastre office started in Hade at 07.02.2005. About 115 households outside the safety zone were recorded so far. During the past months, the decisive steps for preparing the resettlement were decided upon by the government to provide the basis for continuing coal mining in the Sibovc field. At present, it is important to allocate the financial means and to take practical organisational steps of the resettlement for the entire village of Hade.

13.3 Resettlement of Villages in the field Sibovc 13.3.1 Communities affected by Resettlement Besides Hade the following villages and/or groups of houses are located within the mining field Sibovc (north-south extension 5 km, east-west extension 3 km): - Leskovčić - Janina Voda - Sibovc (sparse settlement) with different districts (Bregovinska, Barbatoska, Muhicku, Spasina, Midanska, Nicak, Kelmendi, Megjuani and Curilo) Property Situation The land swaps affected by resettlement are mainly private property. The school and the doctor’s office in Barbatoska are located on municipal land. The substitute is to be provided within the municipality of Obiliq. The food stores were set up by private initiative and will be compensated as such.

The compensation of Serbian property located within the mining field (former Serbian settlement) has to be negotiated with the corresponding owner. Upon written application and several requests the Kosovo Cadastre office submitted only information about the number of built-up estates in the concerned villages in the mining field of Sibovc (as of February 2005). This list is the basis or determining the estimated costs of the resettlement.

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Lajthishte (Leskovčic) The village Lajthishtē-a is located in the eastern part of the mining area of the deposit Sibovc and is to be completely resettled.

It has approx. 85 houses with about 595 inhabitants (according to Cadastre office: 85 plots with buildings) The village has a one-storey primary school (base area of approx. 20m x 8m) with 8 classes. Opposite the school there is a food store. 95% of the Kosovo land has been reconstructed after the war. The latter and the newly built houses are in a good condition. Only the fence walls (mostly brickwork) have not been reconstructed yet. Some destroyed houses, formerly inhabited by Roma, have not been reconstructed yet. The road to Crkvena Vodica passing the southern outskirts has been asphalted this year. The cemetery of Leskovcic is located in west of the village, at the new road to Crkvena Vodi. South of the road from Leskovcic to Crkvena Vodica there are approx. 6 residential real estates, which are not included in a map of 1979. In the north of the road there exists a built-up residential real estate. Sibovc The following groups of houses belong to the sparse settlement Sibovc: • Bregovinska Mahala • Barbatoska Mahala • Muhicku Mahala • Spasina Mahala • Michanska Mahala • Nicak • Kelmendi • Megjuani • Curilo

Bregovinska and Barbatoska form the centre of the sparse settlement consisting of approx. 200 to 300 houses (about 1,700 inhabitants). Also a school (8 classes, dimensions approx. 56m x 30m) with nursery school (300 pupils) and a doctor’s office (9m x 10m) exist there. Opposite the school there is a food store. Muhicku Mahala, Spasina Mahala and Michanska Mahala (individual groups of houses) are situated in the centre of the mining field Sibovc in the south of Bregovinska and Barbatoska. The cemetery of the centre of Sibovc is located in the east of the village Barbatoska Mahala.

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The groups of houses of Nicak are located at the west mining boundary, close to the Čiqavica Mountains. The cemeteries of the groups of houses of Kelmendi and Megjuani are situated in the proximity of Nicak. The group of houses of Curilo existing in the northern area of the mining field comprises about 6 residential real estates. According to information from the administration of Obiliq, the following belong to the Sibovc area: - Approx. 135 residential buildings (families) with approx. 945 inhabitants (according to Cadastre office 135 plots with buildings) - A primary school with approx. 200 pupils in Bregovinska - A doctors’ office in Bregovinska - 1 mosque in the group of houses of Megjuani (Midanska) - The village has three food stores - 6 cemeteries: - main village cemetery (village centre) – Barbatoska - Serbian cemetery - cemetery of the Kelmendi group of houses - cemetery of the Megjuani group of houses - The new cemetery of the Megjuani group of houses was built in 2003 - Cemetery of the martyrs and victims of war Before the war, there was still a group of houses with Serbian population which does not exist any longer.

13.3.2 Valuation of Compensation The compensation data (prepared for Hade) determined by the Government Working Group from the Ministry of environment and spatial planning (MESP) were used to calculate the costs for resettlement of each of the villages in the Sibovc field. In addition, practical experiences were used. The substituted expenses for available property and buildings and the replacement value (not the current value) of the available infrastructure were used to determine the resettlement costs.

13.3.3 Locations for Resettlements So far, there are no ideas for the resettlement of the villages in the field Sibovc regarding the resettlement site. The areas shall be provided by the municipality of Obiliq. A rough inventory taking is necessary and a basic contract for a joint resettlement.

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According to the development of the opencast mine, it will not be necessary to resettle the villages at the same time and to only one site. A possible option could be to perform resettlement in several stages which has to be adjusted to the real opencast mine advance.

13.3.4 Time Scheduling for Resettlement Measures Including all preparatory measures (principles and contracts) a period of 10 to 12 years is recommended to carry out a normal planned resettlement of locations. According to mining requirements this might also be implemented faster, if compromises are agreed in written form in a contract. To start the project, financing of the resettlement according to the single project stages shall be ensured. Tab. 13.3-1

Steps for a joint resettlement of a village

Measure

Minimum Period

Creating planning requirements for the resettlement 1 year (passing of the resettlement law and resettlement criteria, conclusion of a basic contract between municipality, mining company and government) Information of the concerned and inventory taking

1 year

Installation of a consulting office as local contact partner for technical and social 5 years assistance of residents) Questionnaires with criteria (interviews about individual plans, wishes, doubts and 1 year participation possibilities) Preparation of an offer for an socially acceptable resettlement on the basis of the 9 months results of inventory taking and interviews Identification of sites, area acquisition and establishing of legal planning prerequi- 1 year sites for the development of the joint resettlement site; start of development works Inventory taking, contract negotiations and conclusion of notary contracts for land 1 - 2 years swap with the private owners Structural building measures for private owners, collective housing (apartments) 1 year and council housing

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13.4 Investment and Cost Calculation for Resettlement The following subdivision was made: - Households with garden land - Public Facilities - Infrastructure within the villages - Substitute measures outside the villages - Land claim (farm land) Households including garden The following table includes estimated data of the villages including the land to resettle. In cases where neither documents were available nor could be made available the project team has made a provisional cost estimate exclusively for the purpose of this particular EAR project.

One of the bases for the following cost estimation is the unit price for the buildings and the land compensation laid down by the Intergovernmental Committee in July 2004. According to an analysis of documents handed over with the letter dated 01.03.2005 the following compensations were paid to 117 property owners in the safety zone of Hade: 4,178,081 € 940,268 € 120,492 € 523,884 € 5,762,725 €

compensation for buildings compensation for building land compensation for farmland resettlement coefficient sum

The following average values result for the safety zone of Hade: Average compensation per built-up estate Average compensation for building land: Average compensation for farmland: Average size of estates safety zone Hade

50,000 € 360 m² 240 m² 600 m²

A lot of owners do not agree with these compensations so that legal proceedings can be expected. Among others, this is one reason why a sum for compensation of 90,000 € will be assumed for the cost estimation of the remaining estates of Hade. The following assumptions were made for the compensations of the villages of Leskovcic, Janina Voda and Sibovc with regard to the resettlement time and the maintenance of value to be expected: Average compensation per built-up estate: 100,000 € Average compensation for building land: 500 m² Average compensation for farmland: 2000 m² Average size of estates: 2500 m²

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The following table includes the compensation sums per estate: Tab. 13.4-1 Title

Cost Calculation for Resettlement of Properties with constructed Buildings Criteria for Area Price per evaluation property (Results of the GWG) (€/ m²) (m²) (€) Residence 350.00 200 70,000.00 Building land 23.00 500 11,500.00 Agriculture land - Class I 5.00 2,000 10,000.00 Economic building (workshops, farm etc.) 120.00 600 7,200.00 Auxiliary buildings (garage, depot, yard, wells etc.) 50.00 30 1,500.00 Sum 100,200.00 Round price per property with constructed buildings 100,000.00

The number of estates to be resettled was taken from the documents handed over by the Cadastre office in February 2005 and summarized in the following tables. The remaining number of estates for Hade results from the difference of 708 built-up estates and 111 families. The number of the estates of Sibovc is yielded from the 40% occupation of areas until 2038 (total number 135 built-up estates). Tab. 13.4-2

Resettlement of Households and Land Claim Year Resett- Members of the lers of houseVillage resettle(house holds ment -holds) estimated

Hade (residual area) Household without land Building land households Leskovčic Household without land Building land households Gardenland households Janina Voda Household without land Building land households Gardenland households SibovcBedding settlement Household without land Building land households Gardenland households Total

2007-2009

[No.] 597

[No.] 2,500

Land claim

[m²] 358,200

2027-2037

85

850 42,500 170,000

2027

7

70 3,500 14,000

2009-2032

54

743

540

3,960

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27,000 108,000 723,200

Investments Payment Houseper holds household [€/No.] [€] 90,000 53,730,000 76,200 45,491,400 13,800 8,238,600 100,000 8,500,000 78,500 6,672,500 11,500 977,500 10,000 850,000 100,000 700,000 78,500 549,500 11,500 80,500 10,000 70,000 100,000 5,400,000 78,500 11,500 10,000

4,239,000 621,000 540,000 68,330,000


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Public Facilities The following financial means shall be planned for compensation of public facilities (substitute measures): Tab. 13.4-3

Resettlement of Public Facilities Year of the Allocated to the resettleVillages ments

Landwithdrawal

Payment per landwithdrawal [€]

[m²] Hade (residual area) Primary school Evacuation of the graveyard Leskovčic Primary school Evacuation of the graveyard Sibovc-Bedding settlement Primary school Mosque Ambulance Evacuation of 6 graveyards Total

Investments Payment Total buildper buildings with ing land withdrawal [€/No.]

[€]

2007 2009

4,000 4,000

92,000 13,000

800,000 120,000

892,000 133,000

2027 2035

2,000 3,000

46,000 9,750

100,000 60,000

146,000 69,750

2019 2019 2019 2019-2031

10,000 400 500 18,000 41,900

230,000 9,200 11,500 68,500 469,950

800,000 200,000 200,000 600,000 2,880,000

1,030,000 209,200 211,500 658,500 3,349,950

Infrastructure within the villages For substitute measures of infrastructure inside the villages (Roads, Power supply, Water supply) 5,000 € per estate were determined and a lump sum for social and technical assistance depending on the size of the village. The costs for demolition were calculated from the outline of quantities of the estates to be resettled basing on an estimated price of 3.50 €/m³ enclosed space. Tab. 13.4-4

Substitute Measures Infrastructure inside the Village and other Costs

Investments Allocated to the villages

Hade (residual area) Leskovcic Sibovc-Bedding settlement Janina Voda Total

Year of the resettlement

Infrastructure

2007-2009 2027-2037 2009-2032 2027

[€] 2,985,000 425,000 270,000 35,000 3,715,000

Demolition [€] 870,800 360,000 151,200 19,000 1,401,000

Social and technical assistance [€] 332,800 200,000 332,800 31,200 896,800

Total [€] 4,188,600 985,000 754,000 85,200 6,012,800

Infrastructure outside the villages The following assumptions are bases for the determined compensation sums for the substitution of the available infrastructure outside the villages: Page 238 of 257


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Power supply (80,000 € for a man-sized substation 2x630 KVA, 45,000 €/ km disassembly and assembly of medium-voltage overhead transmission line) Water supply (120,000 € for drinking water DN 200) Road construction (150,000 €/ km asphalt road from Janina Voda via Leskovcic to Sibovc, 58,440 €/ km for gravel roads in the villages). Tab. 13.4-5

Substitute measures for infrastructure outside the village

Investments Year of resettlement

Allocated to the villages Hade (residual area) Leskovcic Sibovc-Bedding settlement Janina Voda Total

Power supply [€] 170,000 170,000 305,000 45,000 690,000

2007-2009 2027-2037 2009-2032 2027

Water supply

Roads

[€] 240,000 240,000 600,000 60,000 1,140,000

[€] 409,080 533,760 592,200 208,440 1,743,480

Total [€] 819,080 943,760 1,497,200 313,440 3,573,480

Claim of Land (Farmland) Tab. 13.4-6 Claim of land

Claim of farmland

Investments Land use

2007-2008 2008-2013 2013-2018 2018-2023 2023-2028 2028-2033 2033-2038 Total

[ha] 271.000 137.000 102.000 140.000 183.000 89.000 236.000 1,158.000

Land use villages

[ha] 27.500 11.169 0.000 2.049 11.854 16.030 7.908 76.510

Total

Farmland

Price

[ha] 243.500 125.831 102.000 137.951 171.146 72.970 228.092 1,081.490

[€ /ha] 47,500 47,500 47,500 47,500 47,500 47,500 47,500

[€ ] 11,566,250 5,976,973 4,845,000 6,552,673 8,129,435 3,466,075 10,834,370 51,370,775

The table below gives a summary of the compensation sums to be expected in connection with re-settlement and land purchase.

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Tab. 13.4-7

Provisional estimation of resettlement Land use Village Term (m²) Hade Households in the residual area Building land households 358,200 Primary School Building land Primary 4,000 School Evacuation graveyard Land graveyard 4,000 Demolition Social and technical assistance Infrastructure (Roads, Power supply, Water supply) inside village Infrastructure (Roads, Power supply, Water supply) outside village Leskovčic Households Building land households 42,500 Garden land households 170,000 Primary School Building land Primary 2,000 School Evacuation graveyard Land graveyard 3,000 Demolition Social and technical assistance Infrastructure (Roads, Power supply, Water supply) inside village Infrastructure (Roads, Power supply, Water supply) outside village Janina Voda Households Building land households 3,500 Garden land households 14,000 Demolition Social and technical assistance Infrastructure (Roads, Power supply, Water supply) inside village Infrastructure (Roads, Power supply, Water supply) outside village Sibovc – Households Page 240 of 257

Investments (€) 45,491,000

Total costs per village (€) 59,762,680

8,238,600 800,000 92,000 120,000 13,000 870,800 332,800 2,985,000 819,080 6,672,500 977,500 850,000 100,000 46,000

10,644,510

60,000 9,750 360,000 200,000 425,000 943,760 549,500 80,500 70,000 19,000 31,200

1,098,640

35,000 313,440 4,239,000

9,760,400


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Bedding set- Building land households 27,000 tlement Garden land households 108,000 Primary School Building land Primary 10,000 School Mosque in Midanska Building land Mosque 400 Ambulance Building land ambulance 500 Evacuation of 6 graveyards Land graveyards 18,000 Demolition Social and technical assistance Infrastructure (Roads, Power supply, Water supply) inside village Infrastructure (Roads, Power supply, Water supply) outside village Farmland 10,814,00 TOTAL 11,580,000 PAYMENT

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621,000 540,000 800,000 230,000 200,000 9,200 200,000 11,500 600,000 58,500 151,200 332,800 270,000 1,497,200 51,370,775 132,637,005


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Tab. 13.4-8 Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Total

Cost of resettlement - schedule

Landclaim

thereof Infrastructure outside villages Hade Leskovcic Janina Voda Sibovc Farmland Hade LeskovcicJanina Voda Sibovc Farmland Hade LeskovcicJanina Voda Sibovc Total [ha] [ha] [ha] [ha] [ha] [ha] [m€] [m€] [m€] [m€] [m€] [m€] [m€] [m€] [m€] [m€] 135.000 13.800 121.200 22.212 5.757 0.307 28.276 136.000 13.700 122.300 22.052 5.809 0.307 28.16 27.400 9.120 2.049 16.23 14.680 1.033 0.77 0.205 0.187 16.876 27.400 27.400 1.302 1.302 27.400 27.400 1.302 1.302 27.400 27.400 1.302 1.302 27.400 27.400 1.302 1.302 20.400 20.400 0.969 0.969 20.400 20.400 0.969 0.969 20.400 20.400 0.969 0.969 20.400 20.400 0.969 0.969 20.400 20.400 0.969 0.969 28.000 2.049 25.95 1.033 1.233 0.187 2.453 28.000 28.000 1.330 1.330 28.000 28.000 1.330 1.330 28.000 28.000 1.330 1.330 28.000 28.000 1.330 1.330 36.600 2.049 34.55 1.033 1.64 0.187 2.86 36.600 36.600 1.739 1.739 36.600 2.049 34.55 1.033 1.64 0.187 2.86 36.600 1.980 1.750 32.870 0.883 0.785 1.56 0.086 0.313 3.629 36.600 1.977 2.049 32.574 0.882 1.033 1.547 0.086 0.187 3.735 17.800 1.977 15.823 0.882 0.752 0.086 1.719 17.800 1.977 2.049 13.774 0.882 1.033 0.654 0.086 0.187 2.842 17.800 1.977 2.049 13.774 0.882 1.033 0.654 0.086 0.187 2.842 17.800 1.977 2.047 13.776 0.882 1.032 0.654 0.086 0.187 2.84 17.800 1.977 15.823 0.882 0.752 0.086 1.719 47.200 1.977 45.223 0.882 2.148 0.086 3.116 47.200 1.977 45.223 0.882 2.148 0.086 3.116 47.200 1.977 45.223 0.882 2.148 0.086 3.116 47.200 1.977 45.223 0.882 2.148 0.086 3.116 47.200 47.200 2.242 2.242 1,158.000 36.620 21.750 1.750 16.390 1,081.490 58.944 9.70 0.785 8.263 51.371 0.819 0.944 0.313 1.497 132.637

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EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

14 Manpower Development and Organisation The manpower of the Sibovc mine will be recruited from the personnel of KEK. Because the employment will only be effective from 2008, both the present situation and the changes which will become effective during the Mid Term Period have to be taken into account. Moreover, it has to be considered that parallel operation will be done from 2007/08 in Sibovc until the closure of the Mirash and Bardh mine. For a better evaluation of the future manpower employment in the new Sibovc mine the present situation and the changes in Mirash/Bardh are regarded closer.

14.1 Actual Situation Compared with other European opencast mines the present (specific) manpower assignment is considerably high. This current situation is caused by: • Unacceptable bad condition of the Main Mine Equipment • Insufficient number of and strongly worn out auxiliary equipment • Improvement of qualification and management skills • Low motivation of staff • Insufficient logistics / organisation of the production process • Social and historical conditions For these reasons, about 3,698 employees are involved in the production operations for ca. 6 mt coal. The employees are divided according to the different business levels as follow: • Support functions 28 • Engineering department 59 • Bardh mine department 1222 • Mirash mine department 1277 • Separation plant department 669 • Maintenance department 443 The present CPD (Coal Production Department) structure has three parallel arranged production units: • the Bardh Mine, • the Mirash mines and • the Separation Plant. It is remarkable that the share of maintenance personnel is even too high when taken into account the insufficient conditions of the equipment. Besides the business unit Maintenance, each of the production units has an own maintenance unit. This means a multiple Maintenance Service being difficult to coordinate. The additional concentration of the production unit on maintenance has negative effects on the efficient use of the main equipment. Page 243 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Total Age Structure of KEK Employees

Total Age Structure

<= 40 41 - 46

18%

35%

23%

47 - 52 >= 53

24%

Fig. 14.1-1

Age structure

The above figures illustrate that almost half (47%) of the total workforce of KEK is within the age group 41 – 52 years. 35% of the employees are younger than 40 years and about 18% (ca. 660 employees) are older than 53 years. The age structure shows the relevant share of personnel at an age of over 40 years. Other than in the opencast mines of Kosovo, the degree of knowledge and experience of this age group is usually excellent in comparable mining companies. This is a considerable disadvantage for the labour efficiency. Current Qualification As it is described in the Mid Term Plan regarding the degree of qualification, about 50% of the employees have an average industrial training. Almost 1500 employees (40%) have only a lowgrade training and/or no qualification. Only ca. 10% of the employees have graduated at a technical college or a university. It must be considered that between 1990 and 1999/2000the main part of the staff was not employed in the mines and the deficits in the professional experience can be attributed to this. Furthermore, the Embargo resulted in a limited access to modern technologies and even today the lack of financial means makes it difficult to get or use state of the art technology. Owing to this, specific higher number of personnel is required. The lower income balances the involved cost increase.

14.2 Proposed Improvement / Benchmark The envisaged improvements mainly refer to: • Improving qualification • Improvements of structure and • Adaptation of personnel employment to phasing out Mirash / Bardh operations Page 244 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

Qualification Measures It is extremely important to develop a skilled and motivated workforce with the ambition to run a world class operation. Therefore a strategy of training and developing human resources is planned. The training programs are suggested for the next years and refer to: • Management qualification • Staff of main mining equipment and foremen • Dispatcher • Mechanical maintenance • Mechanical steel construction inspection • Electrical maintenance of motors (Kosovamont) • Electrical maintenance for the Mines and Separation plants and • Environmental issues

A breakdown of this is described in the Mid Term Plan. Additionally, Appendix D of the Mid Term Plan contains an example for a Technical Specification for Personnel Training. Organizational Development within the mid-term period The Mid Term Mining Plan foresees significant changes in the coming years. Major developments in the coming years include: • A focus on business rather than production, as KEK evolves from a state run entity into a profitable enterprise • The merger of Bardh and Mirash operations • More emphasis on maintenance as equipment productivity rises • A switch from reactive maintenance to scheduled preventative maintenance • Increased level of commissioning and decommissioning of equipment and infrastructure components in the course of the merger of the two mines The structures and a description of the units are also given in the Mid Term Plan. Adaptation of the employment of staff Currently, the overall productivity is 1,700 tons of products per man and year (3,698 persons). As already mentioned there are various reasons for this. A comparison to some benchmark mines reveals: Tab. 14.2-1

Benchmark mining

Name Eagle Butte (US) Jänschwalde (GER) Foundation Coal (US) Burton (AUS) VEM (GER) Cumberland (US) Kingston (US) Bogatyr (KAZ) CPD (Kosovo)

Technology

Remarks

OCM / Truck & Shovel OCM / BWE & BCE OCM / UGM OCM / Truck & Shovel OCM / BWE & BCE UGM / Longwall UGM / Continuous Miner OCM / BWE & Shovel & Train OCM / BWE & Conv.

Mine only Mine only Organization Mine only Organization Mine only Mine only Mine only Division

Page 245 of 257

[mt/a] 16 16 60 6 60 6 0.8 25 6

Production Staff [t/man] 400 40,000 550 30,000 4000 15,000 400 15,000 5,000 12,000 550 11,000 100 8,000 5,000 5,000 3,700 1,700


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

A comparison of figures only between mines and mining organizations can lead to misjudgement. Geology and Technology as well as product quality vary in a wide range – but are of great importance. However - the only common ground for all coal mines is the market, either for the coal itself or its refined product, electricity. And from that perspective it makes sense to compare productivities in coal mines, because productivity is one of the most important factors for production cost. As already mentioned in the Mid Term Plan: when comparing productivities it has to be considered: • Is the overhead accounted for in the statistics? • What additional manpower is hidden within the budget line external services, i.e. how many contractors are working on the site? • What part of the value chain is covered by the operation itself? Examples for activities upstream the mining processes are overhauls, repair and maintenance as well as other services including transport, catering and medical. Downstream activities include coal preparation, coal storage in stockpiles and coal delivery with conveyor, truck, rail or barges. • Also the ratio of waste to product within the raw production has an impact on productivity. In opencast mines this means the overburden to coal ratio, underground the percentage of reject. • The dig ability of the material Summarizing, it seems to be appropriate, to set the goal for the long term productivity of the CPD with 8,000 -10,000 tons per man-year. This means a six fold increase in productivity compared to the year 2004. The Mid Term Plan assumes this goal can’t be achieved up to the end of the existing mines. The stepwise reduction in overall staff numbers will start in 2005 has to be continued up to 2010.

14.3 Employment of Staff and Organisation Sibovc For the long-term development it is assumed that the already existing obstacles for the restructuring process and/or a remarkable increase in efficiency will be eliminated. Such existing obstacles are: • insufficient social measures in case of unemployment and illness • general financially weak industry of he country • lack of sufficient alternative employment opportunities • overstaffing in the other industries and in the other trades and therefore specific staff reductions • availability of better qualification opportunities • insufficient legal bases regarding labour law Irrespective of the elimination of existing obstacles, the precious experiences, the mentality of the people and the actual economic development will affect the employment of staff.

