complementary mining plan for sibovc sw

European Agency for Reconstruction

PREPARATION OF A COMPLEMENTARY MINING PLAN FOR

THE SIBOVC SOUTH WEST LIGNITE MINE

CONTRACT 02/KOS01/10/021

D R A F T F I N A L R E P O R T

Complementary Mining Plan for Sibovc SW

Part I – Basic Investigations

April, 2006

prepared by: STEAG Consortium

Part I Basic Investigations

Complementary Mining Plan Sibovc SW

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Key Experts of Project Team

Hans Jürgen Matern

Senior Expert Mining Operation

Thomas Suhr

Senior Expert Computer-Aided Mine Planning Applications

Stephan Peters

Senior Expert Geology

Helmar Laube

Senior Expert Soil Mechanics

Joachim Gert ten Thoren

Senior Environmental Expert



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Table of Contents

1 SUMMARY (PART I)............................................................................................ 11

1.1 Objective .................................................................................................................. 11

1.2 Tasks and Outputs of the Project.............................................................................. 12

1.2.1 Part I: Basic Investigations ....................................................................................... 12

1.2.2 Part II: Technical Planning....................................................................................... 12

1.2.2.1 Mine Development ................................................................................................... 13

1.2.2.2 Dewatering ............................................................................................................... 13

1.2.2.3 Manpower................................................................................................................. 14

1.2.3 Environmental Impact Study.................................................................................... 14

1.2.4 Part IV: Economic and Financial Analysis............................................................... 15

1.3 Results under Part I - Basic Investigations............................................................... 16

1.3.1 Coal Demand............................................................................................................ 16

1.3.2 Geology .................................................................................................................... 17

1.3.3 Soil-mechanics ......................................................................................................... 18

1.3.4 Main Mining Equipment .......................................................................................... 20

1.3.5 Power Supply System and Electrical Equipment ..................................................... 21

1.3.6 Infrastructure ............................................................................................................ 21

1.3.7 Auxiliary Equipment ................................................................................................ 21

2 INTRODUCTION.................................................................................................. 22

2.1 Background .............................................................................................................. 22

2.2 Approach / Methodology.......................................................................................... 22

2.3 Geographical Overview............................................................................................ 24

2.4 Climatic Data............................................................................................................ 25

3 COAL DEMAND ................................................................................................... 27

4 GEOLOGY ............................................................................................................. 29

4.1 Introduction Geology................................................................................................ 29

4.2 Assessment of Available Geological Data ............................................................... 31

4.2.1 Borehole Database.................................................................................................... 31

4.2.2 Assessment Methodology......................................................................................... 31

4.2.3 Stratigraphic and Lithological Borehole Data .......................................................... 32

4.3 Digital Geological Model......................................................................................... 32

4.3.1 General Remarks to the Geological Model .............................................................. 32

4.3.2 Results / Description of the Geological Model ........................................................ 33

4.3.2.1 Surface...................................................................................................................... 36

4.3.2.2 Overburden (Including Outer Dumps) ..................................................................... 36

4.3.2.3 Coal (Including Coal Quality) .................................................................................. 37

4.4 Further Aspects Influencing the Sibovc SW Mine................................................... 52

4.4.1 Underground Mining................................................................................................ 52

4.4.2 Uncontrolled Coal Fires ........................................................................................... 53

4.4.2.1 Locations of Coal Fires ............................................................................................ 53

4.4.2.2 Counteractive Measures ........................................................................................... 56

4.4.2.3 Prevention of Coal Fires........................................................................................... 56

4.5 Further Geological Exploration Required ................................................................ 56

4.5.1 Methods of Further Geological Exploration ............................................................ 57

4.5.2 Location for Urgently Required Drillholes (2006)................................................... 57



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5 SOIL-MECHANICAL PARAMETERS.............................................................. 61

5.1 General ..................................................................................................................... 61

5.1.1 Geology .................................................................................................................... 61

5.1.2 Hydrology................................................................................................................. 61

5.1.3 Technology............................................................................................................... 62

5.1.4 Soil-mechanical Parameter....................................................................................... 62

5.1.5 Soil-mechanical Calculation Methods ..................................................................... 64

5.1.6 Necessary Safety Coefficients .................................................................................. 65

5.2 Soil-mechanical Investigations – Mine Sibovc SW ................................................. 66

5.2.1 General ..................................................................................................................... 66

5.2.2 Geology .................................................................................................................... 66

5.2.3 Hydrology................................................................................................................. 66

5.2.4 Soil-mechanical Parameters ..................................................................................... 67

5.2.5 Necessary Safety Coefficients .................................................................................. 67

5.2.6 Investigations of Static Stability............................................................................... 68

5.2.6.1 Single Slopes ............................................................................................................ 68

5.2.6.2 Slope Systems........................................................................................................... 68

5.2.6.3 Dump Slopes ............................................................................................................ 71

5.2.7 Conclusion................................................................................................................ 72

5.2.8 Measures for a Safe Opencast Mine Management ................................................... 73

6 MAIN MINING EQUIPMENT ............................................................................ 75

6.1 Technical Status of Existing Equipment .................................................................. 75

6.1.1 Technical Status of Excavators ................................................................................ 75

6.1.1.1 SRs 1300 and SchRs 650 ......................................................................................... 75

6.1.1.2 SRs 470, SRs 400 and SRs 315................................................................................ 77

6.1.2 Technical Status of Spreaders .................................................................................. 78

6.1.3 Technical Status of Belt Conveyors and Drive Stations .......................................... 80

6.1.4 Technical Status of Belt Wagons ............................................................................. 81

6.1.5 Technical Status of Stacker / Reclaimer................................................................... 83

6.1.5.1 Stockpile Separation Plant A.................................................................................... 83

6.1.5.2 Stockpile TPP B ....................................................................................................... 84

6.2 Planned Short-term Rehabilitation Measures........................................................... 85

6.2.1 Measures for Excavators .......................................................................................... 85

6.2.2 Measures for Spreader.............................................................................................. 87

6.2.3 Measures for Belt Conveyors and Drive Stations .................................................... 88

6.2.4 Measures for Belt Wagons ....................................................................................... 89

6.2.5 Measures for Stacker / Reclaimer ............................................................................ 89

6.3 Planned Refurbishment Measures for Sibovc SW Field .......................................... 91

6.4 Time Schedule for Rehabilitation Measures ............................................................ 93

6.5 Investment and Cost Calculation of Main Mine Equipment.................................... 96

7 POWER SUPPLY SYSTEM AND ELECTRICAL EQUIPMENT ................ 102

7.1 Future Energy Demand........................................................................................... 102

7.2 Measures and Time Schedule................................................................................. 105

7.3 Investments for Power Supply System................................................................... 113

8 AUXILIARY EQUIPMENT ............................................................................... 114

8.1 Assessment of Technical Status in Existing Mine ................................................. 114

8.2 Demand of Auxiliary Equipment ........................................................................... 114

8.2.1 Maximal Demand of Auxiliary Equipment............................................................ 114



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8.2.2 Yearwise Development of Auxiliary Equipment Fleet .......................................... 116

8.3 Heavy Auxiliary Equipment for Sibovc SW Mine................................................. 121

8.3.1 Draglines ................................................................................................................ 121

8.3.2 Transport Crawler................................................................................................... 122

8.3.3 Derricks .................................................................................................................. 122

