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