Page 246 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine – Technical Planning

An appropriate personnel policy in the company shall assist the process of improving the labour efficiency. This includes for example: • A socially acceptable personnel reduction (in the departments where necessary) • Improvement of degree of qualification (offering and demanding of sufficient qualification opportunities) • Set up and keeping (adjustment) of high safety standards • Developing of a high motivation • Individual payment according to performance To assist the above mentioned principles and goals it is assumed that suitable staff will be qualified for the Sibovc operations and to employ this staff if a corresponding motivation will be available. The jobs shall be advertised throughout the company. The following table gives a specification: a) about the existing mines Tab. 14.3-1

Employees in Mirash /Bardh

Year Mirash / Bardh per 01.01. - Fluctuation - Employees for Sibovc Mirash / Bardh per 31.12.

2007 01.01. 3420 140 500

110 870

2010 01.01. 1070

2009 31.12. 01.01. 1800

2780

Year Mirash / Bardh per 01.01. - Fluctuation - Employees for Sibovc Mirash / Bardh per 31.12.

2008 31.12. 01.01. 2780

100 630 1800

2011 31.12. 01.01. 850

60 160

Page 247 of 257

1070

2012 31.12. 01.01. 45

40 765 850

31.12.

31.12. 5 40

45

0


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

and b) about the mine in future: Tab. 14.3-2

Employees in Sibovc

Year

2007

Sibovc per 01.01. + new staff from Mirash/Bardh - Fluctuation + newly employed/recruited Average of the year Sibovc per 31.12.

01.01. 0

2008 31.12. 01.01. 1370

31.12.

500

870

630

10 10 250

10 10 1150

10 10 1685

500

Year

1370

2010

Sibovc per 01.01. + new staff from Mirash/Bardh - Fluctuation - redundancy to market Average of the year Sibovc per 31.12.

2009

31.12. 01.01. 500

01.01. 2000

2000

2011

2012

31.12. 01.01. 2110

31.12. 01.01. 2800

31.12.

160

765

40

50 0 2055

75 0 2455

55 85 2750

2110

2800

2700

Employees in the mines Kosovo 4000 3500

Employees in all mines

3000 2500 2000 1500

Sibovc

Employees in Mirash / Bardh per 01.01. Employees in Sibovc per 01.01. Staff per 01.01. - all Mines

Mirash / Bardh

1000 500 0 2006

2007

2008

2009 Year

Fig. 14.3-1

Employees in Sibovc

Page 248 of 257

2010

2011

2012


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

It is shown that there will be no need for redundancy of personnel by terminations. A few reductions will result from employees entering the retirement age and/or personal terminations. The year 2008 will be problematic. In this year, the synergy potential with the Mirash / Bardh mines shall be used completely. This means, among others, that the administration staff shall work both for the existing mines and the future Sibovc mine to a certain degree. The same applies for the maintenance department. The following gives a survey on the staffing in Sibovc: Tab. 14.3-3

Number of employees

Administration Main Equipment+Belt Conveyor Auxiliary Equipment Workshops Other SUM Personnel

2012

2013

2014 270 1,125

20152022 260 1,090

20232032 270 1,100

20332036 250 1,080

20372038 250 1,040

280 1,220

275 1,180

370 590 240 2,700

370 570 235 2,630

365 560 230 2,550

360 530 210 2,450

360 550 220 2,500

360 510 200 2,400

360 500 200 2,350

14.4 Organisational Structure The organisation chosen for Sibovc assists the goal to achieve competitive costs for coal supply and to guarantee these costs in the long run. The structure shall enable a complete overview of all required departments of a mining company. All technical groups, including also the commercial groups and controllers, legal and human resources department are integrated in the organisation.

Page 249 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Sibovc

Organizational Structure

Status: 15.04.2005

Mining

Chart 1

Mining

Strategic Planning *

General Service

Secretary Mining

Finance

Mine Planning & Engineering

Personnel Affairs Legal Affairs

Coordination IT / Telecom. Public Relations Library

Mine Service

Mining Production

Mine Maintennance

* small group

Legend: 1)

Summary

1) Structure 2) Manpower

2)

Page 250 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Sibovc

Organizational Structure

Status: 15.04.2005

Finance

Chart 2

Finance

Commercial Planning & Controlling (Mining Unit)

Accounting Department/ Accountancy

Purchase & Sales Dep.

Finance Credits/Investments

Mining Unit-Planning Management Planning

Accounting Balance Sheet & Financial

Purchase & Sales Products

Credit Processing

Investment and Project Planning Profitability Calculation

Accounting Investments & Assets

Aux. Euipm./Vehicles Infrastructure

Investments

Taxes

Systems Engineering

Insurance

Materials

Controlling Internal and Subsidiary

Legend: 1)

1) Structure 2) Manpower

Summary

2)

Page 251 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Sibovc

Organizational Structure

Status: 15.04.2005

Mine Planning & Engineering

Chart 3

Mine Planning & Engineering Mine Surveyor/Survey Real Estates

Civil Engineering

Secretary

Mine Planning

Systems Engineering Maintenance Planning

Building Management

Mining Technology

Reclamation Landscaping

Planning Maintenance / Workshop

Civil Engineering

Geology / Coal Quality

Geotechnic Soilmechanics

Mechanical Engineering

Site Management

Environmental Protection for Mining Sector

Water Management Hydrology

Electrical Engineering

Legend: 1)

1) Structure 2) Manpower

Summary

2)

Page 252 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Sibovc

Organizational Structure

Status: 15.04.2005

Personnel Affairs

Chart 4

Personnel Affairs

General Human Resources Development Principal Planning

Applied Ergonomics

Human Resources Development

Education and Advanced Qualification

Coordination ( Reports)

Industrial Safety and Fire Protection

Planning & Administration

Executive Personnel Administration

Personnel Strategy

Occupational Medicine & Ergonomics

OCM Sibovc

Production

Principles/Regulations

Dangerous Substances

Revitalisation Other

Legend: 1)

1) Structure 2) Manpower

Summary

2)

Page 253 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Sibovc

Organizational Structure

Status: 15.04.2005

Mine Service

Chart 5

Mine Service

Secretary Mine Service

Civil Engineering

Drilling/Exploration

Dewatering & Water Purification

Power Supply and Distribution

Legend: 1)

Summary

1) Structure 2) Manpower

2)

Page 254 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Sibovc

Organizational Structure

Status: 15.04.2005

Mine Production

Chart 6

Mining Production

Dispatcher Coordin. Mining Prod.

Operative Planning

Mine Secretary

Operative Management

Auxiliary/Ancillary Operation

Operative Maintenance Fault Clearance

Operative Mine Planning

Operative Coal Quality Planning

Overburden Removal

Auxiliary Equipment Operation

Mechanical Main Equipment

Dewatering

Operative Planning Aux. / Anc. / Service

Lignite Mining

Ancillary Equipment Operation

Electrical Main Equipment

Summary

Stockpiling

Auxiliary / Ancillary Maintenance

Crushing Stacking & Reclaiming

Legend: 1)

1) Structure 2) Manpower

Operative Maintenance Technology

2)

Page 255 of 257

Workshop Mine (small capacity)


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

Sibovc

Organizational Structure

Status: 15.04.2005

Mine Maintenance

Chart 7

Mine Maintenance

Secretary M. Maintenance

Planning / Design Maintenance / Workshop

Workshop

Central Maintenance

Electrical

Mechanical

Legend: 1)

1) Structure 2) Manpower

Aux./ Anc./ Service

Summary

2)

Page 256 of 257


EAR-Project: EuropeAid/116986/D/SV/KOS Part II Main Mining Plan for New Sibovc Mine â&#x20AC;&#x201C; Technical Planning

15 Final Remarks (Part II) As a result of the Main Mine Plan it became obvious that there exist essential influence factors which had been laid down for the preparation of the Main Mine Plan, but their actual development will decisively determine the future coal costs. With this production price, it is finally influenced, if the generated power can be sold on the market. Nevertheless the comparison of all variants (described in Part I and Part II) shows that an economically reasonable development is to be expected in any case (see also Part IV â&#x20AC;&#x153;Economic and financial analysis).

Page 257


European Agency for Reconstruction PREPARATION OF A MID TERM PLAN FOR EXISTING COAL MINES AND A MAIN MINING PLAN FOR THE DEVELOPMENT OF THE NEW SIBOVC MINE EUROPEAID/116986/D/SV/KOS

FI NAL R E PO RT

Main Mining Plan for New Sibovc Mine Part III

Environmental Impact Study

June 24, 2005

prepared by: Vattenfall Europe Mining AG

Deutsche Montan Technologie GmbH

VATTENFALL


Main Mining Plan Sibovc, Part III, Environmental Impact Study

Key Experts of Project Team

Ullrich Höhna

VEM

Team Leader, Senior Expert Mine Planning

Hans Jürgen Matern

VEM

Senior Expert Mining Operation

Thomas Suhr

VEM

Senior Expert Computer-Aided Mine Planning Applications

Stephan Peters

DMT

Senior Expert Geology

Helmar Laube

VEM

Senior Expert Soil Mechanics

Joachim Gert ten Thoren

DMT

Senior Environmental Expert

Page 2

EUROPEAID/116986/D/SV/KOS


Main Mining Plan Sibovc, Part III, Environmental Impact Study

EUROPEAID/116986/D/SV/KOS

List of Contents 1 Summary .........................................................................................7 2 Introduction.....................................................................................9 2.1

Geographical Overview and Historical Development.................................................... 9

2.2

Coal Demand and Fuel Supply Strategy ...................................................................... 11

3 Alternatives to the Project.............................................................14 3.1

Overview of Potential Future Mining Fields................................................................ 14

3.2

Description of Alternative Mining Fields..................................................................... 15

3.3

Valuation of the Mining Fields..................................................................................... 16

3.4

Alternatives of Opening-up and Mine Development ................................................... 18

4 Hydrological Baseline Data ..........................................................19 4.1

Temperature.................................................................................................................. 19

4.2

Wind ............................................................................................................................. 20

4.3

Precipitation.................................................................................................................. 20

4.4

Surface Waters Run-Offs and their Qualities............................................................... 23

5 Soils...............................................................................................26 6 Hydrogeological Situation ............................................................27 7 General Environmental Impacts of Lignite Open Pit Mining .......30 8 Noteworthy Side Issues.................................................................31 8.1

Former Underground Mining ....................................................................................... 31

8.2

Uncontrolled Coal Fires ............................................................................................... 34

8.3

Phenol Deposits ............................................................................................................ 35

8.4

Environmental Aspects of Mining Fields Alternatives ................................................ 36

8.5

Environmental Ranking of Alternatives....................................................................... 39

9 Environmental Aspects of the Main Mine Plan ............................40 9.1

Description of the Project............................................................................................. 40

9.2

Description of the Environment ................................................................................... 42

9.2.1

Ecological Resources............................................................................................ 47

9.2.2

Economic Development ....................................................................................... 47

9.2.3

Social and Cultural Resources.............................................................................. 48

9.3

Anticipated Environmental Impacts ............................................................................. 52

9.4

Migitating Measures..................................................................................................... 57 Page 3


Main Mining Plan Sibovc, Part III, Environmental Impact Study

EUROPEAID/116986/D/SV/KOS

9.5

Irreversible and Irretrievable Impacts .......................................................................... 58

9.6

Environmental Management ........................................................................................ 58

9.7

Environmental Monitoring Needs ................................................................................ 59

10 Future Treatment of Ash Dumps...................................................61 11 Mine Closure and Recultivation Planning ....................................62 11.1

Principles ...................................................................................................................... 62

11.2

Mine Closure Plan ........................................................................................................ 62

11.3

Concept of Post-Mining Use for the Fields Bardh, Mirash and Sibovc....................... 63

12 Legal Framework ..........................................................................67 12.1

Legal Mining Regulations ............................................................................................ 67

12.2

The Environmental Protection Law.............................................................................. 67

12.3

Legal Resettlement Regulations ................................................................................... 68

Tables Tab. 2.2-1

Existing installed TPP Capacity ........................................................................... 11

Tab. 2.2-2

Defined Coal Demand in mt................................................................................. 12

Tab. 2.2-3

Coal Production required from new Mines .......................................................... 13

Tab. 3.3-1

Valuation of the Mining Fields............................................................................. 16

Tab. 4.3-1

Intensity of Precipitation at Rainfall Gauging Station Pristina ............................ 22

Tab. 4.4-1

Comparison of Water Qualities ............................................................................ 25

Tab. 8.1-1

Underground Coal Production.............................................................................. 33

Tab. 8.5-1

Qualitative Ranking of Environmental Impacts ................................................... 39

Tab. 9.1-1

Demand of Surface Area ...................................................................................... 41

Tab. 9.2-1

Distribution of Soils in the planned Mine Area ................................................... 43

Tab. 9.2-2

Claim of occupied and farm land ......................................................................... 48

Tab. 9.2-3

Households and other Facilities in the Village Hade, status 2003 ....................... 49

Tab. 9.3-1

Development of Employees ................................................................................. 55

Tab. 9.3-2

Schedule of resettlement....................................................................................... 55

Page 4


Main Mining Plan Sibovc, Part III, Environmental Impact Study

EUROPEAID/116986/D/SV/KOS

Figures Fig. 2-1:

Location Map ........................................................................................................... 10

Fig. 3-1:

Potential Mining Fields ............................................................................................ 14

Fig. 4-1:

Variation of monthly Mean Temperatures ............................................................... 19

Fig. 4-2:

Variation of monthly Temperatures ......................................................................... 19

Fig. 4-3:

Direction and Velocity of Wind (from Rudarski Institute; 1985) ............................ 20

Fig. 4-4:

Long term Variation of Monthly Precipitation......................................................... 21

Fig. 4-5:

Average, Minimum and Maximum Monthly Precipitation...................................... 21

Fig. 4-6:

Daily Precipitation.................................................................................................... 22

Fig. 4-7:

Catchment Areas ...................................................................................................... 23

Fig. 4-8:

Characteristic water quality values for the river Sitnica (INKOS Institute) ............ 24

Fig. 4-9:

Characteristic Mine Drainage Water Quality (INKOS Institute, Mirash mine)....... 24

Fig. 5-1:

Soil Map ................................................................................................................... 26

Fig. 6-1:

Bottom of yellow Clay (Redrawn from Rudarski Institut, Map 1.01.4375; 1985) .. 28

Fig. 6-2:

Complemented Extract from Hydrogeological Map (Rudarski Institute 1996).............. 29

Fig. 8-1:

Former underground mining in Field D ................................................................... 31

Fig. 8-2:

Gallery of an old underground mine with wooden support system ......................... 32

Fig. 8-3:

Mirash (West and Northern Slope) with underground mining structures (blue)...... 33

Fig. 8-4: Fig. 8-5:

Coal fire at base of a dump....................................................................................... 34 Coal fire near a fault with burnt out zones in the seam ............................................ 34

Fig. 8-6:

Areas of potential risk of toxic waste deposits......................................................... 35

Fig. 9-1:

Location of Field Sibovc .......................................................................................... 41

Fig. 9-2:

Distribution of Soils ................................................................................................. 42

Fig. 9-3:

Surface Waters and Catchment Areas ...................................................................... 45

Fig. 9-4:

Complemented Extract from the Hydrogeological Map, Rudarski Institut;(1996).. 46

Fig. 9-5:

Net of Groundwater Monitoring Wells .................................................................... 60

Fig. 11-1:

Plant Scheme for Wind Erosion Protection.............................................................. 65

Maps Scale Map No. 1

Territorial Requirements

1 : 10,000

Map No. 2

Aerial view

1 : 10,000

Page 5


Main Mining Plan Sibovc, Part III, Environmental Impact Study

EUROPEAID/116986/D/SV/KOS

List of Abbreviations a k~ m~ m² m³ t bcm bcm/h `000 bcm mbcm lcm `000 lcm mlcm GWh mMSL MW EN EnO ESTAP IPP MME OCM TPP TPS

year kilomillion square meter cubic meter tonne bank cubic meter bank cubic meter per hour thousand bank cubic meter million bank cubic meter loose cubic meter thousand loose cubic meter million loose cubic meters Gigawatt-hours meter above Main Sea Level mega watt European Norm Energy Office Energy Sector Technical Assistance Project International Power Provider Main Mine Equipment (BWE, belt conveyor and spreader) Open Cast Mine Thermal Power Plant Thermal Power Station

Page 6


Main Mining Plan Sibovc, Part III, Environmental Impact Study

EUROPEAID/116986/D/SV/KOS

1 Summary The existing coal mines Bardh and Mirash, west of Pristina, will be exhausted within the next years. A new deposit, adequate for long term supply of the thermal power plants in Kosovo, has to be identified and developed. The “Main Mining Plan for New Sibovc Mine” describes how the future lignite mine can be operated to serve the existing power plants as well as power plants to be erected in future for a lifetime of 30 years. This description follows the demand of coal presented by the Energy Ministry in the year 2005. Resulting from this the mining activities will have a large scale effect on the environment. The Environmental Study serves as a baseline description for the expected effects. Alternative locations are discussed for coal extraction prior to the implementation of the Main Mining Plan resulting in the location of “D-field”, east of the river Sitnica, to be the most favourable alternative to feed the existing power plants from the environmental point of view. Among the other alternatives the development of the “Sibovc field” from the south to the north ranked second best. Subject of the Main Mining Plan is the excavation of overburden soil and lignite in the neighbourhood of the existing open pit coal mines. Excavations will be performed using diesel driven truck and shovel technologies as well as electrically driven bucket wheel and belt conveyor technologies. Mining activities will start from the existing mines using already exploited areas for dumping the overburden material. The Sibovc Field is situated north of the operating Bardh and Mirash mines. It is near the capital of Kosovo, Pristina, and near to the existing power plant Kosovo B. The field covers an area of approximately 16 km² with a maximum mineable width (east-west extension) of 3.8 km and a length of about 6 km. Until the year 2038 an area of about 11.6 km² will be needed to deliver about 553 million tonnes of lignite coal from a coal seam with a thickness up to 80 m. The anticipated environmental effects concern, first of all, the movement of soil resulting in a loss of surface area and living space. During operation of the mine a large void compared to the existing mines, will be visible with completed backfill areas giving the landscape a changed appearance. Surface waters to be affected are mainly small and of non perennial flow. The river Sitnica will not be affected, as clayey sediments with sufficient thickness protect it from the mine. In the final stage of mining the Sibovc River, perennial flowing, might be affected as clayey and loamy sediments are only of minor thickness in the north-western edge of the mine. Because of the characteristics of the overburden the impact on groundwater will be minor. Significant groundwater utilization is not known in the area. Influences on neighbouring utilizations can be excluded. This Environmental Study attempts to follow in general the applicable EU directives on environmental impact assessment, mainly Directive 85/337/EEC. However, there is a general lack of baseline studies, local expert’s opinions, pertinent documents or other information, e.g. allowing any specific assessment on influences on fauna and flora. Regarding this aspect additional investigations are needed to describe the floral and faunistic inventory of the mining field. In case of proper operation and a coal demand adequate to the mining technology the mine will become one of the most important employers of the region with up to 2,500 employees. Upon Page 7


Main Mining Plan Sibovc, Part III, Environmental Impact Study

EUROPEAID/116986/D/SV/KOS

completion of backfilling areas farmable land can be returned to the inhabitants mitigating the effects of resettlements required. Resettlement will be needed as a consequence of the development of the mine. Approximately 5,700 persons representing some 740 households will have to be moved, with the most important resettlement affecting the village of Hade until the year 2009. With the objective to improve knowledge on the environment and to allow control on the environmental impact adequate monitoring activities shall be set up concerning air and water quality measurements as well as the purification of drainage water and the utilization of humus enriched top soil layers. Not directly connected with the mining activities but environmentally very beneficial will be depositing the ash from the power plants into the mines. The geological circumstances generally favour this way of disposal. To start the Environmental Impact Assessment process the Environmental Authorities require a specific applicant for the Main Mining Plan. Following the legal regulations it will be the duty of the future applicant to update this Environmental study, to file it with the Ministry and to obtain the official Scoping Opinion.

Page 8


Main Mining Plan Sibovc, Part III, Environmental Impact Study

EUROPEAID/116986/D/SV/KOS

2 Introduction To obtain extensive and independent energy supply for Kosovo currently there is no alternative but the excavation and combustion of lignite coal. The existing lignite coal mines of Bardh and Mirash will be exhausted in the near future. Therefore a new mining field close to the existing power plants is needed able to feed the power plants at least for the next 30 years. Geological investigations and modelling showed the Sibovc field to be able to deliver the fuel needed for the next thirty years. All geological and technical basics of the project are described in the parts I and II of this report. Processing of technical mine planning and Environmental Impact Assessment on the Main Mine Plan had to be performed after December 2004 and parallel in time to meet the time schedule of the project. This Environmental Assessment reflects information available on the area of concern and focuses on basic needs for further investigations and monitoring activities which are mentioned as a requirement in the pertinent chapters.

2.1 Geographical Overview and Historical Development The Kosova lignite deposits are located between the cities of Mitrovica in the North and Kaqanik in the South. The total estimated resources of Kosovo’s lignite deposits are approximately 10,000 mt (Carl Bro; 2003), thus forming one of the largest lignite deposits in Europe. As being one of at least four major deposits the Kosova Coal Basin covers about 85 km from north to south with an average east – west extension of 10 km. Hence the deposit comprises some 850 km². Morphologically the Kosova Coal Basin forms an extended valley where the differences in elevation do not exceed 80 m. A central plane extends along the river Sitnica followed by a more hilly terrain approaching the mountains Çicavica Golesh and Sharr. The basin is surrounded by an elevated relief with Kopaonik massive, Kozic, Zhegovc Lisic in the East, Montenegro massive in the south and Çicavica, Golesh, Carnaleva as well as Sharr Mountains in the west and north-west. The surrounding mountains reach elevations from 900 to more than 1600 m. The resources were discovered more than hundred years ago and the first small-scale utilisation was started in the 1920’ties. First utilization has been reported to start with underground mining in at least five locations. Underground exploitation was ongoing until the year 1966 when mining focussed on large scale surface mining at Bardh and Mirash mines. Large-scale utilisation was already decided in the 1950’ties and the first mine “Mirash” started coal production in 1958. Power generation started at Thermal Power Plant Kosovo A (TPP A) in 1962. Kosovo A was extended in the period 1962 to 1975 to the current capacity. A second Thermal Power Plant Kosovo B (TPP B) was commissioned in 1985. Coal exploitation from surface mines in the first period required the excavated overburden to be dumped outside the open pits. Hence at least seven outside dumps were formed surrounding the today mines.

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Main Mining Plan Sibovc, Part III, Environmental Impact Study

Fig. 2-1:

Location Map

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Main Mining Plan Sibovc, Part III, Environmental Impact Study

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2.2 Coal Demand and Fuel Supply Strategy Kosovo has no important fossil fuel resource but it is rich in lignite. There is neither natural gas import nor gas supply infrastructure. Kosovo has no oil refinery and depends entirely on imported liquid fuels. The hydroelectric potential is very modest. Therefore the backbone of the power generation and the energy sector of Kosovo are the lignite fired thermal power plants Kosovo A and Kosovo B located near Pristina. The installed capacities of both existing lignite fired plants are set out in the table below. Tab. 2.2-1

TPP

Existing installed TPP Capacity

Gross Power

Net Power

Available Net Power

Start of Operation

[MW]

[MW]

[MW]

Year

Kosovo A

800

722

A1

65

58

30 - 40

1962

A2

125

113

0

1964

A3

200

182

130 - 145

1970

A4

200

182

120 - 145

1971

A5

210

187

135 - 150

1975

Kosovo B

678

618

B1

339

309

230 - 250

1983

B2

339

309

230 - 250

1984 (Source: KEK)

Due to the low availability and unreliable base load plants KEK needs to import peak power. The increased net imports had to be paid for in cash very often. This led to inadequate supplies and frequent power outages. Real time balancing of the demand and supply is managed partly by exports and imports and partly by planned and rotating load shedding. On the basis of the targets set by the Ministry for Energy and Mining (from 2009 onwards), coal demand figures were defined using following principles and assumptions: • For the time 2005 up to 2007 the production level already planned is applied, that means 6.9 up to 7.4 mt/a will be provided. • The geological reserves of the existing mines total about 43.7 mt (mineable). This is calculated from 2005 onward (see report “Mid Term Plan”). • Kosovo will export energy based on lignite (so it will enter in South East European Regional Market). • Construction of new TPPs (350 MW-units) for electricity supply into REM (Regional Electricity Market); the start of full production of the new Thermal Power Plants is 2016. • The grid of the REM will be reinforced to allow power transmission.