8.4 Investment and Cost Calculation............................................................................ 123

9 INFRASTRUCTURE AND SURFACE FACILITIES ..................................... 125

9.1 General Remarks and Principles ............................................................................ 125

9.2 Social Facilities and Administration ...................................................................... 126

9.2.1 Mine Offices........................................................................................................... 126

9.2.2 Mine Control Centre............................................................................................... 129

9.2.3 Washrooms and Sanitary Facilities ........................................................................ 130

9.3 Supply and Disposal ............................................................................................... 131

9.3.1 Erection Yards........................................................................................................ 131

9.3.2 Road Construction.................................................................................................. 132

9.3.2.1 Plant roads .............................................................................................................. 132

9.3.2.2 Access Roads.......................................................................................................... 134

9.3.3 Fire Department...................................................................................................... 134

9.4 Workshops and Warehouses .................................................................................. 135

9.4.1 Principles................................................................................................................ 135

9.4.2 Workshops.............................................................................................................. 138

9.4.3 Warehouses ............................................................................................................ 143

9.4.4 Petrol Station .......................................................................................................... 147

9.5 Time Scheduling for Infrastructure Measures ........................................................ 149

9.6 Investment and Cost Calculation for Infrastructure ............................................... 149



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List of Figures

Fig.: 1.3-1 Lignite Demand Prognosis till 2024 17

Fig.: 1.3-2 Failure Scenarios to be examined 18

Fig.: 1.3-3 Iterative Process for Developing a Geotechnical Safe Opencast Mine 20

Fig.: 2.3-1 Location of existing Mine 24

Fig.: 2.4-1 Average and extreme monthly Temperatures 26

Fig.: 4.1-1 Map of the future Sibovc SW Mining Area 29

Fig.: 4.1-2 Stratigraphic Standard Profile of the Kosovo Basin (KEK 2003) 30

Fig.: 4.3-1 Topographical Map (including dumps) of the Sibovc SW Mining Area 36

Fig.: 4.3-2 Sibovc SW, Overburden Thickness 37

Fig.: 4.3-3 Sibovc SW, Depth Structure Map at Top of Seam 38

Fig.: 4.3-4 Sibovc SW, Depth Structure Map at Base of Seam 39

Fig.: 4.3-5 Sibovc SW, Seam Thickness 40

Fig.: 4.3-6 Cross Section A WSW – ENE 41

Fig.: 4.3-7 Cross Section B NNW – SSE 41

Fig.: 4.3-8 Coal Quality in Horizontal Sections 51

Fig.: 4.4-1 Smoke Marks at Samples of Exploration Drilling 2004 54

Fig.: 4.4-2 Example of Coal Fire in Old Mining Structures 55

Fig.: 4.4-3 Example of Coal Fire in Old Mining Structures 55

Fig.: 4.5-1 Planned 2-D Seismic Investigations 57

Fig.: 4.5-2 Location of the Planned Drillhole SW-1 59

Fig.: 4.5-3 Location of Planned Drillholes SW-2 und SW-5 59

Fig.: 4.5-4 Location of Planned Drillholes SW-3 und SW-9 60

Fig.: 4.5-5 Location of Planned Drillholes SW-4, SW-6, SW-7 and SW-8 60

Fig.: 5.1-1 Sliding Surface with Reduced Shearing Strength 63

Fig.: 5.1-2 Dump with Formation of Shearing Areas 63

Fig.: 5.1-3 Failure Scenarios to be Examined 64

Fig.: 5.2-1 Layout Plan Sibovc-SW Including the Cross Section Lines 68

Fig.: 5.2-2 Cross Section EAST 1 69

Fig.: 5.2-3 Calculation Model with Variable Dipping of the Sliding Surface 70

Fig.: 5.2-4 Static Stability Coefficient in Dependence from Dipping of Sliding Surface 70

Fig.: 5.2-5 General Inclinations for Coal and Overburden Cuts 71

Fig.: 5.2-6 Dump Slide and Resulting Slope Angle 72

Fig.: 5.2-7 Iterative Process for Developing a Geotechnical Safe Opencast Mine 74

Fig.: 6.4-1 Schematic BWE-Rehabilitation Milestone Plan 94

Fig.: 6.4-2 Linewise Refurbishment Activities for Main Equipment 95

Fig.: 7.2-1 Time Schedule for Power Supply and Control System 109

Fig.: 7.2-2 110/35 kV Power Substation “Sibovc” with 6 kV Distribution System 110

Fig.: 7.2-3 6 kV Power Supply – Coal Extraction 111



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Fig.: 7.2-4 6 kV Power Supply – Overburden Removal 112

Fig.: 8.3-1 Scheme Esch 10/70 122

Fig.: 9.2-1 Layout Drawing of New Mine Office 127

Fig.: 9.2-2 Mine Office Mirash 127

Fig.: 9.2-3 Mine Office Gate 01 128

Fig.: 9.2-4 Mine Office Bardh 128

Fig.: 9.2-5 Current Mine Control Centre of Mirash Mine 129

Fig.: 9.2-6 Mine Control Centre of Bardh Mine 129

Fig.: 9.2-7 Washroom and Sanitary Facility for 650 Workers 131

Fig.: 9.3-1 Mine Road in Mirash in Spring 2006 133

Fig.: 9.3-2 Building of the Fire Department 135

Fig.: 9.4-1 Survey Workshops and Warehouses 138

Fig.: 9.4-2 New Central Auxiliary Equipment Workshop Bardh 139

Fig.: 9.4-3 Mechanical Workshop Intervention 139

Fig.: 9.4-4 Electrical Workshop Intervention Bardh 140

Fig.: 9.4-5 Electrical Workshop Kosovomont 141

Fig.: 9.4-6 Layout Plan for Mechanical Workshop Kosovomont 1 141

Fig.: 9.4-7 Mechanical Workshop Kosovomont 1 142

Fig.: 9.4-8 Mechanical Workshop Kosovomont 2 142

Fig.: 9.4-9 Electrical and Mechanical Workshop 143

Fig.: 9.4-10 New Warehouse Mirash 144

Fig.: 9.4-11 Warehouse Idler and Vulcanisation 144

Fig.: 9.4-12 New Central Warehouse 145

Fig.: 9.4-13 Electrical Warehouse Bardh 146

Fig.: 9.4-14 Mechanical Warehouse Bardh 147

Fig.: 9.4-15 Petrol Station Mirash 147

Fig.: 9.4-16 Petrol Station Mirash 148

Fig.: 9.5-1 Time Schedule for Infrastructure Measures 149



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List of Tables

Tab.: 2.4-1 Intensity of Heavy Rainfall 25

Tab.: 2.4-1 Coal Demand 27

Tab.: 4.4-1 Coal Production of Old Underground Mines within the Area Investigated 52

Tab.: 4.5-1 Parameter to be Recorded 58

Tab.: 5.1-1 Calculation Methods for the Respective Form of Failure 65

Tab.: 5.1-2 Proposal for Necessary Safety Coefficients 66

Tab.: 5.2-1 Soil Mechanical Parameter 67

Tab.: 5.2-2 Slope Angles for Single Overburden Slopes 68

Tab.: 5.2-3 Results of Static Stability Calculations for the Cross Section EAST_1 69

