EFT News

Tuesday, October 28, 2008
EFT to invest in Cukara coal mine in Serbia

The EFT Group, south-east Europe’s leading energy trader, is expecting to be granted a full exploitation permit for the Cukara coal mine in the municipality of Lucani, central Serbia. EFT announced its plans today, at the presentation of the mine feasibility study. 

“We began exploratory works at the Cukara in May, in order to evaluate coal reserves at the location. Our expectation have been proved correct. There is just under 50 million tons of lignite deposits at Cukara, with an average energy value of 9100 kilo Jules per tone” said Zlatan Matko, EFT’s head of investment. 

According to EFT, the available deposits anmd the lignite characteristics provide basis for further considerations related to investment in a MW 132 thermal power plant at the location. From 2016 the plant could produce circa GWh 980 per annum and would be the first plant built in Serbia according to EU environmental standards. 

“In parallel with the exploratory works, we have commenced activities related to the power-plant at Cukara. These include economic analysis, a pre-feasibilty study, the choice of technology and the micro-location for the plant. We expect to be granted a full exploitation permit in the coming year, by which time we shall have enough information to allow us to judge how best to proceed with the project”, said Zoran Ivkovic, EFT’s director of business development. 

According to EFT’s preliminary estimates, 600 people would be employed at the mine following an ivestment of EUR 110 million. 1 100 000 tones of coal would annually be excavated at the mine for the plant, which would require a further EUR 280 million investment.