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Main Mining Plan Sibovc, Part III, Environmental Impact Study

Tab. 2.2-2

Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 SUM

EUROPEAID/116986/D/SV/KOS

Defined Coal Demand in mt

Lignite Demand existing TPP A 1.8 2.0 2.0 3.3 4.75 4.75 4.75 4.75 4.75 4.75 4.75 4.75 4.75 3.14 1.57

805

Lignite Demand existing TPP B1+B2 5.0 5.0 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 2.65

213

New TPP Kosovo B3-B6

2.71 5.42 5.42 5.42 5.24 5.24 5.42 8.13 10.84 10.66 10.66 10.84 10.66 10.66 10.66 10.66 10.84 10.66 10.66 10.66 10.66 10.84 10.66 10.66 10.66 10.66 10.84 1874

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New IPP C1 + C2

2.71 5.42 8.13 8.13 7.95 7.95 7.95 8.13 8.13 7.95 7.95 7.95 8.13 8.13 7.95 7.95 7.95 8.13 8.13 7.95 7.95 7.95 8.13 1533

Other Lignite Consumers

Total Coal Demand

0.1 0.1 0.1 0.1 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 140

6.9 7.1 7.4 8.7 10.35 10.35 10.35 13.06 15.77 15.87 15.87 18.40 21.11 22.49 23.63 24.59 24.41 24.41 24.77 21.94 19.11 19.11 19.11 19.47 19.29 19.11 19.11 19.11 19.47 19.29 19.11 19.11 19.11 19.47 1739


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The assessed output of coal from the existing mines (Bardh / Mirash) and the coal production required from the new mine is shown as follows: Tab. 2.2-3

Year

Coal Production required from new Mines

Coal from Mirash / Bardh

Coal from new Mines

Sum (Demand of Coal)

mt

mt

mt

2005

6.9

0

6.9

2006

7.1

0

7.1

2007

7.4

0

7.4

2008

8.7

0

8.7

2009

7.9

2.45

10.35

2010

3.2

7.15

10.35

2011

2.5

7.85

10.35

2012

13.06

13.06

2013

15.77

15.77

2014

15.87

15.87

374

397

Sum

77

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3 Alternatives to the Project Kosovo has no important fossil fuel resource but it is rich in lignite. There is neither natural gas import nor gas supply infrastructure. Kosovo has no oil refinery and depends entirely on imported liquid fuels. The hydroelectric potential is very modest. Therefore the backbone of the power generation and the energy sector of Kosovo are the lignite fired thermal power plants Kosovo A and Kosovo B located near Pristina. To mitigate the unavoidable environmental impact and to avoid long transportation distances any new lignite exploitation should be realized as close as possible to the existing power plants. Sufficient coal resources are available in the neighbourhood of the existing mines where environmental intervention already exists. For these reasons any exploitation outside of this coal basin does not form an alternative.

3.1 Overview of Potential Future Mining Fields The parts of the coal deposit with the most favourable mining conditions are West of Pristina, where also the Mirash and Bardh mines were opened-up. The overburden : coal ratio is here approximately 1:1, i.e. to mine 1 t of lignite 1 m³ of overburden has to be removed. On an international scale this ratio is extremely favourable. The following three potential fields are considered for further examination to choose the most effective opencast mine field (Fig. 3-1): • Field Sibovc • Field D • Field South

Fig. 3-1:

Potential Mining Fields

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3.2 Description of Alternative Mining Fields Field Sibovc Location: The Sibovc Field is situated to the North of the Bardh and Mirash mines. So it is near the capital of Kosovo – Pristina and near to the existing power plant Kosovo B. The field area covers approximately 16 million m² with a maximum mineable width (EastWest extension) of 3.8 km and a length of about 6 km. Area use: The area of the Sibovc field is mostly used for agriculture. For a long time it has been known that this lignite field is envisaged for excavation. Therefore, the people living in this area are prepared for mining activities. Previous plans included the mining from South to North whereby it was intended to develop the field from the existing pit rim of the Bardh/Mirash mines. Small private coal openings exist which are used for local fuel supply. Residential areas: The mining field is sparsely populated with the main villages being Hade, Sibovc and Lajthisht. The village of Shipitula is for the most part outside the field to be mined. The resettlement required for the previously mentioned villages is the major obstacle for the exploitation. There are no other restrictions for the coal mining. Field D Location: Field D lies next to the power plant TPP Kosovo A and ca. 5.5 km away (straight line) from the power plant B. In the West it borders the village of Dardhisht and in the South the village of Fushe Kosove including infrastructure like road and railway line. The area within the mine configuration covers 6.7 million m². Area use: Already in the past coal was extracted on the territory of field D. The major part was mined underground. For example, 2.9 mt of coal were mined at “Krusevac” mine between 1948 and 1966. At present, a considerable part of the area is used by KEK as ash disposal site. Furthermore, masses from developing the Mirash mine were deposited on this area. The dumped material is placed on “Ash Dump Dragodan” with approx. 1.52 million m² and “Overburden Dump Dragodan“ with approx. 0.69 million m². The old dumps would need to be recovered prior to the excavation of the deposit. Residential areas: There are only few houses on coal Field D.

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Field South Location: The South Field directly borders the existing Bardh and Mirash opencast mines in the south. Two variants of exploiting the field were examined with the mine boundary being formed by the village of Bardh to the west and to the east by the Sitnica River (variant 1) or by the village of Fuche Kosove (variant 2). In variant 1 the area covers more than 11 million m² and in variant 2 more than 14 million m². Area use: Most of the area is owned by KEK and covered by dumped overburden masses. These dumps comprise a total volume of 90 to 110 million m³ (slope angle ca. 6°) of an entire area of 5.5 million m² and an average dumping height of 20 to 30 m. Residential areas: In any case, i.e. for both variants, resettlement of the villages of Lismir and Kuzmin is required. In variant 2, the river Sitnica has to be relocated additionally. There are no other buildings with relevant influence.

3.3 Valuation of the Mining Fields The following Table shows a comparison between the different alternatives under consideration of various technical criteria: Tab. 3.3-1

Valuation of the Mining Fields

Criteria

Unit

Sibovc

Field D

Field South

Lignite content within technological border *?

[ mt ]

900

280

500

Overburden : Coal – Ratio incl. dumping material

[ m³/t ]

0.85

0.90

2.8

Average Net Calorific Value

[ kJ/kg ]

8312

7340

similar to Sibovc

Average Sulphur Content

[%]

1.1

1.0

similar to Sibovc

Land Use

-

Agriculture

KEK (Dumps)

KEK (Dumps)

Covering by dumped Masses

[m m² ]

0.5

2.2

5.5

Hade, Sibovc, Lajthishte

few houses

Lismir, Kuzmin

Resettlement

* Considering the geological reserves? within the slope system in the boundaries of the mines

One of the important cost drivers is the ratio between overburden removal and coal extraction. The figure below shows a survey. According to that the very North and the very South of Sibovc and the Field D are most favourable. The centre of the Sibovc field is mineable but unfavourable for the opening up of the new mine.

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Main Mining Plan Sibovc, Part III, Environmental Impact Study

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Valuation Sibovc Field: The Sibovc field has large coal content and is characterised by favourable deposit condition. The lignite is of high quality and the excavation is not largely affected by extensive recovery of old dump material. Another advantage of this field is the moderate transport distance to the power plant. Developing the Sibovc field from the South has the best potential of all scenarios to fill the Bardh and Mirash pits with overburden masses. The exploitation of the deposit requires resettlements. The mining of the lignite field of Sibovc offers the best possibility to supply coal to a new large power plant. In total it can provide coal for a 2000 - 2500 MW power plant capacity. Valuation of Field D: Field D is characterised by the low overburden thickness and the good overburden : coal ratio. The average heating value is by 12 % lower and the field is covered by old dump masses and ash dumps. The previous dumping of ash did not correspond to the standards and guidelines of the EU. It has to be assumed that this dump should be either recovered or at least provided with an adequate cover. In case the old dumps are removed, the remaining overburden : coal ration will only amount to 0.72 to 1.0 bcm/t. If the costs for relocating the ash disposal from its current location into the old workings of Mirash are covered by a third party, the mining costs are expected to be lower in comparison to the other mining fields. This alternative would still be favourable even considering the lower average heating value. With regard to future land use it is possible to establish an attractive lake for recreation at reasonable costs not far away from Pristina (15 minutes). In terms of sustainable development the D Field offers the best post mining use of the land. The environmental liability of the ash dump is eliminated and a recreational area can be established. The building of a new power plant larger than 600 MW would not be justified in particular due to the limited coal content. Either TPP B until end of lifetime or/and a smaller new TPP can be supplied. The envisaged erection of a motorway impedes the economical use of the lignite deposit. Thatâ&#x20AC;&#x2122;s why it is requested to check whether it is possible to relocate the route eastwards â&#x20AC;&#x201C; at least in the Southern part of the Field D. Valuation of Field South The main benefit of the field South is the fact that most of the areas are already property of KEK. But more overburden has to be removed as the seam dips to the south. Another disadvantage of the South field is the increasing transport distance to the power plants TPP A und TPP B. Mining of the field South is the most expensive variant due to the unfavourable geological conditions, especially the relatively high overburden : coal ratio. It should therefore be postponed.

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3.4 Alternatives of Opening-up and Mine Development To find the optimum way to exploit the coal from the alternative fields six scenarios were developed. For a single mine development two main variants have been compared: • Variant 1.1 Mining Sibovc from South to North • Variant 1.2 Mining Sibovc from North to South In case of a two mines scheme the following principle variants have been assessed and evaluated: • • • •

Var. 2 Var. 3.1 Var. 3.2 Var. 4

Parallel mine development in Sibovc and Field D Parallel mine development in Sibovc (South) and Sibovc (middle) Parallel mine development in Sibovc (South) and Sibovc (North) Parallel operation of two mines along a South-North demarcation line.

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4 Hydrological Baseline Data The Kosova basin is characterized by a continental climate with dry and warm summers and indifferent winter temperatures depending on the influence of high-pressure areas from Siberia or low-pressure areas from the Atlantic Ocean.

4.1 Temperature Average annual temperature is about +10°C. For the years 1979 to 1991 the range of temperatures is shown in the following figure with minimum temperatures in January and maximum in July. Lowest temperature ever measured is –25.2°C. 25 °C d a ta so u rce : T h e H yd ro m e te o ro lo g ica l In stitu te o f K o so vo

20 °C

temperature

15 °C

10 °C

5 °C

0 °C

-5 °C

-10 °C J

F

M

average 1965 - 1990

Fig. 4-1:

A

M

J

m on th

J

A

m axim um recordings 1979 - 1991

S

O

N

D

m inim um recordings 1979 - 1991

Variation of monthly Mean Temperatures

Supplementary information was found at www.qwikcast.com presenting in 2004 a statistical compilation on the basis of eighteen years. 40 35 30 25

temperatue in °C

20 15 10 5 0 -5 H ig h e s t r e c o r d e d -1 0

A v e r a g e h ig h A v e ra g e

-1 5

A v e r a g e lo w

-2 0

L o w e s t re c o rd e d -2 5 1

Fig. 4-2:

3

5

m o n th

Variation of monthly Temperatures

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4.2 Wind The wind is predominantly blowing from north and northeast with an average velocity near 3 m/s. The Rudarski Institute in the year 1985 gave an overview on wind velocities and directions shown in the following figure. The greatest wind velocity was recorded at 34.3 m/s blowing from the north.

Fig. 4-3:

Direction and Velocity of Wind (from Rudarski Institute; 1985)

Currently air quality in the Sibovc field is negatively affected by private traffic, private heating and seasonal burning of dry farm land. Main air polluter are the power plants Kosovo A and B in case filter systems are not working properly.

4.3 Precipitation Data on precipitation were collected from different sources. The Hydro-Meteorological Institute of Kosovo produced a study in the year 1999 showing the monthly average for a period of 25 years (25 years average). The Institute provided also monthly values for the years 1979 to 1995. By adding values for the years 2001 to 2004 this data base was widened to cover a period of 25 years (1979 â&#x20AC;&#x201C; 2004). The data base was completed by an existing evaluation for the period 1948 to 1978. The average annual precipitation amounts to about 600 mm. Minimum precipitation is described by the 1990 data at 372 mm. Using monthly values maximum annual precipitation was recorded at 1010 mm in the year 1995. A higher value of 1028 mm has been presented by the Rudarski Institute (1985) but the year of appearance is lacking in the document. Following figure shows the variation of average monthly precipitation. Statistically precipitation is rather evenly distributed with lower values from January to March and higher values throughout summer and autumn.

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80 mm 70 mm

precipitation

60 mm 50 mm 40 mm 30 mm 20 mm 10 mm 0 mm I

II

III

IV

25 year average

Fig. 4-4:

V

VI

VII

VIII

month average 1948 - 1978

IX

X

XI

XII

average 1979 - 2004

Long term Variation of Monthly Precipitation

The range of monthly precipitation can be described on the basis of values recorded from the year 1979 to 2004. The average monthly precipitation is 56 mm. The following figure shows the range of possible monthly precipitation. For example within the month of August a minimum of 5 mm (year 1992) was recorded versus a maximum of 184 mm (year 2002). The figure also shows that more than 80 mm of precipitation per month are possible all over the year. 200 mm 184

180 mm 166 161,5 155,4

160 mm 142

140 mm 128

120 mm

precipitation

126 119,9

117,4

97,1

100 mm

92 80,2

80 mm 62

58

60 mm

58

54

54

50

49

48

48

44 38

38

40 mm

30

29

20 mm

12,1 6 1

5

1,5

0,9

5

1,8

0

0

0 mm I

II

III

IV

minimum readings 1979 - 2004

Fig. 4-5:

V

VI

VII

month average 1979 - 2004

VIII

X

XI

XII

maximum readings 1979 - 2004

Average, Minimum and Maximum Monthly Precipitation

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The variation of daily precipitation values for the years 2001 to 2004 has been made available from the Hydrometeorological Institute of Kosova. High quantities of precipitation were recorded with 44.5 mm on 11 April 2001 and 42.5 mm on 8 August 2002. The absolute maximum recorded was achieved on 5 September 1954 with 64.1 mm (INKOS; 1987). 45 m m 40 m m 35 m m

precipitation

30 m m 25 m m 20 m m 15 m m 10 m m 5 mm 0 mm 1 1 /0 0

Fig. 4-6:

5 /0 1

1 1 /0 1

5 /0 2

d a te

1 1 /0 2

5 /0 3

1 1 /0 3

5 /0 4

Daily Precipitation

For assessment of precipitation intensities an older table from the Hydrometeorological Institute of the Republic of Serbia (Belgrade 1990) “Report on climatic conditions and parameters for the region that accommodates the Kosovo coal deposit” is quoted below. Tab. 4.3-1

Intensity of Precipitation at Rainfall Gauging Station Pristina

mm Repetition (years) 1 2 5 10 50 100 1000 m³/(s km²) Repetition (years) 1 2 5 10 50 100 1000

Duration 15 min

30 min

1h

2h

8h

16 h

24 h

5.52 12.09 16.5 19.17 25.5 28.29 37.8

4.36 16.12 22.00 25.56 34.00 37.72 50.40

8.65 18.94 25.85 30.00 39.95 44.32 59.22

9.66 21.16 28.88 33.48 44.63 49.50 66.15 Duration

12.88 28.21 38.50 44.73 59.50 66.00 88.12

15.64 34.26 46.75 54.32 72.25 80.15 107.10

18.40 40.30 55.00 63.90 85.00 94.30 126.00

15 min

30 min

1h

2h

8h

16 h

24 h

6.13 13.43 18.33 21.33 28.33 31.43 42.00

4.08 8.95 12.22 14.20 18.80 20.95 28.90

2.40 5.26 7.18 8.33 11.10 12.31 16.45

1.34 2.93 4.00 4.65 6.19 6.87 9.18

0.44 0.98 1.34 1.55 2.06 2.29 3.06

0.27 0.59 0.82 0.95 1.25 1.40 1.85

0.22 0.47 0.64 0.74 0.98 1.10 1.45

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4.4 Surface Waters Run-Offs and their Qualities The Kosova Basin forms a smoothly shaped plain that is bordered by hills and mountains. This basin includes a well developed hydrological network with the main collector being the river Sitnica. This river crosses the basin from south to north and drains about 80 % of the accumulating surface water into northern direction. Major tributary rivers in the vicinity of the site are the river Drenica in the west and the river Lab in the east. The Sitnica run-off varies between a minimum of 0.5 – 1.5 m³/s and a maximum of 50 – 120 m³/s with an average of 5 – 10 m³/s. In flooding periods, the course of the river reaches a width of up to 1000 m in the flooding areas. On 3 May 1958 a maximum run-off for the river Sitnica near to the mines was measured at 90.3 m³/s. Due to the lack of actual run-off data the quantities of water discharged by tributary rivers and creeks can only be assessed on the basis of a map of catchment areas, developed from topographical maps, scale 1:25,000, for this report. Following figure shows the results of delineating catchment areas for different run-offs that might be affected when mining activities will spread to the north, south or east of the existing mines. The colours shown in the figure indicate major catchment areas which are subdivided using numbers, e.g. numbers 310 to 380 representing smaller areas which together feed the run-off directly northwest of Bardh mine.

Fig. 4-7:

Catchment Areas

Surface water quality data are available from the INKOS Institute’s monthly measurements for the main catchments, Drenica and Sitnica. The measurements compiled for the years 2001 to 2003 can be taken as baseline data to assess the impact of any future mine drainage.

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Main Mining Plan Sibovc, Part III, Environmental Impact Study

Fig. 4-8:

EUROPEAID/116986/D/SV/KOS

Characteristic water quality values for the river Sitnica (INKOS Institute)

The parameters shown in the figure above are found adequate to represent the up to date quality of river water without effects of the mines. The expected quality of mine drainage water without any treatment can be assessed using the quality parameters from the water pumped out of the Mirash mine. It has to be taken into consideration that the sampling point does not always represent the quality of pumped mine water since dilution by rainwater might have influenced the sample.

Fig. 4-9:

Characteristic Mine Drainage Water Quality (INKOS Institute, Mirash mine)

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The subsequent table compares the values of the Sitnica river with those of the Mirash mine. Any river receiving mine water discharge might be affected mainly by sulphate and chloride as well as organic materials, if no purification of mine water is foreseen. With reference to heavy metals or other trace elements no statements are possible to date because analytical data are not available on these parameters. Tab. 4.4-1

Comparison of Water Qualities

Minimum Units?

Average

Sitnica Mirash Sitnica

pH value

Maximum

Mirash

Sitnica

Mirash

6.8

6.7

7.9

7.8

8.4

8.7

230

175

486

1,381

1,100

3,700

El. Conductivity

ÂľS/cm

Chloride

mg/l

3

4.5

28

90

70

290

Sulphate

mg/l

29

75

78

924

516

1,741

Hydrogencarbonate

mg/l

104

232

284

447

381

600

Nitrate

mg/l

0

0

3.7

10.3

14

72

KMnO4 Consumption mg/l

5

3

15

45

26

183

The above concentrations indicate a potential need for mine water treatment depending on the quantity of mine water discharge and the quality and quantity of the receiving stream. (As a minimum standard settling ponds should be implemented to reduce the load of suspended solids and coal dust. Belongs to remediation!)

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5 Soils A general description of types of soils is given with the â&#x20AC;&#x153;Soil map of SAP Kosovoâ&#x20AC;?, scale 1:50,000 (N. Povicevic et al., Institute for development of water resources, Belgrade; 1974). An update of soil classification on FAO standards was presented by the agricultural faculty of Pristina University allowing the Consultant to redraw the soil map. Following figure shows the situation for the potential mine fields as well as their surroundings. A hard copy of investigations on soil qualities is apparently available at the community of Obiliq. Unfortunately, the community was not able to hand over any information. Therefore the agricultural values of the land can not be presented in this report but, if needed in future, have to be requested again.

Fig. 5-1:

Soil Map

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6 Hydrogeological Situation The hydrogeological situation of the area is defined by three main hydrogeological layers. The basis is given by an aquiclude formed by the “green clay” consisting of clay and silt with a general thickness of more than 100m. The overlaying lignite coal with a thickness up to 70m is generally described not to be good permeable but; because of fissures and cracks within the coal; groundwater can circulate whereby the coal layer has to be recognized as an aquifer. This fact can be underlined by field observations when wells were observed, which came into being while excavating coal in an elevation clearly above the water level of main drainage sump in Mirash mine. Above the coal follows the overburden mainly consisting of silt and clay with partially appearance of sand and gravel layers. Characteristic are embedded layers with masses of snail shells. Near to the surface this “grey clay” can change its appearance to a “yellow clay” what is explained to be a result of weathering with oxidation of the iron content within the material. The clay material generally habits like an aquifuge but because of fissures and cracks reaching depths of 10 m to 15 m from the surface water can penetrate the rock. Hence groundwater appears either when the fissures are dug up by excavation or where those fissures are connected to better permeable layers within the clay such as the snail shell layers or gravel layers. Following the resulting hydraulic conductivity depends on the locally different appearance of the clay and fissures. The “yellow clay” horizon is frequently used to supply houses and smaller villages with water, e.g. in the village of Hade and in the valley west of Lajthishte. Due to the lack of decent borehole descriptions an overall differentiation in the overburden clay between the yellow and grey clay was not possible on that way. This effects as well the spatial hydrogeological differentiation. Information about the spreading of yellow clay strata can be given using a map presented by Rudarski Institut (1985) which shows the elevation of the bottom of yellow clay for the area west of Hade village. The map gives an impression about the altitude of the basis of yellow clay. The bottom generally follows the surface with the alteration zone reaching down to 12 m depth. This again pleads for weathered grey clay with the precipitation leading to oxidization of the iron content within the soil forming the typical yellow colour. The elaborate furthermore shows that at least in September 1985 a groundwater level was observable with groundwater covering up to 10 m of the yellow clay. It can be suggested that these facts can be found in other areas as well, where Pliocene clay reaches near the surface. The observed water levels and the alteration in colour from grey to yellow indicate that this groundwater horizon is directly fed by precipitation and it is assessed that groundwater predominately circulates near the surface.

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Fig. 6-1:

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Bottom of Yellow Clay (Redrawn from Rudarski Institut, Map 1.01.4375; 1985)

Recent measurements on the quantity of groundwater and flow directions as well as expressive maps of the groundwater table are not available. Reviewing older documents and field observations show that the quantity of groundwater descending the overburden at the mines is rather small. At the slopes groundwater can be observed after rainy periods favoured in coarse layers of the “yellow clay” and, along fissures, within the “grey clay”. Additional vadose water horizons can appear within courser layers of the grey clay especially where it contains larger amounts of snail shells. Locally the overburden is eroded to a thickness of meters or less and as abandoned underground works with broken roofs give direct access to the surface, precipitation can directly infiltrate the coal in larger areas whereby larger quantities of groundwater might be produced.