Tab.: 6.2-1 Measures for Excavators 86

Tab.: 6.3-1 Measures for Main Excavators for Sibovc SW 91

Tab.: 6.5-1 Survey of Mine Equipment 96

Tab.: 6.5-2 Amount for Refurbishment and Investment 97

Tab.: 6.5-3 Yearwise Cost for Refurbishment and Investments in MEURO 97

Tab.: 6.5-4 Costs for E8B, E9B and E10B 98

Tab.: 6.5-5 Costs for E8M 98

Tab.: 6.5-6 Costs for E9M and E10M 99

Tab.: 6.5-7 Costs for Belt Wagons 99

Tab.: 6.5-8 Costs for Spreader 100

Tab.: 6.5-9 Costs for Stacker / Reclaimer TPP A 100

Tab.: 6.5-10 Costs for Stacker / Reclaimer TPP B 101

Tab.: 7.1-1 Planned Requirements of Technological Systems 102

Tab.: 7.1-2 Required Installed Capacity 104

Tab.: 7.3-1 Investments for Power Supply 113

Tab.: 8.2-1 Number of Auxiliary Equipment 115

Tab.: 8.2-2 Number of Auxiliary Equipment up to 2012 117

Tab.: 8.2-3 Annual Purchase of Auxiliary Equipment up to 2016 119

Tab.: 8.2-4 Annual Purchase of Auxiliary Equipment up to 2025 120

Tab.: 8.3-1 Technical Data of Esch 10/70 121

Tab.: 8.4-1 Investments and Reinvestments for Auxiliary Equipment 123

Tab.: 8.4-2 Yearwise Investments for Auxiliary Equipment in MEURO 123

Tab.: 9.2-1 Capacity of Change Rooms and Sanitary Facilities 130

Tab.: 9.3-1 Road Construction 132

Tab.: 9.4-1 Further Use of Buildings for Mine Sibovc SW 138

Tab.: 9.6-1 Investment Calculation for Infrastructural Measures 150



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List of Annexes

I / 4 – 1 Depth Structure Map: Top Lignite Seam 1 : 10 000

I / 4 – 2 Depth Structure Map: Base Lignite Seam 1 : 10 000

I / 4 – 3 Overburden Thickness 1 : 10 000

I / 4 – 4 Overburden-to-Coal Ratio 1 : 10 000

I / 4 – 5 Seam Thickness 1 : 10 000

I / 4 – 6 Overburden-to-Coal Ratio and Seam Thickness 1 : 10 000

I / 4 – 7 Top Lignite Seam: Structural Dip 1 : 10 000

I / 4 – 8 Geological Cross Section S1 & S2 1 : 10 000

1 : 2 500

I / 4 – 9 Lignite Fm.- Total Sulphur 1 : 10 000

I / 4 – 10 Lignite Fm.- Low Calorific Value 1 : 10 000

I / 4 – 11 Lignite Fm.- Ash Content 1 : 10 000

I / 4 – 12 Sibovc SW Cross Section WE-01 1 : 10 000






I / 4 – 18 Sibovc SW Cross Section NS-01 1 : 10 000








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List of Abbreviations

a year

bcm/h bank cubic meter per hour

BWE bucket wheel excavator

GCV gross calorific value

GWh gigawatt-hours

kf hydraulic conductivity

km kilometre

km² square kilometres

kt thousand tonnes

kV kilovolt

kW kilowatt

l/min liter per minute

m meter

m² square meter

m³ cubic meter

mbcm million bank cubic meters

mcm million cubic meters

mlcm million loose cubic meters

mm millimeter

mMSL meter above main sea level

mt million tonnes

m/min meters per minute

m³/min cubic meter per minute

m/s meters per second

NCV net calorific value

OCM open cast mine

TPP thermal power plant

`000 bcm thousand bank cubic meters

`000 lcm thousand loose cubic meters



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1 Summary (Part I)

1.1 Objective The Complementary Mining Plan for New Sibovc South West Mine consists of the following

reports:

- Part I Basic Investigations

- Part II Technical Planning

- Part III Environmental Impact Study

- Part IV Economic and Financial Analysis

The existing coal mines Bardh and Mirash, west of Pristina, will be exhausted by 2011. Thus

the overall objective of the project is providing a plan for the supply of the necessary fuel to

the existing power plants in Kosovo until the end of their lifetime.

The specific objectives of this contract are the elaboration of a detailed mine plan on the

development of the new mine in the Sibovc South West Lignite Field.

The objective of the plan is:

- to define the technical measures and the timeframe to be followed to open-up the new

mine and develop it up to the scheduled capacity of about 9 million tons per annum;

- to guide the focus on the necessary investments and operating costs;

- to include the necessary measures and information for licensing applications.

Other than the Main Mining Plan for New Sibovc Mine (max. 24 m t coal out per year) the

Complementary Mining Plan for the Sibovc South West Lignite Field focuses on the fuel

supply to the existing TPP assuming a coal demand of 9 mt/a and a limited availability of

financial resources.

The plan covers the period from 2007 to 2024 when all existing power capacities assumed to

reach the end of their service life.

Subsequently the total accumulated coal demand from the Sibovc South West Lignite Field

comes to 123 million tonnes, what is approximately 15% of the entire mineable lignite

reserves in the Sibovc Lignite Field. The remaining lignite reserves of the entire Sibovc

Lignite Field could be a source to feed new power plant capacities expected to be built in

Kosovo.

The Complementary Mining Plan has been coordinated with the existing “Mid term Mining

Plan for the existing mines”.

The Mid Term Plan provides the stepwise implementation of regular operation conditions, the

achievement of geotechnical and public safety and therefore the transfer of mines to an

economic efficient operation.

The purpose of the Complementary Mine Plan is to show the measures to be undertaken and

the timeframe for these measures to open up the new mine in time to replace the running out

production capacity of the existing mines.

The plan is showing the required investment and effective cost of lignite supply.



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The investment requirements to open-up the Sibovc South-West mine are 236 MEURO until

2012, when full supply capacity will be reached.

The real average cost of lignite supply amount to 7.50-8.00 EURO/ton of raw coal, depending

on the cost of capital investment.

Special attention has been focused on the required resettlement and land acquisition.

The plan also ensures that the mine operations are in full compliance with the relevant legal

and technical regulations, i.e. mining law, environmental law, spatial planning and

expropriation regulations and laws.

1.2 Tasks and Outputs of the Project

1.2.1 Part I: Basic Investigations The basis for the new mining plan for the Sibovc South West mine is the previous study

‘Main Mining Plan for Sibovc mine’. Using this as the basis, the consultants checked,

evaluated, updated and presented all necessary facts (geo-technical, geological, hydro-

geological and hydrological data, infrastructure, existing end necessary new equipment) for

the Sibovc South West mine.

According to ToR this plan was based on a demand forecast prepared by the Ministry of

Energy and Mines in accordance with the Kosovo Energy Strategy.

The consultant updated the existing computerised geological model based on additional

exploration drillings conducted by KEK and prepared a plan for further exploration to be

realised by KEK, defined the slope design based on soil-mechanic calculation.

To ensure the planned performance of the equipment and subsequently output of the mine it

will be necessary to undertake a complex refurbishment of lignite and overburden equipment

incl. excavators, conveyor lines and spreaders. This approach represents a new quality against

the partly repair of machines realised so far.

A refurbishment/replacement programme for the existing main mining equipment as well as

auxiliary equipment has been prepared including a realistic assessment of the timing of the

required investments.

As an important output of the project the plan provides the basis for the application for, and

issuing of exploitation licence for the new mine.

The outputs are the findings of this analysis, including the updated geological model, plan for

further exploitation; definition of slope design; and updated investment plan in main and

auxiliary equipment.