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Utilization of groundwater concentrates on private wells dug to depth of 10 to 15 m below the surface within the overburden clay. Production quantities are shown by Rudaski Institute (1985) with Q = 3 l/min to Q = 11 l/min with a maximum of Q = 54 l/min, which can be judged as hydraulic conductivities in a range of kf = 10-9 m/sec to kf = 10-6 m/sec. Field observations in the surroundings of Laitishte showed artificial wells, drilled some 5 m to 7 m deep into the â&#x20AC;&#x153;yellow clayâ&#x20AC;?, to serve as water supply for a village. Inhabitants described the wells rather unproductive but sufficient for private purpose. The quaternary deposits along the river Sitnica consist of coarser materials with sand and gravel contents. Resulting the hydraulic conductivity can reach values up to kf = 10-4 m/sec or even greater. Towards the depth these sediments hold growing contents of silt and clay and are underlain by grey clay preventing a direct contact between the surface water and the coal seam. Because of the hydraulic properties of the clay and the topsoil developed to a Vertisol (Smonitza) in case of rainfall an enriched surface run-off can be expected. To allow first assessments a run-off coefficient of 0.45 is chosen by Consultant. The hydrogeological situation at the surface is presented by Rudarski Institut in 1996. The map shows in brownish colour elevated and hilly plains with minor or no groundwater content as well as in blue colours the valleys of the rivers with enriched groundwater occurrence.

Fig. 6-2:

Complemented Extract from Hydrogeological Map

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7 General Environmental Impacts of Lignite Open Pit Mining Production of lignite stands for large scale excavation of materials using heavy duty equipment. Mining exploitation of mineral resources thus causes inevitably negative impact on the environment.. Negative effects accompanying the development of this industrial activity are related to numerous impacts on the existing ecological systems, mostly affecting an area which is more extensive than the zone where exploitation is taking place. The main impact is the occupancy of land which is inevitably associated with this type of mining. The coal itself is buried deep under the surface. The large open cast pits are being developed to a depth of more than hundred meters and cover areas of several hundred hectares. As slopes of any open cast pit have to be constructed in a geotechnically sound way the pit perimeter encloses an area considerably larger than the area of coal production itself. For safety reasons no residential settlements, public roads or waterways shall be allowed within a certain distance from the pit rim. This means real estate property used hitherto for agricultural, housing or other purposes will no longer be available for the former owners and users. Residents have to be resettled. In general, a substantial effort on compensation for land and property will become necessary. Over large areas the soil cover has to be removed resulting in a nearly complete loss of fauna and flora. Groundwater within the overburden strata and covering the coal must be adequately lowered before starting the excavation. While excavating, rain water and remaining ground water have to be pumped out of the mine. In general, this water is of relatively low quality in most cases due to the oxidization of pyrite associated with the formations excavated. This may result in reduced pH values and some increase in concentration of sulphate and heavy metals. The excavation and exploiting of lignite coal causes noise and dust due to the excavation operations, maintenance works and coal transportation. Where the coal face comes in contact with the atmosphere oxidation processes may lead to self ignition of coal. This affects employees at the working places as well as the surroundings and neighbouring residents. The overburden strata have to be removed to uncover the coal. In case direct back-filling into the pit can not be performed waste dumps for the overburden are needed outside the open pit. Hence additional land is needed whereby floral cover will be disturbed, animals lose their habitats and the landscape changes as hills come into being. After excavation of coal the mined area generally is devastated. In order to re-utilize the area again a complete backfill of the pit should be attempted wherever possible. Since the coal extracted leads to a deficit in volume not the whole area mined can be completely backfilled. Proper management of open pit mines involves a dedicated “Mine Closure Plan” which indicates the re-utilization of the land after mine abandonment and provides for acceptable alternatives for its environmental and socio-economic integration. In summary the main environmental impacts by open pit coal mining and dumping of significant quantities of ash are: • Extensive land occupany by open pit, waste dumps and ancillary structures, • Total loss of existing habitats on occupied land, • Change to flora and fauna in the area around the mine due to construction and operation activities, • Change of hydro-geological regime in a wide area, • Potential soil pollution and ground-/surface water pollution (affecting a large catchment area) due to soil alterations and coal processing (ash deposits, mine water and processing water discharge),

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• Air pollution by dust when excavating and conveying, • Influences on terrain stability by mine slopes and surface deformation (subsidence of the soil), • Noise from mine equipment and operating conveyor belts.

8 Noteworthy Side Issues 8.1 Former Underground Mining Remains of old underground mining are situated in the south-eastern part of the Sibovc field, connected with the old mining structures which are currently exposed along the coal cuts in Mirash West and on the Mirash northern slope, and underneath the ash dump of TPP Kosovo A (field D). Some of the old galleries have already been cut within Mirash mine and the pillar area (see following figures). First attempts to reach the coal seam were made along river erosion channels which cut the seam. In areas of the seam which were affected by erosion it can be mixed completely or at least in part with humus strata resulting in a decrease of coal quality. Therefore, the initial excavation of the adits began about 7 meters under the roof of the seam. In the proximity of the riverbanks water handling was difficult. At a later stage vertical shafts were deepened. The documented coal mining using galleries and shafts reaches back to 1921. For the stabilisation of the galleries with a height of 2 m and width of 3 m a timber support system was used. The galleries were placed in parallel and at distances of 20 m to each other, every 100 m a cross cut was excavated which? followed the given directions of the separations planes. The old roadways were driven parallel to the joint system within the mine. The galleries were widened to caverns at intervals of 7-20 m and the coal was broken from the roof. In the area west of the overburden dump, in the D-Field, these caverns frequently collapsed forming more or less round craters, which show a regular alignment (see figure).

Fig. 8-1: Former underground mining in Field D Aerial photography showing the area of the D-Field with regularly aligned collapse structures (more or less round holes) in consequence of former underground mining. The highlighted area indicates zones with still stable galleries.

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Fig. 8-2:

EUROPEAID/116986/D/SV/KOS

Gallery of an old underground mine with wooden support system

(Mirash 7/2004)

Due to this method sections of galleries show a low stability and there is a potential danger of collapse of undermined levels under load if the galleries are not already collapsed or refilled. The dimension of the undermined area has been assessed considering the following factors: • • • • • • • • • • •

Calculation of the excavated coal between 1922 to 1966 Existing underground mining maps of Mirash mine Position of old shafts Mapping of the outcrops of the gallery system and acquisition of data (gallery width, distance e.g.) Site Visits for a specific delimitation of the underground mines Determination of the mining methods by means of the characteristics of cut and exposed galleries Interpretation of aerial photographs for typical structures Interpretation of seismic investigations Analysis of fault pattern Analysis of topographic elements and natural boundaries (old bed of the river Sitnica, location of villages) Extension regarding the maximum practicable distance between shafts and galleries

The underground mining method was abandoned in 1966. Following table shows the overall coal production of the underground mines. However, there is no reliable documentation on the extension of the old underground mines or the information is at least incomplete.

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Tab. 8.1-1

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Underground Coal Production

Coal production of old underground mining in the Kosovo Basin (Source: KEK) "Kosovo"

"Krusevac"

"Sibovac"

Years 1922 – 1966

Years 1948 - 1966

Years 1952-1958

6.401.434 t

2.921.233 t

255.117 t

Partially, the exploitation fields of the old underground mining were limited by faults. Considering the total production yields an area of app. 5 km2 for the “Kosovo” mine field and an area of app. 5 km2 for the “Sibovac” mine field. The minor production rates from the field “Sibovac” demonstrate that the excavation only took place near the surface.

Fig. 8-3:

Mirash (West and Northern Slope) with underground mining structures (blue)

In the past inhabitants noticed noises from the underground (hammering, picking) about 2 km to the North of Hade. Nearby there was at least one shaft, which could have functioned as entrance to the underground mine system. This shaft supports the presumption of such a large extension. The reports revealed that the extension of the old underground structures may be larger than supposed. The largest distance between a shaft and the outermost galleries did not exceed 700 meters.

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8.2 Uncontrolled Coal Fires Within a wide area a large amount of lignite is affected by spontaneous combustion which occurs in the mine slope and coal yards, where coal is exposed to air. Self-ignition is the consequence of the oxidation of coal, a process which is producing heat energy. If the energy production exceeds the amount of energy removed from the system, the coal will reach its ignition temperature, eventually. Generally these fires occur at places where the coal is exposed to air or air can penetrate the underground and reach the coal. In the Bardh-Mirash mine areas affected by these fires are especially the structures of the old underground mines, slide areas, the central pillar in front of the face between the actual excavation areas, the N and S lateral slopes of the mine as well as parts of the mine which remain exposed to air for a longer period (slopes and dumps), fault and joints. In a first phase coal fires ignite in mechanically weak zones like joints or slope failures or old mining structures, where enough oxygen can reach the surface of the coal and the heat is enclosed. The fire can be boosted by methane. In the following stage the complete hanging layer is influenced by the heat. About 60% of total coal fires are concentrated near or within the roof strata, where the coal shows the best quality and discharges a great amount of energy. Old galleries from the ancient underground coal mines facilitate a supplementary ventilation and therefore provide for best conditions for oxygen inflow. Burnt out galleries result in large cavities and therefore a decreasing stability of the slopes. A lot of fires in the Bardh Mine occurred in slide faults, therefore it is essential to avoid land slides. Self combustion also occurs in dumped coal masses. Typically, the coal fires begin at the base of the dumps and affect the whole dump until it is burnt out. A secondary effect is the formation of clinker from the clay in the seam roof. Due to the heat the material becomes dehydrated and oxidised and takes a red colour (see figure 2-17). The characteristics (hardness) of the clinker allow to use it as gravel to improve the stability of transport roads within the mine The situation in the Sibovc Mine will be comparable, since remains of the old underground mines exist there too. Therefore the Sibovc Mine will run a considerable risk of coal fires.

Fig. 8-4: Coal fire at base of a dump

Fig. 8-5: Coal fire near a fault with burnt out zones in the seam

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8.3 Phenol Deposits The data inquiry on potential environmental risks has given some indications on old neglected deposits of liquid wastes containing phenol. These materials probably result from an abandoned gasification plant at TPP Kosovo A, where remnants of this waste are still stored today. In August 2004 two shafts of old underground workings at the Mirash workshop were opened. A specific chemical smell and some lumps similar to tar were observed at the rim of one shaft. Workers at the mine explained to have observed these liquids in the past at the northern slope, where the slope cuts into underground workings. Further investigations on the spatial spreading and the quantity of waste dumped led to no reliable results up to now. Interviewing neighbouring residents and former workers helped to form a first idea. Two former underground workings might be affected: the “Kosovo” field underneath the valley between the Mirash mine and Lajthishte and the “Krusevac” field south of TPP Kosovo A. As no maps are available showing the extension of the former mines a first demarcation was carried out using aerial views, field observations on collapse structures and interviews. The result is shown in following figure.

Fig. 8-6:

Areas of potential risk of toxic waste deposits

Because up to now it is unknown, • which chemicals really constitute the original waste and if the contents is similar to the stored remnants, • which alterations happened to the waste and • what quantities of original or altered materials are burried in the underground workings, this problem forms a potential risk when the coal is excavated (protection of miners and water) and burnt in a TPP (conglutination of equipment, generation of hazardous gases such as dioxins).

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8.4 Environmental Aspects of Mining Fields Alternatives Resettlements The opening of a field in all cases will mean that resettlement of inhabitants is needed. By now it is assessed that in the case of the Sibovc field the highest number residents from at least three villages and nine settlements would be affected. Field South covers two villages and one settlement, whereas the field D impacts a portion of one settlement as well as some detached houses. Variant 1.1 forms an extension of the existing mines, where the excavation moves forwards to the north. For neighbouring inhabitants this might be felt like an ongoing process deriving from the known mining activities. The population of the village of Hade would have to be resettled prior to the start of mining activities. Major resettlements would follow towards the middle of the lifetime of the mine involving the villages of Sibovc and Lajthishte. Variant 1.2 opens a new mine developing to the south. Hence erecting all infrastructure needed and opening the mine means an intervention to a hitherto almost unaffected area. Resettlement of the villages of Sibovc and Lajthisht would be needed at an early stage of activities whereas the village of Hade, presently impacted by current mining activities, would need to be resettled finally toward the end of mining activities. Variant 2 requires an earlier partial resettlement affecting the east of Dardhisht village. The connecting road Krushec â&#x20AC;&#x201C; Nakarade / Fuche Kosove would form the western rim of the mine. Hence the remaining inhabitants of Krushec would be affected mostly in the starting phase of mining. Along with the progressive extension of the mine a few additional resettlements of detached houses would be required towards the end of the lifetime of the mine. Variants 3.1 and 3.2 are intensifications of the effects shown in variants 1.1 and 1.2. As two mines are working in parallel the residents would be affected to a more intensive degree especially with reference to dust and noise. Also loss of farmland would happen earlier. Resettlements of the villages of Hade, Sibovc and Lajthisht would be needed practically at the same time prior to or at least in a very early stage of mine development. On the other hand these variants offer the opportunity to employ more local personnel as two independent mines are operating with their full facilities. Variant 4 causes nearly the same effects as variants 3.1 and 3.2 but in addition road traffic would be hampered north of the village of Hade after short time of operation. Opening the field South would force resettlement of the villages of Doberdup (Dobri Dub) and Kuzmin as well as new housing estates east of river Sitnica. It has to be taken into account, that the village of Doberdup is already affected by creeping outside dump masses which up to now have been declared not to present any urgent threat. Effects on humans may result from the necessary relocation of the river Sitnica to the east. As only a small corridor remains between the rim of the mine and the railroad track at Fushe Kosove, special flood prevention measures would have to be implemented leading to an enlarged surface requirement at the populated outskirts of Fushe Kosove. Local Roads and Transportation In the areas of potential mining fields the roads from Grabovc to Obiliq and Sibovc to Obiliq represent routes of major importance for regional transportation. Both roads lead through the Sibovc field and would have to be abandoned during the course of mining. The difference for

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variants 1, 3 and 4 can only be seen in the difference in time when abandoning becomes necessary. Variant 2 with Field D as well as field South would impact no roads of regional importance. Water and Air Emissions to water and air mainly depend on the size of the open mine. In variants 1 and 2 as well as field South only one mine is working while in variants 3 and 4 there are two mines working parallel in time (surface in km²?). For the latter variants this will lead to increased dust emissions from excavation and conveying activities. As self ignited lignite burnings should be prevented at any new mining field there should be no specific differences between the variants even though self ignition might not be generally excluded. Effects on waters result from the necessary mine drainage and sewage from mine facilities and offices. In case of field Sibovc (var. 1, 3 and 4) excavation is performed in rather watertight materials. Hence the quantities of water depend mainly on the precipitation. In variant 2 (Field D) as well as field South it is expected that leaking surface water and groundwater from river Sitnica will decisively contribute to the quantities to be discharged. From the hydrogeological point of view a first differentiation is possible for the potential mining fields. The field Sibovc is nearly wholly located in less water bearing overburden. Besides some minor waters the Sibovc river in the north of the field has to be diverted in an adequate way before excavation. In the valley of Sibovc river artesian groundwater outflow was observed in harvest of 2004. Hence beside a well prepared diversion of the river additional drainage will be needed for the alluvial sediments in the valley. Furthermore protective measures must be foreseen were the alluvial sediments of Sibovc river join the Alluvial sediments along river Sitnica near the village of Hamidija. It is assessed that at least an apron cutting through the permeable sediments and a dam will be needed to prevent water inflow from the river Sitnica. The fields D and South reach the river valleys where enlarged groundwater inflow is expected. Especially the field South will be excavated along the river Sitnica with diversion of the river needed and opening up the rim of the mine for more than 3 km parallel to the river. Hence intensified leakage from the river to the mine will be created and adequate measures have to be implemented to protect the mine in times of floods as half of the width of inundation area will be lost. Flora, Fauna, Natural Heritage The three areas of concern contain different types of ecological habitats. The field Sibovc is characterised by extensive and busy agricultural use. Areas unaffected by humans are rather seldom. Hence useful plant varieties prevail the floral scene. A reasonable diversity of floral elements is expected as a result of temporarily unused or fallow land as well as existing minor bush or wooded areas and small creeks dividing the landscape. . The field South is covered by overburden dumps to about 50 % of its total area. This dumping area is to a large extent out of use for a number of years providing grounds for natural succession of flora and fauna resulting in a variety of small scaled habitats. Some areas mainly at the rims of the dumps are used for agricultural purposes. The southern part of the field South is characterised by the valleys of the rivers Sitnica and Drenica and mainly used for agriculture.

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Hence the field South entails a wide range of habitats from wetlands to dry locations varying at small scale. Field D is characterised by the Dragodan ash dump (TPP A). As the surrounding is mainly used for agricultural purposes there is no extensive bush, copse or tree occurrence and the biological diversity is judged rather poor compared to the other alternatives. Information on locations to be looked upon as Natural Heritage was given by the Institute for Nature and Environmental Protection of Kosova. Following a report from October 2003 following locations have to be named. All locations are situated within or near to the Sibovc field: -

A spring in the middle of Palaj village (internal coordinates x 0504565, y 4724469)

-

One tree (Tilia sp.) , some 200 years old, in the settlement “Nicakeve” near Sibovc (internal coordinates x 0499173, y 4725381)

-

A group of trees (3x Quercus sp., 1x Quercus cerris), aged up to 300 years, in the settlement of “Megjuaneve” near Sibovc (internal coordinates x 0500846, y 4725051)

Soil, Natural Resources and Land Use As shown in chapter 5 the alternatives differ in their general soil appearance. Field Sibovc is characterised by clayey materials in a hilly shaped landscape forming a typical Smonitza (Vertisol) soil. This soil is rather difficult to cultivate because of soil compression and enriched surface water run off in wet periods as well as deep reaching drying up in the summer time. Nevertheless the soil is described fertile but additional information has to be inquired. Field South (variant 2) holds a large area of spread soil materials where a top soil development similar to the development outside the dumps is visible. The soil is not as compact as the naturally grown soil, which results in better hydraulic conductivities and intensive biological scarifying of the top soil. The slopes of the dumps are slowly creeping downhill and thereby cover the grown soil. No pollutants have been reported as being part of the soil dumps. Hence it is judged that an ongoing and nearly unhampered agricultural use south to the dumps will be possible in the future. Deposits of soil and especially ash determine the surface of Field D. The fly ash from the dumping site influences the surroundings up to some hundred meters distance. This mainly affects the usability of the farmland but no information is available by now concerning e.g. the heavy metal or trace element contents of the ash. Micro-Climate Opening a surface mining field causes a depression in the surface. All alternatives of excavation will lead to a loss of elevated elements on the surface and wind velocity will increase. As the mines will be artificially dewatered a change in evaporation rates will result which, in combination with the decrease in floral coverage, is assessed to lead to a decrease of evapotranspiration rates. The influences for the three different fields are judged to be rather similar but detailed assessments will only be possible after conducting extensive measurements and computing models for different climatic scenarios.

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Phenol Deposits Because up to now it is unknown, • which chemicals really constitute the original waste and if the contents is similar to the stored remnants, • which alterations happened to the waste and • what quantities of original or altered materials are burried in the underground workings, this problem forms a potential risk when coal exploitation takes place in the southeastern part of Sibovc field as well as within the Dfield.

8.5 Environmental Ranking of Alternatives Having in mind that the whole district is historically influenced by mining and wider parts of the landscape are determined by the mines and power plants all variants discussed are judged to be feasible, if appropriate actions are taken to mitigate the impacts. Combining the environmental aspects mentioned in this report a matrix is presented below offering a relative ranking of the variants in a qualitative manner on a scale from1 to 7. The increase in number reflects the intensity of the environmental impact. No attempt was made to weigh the various environmental criteria. Tab. 8.5-1

Qualitative Ranking of Environmental Impacts Variant

1.1

1.2

3.1

3.2

4

Field South

4

2 Field D 1

Resettlement

3

6

5

7

2

Local Roads and Transportation

3

4

1

6

5

7

2

Water and Air

1

2

6

3

4

5

7

Flora, Fauna, natural Heritage

2

3

1

6

5

4

7

Soil, Natural Resources and Land Use

3

4

1

7

6

5

2

Sum

12

17

10

28

25

28

20

Effect

Following this ranking exploitation of Field D (variant 2) shows the relatively lowest impact to be expected. From the environmental point of view opening the field Sibovc with one mine (variant 1) should be given the preference rather than working with two mines. Using the field South appears to be less favourable because of the fauna and flora developed and adjusted already and the need of diverting and channelling the river Sitnica.

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9 Environmental Aspects of the Main Mine Plan The comparison of alternatives shows the field D, south to TPP Kosovo A to be the most favourable new mining area from the environmental point of view. After presentation of the alternative mining fields decision was made by the main beneficiary, Ministry for Energy and Mining, to develop the Sibovc field as best fit to its future energy demand strategy. On the basis of the Interim Report (including "Presentation Paper") and the goals of the Kosovo Government (Ministry for Energy and Mining) an adopted Main Mine Plan was developed, which for the most parts corresponds to variant 1.1. As this Main Mine Plan for the most parts forms an adaptation of variant 1.1 with development from South to North the environmental friendliest way was chosen to exploit the Sibovc field.

9.1 Description of the Project Type of Project: Subject of the project is the excavation of overburden soil and lignite coal in the neighbourhood of existing open pit coal mines. Excavations will either be performed by diesel driven truck and shovel technologies as well as electrical driven bucket wheel and belt conveyor technologies. Mining activities will start from the existing mines using already exploited areas for dumping the overburden material. Need for Project: The basic needs to mine lignite coal within the Sibovc field are described in “Energy Strategy and Policy o Kosovo” - White Paper – dated September 2003 and a letter from the Ministry of Energy and Mining, dated 20 December 2004, both showing an increasing demand for energy in the near future and the latter showing priority of the Sibovc field for coal exploitation. As the existing coal mines will be exhausted within the next years a new deposit adequate for long term supply has to be identified and developed. Location: The Sibovc Field is situated north of the operating Bardh and Mirash mines. It is near the capital of Kosovo, Pristina, and near to the existing power plant Kosovo B. The field covers an area of approximately 11 km² with a maximum mineable width (east-west extension) of 3.8 km and a length of about 6 km. Following figure shows the location of the Main Mine Plan in the Sibovc field as well as the distances towards the power plants and surrounding towns of Kastiot, Fushe Kosove and Prishtina.

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Fig. 9-1:

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Location of Field Sibovc

Size of Operation: The technical procedure of opening up and developing the mine is described in part one of this report. Excavation will start in the year 2008 leading to following demand for surface area. Tab. 9.1-1

Demand of Surface Area

Year

Demand (km²)

Accumulated (km²)

2007

1.5

1.5

2008

1.4

2.9

2009 - 2013

0.28 per year

4.3

2014 - 2018

0.2 per year

5.3

2019 - 2023

0.28 per year

6.7

2024 - 2028

0.37 per year

8.5

2029 - 2033

0.18 per year

9.4

2034 - 2038

0.47 per year

11.6

Open cast mining requires removal of soil, overburden and exploitation of the coal seam with a total thickness of up to 70 m. Main mining equipment will consist of eight bucket wheel excavators, connected belt conveyors, spreaders and auxiliary equipment like draglines, dozers and maintenance vehicles. For part of the excavation shovel and truck technologies will be applied. Hence the mined area temporarily will appear as a huge hole with depths of more than 150 m. For detail information please refer to part mining technologies of this report.

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9.2 Description of the Environment Topography The area is located between the valley of river Sitnica in the east with elevations of about 525 mMSL and a mountain chain extending north to south with elevations exceeding 750 mMSL. To the west follows the valley of the Drenica river with elevations of about 550 mMSL. The future mining field today forms a hilly surface with elevation from typically 570 mMSL to 670 mMSL. Characteristic landmarks are a N-S stretched hill with the village of Hade (up to 656 mMSL) and a range of hills extending in E-W direction between Lajthishte and Shipitulla (up to 666 mMSL). Associated with these hills are valleys following N-S directions east (down to 570 mMSL) and west (down to 550 mMSL) to the village of Hade and the valley of the Sibovc river (about 560 mMSL) in the north following SW-NE directions. Soil Investigations on the qualities of soils came to the conclusion that most expressive information is given by â&#x20AC;&#x153;Soil map of SAP Kosovoâ&#x20AC;?, scale 1:50,000 ( N. Povicevic et al., Institute for development of water resources, Belgrade; 1974). An update of the soil classification based on FAO standards was presented by the agricultural faculty of Pristina University allowing the Consultant to redraw the soil map. Following figure shows the situation for the planned mining field including a border area of 1 km width.

Fig. 9-2:

Distribution of Soils

Within the future mine Vertisol soil types predominate, covering 89.6 % of the area. Pseudogley covers the remaining 10.4 % of surface area.

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Distribution of Soils in the planned Mine Area

Type Vertisol

Subtype

Area

Calcic

8.23 km²

Dystric

0.03 km²

Eutric

3.86 km²

Pseudogley

1.40 km²

Following the “Lecture Notes on the Major Soils of the World” (FAO; 2001) Vertisols are churning heavy clay soils with a high portion of swelling 2:1 lattice clays. Parent materials can be sediments that contain a high content in smectitic clay. The environmental conditions that lead to the formation of a vertic soil structure are also conducive to the formation of suitable parent materials: • Rainfall must be sufficient to enable weathering but not so high that leaching of basic components occurs. • Dry periods must allow crystallization of clay minerals that form as weathering products of rock or sediments. • Drainage must be hampered to the extent that leaching and loss of weathering products are limited. • High temperatures, finally, promote weathering processes. Under such conditions smectite clays can be formed in the presence of silica and basic cations - especially Ca2+ and Mg2+ - if the pH of the soil is above neutral. Vertisols with strong pedoturbation have a uniform particle size distribution throughout the solum but texture may change sharply where the substratum is reached. Dry Vertisols have a very hard consistence; wet Vertisols are (very) plastic and sticky. It is generally true that Vertisols are friable only over a narrow moisture range but their physical properties are greatly influenced by soluble salts and/or adsorbed sodium. The combined processes of rock weathering, breakdown of primary minerals and formation of secondary minerals, and transport of soil components produce the typical catenary differentiation with yellow or reddish, well-drained soils on higher positions, and black, poorly drained soils in depressions. These soils form deep wide cracks from the surface downward when they dry out, which happens in most years. Infiltration of water in dry (cracked) Vertisols with surface mulch or a fine tilth is initially rapid. However, once the surface soil is thoroughly wetted and cracks have closed, the rate of water infiltration becomes almost zero. (The very process of swell/shrink implies that pores are discontinuous and non-permanent.) If, at this stage, the rains continue (or irrigation is prolonged), Vertisols flood readily. The highest infiltration rates are measured on Vertisols that have a considerable shrink/swell capacity, but maintain a relatively fine class of structure. Not only the cracks transmit water from the (first) rains but also the open spaces between slickensided ped surfaces that developed as the peds shrunk. The combined processes of rock weathering, breakdown of primary minerals and formation of secondary minerals, and transport of soil components produce the typical catenary differentiation with yellow or reddish, well-drained soils on higher positions, and black, poorly drained soils in depressions. Data on the water holding capacity of Vertisols vary widely, which may be attributed to the complex pore space dynamics. Water is adsorbed at the clay surfaces and retained between crystal lattice layers. By and large, Vertisols are soils with good water holding properties. However,

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a large portion of all water in Vertisols, and notably the water held between the basic crystal units, is not available to plants. The soil's moisture content decreases gradually from more than 50 percent in the upper 20 cm layer to 30 percent at 50 cm depth. Below 100 cm, the soil moisture content remains almost invariant throughout the year. Tillage is difficult, except for a short period at the transition between the wet and dry seasons. Vertisols are productive soils if properly managed. The valley south to Lajthishte is characterized by Pseudogley. (This expression is no longer in use at FAO´s nomenclature, where they are characterized as Planosols). Deriving from clayey alluvial and colluvial deposits the valley forms a seasonally wet area with light forest and grass vegetation. It has to be marked that this valley was subject of underground coal mining with shallow clay overburden what obviously resulted in groundwater lowering inside the coal seam. Backwater can slowly leach through the meagre, low permeable overburden clay leading to a accelerated drying after precipitation compared to the Vertisol soil. Surface waters The Sibovc field covers six catchment areas of minor surface watercourses, four of them flowing towards the river Sitnica in the east and two flowing towards the river Drenica in the west. Following figure shows the catchment areas effected as well as the watercourses. To identify the areas numbers were assigned as shown in the figure. Area “100” represents the valley of the river Sitnica itself. The watercourses within areas “200”, “300”, “500” and “600” start within the potential mining field. These run-offs are not perennial. They depend directly on the intensity of precipitation and function mainly as surface drainages. The watercourse for catchment area “400” is the Sibovc river, which flows into the mining area from the west and leaves it to the east towards the river Sitnica. The Sibovc river is discharging water throughout the year. Flow measurements for the above mentioned tributaries to the river Sitnica are not available.

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Fig. 9-3:

Surface Waters and Catchment Areas

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Groundwater Predominant part of the mining area is covered by grey clay which appears as yellow clay when it is weathered near to the surface. As groundwater monitoring wells do not exist in the regional groundwater situation is described using older information and analogous conclusions from the existing mines. Occurrence of groundwater directly depends on the intensity of precipitation. The groundwater flow generally follows the morphology in downhill direction with the main groundwater flow within the weathered loamy materials close to the surface. This upper groundwater horizon is estimated to reach some 10 m to 15 m beneath the surface. Sandy layers at different positions within the overburden clay contain groundwater either fed directly by precipitation in case they crop out to the surface or are fed by leakage through cracks in the overlying clay. As those sandy layers are typically limited in extension they do not considerably contribute to the groundwater flow and, if at all, could only be used as a minor water supply source. The general situation is shown in a map by the Rudarski Institut (1996). The bold arrow in the map (Fig. 9-4) shows the expected main groundwater flow direction within the coal, the thinner arrows indicate the flow directions within the overburden clay. This map confirms the assessment, that the groundwater flow within the overburden clay is dominated by the morphological situation.

Fig. 9-4:

Complemented Extract from the Hydrogeological Map, Rudarski Institut (1996)

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The poor presence of groundwater in the overburden clay is also represented by the surface runoffs falling dry throughout the summer. Some groundwater infiltration might happen through the Alluvial deposits along the Sitnica and Sibovc rivers and contribute to the base flow. As in both cases the Alluvial deposits consist of silty and loamy sediments deriving from re-deposited older materials from the surroundings, mainly grey clay, the quantities of infiltrating water are estimated to be rather small. Within the coal seam groundwater mainly flows along cracks and fissures. Coal crops out especially in the valley of the Sibovc river in the north of the field and could provide for some recharge area. Existing mines in the south drain the coal layer. As the pumping rates of the mines do not allow detailed assessment of the quantities of groundwater drained, no direct assessment on the quantities of groundwater flow is possible. It is judged that only minor quantities of groundwater migrate within the coal seam.

9.2.1 Ecological Resources The field Sibovc is characterised by extensive agricultural use. Areas unaffected by humans are rather seldom. Woods are seldom, covering some 6 ha in the northwest and 2 ha in the east of the area. Hence useful plant varieties prevail the floral scene. This kind of land use continuous far to the north between the river Sitnica in the east and the mountains in the west. A reasonable diversity of floral elements is expected in the region with an increasing variation near the mountains and the river shore. The variety is supported by temporarily unused or fallow land, minor bushes or wooded areas as well as small creeks dividing the landscape. Detailed information on the floral and faunistic population as well as a specific catalogue of endangered species could not be procured from authorities or the University of Pristina. Some older documents are available but their description of the situation is not adequate to form a basis for any meaningful assessment. The Institute for Nature and Environmental Protection of Kosova provided some information on locations to be looked upon as Natural Heritage. Based on a report from October 2003 following locations, situated within or near the Sibovc field, have to be named: -

a spring in the middle of Palaj village (internal coordinates x 0504565, y 4724469);

-

one tree (Tillia sp.), some 200 years old, in the settlement “Nicakeve” near Sibovc (internal coordinates x 0499173, y 4725381);

-

a group of trees (3x Quercus sp., 1x Quercus cerris), aged up to 300 years, in the settlement of “Megjuaneve” near Sibovc (internal coordinates x 0500846, y 4725051).

9.2.2 Economic Development The Sibovc field has been heralded for a long time to become a mining area. Previous plans already included the mine development from south to north. Accordingly, agricultural use continues to dominate the area and no industrial sites but the operating mines are existing. The economic development was not totally adopted to this as house building activities are going on andseem not to be prohibited. Power transmission lines of regional importance do not cross the planned mining field. Local power lines will have to be cut nearly the same time the connected dwellings and settlements will need to be torn down prior to excavation.

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The Sibovc field contains a geological reserve of ca. 990 mt and covers an area of 19.7 km². To meet the demand for run-off-mine coal at an amount of 553 mt, the area claimed for mining will extend to 11.58 km² within the period until 2038 (see following table): Tab. 9.2-2

Claim of occupied and farm land

Period

land use

Thereof occupied land

thereof farmland

ha

ha

ha

2007-2008

271.0

27.500

243.500

2009-2013

137.0

11.169

125.831

2014-2018

102.0

0.000

102.000

2019-2023

140.0

2.049

137.951

2024-2028

183.0

11.854

171.146

2029-2033

89.0

16.030

72.970

2034-2038

236.0

7.908

228.092

Sum

1158.0

76.510

1.081.490

9.2.3 Social and Cultural Resources Monuments of historical value are not known in the Sibovc field. Mainly large families with own agricultural enterprises are living in the area concerned, whose main income is secured by the production and sales of agricultural products. The social conditions of the population in this area are complicated and can be compared with the average living condition in the Kosovo. The average net wages are about 150-200 €/ month. According to LSMS (Living Standard Measurement Survey 2000), 12 per cent of the population in Kosovo is extremely poor and another almost 40 per cent is poor. The average net wages are higher for men than for women and higher in the private sector than in the public sector (LSMS 2000). The most important forms of land use are agriculture and forestry. However their importance is decreasing. Approximately 60 % of the population living in the region are farmers and own land adjacent to their homes. Nevertheless, the development of the mining industry has a social effect, too. It provides jobs with income higher and securer than possible by the cultivation of own land. For some families, agriculture continues to be the most important income sourcebut in the majority of the households, one family member is employed with KEK. The resettlement of the villages will change the rural structure with regards to the number and size of agricultural enterprises. Resettlers, whose income does not 100% originate from agriculture, are reported to be more easily ready to move to a prepared resettlement site with infrastructure or to build a big house without farmlands at a decentral site. (nicht ohne Erklärung verständlich: geschieht dies bereits?) Some resettlers use the resettlement effect to separate from the large family (extended family). For example, two-room appartments in the town are offered to adult family members using it to set up their own family. The presently common family size of 10-12 members is expected by the Ministry of Statistics to reduce to a family size of 5-7 members.

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Following villages and/or groups of houses are located within the mining field Sibovc: • Hade; • Lajthishte; • Sibovc (sparse settlements) with different districts (Bregovinska, Barbatoska, Muhicku, Spasina, Midanska, Nicak, Kelmendi, Megjuani and Curilo) Where resettlement will be needed mainly private properties will be affected. The school and the doctor’s office in Barbatoska are located on municipal land. Land compensation is planned to be provided within the municipality of Obiliq. The food stores were set up by private initiative and will be compensated as such. The compensation of Serbian property located within the mining field (former Serbian settlement) has to be negotiated with the corresponding owner. Upon written application and several requests the Kosova Cadastral Agency submitted only information about the number of built-up estates in the concerned villages in the mining field of Sibovc (as of February 2005). This list is the basis for determining the estimated costs of the resettlement. Hade The village of Hade has a population of about 2500 inhabitants and is located at the north edge of the Bardh / Mirash mine, above a steep slope endangered by sliding. In the interest of public safety and lignite supply security, a part of the village has to be resettled before the planned mining works and safety measures can be continued. All inhabitants of Hade, especially the families living close to the mine rim, have been in-formed about the necessity of a resettlement. This zone was declared a safety (emergency) zone and the originally 65 families (now numbering 118) have been ordered by UNMIK in March 2004 to vacate the zone by December 2004. Last registration of property of the village Hade (dated 22.05.2003), enforced by the Independent Housing Inspection Team (IHIT), resulted with total number of: Tab. 9.2-3

Households and other Facilities in the Village Hade, status 2003

Designation

Total number

Houses Auxiliary objects Houses waiting to be finished Housing foundations Burned objects (damaged by war) Service facilities (stores) Muslim Mosque School

329 29 5 11 118 5 1 1

Despite the forthcoming resettlement, new houses have been built. At the time of inventory taking by KEK 330 built-up plots were counted. Now there are about 700 houses thereof 111 in the safety zone of he existing mines.

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In the annual budget of the Government of Kosovo for 2004, funds were made available for emergency resettlement, which were not called due to the slow return of the questionnaires submitted to the people affected. However, the resettlement of the safety zone of Hade shall be completed within the 1st half of 2005. According to information of the Kosovo land registry dated February 2005 there are 708 built-up estates in Hade. The estates affected by resettlement are mainly private property. The food stores were established by private initiative and will be compensated as such. The compensation of Serbian property located within the cadastral district of Hade has to be negotiated with the relevant owner. State property in Kosovo is administered by KTA - Kosovo Trust Agency. The school building of Hade was built after the war and is a two-storey building with hipped roof. A sport yard belongs to the school grounds. Lunch facilities (school canteen) are not available there. The mosque has a base area of approx. 16m x 12m. The construction method is the same as applied for the residential buildings, only the building materials used are of higher quality. The safety zone (emergency resettlement) between the high-voltage transmission line located at the mine rim in northern direction to the east-west main road comes to approx. 500 m. The mosque is located within the safety zone. The cemetery of Hade is located in the northern area of the village. The land swap of a cemetery is property of the municipality. It assigns adequate areas to individual families and/or road sections within the cemetery area. Each family carries out grave maintenance and cares for the surroundings. A cemetery hall does not exist at the Muslim cemetery. The prayer for the dead is given in the mosque and/or at the grave. Lajthishtē The village of Lajthishtē is located in the eastern part of the mining area of the deposit Sibovc and will need be completely resettled. It consists of approx. 85 houses with about 595 inhabitants (according to Cadastre office: 85 plots with buildings). The village has a one-storey primary school (base area of approx. 20m x 8m) with 8 classes. Opposite the school there is a food store. 95% of Kosovo has been reconstructed after the war. The re-constructed as well as the newly built houses are in a good condition. Only the fencing walls (mostly brickwork) have not been reconstructed yet. Some destroyed houses, formerly inhabitated by Roma, have not been reconstructed yet. The road to Palaj passing the southern outskirts has been asphalted this year. The cemetery of Lajthishtē is located west of the village, at the new road to Palaj. South of the road from Lajthishtē to Palaj there are approx. 6 residential real estates, which are not included in a map of 1979. North to the road a new residential real estate is under construction.

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Sibovc The following groups of houses belong to the sparse settlement of Sibovc: • Bregovinska Mahala • Barbatoska Mahala • Muhicku Mahala • Spasina Mahala • Michanska Mahala • Nicak • Kelmendi • Megjuani • Curilo Bregovinska and Barbatoska form the centre of the sparse settlement consisting of approx. 200 to 300 houses (about 1,700 inhabitants). Also a school (8 classes, dimensions approx. 56m x 30m) with nursery school (300 pupils) and a doctor’s office (9m x 10m) exist there. Opposite the school there is a food store. Muhicku Mahala, Spasina Mahala and Michanska Mahala (individual groups of houses) are situated in the centre of the mining field Sibovc in the south of Bregovinska and Barbatoska. The cemetery of the centre of Sibovc is located in the east of the village Barbatoska Mahala. The groups of houses of Nicak are located at the western mining boundary, close to the Čiqavica Mountains. The cemeteries of the groups of houses of Kelmendi and Megjuani are situated in the proximity of Nicak. The group of houses of Curilo existing in the northern area of the mining field comprises about 6 residences. According to information from the administration of Obiliq, the following belong to the Si-bovc area: - Approx. 135 residential buildings (families) with approx. 945 inhabitants (according to Cadastre office 135 plots with buildings) - A primary school with approx. 200 pupils in Bregovinska - A doctors’ office in Bregovinska - 1 mosque in the group of houses of Megjuani (Midanska) - The village has three food stores - 6 cemeteries: - main village cemetery (village centre) – Barbatoska - Serbian cemetery - cemetery of the Kelmendi group of houses - cemetery of the Megjuani group of houses - The new cemetery of the Megjuani group of houses was built in 2003 - Cemetery of the martyrs and victims of war Before the war, there was still a group of houses with Serbian population which does not exist any more.

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9.3 Anticipated Environmental Impacts The dominant impact originates from the excavation of soil and coal. This will lead to a total loss of surface area and living space. Construction phase and operation phase of the project are intimately connected and happen at the same time as ongoing excavation of overburden continuously extends into new parts of land and coal exploitation takes place where overburden was freshly removed. Topography Mining will start in a valley west of the village of Hade with elevations at about 570 mMSL. With the first overburden removal this valley will be widened into eastern and western directions with significant lowering of the surface in and around the village of Hade (600 to 620 mMSL today) and the Shipitulla dump (about 600 mMSL today) until the year 2018. Until the year 2028 the range of hills between Lajthishte in the east and Shipitulla in the west will be removed. The landscape will loose its typical elevated elements. As spreading of overburden in the beginning will be used to backfill existing mines and only rather flat slopes are possible when dumping inside the Sibovc mine, the visible mine contour will enlarge throughout the lifetime of the mine. The deficit in volume due to the exploitation of the coal results in an incomplete backfill of the Sibovc mine at the time of decommissioning. Therefore a residual depression will be left in the surface that might entail a lake afterwards. Nevertheless, this lake would enrich the variety of landscape in the future. Soil At present, Vertisol and Pseudogley soils on overburden clay materials are predominant. Both types of soil do not contain separate fertile topsoil layers and the existing overburden dumps demonstrate the spread clay to be as fertile as the developed topsoil. The conclusion is that a differentiated excavation in general is not needed because it would not to result in significant benefits e.g. for re-cultivation measures. Nevertheless, organics are enriched in the upper topsoil which therefore should be separated and used for cover of dumps to accelerate the rehabilitation processes. A rough sketch showing the thickness of topsoil is presented by Rudarski Institute (1997): Investicioni Program Izgraduje Povrsinskog Kopa “Sibovac”. – Kniga III, Beograd. As this sketch is presented as a small scale figure in the text, it can not be used as a detailed basis. This assessment should be confirmed by additional investigations on the soil quality (bonity) combined with topsoil sampling and soil analyses using a grid with distances no more than 250 m. Surface waters Planned mining activities will affect most surface waters from the rims of the catchment areas in direction to the receiving waters. Therefore these surface waters will be reduced in run-off quantities (mainly deriving from precipitation) with the balance being directed towards the mine in the future. Starting the mining activities from the existing mines in the south requires continuous drainage of the existing mines and will immediately reduce catchment area “300” (see Fig. 8.2-2), the valley west to the village of Hade, by an area of about 3.6 km². At present conditions the surface water from the valley is partially collected by artificial drainage ditches along the northern slope and led to the river Drenica. As diversion of the run-off appears rather difficult water will be

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collected at the low points in the mine and pumped out. Using the precipitation values mentioned in chapter 4.4 will result in some 90,000 m³ of water to be drained per month and a peak water yield of 104,000 m³/day based on a maximum precipitation rate of 64 mm/d. Water discharge towards the river Drenica will not significantly change the water quantities arriving at the river. Problematic is the change of water quality combined with this mine drainage as enrichments in chloride, sulphate, turbidity and suspended solids will take place. Compared to the current situation it will be necessary to have at least the turbidity and suspended solids to be settled before the outlet towards the river. Once the catchment area “300” is excavated the mining will develop in line with the run-off directions of the neighbouring catchment areas and therefore only minor additional quantities of water deriving from the the slopes will arrive at the mine. Interactions between the river Sitnica and the mine caused by enlarged leakage water inflow are generally judged to be insignificant because of the distance between them and the presence of clayey and loamy overburden materials preventing enriched groundwater flow. In the later stages of mining special attention must be given to the Sibovc river at the northwestern edge of the mine. In that position (between the villages “Sibovac” and “Bregovinska Mah.” in Map 1) only some five meters of overburden with sandy clay and a material called “Porcelanit – Brand” separate the river from the coal seam. Following sketch illustrates the situation.

Fig. 9-5:

Section extracted from Annex_II-4 Section S1 - S2

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Groundwater Even though groundwater not directly associated with precipitation, i.e. groundwater in depth greater than some 20 m below the surface, is assessed to exist only in minor quantities it will be affected in future. Starting mining from the south will slowly move the receiving point for groundwater from existing mines towards the north. This will lead to a lowering of the groundwater table in the forefield of the mine. The groundwater is bound to coarser layers within the overburden clay at depth beyond the reach of any flora on the surface. Since no groundwater utilization is known in the area, only the physical effect of groundwater lowering, e.g. impact on slope stabilities, has to be taken into consideration. Adequate monitoring systems are needed to allow further continuous assessment. Ecological Resources A specific assessment on influences on fauna and flora is presently not feasible because of lack of competent local experts opinions, concerning documents or other information. For this report only some general statements are possible: • the uniformity of the landscape and flora at and north of the Sibovc field with actual predominant agricultural use will provide space for animal retreat and conservation of floral variety in the north. • as the mining activities concentrate on the area less overgrown by bushes and trees the effects on fauna and flora are judged to be acceptable. Nevertheless additional investigations are needed to describe the floral and faunistic inventory of the mining field. At least a period of twelve month will be needed for a standard biological survey in the field before adequate baseline data become available for proper assessments. It is recommended to carry out these investigation together with the University of Pristina, as manifold questions in an enlarged area are to be answered by local experts in limited time. Economic development Kosovo is in need to secure lignite excavation for electrical power production. As infrastructure for power generation (TPP A and B) are stationary and not movable to other locations without larger environmental damages, exploitation of the Sibovc field is the solution with least effects. Mining the Sibovc field will lead to progressive land use within the next 30 years. Within this duration no economic use except coal exploitation will be possible in the active mining area. At the same time some 10.8 km² of agricultural used land will have vanished. Recultivation measures south of and partly within backfilled areas of the existing mines can be used to compensate for the loss of agricultural land in the north. It is expected that after the year 2025 first returns of farmland from the existing mines will be possible. As soon as mining will start in the field the connecting roads Bardh – Hade – Palaj as well as Bardh – Lajthishte east to the Shipitulla dump will be closed. Traffic diversion will be needed using the road Shipitulla – Sibovc. Significant improvement in road condition will be needed to carry additional traffic. Necessary resettlements mostly affect agricultural utilizations. Major trade and industry are not located in the area. Therefore economic development of the whole of Kosovo is assessed to be more important than preservation of these existing utilizations. Nevertheless resettlement must be combined with development of new and adequate farm land e.g. in the south of existing mines. Page 54


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As the existing mines and power plants today are the major employers in the area and as the mines will be exhausted by the year 2012, the new Sibovc mine is essential to provide employment opportunities in future. Based on the technical demands of the man mining plan following numbers of employees are needed to run the mine. Tab. 9.3-1

Development of Employees

Year

Number of employees in Sibovc mine

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-2022 2023-2032 2033-2036 2037-2038

0 500 935 1,995 2,155 2,800 2,700 2,630 2,550 2,450 2,500 2,400 2,350

Social and Cultural Resources Approximately 5,700 people live on the entire Sibovc field in four villages and separate settlements combined with the infrastructure belonging to it like schools and stores. Detailed plans where these people will be resettled to are not yet available. Following table shows the time schedule needed for resettlement. Tab. 9.3-2

Schedule of resettlement

number of households 597

year of resettlement 2007 -2009

Leskovcic

85

2027 - 2037

Palaj

7

approx. 2027

Sibovc

54

2009 - 2032

Sum

743

Hade

The resettlements and especially the resettlement of Hade village with its 2500 heads have great influence on the future mining development. Hade is the largest village. There are two resettlement phases for the Hade village: (a) the emergency evacuation of people living in the dangerous zone close to the unstable Northern slope of the existing Bardh and Mirash mines; (b)the resettlement of the remaining larger part of Hade outside the endangered zone.