1.2.2 Part II: Technical Planning The consultants prepared detailed mine development plans/annexes, including all necessary

calculations, for the first five years of operation and mine phase documentation for the end of

each year, continuing with next five years periods (end of periods) up to 2024.

The outputs of this task are the detailed mine development plans as set out above.



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There have been prepared an updated expropriation plan which provides both a timed and cost

plan for the required measures for land acquisition and resettlement into mine planning.

A short description of the main output of part II follows:

1.2.2.1 Mine Development

The following main topics for the mine development have been considered:

- Opening-up of the Sibovc SW OCM shall be made from the northern rim slope system

of the existing opencast mine. The existing inside dump of P3B shall be taken into

account.

- A coal pillar shall remain between the existing Bardh mine and the new Sibovc mine

field in order to stabilize the masses of the inside dump of the Bardh opencast mine.

- The overburden masses will preferably be dumped in the mined-out area of the

existing OCM in order to stabilize the slope south of Hade and to establish final dump

surfaces as soon as possible.

- The mined-out bottom in Sibovc SW shall be covered by dumps and as far as possible

also the final coal rim slope systems in order to prevent coal fires.

- During the opening-up phase the overburden will be transported via the western rim

slope system. After disassembling the equipment in the existing opencast mines there

will be established a belt connection via the eastern rim slope system. This helps to

reduce the transport distance and the quickest possible establishment of a stabilising

body south of Hade.

- The residual pit of Mirash-Brand remains as reserved area for the disposal of

municipal waste.

- It is envisaged to flush the power plant residues from TPP B in the residual pit of

Mirash-East.

Due to late start of the mine development a rather high capacity will be required right at the

beginning of works.

The performance required can be performed only with rehabilitated equipment. After

rehabilitation the capacity for overburden (BWE) complexes shall be 3.6-5.4 million cubic

meters per annum each.

The first two BWE - Systems will have to be commissioned in 2008.

Some overburden removal works will be required using truck & shovel operation. This

service should be contracted with third parties.

It must be noticed, that the development of the new Sibovc SW mine is directly linked to the

advance of the existing mine and therefore to the realisation of the Mid Term Plan.

1.2.2.2 Dewatering

Drainage of surface water via the active bench of the Sibovc SW mine shall be excluded

except residual rainwater quantities. It is suggested to install a dewatering system in the valley

from which the collected surface water is pumped into the higher located channel(s) by means



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of sewage pumps. According to the OCM advance the dewatering shall be shifted several

times to the North.

Drainage ditches shall be installed on all working levels and along the access roads.

1.2.2.3 Manpower

The following table gives a survey on the staffing requirements:

Year 2007 2008 2009 2010 2011 2012

Existing mines per 01.01. 3500 3000 2100 1300 900 350

- Fluctuation / Redundancy 490 415 300 100 470 260

Staff transfer 10 485 500 300 80 40

Sibovc SW per 31.12. 15 500 1000 1300 1380 1420

Staff for the new mine will be employed mainly from redundant staff of the existing mines.

1.2.3 Environmental Impact Study The mining activities will have a large 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

Complementary Mining Plan resulting in the location of “D-field”, east of the river Sitnica, to

be an equally favourable alternative to supply the existing power plants from the

environmental point of view. Among the other alternatives a development of the “Sibovc

field” from the south to the north ranked second best.

Subject of the Complementary Mining Plan is the excavation of overburden and lignite,

developing from the existing opencast mines to the north. Mining activities will start from the

existing mines using already exploited areas for dumping the overburden material.

The anticipated environmental effects concern, first of all, the removal of soil resulting in a

loss of surface area and living space. With this extension an enlarged void will be visible,

compared to the existing mines. As the backfill of already exploited areas goes on parallel in

time, it will be possible to return recovered areas to agricultural use in a landscape with

changed appearance. Surface waters to be affected are mainly small and of non perennial flow.

The rivers Sitnica and Drenica will not be directly affected, as clayey sediments with

sufficient thickness protect them from the mine. Indirect effects can result from the outlet of

mine drainage water with enlarged contents of Chloride and Sulphate as well as suspended

solids. 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. Dust emissions as well as noise emissions will

shift from the current to the future working points with an equal or, based on used

technologies, even minor extend of emissions.

The 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 experts’ opinions, pertinent documents or other information,



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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 stay one of the most important employers of the region with up to 1,500 employees. Upon

completion of backfilling areas farmable land can be returned to the inhabitants, which

mitigates the effects of required resettlements.

Resettlement will be needed as a consequence of the development of the mine. Approximately

870 persons representing some 109 households will have to be moved in the years 2007 to

2024. Resettlement refers to single houses and small settlements and it will not be needed to

resettle significant villages.

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.

1.2.4 Part IV: Economic and Financial Analysis The consultants prepared an economic and financial analysis with a detailed cash flow

forecast, a financial analysis of the cost benefit of the proposed investment with IRR/ NPV

calculations, and a time planning for the investment programme.

The output of this task is a detailed, based on annual calculations economic and financial

analysis and appraisal of the Sibovc South West mine plan.

The calculations have been made in accordance with IFRS.

The main results of the profitability calculation are as follows:

The calculated real average cost (RAC) comes to 7.5-8.0 EURO/t.

The economic analysis also considered that in 2024 a fully functioning opencast mine will be

available. This allowed calculation with coal prices of 7.00 EURO/t to 7.50 EURO/t.

Totally four variants were assumed containing different coal prices, different escalation and

different interest rate on borrowings.

All variants until 2011 require about 80 MEURO equity capital and ca. 200 MEURO outside

capital.

Assuming a coal price of 7.00 EURO/ton the dividend earned until 2024 will amount to at

least 137 MEURO which can be distributed to the shareholders.

The sum of the annual payments for the production of coal is smaller than 5.0 EURO per

tonne coal. This applies from 2012, the first year of full production.

It will be possible to produce coal with favourable terms and profits of 20 % on the employed

equity capital can be earned.

The cash flow analysis demonstrates that the chosen mine development will be generally

profitable even with the short operation time period of only 15 years.



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1.3 Results under Part I - Basic Investigations

1.3.1 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 to be produced by the existing power plants in

Kosovo.

In the coming years an increase is expected up to about 9 mt beginning in 2010.

This is under the assumption that in the Kosovo A power plant will be refurbished at least two

units as foreseen in the Kosovo A refurbishment feasibility study and incorporated in the KEK

Financial Recovery Plan.

To meet the Kosovo electricity demand it is foreseen to operate two units in Kosovo A and

two units in Kosovo B on a regular basis.

The following principles / assumptions have been made:

- Generating electricity from Sibovc SW pursues the goal to meet domestic needs

mainly.

- After depletion of the existing mines the new Sibovc SW mine supplies the existing

power plants Kosovo A and B. The coal supply from the new mine has to start in

2010.

- The life time for Kosovo B is about 40 years, which means end of operation in

2023/24.

- Hence the life time of Sibovc SW will be defined from 2008 to 2024, which means 17

years. Preparatory work will be required in 2007.

- Three of five units of Kosovo A (200/210 MW) started production between 1970 and

1975. These units do not fulfil normal technical standards. Opinions to refurbish these

units (capital refurbishment or major overhaul) differ a lot. However it is assumed that

the coal supply to Kosovo A will last for the time being (amounting to 2.5 – 4.7 mt). In

case Kosovo A will be out of operation before 2020/24 the new mine will deliver the

coal to the TTP replacing Kosovo A. At least the fuel supply is calculated with 9 mt in

total for Sibovc SW.