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The (a) emergency resettlement has been started in 2002, is funded by UNMIK and has responsible and acting persons involved. Some 20 % of the entire inhabitants of the Hade village currently live in the evacuation zone. This partial resettlement of the Hade village is unavoidable since public safety must be ensured and the safety zone has to be reshaped to finally rehabilitate the unstable northern slope of the existing mines. The (b) resettlement of the larger remaining part of Hade has not been started yet. There are doubts that such resettlement could be undertaken by using the emergency procedure. In the worst case such action might disturb the public acceptance for new lignite mining activities in Kosova. A socially acceptable resettlement procedure of the Hade village compliant to EU standards would take at least 8 years. Bad practise by the mining enterprise in the past caused a loss of trust by the villagers. There are still ongoing court challenges against KEK from previous unsatisfactory resettlements of removed southern parts of Hade village. Furthermore, the financing of the â&#x20AC;&#x153;(b) resettlementâ&#x20AC;? is not clarified yet. Hade should be resettled by 2009 due to the overburden removal required for the above mentioned production level. This period includes the removal of all basements and the transference of the land to KEK. Inhabitants of Shipitulla, Sibovc and its remaining sparse settlement will be disconnected from Kastriot as administrative centre. As long as the bridge between Hamidija and Plemetine is not usable a new road to Palaj around the outline of the mine appears to be unavoidable. Health and safety Taking into consideration the situation in the existing mines general measures have to be taken to prevent free access to the mine. Early planting of trees and thorny bushes along the future rim of the mine will result in a natural protection against unauthorized trespassing of human beings as well as larger animals. Mine operation should be organized on main roads allowing direct access to the working points. There is no specific concern for the mine workers since they should receive adequate health and safety training. This should address specific training on the machines as well as potential risks associated with operating the machines. The main problem of today, uncontrolled lignite fires, are assessed to be mainly a problem of planning and exploitation execution. Responsible management and execution and ability to adhere to and update mine plans will prevent losses of values and unnecessary pollutions.

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9.4 Mitigating Measures Main pollution to be prevented as far as possible in future results from self ignition of lignite. Experience in the existing mines shows that those fires mainly appear where coal or coal bearing overburden material rest uncovered in direct contact with the atmosphere. As fires probably can not be fully avoided in the new mine all efforts should be made to cover the coal seam where not under direct exploitation to mitigate the risk of fire. Mine planning must take into consideration continuous coal extraction to avoid sections of the coal seam to stay unused in contact to the atmosphere. Dust is produced when dry coal or overburden is spread from belt to belt at transmission stations. Capping of those station will mitigate the dust propagation. Dust deriving from maintenance traffic shall be mitigated by regularly moistening the roads with water trucks. Reduction of dust development around the excavators will not be possible to a larger extent without hampering the production. As the excavators work within the mine, dust spreading will be mainly limited to the mine site. Water pollution results from mine drainage. Current analyses show that building settling ponds prior to the outlet to the river will be appropriate to mitigate the output of suspended solids and turbidity. A first sedimentation takes place in the main drainage ditches. However, since these installations are frequently relocated, it will be necessary to install additional settling basins on the surface before feeding the water into the rivers. These basins shall be integrated in the course of the ditches. At a length of at least 100 m, the bed of such pond shall be flat on a width of at least 50 m, in order to achieve a clear reduction of the flow velocities. When entering a basin, the water stream shall be distributed as wide as possible to achieve good sedimentation results. The discharge end of a basin shall be in form of an earth dam, with a fixed wide overflow. The installations shall be controlled quarterly. The settled particles shall be removed regularly once a year in autumn before the rainy period begins. The materials removed shall be sampled and analysed in particular for contents of heavy metals and hydrocarbons. If there are no specific anomalies, the materials can be integrated into the dumps. If contaminants are determined for example in cases of damages or accidents during the operation, the material shall be directed to an adequate disposal facility. Water pollution from waste water is to be mitigated by proper purification of sewage from workers social facilities, from work shops, storage areas for hydrocarbons and hazardous materials and any other installation producing potentially contaminated waters. Special measures are to be applied in the event heavy metals and trace element are analysed in mine drainage water and/or fluid phenol bearing waste is being excavated. By now adequate analyses, allowing more detailed assessments, are not available from the present operations. The need to pay attention to these considerations is expected to be mandatory for any new mining activity in Kosova. Noise pollution outside the mine is mainly produced by the coal conveyor belts. Proper bearings and regular inspection and maintenance of the conveyor roles will considerably mitigate the level of noise. Materials from Sibovc mine will be used to backfill Mirash and Bardh mines where possible. As the Mirash mine is in use for ash disposal or for land fill some parts of the mine can not be backfilled with overburden material without endangering those sites. The new Sibovc mine will contribute material to recultivate these abandoned mines. By this, the effects of a historic environmental impact will be mitigated.

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Development of the Sibovc mine from the south will immediately cut locally important roads. To mitigate the effects on the neighbouring inhabitants the road Bardh â&#x20AC;&#x201C; Shipitulla â&#x20AC;&#x201C; Sibovc should be developed to allow truck and bus traffic. Pavement should be asphalted to reduce travelling times as well as to strengthen the public acceptance of the mine. Ash from combustion of lignite has to be handled also in future. First attempts were made to bring ash back into the mines but concepts how to cope with much greater quantities of ash than today are not yet available. Simple dumping the ash onto the surface is environmentally not acceptable. Using the ash as part of backfilling the mines represents an adequate way to prevent long term erosion and leakage of ash under the given geological circumstances. This implies adequate moistening of the ash during handling and exposure to surpress dust. Additionally, also partial rehandling and backfilling of existing ash dumps into the mines will significantly reduce already existing pollutions.

9.5 Irreversible and Irretrievable Impacts Excavation of lignite will transform the surface. The hilly appearance of the landscape today will disappear and a rather flat surface will be left. Due to the volume of coal excavated it will not be possible to backfill the entire mine. Trying to achieve elevations adjusted to the surroundings where possible will result in a depression at the end of mine operations. Creating a lake within the depression results in a new element which will definitely enrich the diversity of landscape. In the event ash from combustion will not be sold, e.g. for road construction, or used to backfill the mines, new dumps would be needed to spread the masses. In this case new hills would be created which are susceptible to wind erosion and water leakage problems. Even if the floor of a ash disposal site is built in a technically tight way, seepage water has to be collected and treated until the dump is fully covered. These dumps would be kept in operation for at least thirty years and as they remain part of the landscape they are regarded as irreversible impacts with significant pollution potential.

9.6 Environmental Management Considering the present conditions at Kosovoâ&#x20AC;&#x2122;s lignite mines it has to be emphasised that a well educated environmental management team has to become part of any new mining activity . The environmental management team has to be aware not only about the activities within the mine but also about the situation in the surroundings. Analyses for water and groundwater qualities and quantities, dust and noise emissions etc. should be reflected regularly leading to dynamic improvements on the entire environmental situation. To achieve this, a close connection to official bodies is advised. Already in the phase of concrete planning for the new mining area a first monitoring system has to be implemented and surveyed to document effects on air, soil ground and surface waters, neighbouring inhabitants as well as the faunal and floral habitats. Hence a trained team is needed to assess the expected detailed effects, to prepare adequate monitoring and mitigation plans before opening up the mine and develop this throughout the lifetime of the mine.

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9.7 Environmental Monitoring Needs Surface water Surface waters especially the river Drenica will be effected by mine drainage. In contrast to the present procedures the actual quantities of water being discharged from the mine must be measured. This will be possible by using simple and proven hydrologic structures, e.g. installing a triangle or hyperbolic weir shortly in front of the outlet towards the river. This weir first has to be adjusted to fit the needs of large discharge rates throughout autumn and snow melt as well as smaller water quantities during winter and summer times. Regular readings, at least once an hour, are assessed to fit the documentation requirements. PH value and electrical conductivity readings should be performed at least once a day. Chemical analysis on water samples upstream and downstream the settling pond should be performed at least once a week. Use of automatic reading stations is recommended only when regular maintenance of the stations by trained employees can be guaranteed. In the course of Sibovc river regular flow measurements (every three month recommended) shall be carried out at least after the year 2020 to register a possible enlarged leakage of surface water towards the mine. Groundwater By now no adequate knowledge exists about the quantities of groundwater to be drained in future. Even though groundwater is looked upon as a minor problem it is strongly recommended to erect a comprehensive network of monitoring wells. The monitoring wells allow measurements of the groundwater table and quality and will allow evaluation of the flow of groundwater toward the mines as well as to assess the influence of groundwater when opening up and developing the new mine. The groundwater levels should be monitored generally in two horizons of overburden and inside the coal seam. Shallow wells are recommended primary to assess the effects of precipitation on groundwater. Average depths of about 15 m are considered as suitable. Deeper wells shall be sunk to the basis of the overburden to show the hydrogeological conditions near to the coal. These wells shall be sealed at a depth adequate to prevent a direct connection with the groundwater from the shallow horizon. As shown in the following figure the monitoring network can be built in three phases. The southern number of wells (red dots in the figure) are already mentioned within the report â&#x20AC;&#x153;Mid Term Mining Plan for Existing Coal Minesâ&#x20AC;? and should be completed not later than the year 2006. The number of wells in the middle of the Sibovc field will be effected by the mining activities later in time after opening up the Sibovc mine. To achieve an appropriate duration of monitoring it is recommended to build these wells before the year 2011. While the mine is developing to the north regular monitoring of these wells will allow assessment on enlarged leakage of water from the Sibovc river as well as the necessity to seal that stretch of the water course. The northern part (violet dots in the figure) should be built until 2020 especially to create a reliable data base on the groundwater conditions in case mining will continue beyond the year 2038. Page 59


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After erection of the wells the water levels have to be recorded at least monthly and drawn as graphics showing the development in time. Combining these information with long term meteorological data allows assessments on the natural, unaffected variation of the groundwater table as well as on the degree of groundwater level lowering when the mining activities approach the area. This additional information is a basic requirement when calculating the stability of the future slopes. The drilling logs will give supplementary information on the quality of the overburden for the later excavation. The net of monitoring wells shall be adopted in future to updated mining plans. In case positions of wells appear unfavourable alternative locations shall be identified which allow adequate assessment of the groundwater level. As soon as excavation reaches a monitoring well it shall be properly removed and the borehole shall be backfilled using sealing materials.

mining area

Fig. 9-6:

Net of Groundwater Monitoring Wells

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Air Quality The mining activities will cause dust emissions especially throughout the dry seasons deriving from excavation activities, materials handling, excavated not yet revegetated slopes and benches and the materials dumped. As the wind is predominantly blowing from the northeast wind erosion will take place all along the mining face. To assess the effects a number of weather stations and air samplers have to be implemented at least two years prior to the mining activities. Those stations should be located at Graboc i Ulet, Shipitulle, Zhilivode, Hamidi, Lajthishte and Palaj. Possibilities of Top Soil Utilization In the course of excavating overburden special attention should be given to separate and stockpile fertile top soil layers where possible. The top soil stockpiled should be spread as a final layer on overburden dumps where a quick stabilising floral cover of the surface is desirable. Prerequisite for this is the confirmation of top soil values obtained from additional investigations on the soil qualities (bonity) combined with sampling and analyses using a grid with distances of at least? 250 m prior to excavation activities. Official information on soil qualities, not available for this report, shall be procured and elaborated to strengthen the basic knowledge. Excavation, movement and redisposition of topsoil should be monitored and documented consulting local experts for agricultural affairs.

10 Future Treatment of Ash Dumps The combustion of lignite coal produces ash which currently is dumped at two dumping sites close to the power plants. This procedure results in air pollution by dust and groundwater pollution due to seepage. To avoid these effects in future methods should be developed to transport the ash into the mines, as the geological situation with clayey under- and overburden favours the disposal together with the overburden dumping. If dry or wet transportation of ash should be given preference still needs to be evaluated, but trials already initiated to pump ash as slurry from TPP Kosovo B into the Mirash mine will help to find the best way of transportation. The existing ash dumps should be included into the “ash backfilling” procedure aiming at a gradual but in the end total removal of the dumps in the course of the power plants’ live times. In addition, the surfaces of the existing dumps should be stabilized using at least a floral cover to migitate the dust pollution and seepage to reduce the seepage by increasing the retention and the evapotranspiration of precipitation.

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11 Mine Closure and Recultivation Planning 11.1 Principles The proposed main principles are: • Main principle will be to minimize impact on land, to reduce agriculturally used land only when needed and to restore farmland where and as soon as possible. • The areas occupied by mining shall be rehabilitated in such a way that the subsequent value of the area will be equal or better than the original one. • Areas which are no longer needed for mining activities shall be recultivated as soon as possible. As long as a final recultivation is not possible, suitable temporary measures will be undertaken, e.g. an interim grass seeding. • Financial resources will be retained already during the active mining operations to ensure the proper closure of the mining field. This money will also be available for site rehabilitation in case of in-solvency. • Authorities and the population concerned (later users) will be integrated in the process of planning and detailed landscaping of the post-mining areas. This process shall start before dumping because it already defines the shape of the surface.

11.2 Mine Closure Plan Recultivation of the Sibovc field is closely connected with the closure of the Bardh and Mirash mine fields. After depletion of the existing mines of Bardh and Mirash, large residual pits remain. The establishment of larger coherent areas suitable for closure will not be feasible within the operating period of the opencast mines. This is due to the low overburden: coal ratio as well as result of the material properties of the overburden. The following residual pits will remain in the area of the opencast mines: • A wide and deep residual pit in the western area of the mining field (mining area of the Bardh opencast mine and the western part of the Mirash opencast mine), • A landfill site in the former Mirash-Brand mining field for which the KTA is responsible, • The ash dump in the former Mirash-East mining field for which KEK is responsible, • An almost closed dump area in the eastern parts of the Mirash opencast mine, adjacent to the landfill site. In the areas directly bordering the landfill site there are large corridor-type clearance areas due to the flat slope angle. After depletion of the existing opencast mines coal mining will be continued in the follow-up field of Sibovc. This opencast mine will be developed from the northern slope system of the existing opencast mines. It is planned to use these overburden masses to fill the depleted area of the existing mines. This offers optimal opportunities for final contouring the areas andavoids placement of additional outside dumps. According to the Mid Term Plan the existing mines are held responsible to provide geotechnically stable slopes within their residual pit until the area is closed finally by the follow-up mine. The following measures will be taken: • The overburden slopes along the southern rim slope system shall be contoured to safe angles.

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• The slopes enclosing coal along the southern rim slope system shall be flattened and covered by overburden material. This measure serves to extinguish existing and/or the prevent new coal fires. The dumping technology of the overburden masses of Sibovc will be adopted to this thus assisting to keep costs for these mitigation measures to a minimum. • The coal seam floor shall be continuously covered by cohesive overburden material. This measure also serves the prevention / extension of further coal fires and can be optimized by a selective dumping of the overburden material from Sibovc. • The drainage of the residual area shall be continued. This refers to the main drainage system on the lowest floor level and the drainage from the southern rim slope system by means of suitable drainage ditches. These ditches shall be installed on all berms of the southern rim slope system. Extension of the ditches will not be required. A collecting pond shall be installed at the deepest point of each of the berms from which the water is fed by pipelines and/or collecting ditches to the main drainage system. When dumping operation from the Sibovc mine starts to cover the main drainage system, a replacement shall be installed and operated. After closure of the residual area by spreading the overburden material from the Sibovc mine, the areas shall be rehabilitated for agricultural use to provide compensation for those areas being removed by the pit expansion. Connection of the dump area at the same surface level is recommended for the large residual pit in the west of the mining field, without re-shaping the former hill near the village of Hade. The final dump surface should be slightly inclined to enable good access conditions for agricultural ma-chines as well as a natural drainage into the direction of the Sitnica and Drenica-Rivers. The final shaping of the eastern dump side is only possible after decommissioning of the ash disposal and the landfill site. Both sites are planned for an operating period of at least 15 years. Only thereafter a complete closure of the marginal corridors will be possible. This can be accomplished either with the overburden from Sibovc or by relocating the materials from the ash dump of TPP A on the mining field D. The preferred alternative is the recovery of the ash dump of TPP A. The bottom liner for the masses to be installed can be provided by the inside dump materials. The masses lying below the ash on the outside dump can be excavated and used as final cover material and/or as recultivation layer. Considering the extended period of time until a final shaping of this area becomes feasible, an interim solution is recommended. This will include partial filling of depressions on the ash dump surface.

11.3 Concept of Post-Mining Use for the Fields Bardh, Mirash and Sibovc a) Principles and Basic Conditions for a detailed Reclamation Planning The dump location will change from the Bardh/Mirash in-pit dump into the Sibovc field after 2020. The shaping of the final surface of the opencast mines of Bardh, Mirash and Sibovc will be considered as one common aspect of the mine closure. However, the balance of areas described in the following limits itself exclusively to the fate of areas of the Sibovc mine field. The concept for the post-mining landscape contains the following aspects: • Demand for utilization (agriculture, forestry, building site …), • Area utilisation tied into availability of soils (quality), • availability of equipment for contouring, • Cost/benefit. Page 63


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Due to the large quantity of mineable coal, it will not be possible to fill up the entire opencast mine. Therefore, a lake will establish in the north of the Sibovc field. In order to maximise the area for potential utilization, the final surface depression should be as deep as possible with regard to the surrounding terrain. In line with this, two connecting points to the existing rivers are of importance. In the southeast of Bardh, directly at the Bardh village there should be a surface height maintained at 550 mMSL. In the northeast of Sibovc there is a run-off to the Sitnica River at an elevation of 540 mMSL. The boundary of the residual lake is located south of the villages of Sibovc und Lajthisht. The water table of this lake will be at ca. 535 mMSL (ca. 5 m below average? surface level). The slope to the residual lake will have a general inclination of 1 : 6. Single slopes will be flattened to inclinations of 1 : 7 (8°).The beach area susceptible to wave action will be protected against erosion by means of rock fill. Main aim for shaping the post-mining field is to provide a high share of area useful for agriculture. In general, the dump area shall represent a high-value landscape element in which agricultural use and habitat for local fauna and flora will exist in parallel. Criteria for achieving these goals: • Adequate inclination: minimum 1 : 20 (3°), maximum 1 : 12.5 (4.5°), which allows cultivation with agricultural machines, • Discharge of excess surface water to be ensured by a minimum surface inclination of 1 : 200, • Collection and discharge of surface water by installation of ditches and storage ponds and their connection with the existing rivers, • Installation of windbreak belts as a natural boundary for reducing wind erosion, • Plantation of trees and shrubs for shaping a varied landscape, • Conservation of parts of the outside dump in the present form as refuge area for the presently existing and adjusted flora and fauna, • Construction of roads and access. A surface inclination of 1 : 150 will be planned to compensate for completion of settlements in the dump area and to guarantee the final minimum inclination of 1 : 200. Considering this inclination the terrain rises from the future residual pit in the north into southern direction and from the river connection at Bardh in the south-west into northern direction. Therefore the future terrain will lie below the original surface elevation, especially in the area of the hill close to Hade. In any case, the gradual transition towards the natural terrain is ensured. The shores of the future lake will have a general inclination of 10° according to the mine planning. The slopes of working benches shall be flattened to an inclination of 1 : 7 (8°) and planted with trees and shrubs. All areas where coal is exposed shall be covered by a sufficient amount of overburden. b) Soil Improvement Measures Upon completion of the dumping operation the areas will be graded and prepared for recultivation, e.g. by scarifying and ploughing. The final contouring of the surface should consider both, a smoothly undulated structure and the free discharge of the water. After the levelling works have been finished, deep ploughing shall be carried out with a penetration depth of 0.5 m. That applies in particular to surfaces which were finished during the rainy season. In principle, soil-improving measures are necessary only to a limited degree for land to be utilised for agriculture because the available overburden material is already rather fertile in itself. To raise the yield of crop it may become advisable to apply fertilising measures like manure, slurry or mineral fertilizer.

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c) Interim Greening and Erosion Protection Measures For the subsequent management of agricultural land it is assumed that the plots will have an average size of approx. 5 - 10 hectares. Assuming a rectangular layout this corresponds to a dimension of 500m * 150m. A wind breaking belt shall be installed between the individual plots with a width of approx. 5m. Its function comprises both erosion protection and a natural boundary between the plots. A multi-line arrangement of different wood is recommended, as it is represented in the following illustration. This system can also be realised along the farm roads. Trees (1st size) nd Trees (2 size) Shrubs

3.50 m

Fig. 11-1:

Plant Scheme for Wind Erosion Protection

Fast-growing tree species are especially suitable as wind breaking belts, like for example poplars or robinias (Robinia Rectissima) and bushes. An integration of fruit trees is possible as well. It is suggested to install stone fruit meadows and/or to carry out afforestation for steeper areas, where farming by means of machines would not be possible. d) Irrigation and Dewatering Measures Along the wind breaking belts, paths and roads, ditches shall be installed for surface drainage. The size of the ditches shall be chosen in accordance to the respective catchment area. The following standard design criteria shall be considered: • Bed width 0.5 m – 1.0 m, effective • Ditch depth ca. 1 m • Gradient min. 1 : 200 • Inclination of the ditch slope ca. 45°

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At suitable intervals these ditches shall be widened to form storage ponds in order to be able to store the water for a limited period of time in case of heavy rainfalls. The single ditches shall be finally connected to collecting ditches with a steeper gradient(?) discharging the accumulated surface run-off from the outside dump. These ditches shall be constructed in a solid manner. The flow velocity of the water shall be reduced by means of check dams and stilling basins. An open ditch with downward gradient towards the Sitnica-River shall be constructed starting from the low point of the outside dump.

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12 Legal Framework In the duration of this project a legal framework was developed by the Assembly of Kosovo that gives guidance to obtain the needed legal permits. These Legal Regulations in all cases expect an applicant responsible for implementing the project. As the “Main Mining Plan for New Sibovc Mine” does not designate an applicant it was not possible for the Ministry of Environment and Spatial Planning to start to EIA process. Therefore this Environmental Study was developed to form a basis for the official Scoping Opinion the Ministry has to formulate in order to fit the legal regulations.

12.1 Legal Mining Regulations On 21st of January 2005 the Regulation No. 2005/3 on Mines and Minerals in Kosovo was promulgated. Part V - Mining Licenses - Section 30.1 (j) calls for “an Environmental Impact Assessment and all documents required under the Environmental Law in relation to the Mining Programme prepared in each case by suitably qualified and experienced experts” as attachment to the application.

12.2 The Environmental Protection Law The Law No. 2002/8 “The Environmental Protection Law” explains with Article 20 - Environmental Impact Assessment: 1. A person, undertaking or public authority that is planning the construction of an industrial or processing facility or a major work or project shall, if such facility, project or work has a significant potential for causing Environmental Damage, first be required to conduct an Environmental Impact Assessment (EIA) and to file with the Ministry a report summarizing the findings of that EIA (EIA Report). 2. A person, undertaking or public authority that is planning to significantly modify the operations of an existing industrial or processing facility or major work or project shall, if such modification has a significant potential to increase or substantially alter Emissions and/or Discharges, first be required to conduct an EIA and to file with the Ministry an EIA Report summarizing the findings of that assessment. All information available and relevant for this project are conducted in this Part III: Main Mining Plan for New Sibovc Mine – Environmental Impact Study. Subsidiary normative acts as defined by the law, Article 10, 1. and 2. are not jet available. Therefore this study can only describe the basic situation and demand for future investigations to follow the target of Article 10, 2. „...to gradually phase in the relevant EU standards and requirements in a manner that is both realistically affordable by public authorities, persons and undertakings and consistent with the sustainable economic development of Kosovo.” As by now no Scoping Opinion was given by the Ministry of Environment and Spatial Planning it will be the liability of the future applicant to apply for the Environmental Consent using this study and to start the actual EIA process after receiving the Ministry´s Scoping Opinion.

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12.3 Legal Resettlement Regulations At present, the old resettlement law dating back to the Serbian era is still applicable. A new law is only available in the draft version. Therefore, at present all issues relevant to resettlement have to be decided by the Parliament, which can be a very lengthy process. To provide the legal base for lignite extraction and the required land purchase in the future Sibovc field it is necessary to declare this area a “reserved mining area”. This pre-requisite was established with the UN-Resolution dated 18.11.2004:(Folgt ein Zitat?) On evacuation of the Hade village and related government decisions on a zone of special interest and property assessment criteria the Special Representative of the UN-Secretary-General decided by the „Executive decision No. 2004/28 from the 18th of Nov 2004”: (1) The villages of Hade/Ade, Sibovc/Sibovac, Leskovcic/Leskovcic and Cërkvena Vodic/Crkvena Vodica in the Obiliq/ć Municipality are recognized as constituting a zone of special interest for the economy of Kosovo. (2) Effective as of the date of signature of the present Executive Decision, no further construction activities shall be undertaken in the villages constituting the zone of special interest for the economy of Kosovo. (3) In the event that economic considerations warrant mining activities in the zone of special interest for the economy of Kosovo, natural and legal persons whose validly registered property rights may be affected by such mining activities shall be entitled to reasonable compensation based on the assessment criteria for property in the villages concerned as established by the Government of Kosovo. The decision to declare the concerned areas as zone of special national interest provides the legal base for the claim of the areas in the Sibovc field for mining and for the resettlement of the mentioned villages.

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European Agency for Reconstruction

PREPARATION OF A MID TERM PLAN FOR EXISTING COAL MINES AND A MAIN MINING PLAN FOR THE DEVELOPMENT OF THE NEW SIBOVC MINE EUROPEAID/116986/D/SV/KOS

FI NAL R E PO RT

Main Mining Plan for New Sibovc Mine Part IV

Economic and Financial Analysis

June 24, 2005 prepared by:

Vattenfall Europe Mining AG

VATTENFALL

Deutsche Montan Technologie GmbH


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

Key Experts of Project Team

Ullrich Höhna VEM Team Leader, Senior Expert Mine Planning

VEM Hans Jürgen Matern Senior Expert Mining Operation

VEM Thomas Suhr Senior Expert Computer-Aided Mine Planning Applications

Stephan Peters Senior Expert Geology

DMT

Helmar Laube VEM Senior Expert Soil Mechanics

Joachim Gert ten Thoren DMT Senior Environmental Expert

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Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

List of Contents 1 Summary of Part IV ........................................................................5 2 Economic and Financial Analysis .................................................11 2.1 General Assumptions and Calculation Methods ........................................................11 2.2 Economic Analysis, Cost Calculation, Investment and Operating Costs...................12 2.2.1 General Data for Cost Calculation .....................................................................12 2.2.2 Investment Costs ................................................................................................13 2.2.3 Labour Costs.......................................................................................................13 2.2.4 Calculation of Operating Cost Items ..................................................................13 2.2.5 IRR, Average Costs per Unit..............................................................................14 2.3 Sensitivity Analysis ....................................................................................................20 2.4 Finacial Analysis ........................................................................................................23 2.4.1 Contents and Methods of Financial Analysis.....................................................23 2.4.2 General Data and Principles for Financial Analysis...........................................23 2.4.3 Lignite Sales Price..............................................................................................24 2.4.4 Project Financing................................................................................................25 2.4.5 Results of Cash Flow Analysis...........................................................................26

3 Final Remark of Part IV................................................................34

Contents of Figures Fig. 2.3-1 Fig. 2.3-2 Fig. 2.4-1 Fig. 2.4-2 Fig. 2.4-3 Fig. 2.4-4 Fig. 2.4-5 Fig. 2.4-6

Mine Sibovc â&#x20AC;&#x201C; Sensitivity real average cost...........................................................21 Sensitivity of discount rate .....................................................................................22 Expenditure and revenues.......................................................................................28 Overburden to coal ratio.........................................................................................29 Pre-overburden in Sibovc .......................................................................................30 Profit and loss .........................................................................................................31 Balance sheet ..........................................................................................................32 Interest charges of equity........................................................................................33

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Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

List of Abbreviations a bcm bcm/h capex EN EnO ESTAP GWh IPP kt lcm m m² m³ mcm MEUR mbcm mlcm MME mMSL mt m€ NCV OCM opex RAC sqm t€ TEUR TPP TPS `000 bcm `000 lcm

year bank cubic meter bank cubic meter per hour capital expenses European Norm Energy Office Energy Sector Technical Assistance Project Gigawatt-hours International Power Provider thousand tonnes loose cubic meter million square meter cubic meter million cubic meter million Euro million bank cubic meter million loose cubic meters Main Mine Equipment (BWE, belt conveyor and spreader) meter above Main Sea Level million tonnes million Euro Net Calorific Value Open Cast Mine operating expenses Real Average Costs square meter thousand Euro thousand Euro Thermal Power Plant Thermal Power Station thousand bank cubic meter thousand loose cubic meter

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Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

1 Summary of Part IV Terms of Reference According to the TOR the main goal of the study is: “To provide security, both in the technical and economic terms, of future electrical power production in Kosovo, as defined in the “White Paper”1, through the guarantee of the coal supply security and economical viability over the entire life of the existing power plants and the new power plants (approximately 30 years).” The text of the Terms of Reference is attached as Appendix D.

Content of the “Main Mining Plan Sibovc” Meeting the requirements of the TOR the documentation consists of: • Summary of all Parts • Part I Basic Investigations • Part II Technical Planning • Part III Environmental Impact Study • Part IV Economic and Financial Analysis While the Part I addresses different scenarios of mining developments the Parts II up to IV deal with the chosen mining variant (which start from the existing mines Mirash/Bardh and advances in Northern direction of the Sibovc field). The work for the Part IV of the main mine plan mainly focused on: • Determination of economic indicators, • Cash income and expenditure plan, • Profit and loss acount • Investment and operating cost • Sensitivity analysis.

Work methodology: The study was prepared in two stages: 1st stage: The first stage (Part I) focused on developing different scenarios of mine development and to draw conclusions for the mining development of Sibovc on that basis. 2nd stage: The second stage (Part II, III and IV) focused on the detailed mine planning of coal extraction in Sibovc including determination of the required workforce and the accruing investments and costs.

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Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

Technical Basis for the Financial Analysis Power plant concept and coal demand On the basis of the targets set by the Ministry for Energy and Mining the following coal demand figures have been defined:

TPP A TPP B1+B2 new TPP B3+B4 new TPP B5+B6 New TPP C Other Consumer SUM

610 MW 678 MW 2 x 350 MW 2 x 350 MW 3 * 350 MW

20092011 mt 4.8 5.3 0 0 0 0.3 23

2012 mt 4.8 5.3 2.7 0 0 0.3 32

20132015 mt 4.8 5.3 5.4 0 0 0.3 32

20202023 mt 0 5.3 5.4 5.3 8.0 0.5 38

> 2025 mt 0 0 5.4 5.3 8.0 0.5 30

Main mine equipment and mine development The Main Mine Plan Sibovc consists of a mining development beginning in Bardh/Mirash and heading in Northern direction.

The following main mine equipment will be used: Overburden - E 8B SRs 1300 - E 9B SRs 1300 - New BWE (commencement date: 2008) - E 9M SchRs 650 Coal - E 10M SchRs 650 - E 8M SRs 1300 - E 10B SRs 1300 - New SchRs 650 or SRs 1300 or equivalent (2016).

Page 6


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

In addition there are two spreaders A2RsB-5200, one A2RsB-4400 and a new spreader matching the new BWE.

Development of employees The following tables and graph give a survey on the staffing:

Administration Main Equipment+Belt Conveyor Auxiliary Equipment Workshops Other SUM Personnel

2012

2013

2014 270 1125

20152022 260 1090

20232032 270 1100

20332036 250 1080

20372038 250 1040

280 1220

275 1180

370 590 240 2700

370 570 235 2630

365 560 230 2550

360 530 210 2450

360 550 220 2500

360 510 200 2400

360 500 200 2350

Resettlement On the entire Sibovc field, approximately 5700 people live in four villages and separate settlements. Hade is the largest village. There are two resettlement scenarios for the Hade village: (a) the emergency evacuation of people living in the dangerous zone close to the unstable Northern slope of the existing Bardh and Mirash mines; (b) the resettlement of the remaining larger part of Hade outside the endangered zone. The (a) emergency resettlement has been started in 2002, is funded by UNMIK and involves responsible and acting persons. This partial resettlement of village Hade is almost finished. The (b) resettlement of the larger remaining part of Hade has not been started yet. So it is a very ambitious target to resettle Hade in time. The village should be resettled up to 2008/2009 for overburden removal.This period includes the removal of all basements and the transference of the land to KEK. Apart from the emergency resettlement the cost amounts to approximately 59 m€, which has to be paid mainly in the period from 2007 to 2009. It proportionally includes all measures for the deconstruction of the village and the establishment of a new social- and infrastructure. Allocated to 597 households, the sum is totally 100,000 € per household. Furthermore, considerable resettlement costs are yielded with regard to the villages of Leskovic, Janina Voda and Sibovc. Time and costs resulting from the resettlement are shown in the following tables. a) Households

Hade Leskovcic Janina Voda Sibovc Sum

Year of Resettlement Year 2007 -2009 2027 - 2037 ca. 2027 2009 - 2032

Households No. 597 85 7 54 743

Page 7

Payment per Investment household 1000 € / no. m€ 90 53.7 100 8.5 100 0.7 100 5.4 89


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

b) Public facilities, infrastructure and land claim (farmland) Public Facilities Infrastructure Infrastructure

Hade Leskovcic Janina Voda Sibovc Sum

m€ 1.02 0.21 0.02 2.1 29

(inside villages)

(outside villages)

m€ 4.19 0.98 0.09 0.75 205

m€ 0.82 0.94 0.31 1.50 258

Sum m€ 6.03 2.13 0.42 4.35 105

c) Land claim (farmland) The total land use is 1,158 ha of which 1,081 ha are farmlands. This land will be claimed according to the mine advance until 2038. The price assumed for compensation is 47,500 €/ha (4.75 €/m²). This comparably high price includes the full compensation for the harvests. Therefore costs of 51.4 m€ are yielded. The following costs will arise over a period of 30 years: 68.3 m€ for households 12.9 m€ for facilities and infrastructure 51.4 m€ for claim of land 132.6 m€ Referring to the households the sum is ca. 178,000 € and referring to the ca. 5,200 inhabitants (until 2038) the sum is about 25,000 Euro per person. Compared with the coal content, all expenses incurred with the resettlement correspond nominally to 0.24 €/t or approximately to 3 to 4% of the cost price.

Economic and financial analysis The calculations have been made in accordance with the usual European standards of IFRS (International Financial Reporting Standards). The main results of profitability calculation are as follows: The relatively good deposit conditions contribute to low operative costs but imply a strong influence that the investments will have to be made within a short period at the beginning of the operation in Sibovc. So the costs of coal at 12% IRR come to 7.51 EUR/t and/or 6.84 EUR/t at 10% IRR.

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EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

Sensitivity of discount rate 12.00

11.07 11.50 11.00 10.50 10.00 9.50

8.69

9.00 8.50

5.27 7.51

8.00

RAC in â&#x201A;Ź/t Lignite

7.50

6.84

3.21

7.00

6.25 6.50

2.19

5.75

6.00

1.61

5.35

1.10

5.50

0.66 0.30

5.00 4.50

1.22 1.22

1.22

1.22

1.22

1.22

0.67

1.22 0.78

4.00 3.50 3.00

0.65

0.64

0.64 0.62

0.64

0.67

0.61

0.65

0.60

0.90

0.92

0.94

0.96

1.00

0.89

0.60

0.62

0.64

0.65

0.68

0.73

0.59

1.10

1.11

1.13

1.15

1.17

1.21

1.30

4%

6%

8%

10%

12%

15%

20%

2.50 2.00 1.50

0.70

0.65

0.70

1.06

1.00 0.50 0.00

Personnel Maintenance service & mobil Overburden Invest Finanzing

Power & Fuel other & Royalties Invest Expenditure total

Mine Sibovc - Sensitivity Real Average Cost (RAC) 8.70 8.60

Personnel

8.50 8.40

Electricity

8.30 8.20

Fuel

8.10 8.00 7.90

Other opex Other Internal costs

RAC in â&#x201A;Ź/t

Maintenance

7.80 7.70 7.60 7.50 7.40 7.30

Royalties

7.20 7.10

Recultivation

7.00 6.90

Overburden mobil

6.80

Investment

6.60

6.70 6.50 70%

75%

80%

85%

90%

95%

Page 9

100%

105%

110%

115%

120%

125%

130%


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

The cash flow analysis demonstrates that the chosen mine development (described in the Main Mine Plan – Technical Planning) will be generally profitable. The following results are important: • In 2010, the company will extract coal all over the year for the first time. From 2007 till the end of 2016, the mine opening-up cost will amount to approx. 347 m€, which can be activated as part of the fixed assets and have to be financed via equity and loan borrowings. • The company will need an equity capital base of 132 m € to finance the required equipment configuration. Another 69 m€ will be required to finance the mine opening-up cost in form of a repayable capital reserve. • Within the period until 2015 credits to an amount of about 460 m € will have to be taken up, of it 45 m € in connection with resettlements and 228 m € for main equipment. • Due to the economic activity of the company a rate of return on equity capital of approx. 12 % will be yielded by the investor under all 3 scenarios. • If coal will be sold at a price of 7.00 €/t in accordance with scenario 1 assuming an annual increase of 2 %, the owner will only yield remarkable profit from the year 2018 on, i.e. after 12 years amounting to 23. m€. For this investor must have a long breath. • Scenario 2 assuming a coal price of 8.05 €/t and a price increase of 1 % per annum will guarantee a profit for the investor of approx. 8 m€ from the year 2010 on and from 2012 on a profit of approx. 5 m€. For an investor, scenario 2 is the most attractive variant. He can sell coal at a price equalling the current transfer price between mine and power plant. He will already yield a profit between 4 and 6 % on the long-term equity capital employed in the company after four years of business activity, i.e. from 2010 and/or 2012 on.

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Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

2 Economic and Financial Analysis 2.1 General Assumptions and Calculation Methods The economic and financial analysis of the Sibovc opencast mine contains a year by year calculated cash income and expenditure plan, a profit and loss account, a balance sheet and an annual financial statement for the whole project period. In addition some indicators are given. The operating costs are determined on the basis of the future technically required number of personnel with regard to the future equipment needed and the output capacity as well as the experiences made in the Mirash / Bardh mines and other international opencast mines. The considerations base on the assumption that the later owner structure will not have any influences to the operating result; if so they can be neglected. The mine could for example be operated by a subsidiary of KEK or a new company, independent of KEK (following company named). The cost calculation includes all performances. It is possible, too, to operate the mine as a part of KEK. The future operator will have to borrow considerable funds and must have a sufficient capital base. This includes share capital and capital reserves. The share capital shall amount to 30% of the investment expenditures and shall be provided according to the expenses. This means borrowing of outside capital of 70%, which yields interest of 6%. Financing of the preliminary overburden will be provided from the capital reserves and loans. The new company takes over the large equipment to be decommissioned and/or other plants to the remaining book value (mostly fully depreciated).This company will finance the rehabilitations and investments required for Sibovc. The payments for reconstruction measures will be activated. A part of the overburden in Sibovc is removed by means of Truck/Shovel. This refers to overburden peaks for which procurement of BWE with the corresponding transport and dumping systems will not be worth it. This extra removal of overburden by means of Truck and Shovel will be carried out by contractors. Such a contractor expenses will arise for purchase of land, resettlement measures, substitute buildings and others. For this reason, the specific price taken as basis remains moderate (3.5 â&#x201A;Ź/bcm and/or ca. 2.5 â&#x201A;Ź/mÂł, loose). Own Road construction for the company is contained in the price. The new company must not pay for the removal of inherited burdens. An exception will be the partly closure of the residual mine area of Mirash / Bardh. This residual pit will be filled with overburden from Sibovc. The available infrastructure will be used because of the local conditions and the possibilities offered in this connection. It is therefore also possible to keep the investment demand at a low level. This will especially be useful in the initial phase because the Mirash / Bardh- and Sibovc opencast mines will work parallel. With regard to the evaluation of economic efficiency the consideration assume that costs or offices, workshops and warehouses will arise in the amount of usual leases (rents). The lease prices include amortization for financing of investments, i.e. it is possible to change leases later into property or to use the lease amount to construct new buildings and plants. The period of coal extraction reviewed for this study is 30 years, i.e. from 2009 to 2038. Additional expenditures regarding preliminary overburden (2008) are included in the costs. Page 11


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EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

The depreciations will be made according to the usual European standards of IFRS (International Financial Reporting Standards). Further important specific assumptions of the determination of costs are: - The study considers a period of 30 years of coal mining until 2038. Provisions will have to be made for the shaping of the landscape after mining. Taking into account a present price level, the corresponding activities will cost 100 million EUR on the present price basis. For these expenditures, financial means will be provided proportional to the coal output. - As a precaution, it will be assumed that the sale of land after the mining activities will not bring any proceeds. Additional expenditures and measures required for care until the areas will be released from the mining authority and transfer of the property shall be covered by the selling price. - The expenses for the resettlement of Hade will be depreciated as investments over a period of 10 years. - Royalties of 0.25 EUR/t are taken into account for the mining of coal. - 0.5 m€/a are provided for financing of additional international personnel. This sum could include expenditures for international engineers, managers or consulting services. - A corporate income tax of 20 % is assumed for the positive annual net profit. - For power purchase, an average European value of 45 €/MWh is assumed. This value includes a share for pure power generation and a power share for power trans-mission (for example 35 MWh against 10 EUR/MWh). - All consumers will be equalized. Therefore, the selling price will be the same for each of the raw coal consumers.

2.2 Economic Analysis, Cost Calculation, Investment and Operating Costs

2.2.1 General Data for Cost Calculation General assumptions for the Main Mine Plan are as follows: The assumptions presented in the following which were important for the calculations were taken from the accounting period 2004. The quantity structures were evaluated based on commercial grounds. - Currency of the study Euro - Discount rate 12 % escalated - Escalation Rate 2 %/year - Base Cost 2005 - Fuel 0.08 EUR/m³+t - Labour Costs 3363 EUR/employee * year in 2004 - Maintenance 0.08 EUR/(m³+t)*km - Overburden mobile 3.50 EUR/bcm (2.5 €/m³, loose) - Royalties 0.25 EUR/t coal Page 12


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

- Tax - Other Operational expenses - Other Internal Costs - Electricity

20% of the profit 0.18 EUR/m³+t 0.18 EUR/m³+t 4.50 Cent/kWh

2.2.2 Investment Costs The investments include: all necessary payments for the start of coal production, the purchase and rehabilitation of heavy equipment, belt conveyor systems and auxiliary equipment, the claim of land and the resettlements including their compensation measures. Old systems will be taken over at the remaining book value. It is assumed that the machines are mainly depreciated. Details of investment are given in the attached tables.

2.2.3 Labour Costs It shall be assumed that the personnel costs in Kosovo will increase more than all the other positions within the coming years. Therefore, our calculation bases on the following assumption: The personnel costs increase in real terms (i.e. without taking into account international inflation) by: 8 %/year until 2014 1 %/year from 2015 onwards Regarding an inflation rate of 2%, an increase in the personnel costs will result at an amount of 10%/year and from 2015 of 3%/year, respectively.

2.2.4 Calculation of Operating Cost Items - Maintenance: - Overburden mobile - Electricity

- Fuel:

- Royalties:

The demand was determined on the basis of the equipment performances and the specific value. This performance will be done by an external company. The specific energy consumption of the heavy equipment and belt conveyor plants was estimated on the basis of their technical condition and available experiences. In addition, a further demand of 10 GWh/a was assumed taking into account data of similar opencast mines. For power purchase, an average European value of 45 €/MWh was assumed. Based on the statement of accounts of 2004 a consumption of 0.08 EUR/m³+t was estimated whereby the rising energy prices and the lower consumption of the new equipment was taken into account. 0.25 EUR/t coal

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EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

- Recultivation: - Other Costs:

The necessary expenses were estimated after analysing the local circumstances on the basis of experiences. Based on the statement of accounts of 2004 a specific value was estimated taking international experiences into account.

The calculation of the feasibility study is undertaken for a period under review from 2006 to 2038. All technical and technological figures, expenditures and revenues are assumed year by year. First, all figures are based on 2005 prices. In a second step all figures will be escalated. This real value calculation has the advantage to get a result at the current price level. If the future price increases in procurement cost are different for a measure (we assume that this might occur e.g. for personnel cost) or the increase in sales cost will be lower, then it might happen that this measure will become uneconomic throughout the production period. This has been taken into account in this calculation considering real price increases for personnel cost of 8 % and/or 1 % in the real value calculation. Different increases in coal sales revenues are assumed in the escalated calculation. For this we assume three scenarios. (1) the coal sales revenues increase every year by 2% like all other prices, (2) the coal sales revenues increase less, i.e. only by 1%, (3) the coal sales revenues remain constant over the lifetime. The results are set out in the attached tables. From 2006 up to 2008 the mine starts only with overburden removal. In the very short period of less than 3 years it is necessary to increase the removal from 0 to more than 22 mm3 per year. This is extremely difficult to reach and needs both high investment in equipment like excavators, conveyor belts and spreaders- and high operating cost for overburden. In the same time from 2006 to 2008 production and revenues for sale of lignite are extremely low or better not worth mentioning. In the years 2009 to 2013 the lignite production will rise to 16 mt per year and later beginning in 2019 it will increase to more than 22 mt per annum over 6 years and thereafter range between 19 mt and 20 mt First of all it is necessary to invest in a short period of 4 years, mostly in equipment (370 mâ&#x201A;Ź) and a new village (60 mâ&#x201A;Ź). The development of operating cost, following overburden removal and lignite production is calculated for personnel, power, fuel, maintenance, other expenditures, both internal and external royalties and mobile overburden services year by year, as demonstrated in the attached figures. In comparison with all expenditures the red line is showing the required necessary revenues from lignite sales. Revenues are calculated in such a way that the company can pay all expenditures and interest for capital, especially for initial investment.

2.2.5 IRR, Average Costs per Unit The following real average cost (RAC) per unit were calculated on the basis of dcf methods.

Page 14


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

It shall be determined, if coal mining would be worthwhile for an investor. The new owner structure does not have any influence on the result because the following considerations are not influenced by the ownership structure. Basis of the consideration is a dcf-calculation. Due to its nature it is future-oriented and shall estimate how measures will influence future success. Principally, it is calculated with revenues and expenditures. The success of a company can be determined, how the initial capital (equity) will have changed till the end of the whole project life, i.e. revenues (E) have to be as high as expenditures (A). E0 + E1 + ... + En > A0 + A1 + ... + An.