- It is assumed that the investment needed for opening-up the new mine will be made

available timely.



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0

1

2

3

4

5

6

7

8

9

10

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Lig

nit

e D

em

an

d [

mt/

a]

Sibovc SW

Existing Mines

Fig.: 1.3-1 Lignite Demand Prognosis till 2024

1.3.2 Geology The geological evaluation and interpretation was conducted for an area of some 10 km². It

encompasses the southern part of the Sibovc Field.

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. Simplified the coal bearing sediments can be subdivided from the base to the top

as follows: Green clay, Lignite Formation, Grey and yellow clay.

Towards the West the lignite deposition is tectonically bound by a series of predominantly

NNW-SSE striking faults. The eastern limit is characterized by sedimentological pinch-out.

A geological survey has to be ensured during the current mining activities. Therefore

continuous drilling operations in the front of the excavation line have to be accomplished,

whereby all cores must be described (cm-scale), photographed and sampled. The parameters

which have to be examined are coal quality, geotechnical characteristics. Furthermore the

borehole has to be observed recording groundwater level and any signs of coal fires.

The Western border of the Sibovc SW mine requires special attention due to the complicated

fault structure. The Sibovc SW area has an average elevation above sea level of 609 m,

reaching from 497m to 666m. The slope of these hills show angles from 10 to 4 degrees

generally declined from south-eastern to south-western direction.

The coal seam thickness is in average 59.5 m (maximum 93.1 m).

The heating value ranges from 5,850 to 10,300 kJ/kg, whereas the geological average amounts

to 8,830 kJ/kg (calculated to 45% water content). Considering a possible content of

interburden and a partly higher water content the calorific value on the stockpile is estimated

at 7,500 kJ/kg.



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The overburden thickness varies from 50 to 125m with lowest values nearby the northern

border of the existing mines.

Generally there is no reliable information about the exact extension and locations of the old

underground mining. Actual structures of the old underground mining are situated mostly in

the south-eastern part of the Sibovc field. Some of the old galleries have been already cut in

the Mirash mine and the pillar area.

Higher risk areas for coal fires will be the long excavation front at the Northern Bardh Mirash

slope and areas affected by illegal (private) coal excavation. Actually the northern slope is not

affected by coal fires as predicted. There are no larger zones showing burnt coal with resulting

large cavities, only some core samples of the new exploration drillings showed some smoke

marks indicating limited coal fires.

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 running mining

activities. Adequate extinguishing technologies have to be selected under consideration of the

local geotechnical conditions. The extended use of water in most cases may cause landslides.

Further geological exploration has to be done considering the special geological and

topographical conditions.

1.3.3 Soil-mechanics The soil-mechanical investigations are of estimating character because of the lack of

information regarding geology, hydrology and the low state of knowledge about the soil-

physical parameter of the geological layers. If further information from a regional and

operational geological exploration will be available the soil-mechanical considerations shall

be revised and intensified. Further exploration stages are urgently required for a

geotechnically safe operational management. This especially applies to the sporadically

occurring interburden in the massive coal seam and the voids in the advancing opencast mine

operation resulting form old mining activities and/or possible uncontrolled coal fires.

Depending on the known marginal conditions (geology, hydrology, soil-physical parameter,

technology) to be integrated in the soil-mechanical model, failure scenarios have been

developed.

green clay

gray clay

coal seam

operating floor

yellow clayVG: Released sliding surface

KZP: circular sliding surface

KZP

VG

KZP

VG

green clay

gray clay

coal seam

operating floor



KZP

VG

KZP

VG

green clay

gray clay

coal seam

operating floor



KZP

VG

KZP

VG

Fig.: 1.3-2 Failure Scenarios to be examined



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To guarantee both a safe and economic opencast mine operation the following safety

coefficients have been considered:

Si

Single Slope ≥ 1.05

Advancing slope

systems ≥ 1.20

Head slope systems ≥ 1.20

Objects to be protected ≥ 1.30

According to the present state of knowledge the following general inclinations shall be kept

for the bank slope systems to be planned:

For advancing slope systems the general inclinations shall not exceed 22° for coal and 10° for

overburden slope system.

Slope angles 6 to 8° are recommended for head slopes due to longer lifetimes. Temporary

greening is recommended to counteract erosions in the area of the head slopes. If necessary,

use of geo-textiles has to be checked.

For the dump slope systems, slopes angles 6 to 8° resulting from the residual shearing strength

shall be taken into consideration when planning the dump geometry.

The clay material contained in the overburden tends to strong plastic behaviour under addition

of water and resulting from this to a reduced stability. For this reason dewatering measures

have to be carried out on a regular basis.

A summary of measures required for a safe geotechnical OCM management have been given:

- A continuously updated geological model approved by the responsible geologist must

be available for the OCM;

- The hydrological situation shall be documented and continuously updated

- The OCM position shall be identified in a layout plan in regular periods.

- At least three representative geological profiles right angled to the benches shall be

conducted where the achieved mining positions shall be registered in regular periods.

- Position and course of the head slopes shall be planned forward-looking with at least

one advancing cross section of the respective head slope.

- The lines of all cross sections shall be illustrated in the layout plan.

- Statistically verified soil-physical parameters are required for the decisive geological

layers in the roof and bottom.

- The soil samples shall be analysed in by a recognized soil-physical laboratory.

- Soil-mechanical investigations of static stability for all slopes and slope systems shall

be principally carried out by qualified experts.

- The basics and results of the soil-mechanical investigations shall be documented. Any

changes of the marginal conditions due to geology, hydrology, technology or in case of

changed soil-physical parameters these investigations shall be revised.

- In cooperation with the mine management targets resulting from the static stability

calculations shall be used and definitely controlled during the running operation.



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- A geotechnical expert shall visit the opencast mines in regular periods. The visits shall

be documented in minutes.

- A control and monitoring schedule shall be worked out for the opencast mines.

The development of a geotechnically safe OCM technology shall be regarded at iterative

process:

Fig.: 1.3-3 Iterative Process for Developing a Geotechnical Safe Opencast Mine

1.3.4 Main Mining Equipment A detailed survey of the technical status of the main mine equipment and planned short-term

rehabilitation measures have been given.

Based on the survey and measures already completed or to be finalised in the next few years

the consultant prepared a plan of refurbishment measures of heavy equipment to be utilised in

the Sibovc SW field.

All excavators of the type BWE SchRs 650 and BWE SRs 1300 and three spreaders A2RsB-

5200 and A2RsB-4400 will be relocated to the Sibovc SW mine. Further on the refurbishment

shall include the related belt wagons as well belt conveyors.

The bucket wheel excavators SRs 470, SRs 400 and SRs 315 are hardly applicable as main

mine equipment for a long-term operation. The excavators E5M, E7M and E1B may be used

in sub benches regarding as floating machine.

Because of the output capacities of the heavy opencast mine machines, only conveyor lines

with 1,600 or 1,800 mm belt width will be used in the new mine.

A schematic rehabilitation milestone plan for an excavator of the size SRs 1300 have been

developed. A period of ca. 35 months will be required for one equipment line. The downtime

of the equipment for the implementation of the measures is ca. 9 months.



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Only a limited period of time will be available for the required refurbishment measures.

Otherwise more costly compensations will result due to a delayed commissioning of the main

equipment in the Sibovc field – provided that the planned coal output is ensured.

Based on the technical requirements for equipment rehabilitation a detailed investment

schedule is included.

1.3.5 Power Supply System and Electrical Equipment A detailed survey of the power supply requirements, measures to be undertaken and

investment requirements have been given.

1.3.6 Infrastructure 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.

The infrastructure investment for the new Sibovc South West mine includes:

- refurbishment of existing facilities of the Bardh mine and constructing of new

administrative buildings as well as new changing and washing rooms;

- refurbishment of the Kosovamont workshops and warehouses;

- construction of mine roads and a new public road in the north of the mine field.

The total investment is assessed to 21.2 MEURO.

1.3.7 Auxiliary Equipment The investments/reinvestments for auxiliary equipment amount to 60 MEURO until 2024.

About 24 MEURO are for initial investments, a sum of 34 MEURO for replacement

investments and about 2 MEURO for rehabilitation measures of heavy auxiliary equipment.



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2 Introduction

2.1 Background Kosovo has lignite reserves assessed at some 10 billion tons, concentrated in the Kosovo Coal

Basin. This coal deposit, especially the Sibovc deposit is regarded as one of the best

throughout Europe.

The geological context of Sibovc is characterised by an average stripping ratio 1.0 to 1.2 m³ of

overburden per 1 ton of lignite. The new mine Sibovc South West is a part of this favourable

lignite deposit. The first coal supply is expected in 2010.

Up to this time the existing mine (former Bardh and Mirash mine) supplies TPP Kosovo A

and Kosovo B.

Around 97% of the total generation capacity comes from these two coal-fired power plants,

while hydropower accounts for only 3%. KEK has established a Coal Production Division

(CPD) being responsible for coal production, transportation, separation and stocking activities

before the coal is eventually delivered to the power plants.

The existing mine has been in operation since 1963/64. This mine is located in the same field

in the central northern part of Kosovo Lignite Basin. The overburden and coal excavation is

carried out by continuous systems: Bucket Wheel Excavator – Belt Conveyors – Spreader and

Bucket Wheel Excavator – Belt Conveyors – Separation Plants – TPP. At the present time the

mine is actually capable of supplying the power plants within around 6 to 7 mt/a of coal.

In 2009 the lignite production in the existing mine begins to drop (at the projected rate of

consumption) and in the following year coal supply from the new mine should start.

The reason to head in northern direction with a new mine is because expansion of the existing

mine into the east is impeded by surface water issues. An expansion to the south is impeded

by an unfavourable overburden to coal ratio and large outside dumps from earlier mine

developments. Along the northeast side of the mine is the village Hade, which poses an

equally significant challenge to settle a significant resettlement. In order to maintain the

supply of coal to Kosovo A and Kosovo B power stations, KEK should develop the new mine

in a way of by-passing Hade.

This is the subject of the mining plan Sibovc SW.

2.2 Approach / Methodology According to the existing situation and pursuant to the TOR the project work has been mainly

focused on the following activities:

1) Assumption of the future coal demand

2) Revision of geological model including

- Analysis of available borehole and other exploration data

- Localization of cracks and geological faults,

- Calculation of minable reserves

3) Calculation of mining development and equipment application including



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- Mining development in opening-up phase (5 years) in annual steps,

- Further mining development up to 2025 in 5-year-steps,

- Application of the main equipment

- Calculation of auxiliary and ancillary processes

4) Revision of environmental investigations

5) Financial calculations

General Approach

The plan describes the measures to be undertaken and the timeframe for these measures.

Special focus has been given on investment and the required resettlement including land

acquisition to guarantee the operation of the new mine. The complementary mining plan is in

compliance with the relevant legal and technical regulations, i.e. mining law, environmental

law, spatial planning and expropriation regulations.

Approach for Mining

The Sibovc SW mining plan bases on related projects (financed by the European Agency for

Reconstruction), which are for instance the Mid term Mining Plan for the existing mines

(completed in April 2005) and the Main Mining Plan Sibovc (completed in the June/August

2005).

The Steag – Consortium has elaborated the CMP (complementary mining plan) for first 5

years (opening-up phase; 2008 -2012) on an annual basis and with an outlook covering the

entire mining field Sibovc SW.

Approach for Environment

The assessment of the environmental situation is based on available data base (data available

per February 2006) and is an update of the environmental assessment of the main mine plan.

The budget and time frame did not allow carrying out own environmental measurings since

only 15 man days were planned for the updating.

Thus further measures should be performed (organised by KEK / Ministry) in order to meet

European standards.

Approach for economic and financial Analysis

A complex finance mathematic consideration will be made resulting in the real average costs

per t of run of mine coal. The economic analysis will identify possible project risks regarding

the costs and achievable price. Where major variations are expected over the project life,

sensitivity tests will be applied.

The economic and financial analysis will reflect the proposed investment programme. It is

assumed for the mining plan that KEK will have access to the investment as required. This

assumption was approved during the Kick-off Meeting.



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Within the first years 236 m€ (real) will be required. The most important and crucial part of

the investment is the refurbishment of main mine equipment (MME), which amounts to 158

MEURO.

The consultant points out that without a timely refurbishment of the MME the fuel supply

from Sibovc to the existing TPP’s can not be provided as planned.

2.3 Geographical Overview 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.: 2.3-1 Location of existing Mine

Morphologically, the Kosova Coal Basin forms an extended valley where the differences in

elevation do not exceed 80m. Around the river Sitnica a central plane part stretches 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



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mountains in the West and Northwest. The surrounding mountains reach elevations from 900

to more than 1,600m.

The resources were discovered more than hundred years ago and the first small-scale

utilisation was started in the 1920’. According to more detailed 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 and at the

same time the mine Bardh has been opened. Coal exploitation from surface mines in the first

period mend that the overburden excavated had to be dumped out-side the excavation holes.

Hence, at least seven outside dumps were installed today surrounding the mines. In the

meantime both mines are merged to one big mine.

2.4 Climatic Data The Kosova basin is characterized by continental climate with rather 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.

Values for precipitation were collected from different sources. The Hydrometeorological

Institute of Kosova provided a study showing in the year 1999 the monthly average for a

period of 25 years (25 years average). The Institute also provided monthly values for the years

1979 to 1995 and 2002 to 2004. By adding values for the years 2001 and 2002 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. Maximum yearly precipitation is documented with 1,028

mm (Rudarski Institut; 1985). In the year 1995 precipitation was recorded with 1,010 mm.

For purpose of surface dewatering measures ESTAP Final Report (February 2002) found

statistical details for magnitudes of daily rainfall to be repeated at this place.

Return Period Intensity

Every two years 35.4 mm/day

Every four years 43.0 mm/day

Every ten years 52.8 mm/day

Every hundred years 74.6 mm/day

Source: INKOS

Tab.: 2.4-1 Intensity of Heavy Rainfall

Based on a 30 years duration maximum rainfall was chosen there with 60 mm in 24 h. Run-

off coefficients for this rainfall event were given for

- mining side: 0.6;



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- dumping side: 0.4;

- average in the mines: 0.45.

Complement but older information can be taken from the report “Kosovo B, Power Plant 1 &

2 Construction of Ash Disposal Project” (Energoinvest; 2004) repeating the “Report on

climatic conditions and parameters for the region that accommodates the Kosovo coal

deposit” (Hydrometeorological Institute of the Republic of Serbia; Belgrade; 1990)

Reviewing data from the Hydrometeorological Institute as well as older 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.