(1)

This capital appreciation stands for the net present value of the investment. The engagement is only worthwhile for an investor, when he yields a certain minimum rate of return. Example: Year 0 Initial capital 0 Loan 1,000 Expenditures -1,000 Revenues Interest charges (10%) Inerest earned (10%) Repayment period -1,000 Loan status -1,000 Capital 0

1

2

3

200 550 -100

200 600 - 75

200.0 650.0 - 42.5

250 -750 0

325 -425 0

425.0 0.0 - 17.5

Although the revenues totalling to approx. 15 % (+1,800 / - 1,600) are higher than the expenditures, an investor will not implement these investments because a loss will occur at the end under consideration of the rate of return. The Net Present Value will be negative with respect to the third year (-1.5), i.e. the desired minimum rate of return will not be achieved. For the calculation it is not important, if the investor will use equity or borrowed capital. If equity is spent, the investor pays for repayment and interest charges to himself and can employ it at a predefined interest rate. The other alternative for the investor would be to bring his money to the bank and to invest it in securities and similar and/or make other profitable investments. This means that the Net Present Value of the investments is the capital appreciation accruing in addition to the capital increase due to the normal rate of return on capital employed. For simplification the interest charges and interests earned shall be the same amounts. The interest rate in a net present value analysis is called Internal Rate of Return (IRR). It is not the interest of the capital market because it also includes risks and ventures. Usually it is calculated with 10 - 12 % consisting of the following: Base interest rate Page 15

4-6%


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

Project risk Taxes (20%) Inflation

2% 2% 2%

Î Î

8 - 10 % real 10 - 12 % escalated

cording to the above example, you get the Net Present Value at the end of the period under review. In order to compare investments with different tenors, the net present value is usually related to the commissioning period or to the time of first expenditures. For this it is determined using discounting, which capital is necessary today to achieve an end value after n years at a predefined internal rate of return. This discounted capital value is called net present value (NPV). e.g.: How much capital has to be employed today to get 100 € after 4 years at an interest rate of 10% ? Net Present Value = 100 / (1+10%)3 = 68.3 According to the above calculation, the net present value is determined as follows: - 17.5 / (1+10%)3 = - 13.1 For the determination of the Net Present Value of an investment, it is not necessary to carry out a comprehensive calculation with interest charges and interests earned. The same results will be obtained easier only by discounting revenues and expenditures. For the above example, the calculation is as follows: Year 0 Expenditures -1,000 Revenues Cash flow -1,000 Cum. cash flow -1,000 Formula -1,000/(1+10%)0 NPV of cf -1,000 Cum. NPV -1,000

1 200 550 350 -650 350/(1+10%)1 318.2 -681.8

2 200 600 400 -250 400/(1+10%)2 330.6 -351.2

3 200.0 650.0 450.0 200.0 450/(1+10%)3 338.1 - 13.1

Therefore the cumulative net present value of the investment comes to – 13.1 for this calculation, too. Related to the initial formula (1) of our consideration this means that an investment is economic, when the sum of net present values of revenues is higher than the sum of net present values of expenditures. The formula for this is: E0

+

E1

+ ... +

En

>

A0

+

A1

+ ... +

An

p.. interest rate

(2)

(1+p)0

(1+p)1

(1+p)n

(1+p)0

(1+p)1

(1+p)n

Due to its nature the revenues (E) of a mining company are the product of quantity (M) and price (k), i.e. coal quantity and specific price per tonne coal. From the point of view of the investor there exists one specific price which corresponds to the specific expenditures per unit of quantity, where revenues (E = k*M) are exactly as high as expenditures (A).

Page 16


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

k*M0 + k*M1 + ... + k*Mn = A0 + A1 + ... + An.

(3)

Since k is a constant, which can be factored out, you get the following known formula for determination of average cost by transformation. A0 + A1 + ... + An. k = M0 + M1 + ... + Mn

(4)

Also this formula does not take into account the temporally irregular distribution of expenditures (as they usually occur in a company) and their influence on the rate of return on capital employed. The temporal distribution of expenditures and/or different output quantities in the individual years can be considered, if the formula (2) described above is adopted, i.e. that the net present value of revenues has to be at least as high as the net present value of expenditures. This results in the following basic formula (3): k*M0 + k*M1 + ... + k*Mn (1+p)n (1+p)0 (1+p)1

>

A0 + A1 + ... + An (1+p)0 (1+p)1 (1+p)n

(5)

This formula is also transformed by factoring out the constant k resulting in the formula to calculate the specific cost under consideration of the return on capital employed. These average cost are called real average cost - RAC. Actually this value can be interpreted as specific expenditures per quantity unit. A0 + A1 + ... + An (1+p)1 (1+p)n (1+p)0 RAC = k = M0 + M1 + ... + Mn (1+p)0 (1+p)1 (1+p)n

(6)

Therefore these RAC will become systematically higher under otherwise same conditions: the smaller the sales quantities are, the later the sales quantities are, the higher the expenses are, the earlier the expenses are. Methodically seen, is the calculation of the real average cost (RAC) a specific case of the dcf methods, because it determines the average cost for the case that the investment is just economic, i.e. the net present value has at least to be zero. Having the real average cost determined it is now possible to compare mining companies which have different tenors, different output quantities and temporally distributed expenses.

Page 17


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EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

As already described above you get an average price at a current price basis by this real value analysis. If the price increases in expenditures and sales prices are different, it might happen that the company will become uneconomic during the period of review. Large differences in expenditure increases (in this analysis this applies to the personnel) can already be taken into account in the real value analysis considering the price increases reduced by inflation (in this analysis 8% and/or 1 % increase in personnel cost). To take the different increases in sales product prices into account it is necessary to carry out an escalated calculation, where the following particularity has to be considered. Using formula (6), an uniform average value is obtained over the whole period under review, which can be used for comparisons, but does not provide enough information for price formation. This problem can be resolved by reducing the interests by the planned/expected price increase in coal sales according to the formula set out below, not discounting the quantities by the internal rate of discount for the escalated calculation:

pm = (1 + pe) / (1 + pa) - 1

pe Internal rate of return for escalated calculation (7) pa Price increase for sales pm Internal rate of return for quantity

e.g.: At an internal rate of return of 12 % for escalated calculation and 2 % price increase for sales, an internal rate of return of 9.8% is determined for this quantity. Then the formula (6) for real average cost is as follows: A0 + A1 + ... + An (1+pe)0 (1+pe)1 (1+pe)n RAC = k = M0 + M1 + ... + Mn 0 1 (1+pm) (1+pm)n (1+pm)

(8)

The result of this calculation is no longer an average price over the whole project life, but the price at the current price basis. When all price increases over the whole project life are similarly high, then this value will be identical with the real value analysis. Then it has to be considered that the sales price will rise by the assumed price increase every year. The following real average cost (RAC) per unit were calculated for an internal rate of return (IRR) of 12 % and 10%. 12% 10% Expenses over whole project life Total RAC RAC mâ&#x201A;Ź â&#x201A;Ź/t â&#x201A;Ź/t Total Investment thereof Investment thereof financing Investment

815 815

Total Operating Expenditure Page 18

3.41 1.22 2.19

2.83 1.22 1.61


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

3,138

4.10

4.00

706 72 140 901 314 206 4 327 279 189

0.96 0.18 0.20 1.17 0.45 0.25 0.00 0.45 0.40 0.04

0.94 0.16 0.19 1.15 0.44 0.25 0.00 0.44 0.39 0.05

3,952

7.51

6.84

thereof Maintenance Overburden mobile Fuel Personnel Expenses Other internal Expenses Royalties Recultivation Electricity Other opex costs Mine closure

Total Expenditure (Invest and Operating Exp.)

The costs of coal at 12% IRR come to 7.51 EUR/t and/or 6.84 EUR/t at 10% IRR. Reasons for the relatively high value were the high initial investment costs including the resettlement of the village Hade. At the beginning of opencast mines development a high quantity of overburden will have to be removed. Due to the required coal extraction this quantity will have to be removed under extreme conditions within a very short period. This especially applies to the resettlement measures and the parallel operation to Mirash/Bardh. The resettlement of Hade will cost about 59.8 m â&#x201A;Ź corresponding planned compensation measures. If Hade will not be resettled a sum of only 50 m â&#x201A;Ź will be saved. The resulting saving potential will come to 0.3 â&#x201A;Ź/ t referred to the 30 years long period under review. However, the targets of coal production and the generation of power from coal will not be achieved in this case. For different discounted rates the average cost per unit before tax over the whole project life amount to: discounted rate 4% 6% 8% 10 % 12 % 15 % 20 %

average cost per unit 5.35 5.75 6.25 6.84 7.51 8.69 11.07

invest cost 1.52 1.88 2.32 2.83 3.41 4.43 6.49

operating cost 3.83 3.87 3.93 4,01 4.10 4.26 4.58

The calculations show a large dependence of the average cost from the discount rate. It is thereby clearly demonstrated that the investment costs strongly depend on the rate of interest. A strong influence will be that the investments will have to be made within a short period at the beginning of the operation in Sibovc. As already mentioned, this is due to the payments for the resettlements of Hade, the unfavourable overburden/coal ration at the beginning of the coal production and the late achievement of an economically secured (efficient) coal extraction regarding the investment sums. It is assumed that it would be possible to improve the costs by approx. 60-90 cent/t by means of an alternative power plant and opencast mine development.

Page 19


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

2.3 Sensitivity Analysis To illustrate the dependence of the average cost from the single cost types sensitivity analyses were conducted depending on the below mentioned positions. It was investigated how the average cost of coal will change if the single positions deviate from the made assumptions. This was made in steps of 5%-Schritten up to +/- 30%. This analysis shows the sensitivity of the single positions for: • Investments • Personnel Expenses • Electricity • Maintenance • Other costs • Royalties • Recultivation • Fuel The analysis verifies once again the great dependence of the average cost from the investment expenses since the payments for electricity, fuel; other cost, recultivation and royalties have only little influence to the average cost.

Page 20


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

Mine Sibovc - Sensitivity Real Average Cost (RAC) 8.70 8.60

Personnel

8.50 8.40

Electricity

8.30 8.20

Fuel

8.10 8.00 7.90

Other opex Other Internal costs

RAC in â&#x201A;Ź/t

Maintenance

7.80 7.70 7.60 7.50 7.40 7.30

Royalties

7.20 7.10

Recultivation

7.00 6.90

Overburden mobil

6.80

Investment

6.60

6.70 6.50 70%

Fig. 2.3-1

75%

80%

Mine Sibovc â&#x20AC;&#x201C; Sensitivity real average cost

Page 21

85%

90%

95%

100%

105%

110%

115%

120%

125%

130%


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

Sensitivity of discount rate 12.00

11.07 11.50 11.00 10.50 10.00 9.50

8.69

9.00 8.50

5.27 7.51

8.00 7.50

RAC in â&#x201A;Ź/t Coal

6.84

3.21

7.00

6.25 6.50 6.00

4.50

1.61

5.35

5.50 5.00

2.19

5.75

0.30 1.22

1.10 0.66 1.22 1.22

1.22

1.22

1.22

0.78

4.00 3.50 3.00

0.65 0.60

0.64 0.61

1.50

0.70

0.65

0.67

0.64

0.67

0.62

0.65 0.96

1.00

0.64

2.50 2.00

1.22

0.70

1.06

0.89

0.90

0.92

0.94

0.60

0.62

0.64

0.65

0.68

0.73

0.59

1.10

1.11

1.13

1.15

1.17

1.21

1.30

4%

6%

8%

10%

12%

15%

20%

1.00 0.50 0.00

Personnel Maintenance service & mobil Overburden Invest Finanzing

Fig. 2.3-2

Power & Fuel other & Royalties Invest Expenditure total

Sensitivity of discount rate

This diagram shows the essential cost types at different interest rates. For a better illustration, capex have been broken down into different payments for investments and financing cost of investments. Page 22


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

Then the influence of the internal rate of discount on the real average cost can be noticed. It has only an insignificant influence on the opex. Only from an internal rate of discount of 15 % on, the impact will increase considerably. This is different for capex. The average payments only amount to 1.22 EUR/t, but already at an internal rate of discount of 8%, the financing cost are nearly as high as the opex. For this calculation we have shown the results for internationally common rates of internal discount of 10 % and 12 % in detail.

2.4 Finacial Analysis 2.4.1 Contents and Methods of Financial Analysis In the financial analysis, a business plan is developed on the basis of the cash flow calculation, see Sections 1.2. and 1.3. Main objective is the description of the business development on the one hand and the required financing of this business, i.e. the employment of capital and the return on capital reached, on the other one. The financial analysis is carried out as an integrated calculation with the following elements: • Profit and Loss Account • Balance Sheet • Cash flow Statement • Payment Plan Therefore it is necessary to change investment into year wise depreciation, cost for closing the mine after finishing production into year wise provision and cost for preoverburden into year wise amortisation.

2.4.2 General Data and Principles for Financial Analysis According to the IFRS-Standards it is necessary to change investment into year wise depreciation, cost for closing the mine after finishing production into year wise provision and cost for pre-overburden into year wise amortisation. The following depreciations are considered: • Auxiliary equipment 5 years, • Belt conveyor systems 10 years, • Heavy opencast mine equipment 12 years, • Resettlement 10 years, • Others 10 years. Payments for real estates will not be depreciated. Following the IRFS it is allowed to activate all cost for preparing the production of lignite i.e. to change in assets. It is done for all costs of overburden, following named pre-overburden, 2006 to 2008. But it is not only allowed to activate all costs for the preparation of the first production of lignite. All overburden can be defined as pre-overburden until the time the final figure of the opencast mine will be established if the responsible authorities will agree. This case Page 23


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

is assumed in this calculation. The amortisation of this asset follows over the lifetime of the mine. This calculation of pre-overburden is necessary because of lack of revenues for sales of lignite in the years from 2006 to 2008 and to small revenues up to 2013. So the company will avoid losses. It will be commenced with the mine opening-up in the year 2006. It covers all measures in preparation of the exploitation of solid mineral deposits in surface mines. This means that the box-cut is prepared in a first stage of overburden removal and coal extraction. For this the initial working positions of the excavators at different working levels as well as of the conveyor equipment from the excavator to the feeding points will be cut free. Furthermore, the access ramps for main mining equipment and access roads have to be prepared, too. These measures consist in particular of the following: - Land acquisition - Clearing of the ground surface, - Dewatering, - Procurement of all machines required for mine opening-up - Excavation of the box-cut overburden, - Preparation of working levels, - Installation and provision of outside dumps, - Erection and transport systems, - Construction of supply facilities, - Construction of sanitary facilities and administrative facilities. The costs for these measures have to be activated as part of the fixed assets under the name “Mine opening-up“ and to be depreciated according to plan. In the Sibovc Mine the mine opening-up will mainly be carried out until 2013. Then the most important investments will be completed and the coal output will reach a level of 16 mt. Already before that date, coal is extracted. Therefore the costs accruing will be split into mine opening-up and coal production cost. Until and including the year 2016, the fourth coal excavator (SRs 1300) will be commissioned and the coal will be uncovered to achieve maximum performances in 2017 with a coal output of 21 mt. Expenses for recultivation are part of the operating costs. The shaping of the residual area after mining will be considered as expense and included in the provisions. They will only be yielded in the late years (after the end of the period under review. The pool of liquidity is calculated with 10 % of the personnel costs per year All amounts paid out will be escalated with an escalation rate of 2 % per year.

2.4.3 Lignite Sales Price The real average cost amount to 7.51 €/t coal at an internal rate of discount of 12 %. Since parts of investments are financed by loans, a low value has been selected as coal price as of 1.1.2005 escalated with 2%. This demonstrated that an internal rate of return on equity capital of approx. 12 % can be reached at the start value of 7.00 €/t. As already described above, 3 scenarios of different increases in coal sales revenues have been considered. Basis for this decision was the fact that at 7.00 €/t basic price, higher profits will only be achieved from 2018 on, i.e. after 12 years of business activity guaranteeing the desired rate of return on equity. Page 24


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

The coal sales revenues under the different scenarios have been selected in a way that the investor will achieve the same rate of return on capital employed (approx. 12 %). This results in the following: Scenario 1 Scenario 2 Scenario 3

2 % Escalation of coal price 1 % Escalation of coal price No escalation of coal price

7.00 €/t in 2005 8.05 €/t in 2005 9.22 €/t over the whole project life.

2.4.4 Project Financing The amount of equity capital for the company will be calculated from the necessary payments. The financing scheme is fixed as follows: • Equity, local 30 % of invest without new line • Loans 100 % of account of liabilities - Equity • Total 100 % Exception: payments for auxiliary equipment will be financed by 100% via the manufacturer or with a comparable low rate of interest. The following financing variants are considered: - auxiliary equipment – 100 % borrowed capital over the whole term • Grace period 0 years • Repayment period 5 years • Tenor 5 years • Repayments are to do in equal portions • Nominal interest rate 6 % p.a. • Bank fees 0 % of loan - loan conditions for resettlement up to 2010: • Grace period • Repayment period • Tenor • Nominal interest rate • Up front Fee • Repayments are to do

3 years 10 years 13 years 6% p.a. 1% in equal portions.

- loan conditions for main equipment up to 2010: • Grace period • Repayment period • Tenor • Nominal interest rate • Up front Fee • Repayments are to do

4 years 10 years 14 years 6% p.a. 1% in equal portions.

- short-term loan conditions for running costs: • Nominal interest rate

6% p.a.

Working capital is assumed with 10 % of personnel cost. Page 25


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

The income tax rate is 20 %. The surplus after taxes will be distributed to the shareholders.

2.4.5 Results of Cash Flow Analysis The cash flow analysis demonstrates that the chosen mine development will be generally profitable. It illustrates the opencast mine as independent company. The figures below show the consequences on profit and loss account, balance sheet and cash flow statement. The following results are important: • In 2010, the company will extract coal all over the year for the first time. From 2007 till the end of 2016, the mine opening-up cost will amount to approx. 347 m€, which can be activated as part of the fixed assets and have to be financed via equity and loan borrowings. • The company will need an equity capital base of 132 m € to finance the required equipment configuration. Another 69 m€ will be required to finance the mine opening-up cost in form of a repayable capital reserve. • Within the period until 2015 credits to an amount of about 460 m € will have to be taken up, of it 45 m € in connection with resettlements and 228 m € for main equipment. • Due to the economic activity of the company a rate of return on equity capital of approx. 12 % will be yielded by the investor under all 3 scenarios. • If coal will be sold at a price of 7.00 €/t in accordance with scenario 1 assuming an annual increase of 2 %, the owner will only yield remarkable profit from the year 2018 on, i.e. after 12 years amounting to 23. m€. For this investor must have a long breath. • Scenario 2 assuming a coal price of 8.05 €/t and a price increase of 1 % per annum will guarantee a profit for the investor of approx. 8 m€ from the year 2010 on and from 2012 on a profit of approx. 5 m€. For an investor, scenario 2 is the most attractive variant. He can sell coal at a price equalling to the current transfer price between mine and power plant of KEK. He will already yield a profit between 4 and 6 % on the long-term equity capital employed in the company after four years of business activity, i.e. from 2010 and/or 2012 on. The economic results, both Expenditures and revenues of these developments are shown in the first figure (diagram). First of all it is necessary to invest in a short period of 4 years, mostly in equipment (370 m€) and a new village (60 m€). The development of operating cost, following overburden removal and production of lignite is calculated for personnel, power, fuel, maintenance other expenditures both internal and external royalties and mobile overburden services. In comparison with expenditures you see the red lines, showing necessary revenues of lignite sales for the three scenarios. Revenues are calculated in such a way, that the company can pay all expenditures and interest for capital, especially for initial investment.

Page 26


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

The figure Overburden to coal ratio illustrates the development of overburden, lignite and the overburden to lignite ratio. From 2006 up to 2008 the mine starts only with overburden removal. In the very short period of less than 3 years it is necessary to increase the removal from 0 to more than 22 mbcm per year. This is extremely difficult to reach and needs both high investment in equipment like excavators, conveyer belts and spreaders- and high operating cost for overburden. In the same time from 2006 to 2008 reduction and revenues for sale of lignite are extremely small or better not worth mentioning. In the years 2009 to 2013 the lignite production rise to 16 mt per years and later than starting in 2019 for a long period year by year more than 22 mt. The ratio overburden to lignite in the period 2006 to 2011 is terrible. The following figures show the consequences on profit and loss account (see figure Preoverburden). All overburden can be defined as pre-overburden until the time the final figure of the opencast mine will be established if the responsible authorities will agree. This case was assumed in an additional calculation. In the ratio overburden to lignite is again a part of pre-overburden year wise included. Now the ratio ranges between 1.2 and 1.5. The next figures show the consequences on Profit and loss account for the scenario 2. Figure 2.4-5 Balance sheet: The company will need an equity capital base of 132 m € over the period under review. Another 69 m € will be required to finance the preliminary costs until starting production as well as the losses in the years with low lignite production. Within the period until 2015 credits to an amount of about 460 m € will have to be taken up, of it 45 m € in connection with resettlements and 228 m € for main equipment. Figure 2.4-6 Interest charges of equity: This figure shows the allocation and repayment of equity capital as well as the net profit for the scenario 2 assuming an increase of 1 % in the specific coal sales revenues. From 2006 to 2015, it is necessary to allocate equity capital to the company to finance the investments and the mine opening-up. From 2016 to 2027, the amount required to finance the mine opening-up will be repaid. From 2009 on, the company will yield a net profit which will be paid out to the shareholders.

Page 27


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

total Expenditures in Mio. EUR

Mine Sibovc Total Expenditures (escalated) 300

30

280

28

260

26

240

24

220

22

200

20

180

18

160

16

140

14

120

12

100

10

80

8

60

6

40

4

20

2

0

0

2005

2007

2009

2011

2013

2015

Personnel Maintenance Royalties Investments Lignite REVENUES 2 % Escalation

Fig. 2.4-1

Expenditure and revenues

Page 28

2017

2019

2021

2023

2025

2027

Electricity Other Opex Other Internal Costs Output Lignite Lignite REVENUES 1 % Escalation

2029

2031

2033

2035

2037

Fuel Other Internal Costs Overburden mobil Lignite REVENUES 0 % Escalation


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

Overburden : Coal Ratio – Year by Year 10.00 24 9.00

22 20

8.00

18

7.00

mt and mm³

16 6.00 14 5.00

12 10

4.00

8

3.00

6 2.00 4 1.00

2 0 2006

0.00 2008

2010

2012

2014

2016

SUM Overburden

Fig. 2.4-2

Overburden to coal ratio

Page 29

2018

2020

2022 Lignite

2024

2026

2028

2030

2032

2034

2036

Ratio Overburden : Coal

2038


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

mt and mm続

Pre-Overburden to 2016 26

13

24

12

22

11

20

10

18

9

16

8

14

7

12

6

10

5

8

4

6

3

4

2

2

1

0

0

2006

2008

2010

2012

2014

2016

2018

overburden without pre_overburden

Fig. 2.4-3

Pre-overburden in Sibovc

Page 30

2020

2022

2024

pre_overburden

2026

2028

Lignite

2030

2032

2034

2036

Ratio Overburden : Coal

2038


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

Profit and Loss 250.000

250.000

Revenue 200.000

150.000

150.000

T€

200.000

100.000

100.000

50.000

50.000

0 0T€ 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 Labour Depreciation

Fig. 2.4-4

Power&Fuel Amortisation

Maintenance Provisions

Profit and loss

Page 31

Overb. mobil Interest

Royalties Tax

Recultivation Net Profit

Other Revenue

Year


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

balance 600

Assets

500 400 300

mio. EUR

200 100 0 -100

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

-200 -300 -400 -500

equity and liabilities

-600 Land equity Liquid funds

Fig. 2.4-5

Mine Development & Pre-Op. Exp. Provisions Total assets

Balance sheet

Page 32

Technical plants and equipment liabilities Total equity and liabilities


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

Interest Charges of Equity 80.000 60.000 40.000

TEUR

20.000 0 -20.000 -40.000 -60.000 -80.000 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 Equity Payment Fig. 2.4-6

Loss

Interest charges of equity

Page 33

Repayment Equity

Net Profit


Main Mining Plan Sibovc

EUROPEAID/116986/D/SV/KOS Part IV: Economic and Financial Analysis

3 Final Remark of Part IV The objective of the Study was to provide a broad overview of the feasibility and profitability of raw coal mining in Sibovc in a comprehensible manner â&#x20AC;&#x201C; in accordance to the Terms of Reference. This has been fulfilled. As a result of the Study it became obvious that there exist essential influence factors which had been laid down for the preparation of the Main Mine Plan, but their actual development will decisively determine the future coal price. With this production price, it is finally influenced, if the generated power can be sold on the market. On the other side, the comparison of all variants shows that an economically reasonable development is to be expected in any case.

Page 34


file:///E|/Studies/EAR%202005%20Sibovc%20Main%20Mining%20Plan/Structure%20of%20Folders.txt

Structure of Folders Lignite mining Sibovc Main Mining Plan

Part I. Basic Investigation Part I Annex Part II. Technical Planning Part II Annex Geology DWG files Part II Annex Mining Technology DWG files Part II Annex Mining Technology DGN files Part III. Environmental Assessment Study Annex Part IV. Financial Analysis Annex Additional Annexes Additional Tables Appendixes Appendix A Seismic Acquisition Appendix B Geological Database Appendix C1 Equipment Specs New Equipment Refurbishment Appendix C2 Service and Supply Electrical Mechanical Appendix D Terms of Reference

file:///E|/Studies/EAR%202005%20Sibovc%20Main%20Mining%20Plan/Structure%20of%20Folders.txt [1/26/2010 12:57:28 PM]