-10 °C

-5 °C

0 °C

5 °C

10 °C

15 °C

20 °C

25 °C

J F M A M J J A S O N Dmonth

tem

pe

ratu

re

average 1965 - 1990 maximum recordings 1979 - 1991 minimum recordings 1979 - 1991

data source: The Hydrometeorological Institute of Kosovo

Fig.: 2.4-1 Average and extreme monthly Temperatures

The wind is predominantly blowing from north and northeast with average velocity near

3 m/s. Rudarski Institut in the year 1985 gave an overview about wind velocities and

directions that are repeated in the figure below. The greatest wind velocity was recorded with

34.3 m/s blowing from the north.

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 the main part of

the accumulating surface water northwards. 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 1,000 m in the

flooding areas. On 3 May 1958 a maximum run-off for river Sitnica near to the mines was

measured with 90.30 m³/sec.



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3 Coal Demand A detailed output programme with the medium- and long-term fuel supply demand of the

different power plants was not available at project start. According to the decision made at the

Kick-off Meeting an assumption about the coal demand was agreed – amounting to 9 mt/a.

This coal demand was agreed between KEK, EAR, MEM and the Consultant. If this coal

demand would be changed the mining plan would need an alteration too. This could not be

done within the planned time schedule.

Nevertheless the mining plan will be adaptable (to a great deal without problems) in a range of

+10% of the envisaged coal demand.

Year Existing Mines Sibovc SW Total

2006 6.8 - 6.8

2007 7.2 - 7.2

2008 7.9 - 7.9

2009 7.8 - 7.8

2010 4.6 3.4 8.0

2011 3.0 6.0 9.0

2012 - 9.0 9.0

2013 - 9.0 9.0

2014 - 9.0 9.0

2015 - 9.0 9.0

2016 - 9.0 9.0

2017 - 9.0 9.0

2018 - 9.0 9.0

2019 - 9.0 9.0

2020 - 9.0 9.0

2021 - 9.0 9.0

2022 - 9.0 9.0

2023 - 9.0 9.0

2024 - 6.0 6.0

Total 37.3 123.4 160.7

Tab.: 2.4-1 Coal Demand



mainly.



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2010.


2023/24.





units (capital refurbishment or major overhaul) differ a lot.

However it is assumed that the coal supply to Kosovo A will last for the time being

(amounting to 2.5 – 4.7 mt). In case Kosovo A will be out of operation before 2020/24

the new mine will deliver the coal to the TTP replacing Kosovo A. At least the fuel

supply is calculated with 9 mt in total for Sibovc SW.


available timely.



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4 Geology

4.1 Introduction Geology The geological evaluation and interpretation was conducted for an area of some 10 km². It

encompasses the southern part of the mining concession areas of Sibovc Field.

Fig.: 4.1-1 Map of the future Sibovc SW Mining Area

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. Simplified the coal bearing sediments can be subdivided from the base to the top

as follows: Green clay, Lignite Formation, Grey and yellow clay.

Towards the West the lignite deposition is tectonically bound by a series of predominantly

NNW-SSE striking faults. The eastern limit is characterized by sedimentological pinch-out.



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Fig.: 4.1-2 Stratigraphic Standard Profile of the Kosovo Basin (KEK 2003)

The Pliocene sediments can generally be subdivided in coal productive/unproductive areas:

- Southern area unproductive

- Northern area unproductive

- Central area productive

The central area, the “Coal Kosovo Basin”, spreads over a surface of approximately 300 km².

Simplified, the succession can be subdivided as follows:



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- Bottom Series (green Clay)

- Coal Series (Lignite Formation)

- Top Series (grey Clay)

4.2 Assessment of Available Geological Data

4.2.1 Borehole Database The interpretation of the borehole data is basing on the work performed for the Bardh-Mirash

Mid Term Mining Plan and Sibovc Main Mine Plan.

A total of 443 boreholes are available for the Sibovc concession.

Analogue borehole data containing graphical lithological descriptions and tabular assay data

were made available by KEK. The volume of paper copies was checked against the borehole

inventory list. The data set was nearly complete. From the listed 454 boreholes 451 copies

were available.

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 analogue data set. For 223 boreholes no paper

copies were available.

After merging the digital and analogue 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.

4.2.2 Assessment Methodology All surface locations and elevations from the originally delivered digital borehole database

were checked against available paper copies since first random checks showed a relatively

high portion of typing errors.



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Typing errors defining the seam boundaries were detected by anomalies not explainable by

geological features during the mapping process and corrected.

4.2.3 Stratigraphic and Lithological Borehole Data 443 borehole data (lithological descriptions, assay data) were available for the area within

Sibovc Concession Area

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

At the southern border of the Sibovc field a new series of exploration drillings was started.

Three of these drillings are already finished. And the results will be included into the

geological model of the Sibovc SW mine

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 494.89 and

638.10 mMSL (meter above mean sea level) with an average at 548.57 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 93.08 m. The average is at 59.52 m.

4.3 Digital Geological Model

4.3.1 General Remarks to the Geological Model A detailed structural model has been generated for the Lignite Fm. It integrates all available

sources as surface observations and borehole data.

The borehole data are stored in an EXCEL file. 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. Available data from other geological modelling software (e.g.

Surpac) has been implemented.

All grids have a 20*20 m grid node increment. For the gridding processes all available

borehole data have been considered. The maps show an area of 10 km² that fall in the limits of

xmin=7499500, xmax=7503500, ymin=4722750 ymax= 4726500.

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

North-South elongation of the lignite basin. This algorithm has been tested as the best

available for modelling fault areas.

The isochore thickness has been generated by applying a radial basis function with 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.



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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 were generated from the SURFER structural grids.

The sections were 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.

4.3.2 Results / Description of the Geological Model Depth structure maps at Top and Base Lignite, a seam isochore map, overburden thickness

and overburden-to-coal ratio are shown in the next figures.

The structural dip at top lignite is low with overwhelming values below 5º. Steeper dipping is

indicated in Sibovc along two SW-NE alignments which are believed to represent erosion

channels. The erosion is also seen on the depth structure map at Top lignite and the isochore

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.



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The lignite pinch-out to the NE appears to be unconformable 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.

Relating to the slope of the new Sibovc SW mine the eastern slope is identical with the slope

at the Western border of the village of Hade.

Compared with the northern slope of the Bardh-Mirash Mine, fundamental differences have to

taken into consideration.

In contrast to the former planning, the mining field within the coal was enlarged into northern

direction. As the infrastructure was planned in the upper part of the slope just before the

northern extension was accomplished, actual roads and buildings are situated very close to the

slope. This includes the coal transport roads, a public road and a power transmission line.

Finally, a partial sliding of the northern slope could not be prevented. Deep cracks of the

sliding bodies were not refilled or draining measures were not taken. The sliding masses

which were accumulated as mud flows at the bottom of the slope had been excavated to

maintain the operability of the main belt conveyor. The mud flow and the following

excavation initiated a circular process with decreasing slop stability and a resulting

endangering of human settlings. Therefore a resettling program has been initialised.

The slope stability will be increased by a large dimensioned mass removal at the upper slope

which will be accomplished during the extension of the opencast mine.

In addition to the steep design of the slope the situation is aggravated due to faults with a

throw of some metres striking acute-angled into the slope. This disadvantageous fault

situation leads to a further decrease of the slope stability. The transsection of the overburden

due to these faults favours a profound humidity penetration, a reduction of soil stability and

finally leads to the sliding of slope fragments.

Supplementary destabilisation of the slope caused by remains of old underground mining in

the upper part of the seam creates a complex geotechnical situation. A sustainable and

sufficient stabilisation without refilling of excavated areas will be difficult

The future slope within the range of the Eastern slope of the new Sibovc SW mine shows

complete different initial conditions. The planning includes a graded slope system with

integrated drainage system installed during excavation of the overburden. The part of the

slope within the coal seam will be covered with clay after excavation; planting vegetation with

suitable plants will avoid small sidings, if the vegetation is accurately cultivated. A long term

planning and accompanying observation of theses measures will stabilise the slope. Actually

there are no indications that in the range of the future eastern slope remains of the old

underground mining will be found and unfavourable striking faults have not been detected.

The geological outcrops generally deliver sufficient information, but for detailed examinations

of mine divisions deficits can not be excluded.

Geotechnical information about the friction angle in the range of the planned slopes will be

acquired. The detailed succession of the overburden in the range of the slopes will be

examined.

The bottom of the seam still has not been examined to bring out reliable information. If water

bearing layers should appear it can be assumed that confined ground water appears. To assure

that no water intake occurs when cutting the bottom of the seam boreholes should penetrate

the bottom at least to a depth of 30m.



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A larger area should be included in this special survey, also comprising the Western border

areas, where due to facies changes detailed investigations seem to be important.

The geological survey has to be ensured during the current mining activities. Therefore

continuous drilling operations in the front of the excavation line have to accomplished,

whereby all cores must be described (cm-scale), photographed and sampled. The parameters

which have to be examined are coal quality, geotechnical characteristics. Furthermore the

borehole has to be observed recording groundwater level and any signs of coal fires.

Amongst the stratigraphic description also data like joint structures, their orientation and

especially the strata inclination have to be gathered.

During testing the reliability of borehole data has been detected, that within the dataset of

1,000 boreholes two boreholes were deepened at the same location at an interval of 1 year.

The results of these drillings showed data differences regarding the depth of geological limits

(e.g. top of seam, base of seam) with a variance of app. 20%. That means that the results of all

drillings should be regarded under consideration of a possible variation of 20%.

The 4 new drillings showed due to a refined description methodology, that within the seam a

layer of green clay occurs. This layer showed a thickness of appr. 3 m.

The depth of this layer corresponds to the layer which was used for fixing the base of the

seam. All neighboured boreholes have been stopped reaching the first occurrence of green

clay; that means, underneath the recorded first green clay the seam may continue.

Unfortunately all drillings were not deepened anymore reaching this erroneous base of the

seam. However it has to be stated that the coal underneath the first green clay in the first 2

new drillings show a very poor coal quality.

The samples for the NET-CV were gained selectively from corresponding cores. From

drillhole layers no samples were taken. The clay layers of the drillholes do not show any Net-

CV. Including them the interpretation would become more complex. But there is no

documentation available that during interpretation of the samples the clay layers have been

considered. Therefore nearby those old drilling a new drilling should be deepened on the

sampling and analysis is exactly recorded. Only basing on this method this new drilling can

serve as reference for a recalculation of all old boreholes.

The distance of 250 minimum between the drillings is too large for a reliable correlation

between the clay layers of the seam bottom. These layers are built up by clay lenses with

fluviatile origin. At the bed of a small river within the wood mud and clay was deposited.

Residues of the river beds are delivered as small mud filled channels, the horizontal extension

is not very large. These channels are typical for the environment where the coal seam was

formed. The coal seam shows a different distribution of the channels. In the lower part of the

seam they are very numerous, whilst in the upper part the channels are rare and disappear near

the top of the seam due to changing sedimentary conditions. In the Mirash opencast mine such

a clay lens was detected within the lowest coal cut in December 2005. The thickness was

about 0.5 m and the lateral extension about 50 m.

Additionally to the disquisition of the year plan a E-W striking 2 D line seismics investigation

seem to be advisable for an update of the border areas, the faults including the throws. These

methods would allow minimizing the information deficit concerning the structure of the coal

deposit.

The Western border of the Sibovc SW mine requires special attention. The clarification of the

structure can be based on drillings only, but would require a large amount of drillings for a

reliable interpretation.



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4.3.2.1 Surface

The Sibovc SW area has an average elevation above sea level of 609 m, reaching from 497m

to 666m. The surface area covers app. 10 km². The southern part of the exploration area,

where the initial excavation will take place, is developed as a small valley, bordered by hills

up to app. 660m. The slope of these hills show angles from 10-4 degrees declined from south-

eastern to south-western direction.

Fig.: 4.3-1 Topographical Map (including dumps) of the Sibovc SW Mining Area

4.3.2.2 Overburden (Including Outer Dumps)

The Overburden thickness varies from o to 0 to 125m. Nearby the northern border of the

existing mines the overburden shows the lowest values.



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Fig.: 4.3-2 Sibovc SW, Overburden Thickness

4.3.2.3 Coal (Including Coal Quality)

The distribution and structure of the seam is described in the next figures. The coal seam

shows a thickness over 70m in wide parts of the Sibovc SW Field.



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Fig.: 4.3-3 Sibovc SW, Depth Structure Map at Top of Seam



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Fig.: 4.3-4 Sibovc SW, Depth Structure Map at Base of Seam



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Fig.: 4.3-5 Sibovc SW, Seam Thickness

Fig.: 4.3-6 Cross Section A WSW – ENE

Fig.: 4.3-7 Cross Section B NNW – SSE



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The cross-sections show the topography including dumps (brown line), top of seam (green

line) and base of seam (blue line). The yellow line indicates the respective slope angles within

the seam (20°) and the overburden (6°) referring to an excavation front width of app. 700m at

the base of the seam level. The position of the sections is indicated in the figures before. The

yellow lines indicate only possible slope designs basing on recent information. The slope will

develop depending on actual mine planning and can differ from this model.

The following pages show horizontal sections (from block model) in the range of 430 to 610

mMSL.



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Fig.: 4.3-8 Coal Quality in Horizontal Sections



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4.4 Further Aspects Influencing the Sibovc SW Mine

4.4.1 Underground Mining Generally there is no reliable information about the exact extension and locations of the old

underground mining.

Actual structures of the old underground mining are situated in the south-eastern 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. Some of the old

galleries have been already cut in the Mirash mine and the pillar area.

It can be assumed, that remains could be found the Northern part of the New Sibovc SW mine

(north of the village of Sibovc) and that some galleries will be cut at the northern slope. Until

now indications of old underground mining structures have not been found.

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, 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 used galleries and reaches back to 1922

A wooden timber set support system was used for the stabilisation of the galleries with a

height of 2 m and width of 3 m. 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 west 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.

The dimension of the undermined area in has been calculated considering the results of Bardh

Mirash Mid Term Plan and Sibovc Mine Mining Plan. If further information is available, the

investigations concerning the extension of the old underground mining will be continued.

The underground mining was abandoned in 1922. The 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.

Area 1 Area 2 Area 3

“Kosovo” “Krusevac” “Sibovac”

Years 1922 – 1966 Years 1948 – 1966 Years 1952-1958

6,401,434 t 2,921,233 t 255,117 t

Tab.: 4.4-1 Coal Production of Old Underground Mines within the Area Investigated



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Partly the exploitation fields of the old underground mining were limited by faults.

Considering these production rates for the field “Kosovo” an area of app. 5 km² and 2 km² for

the field “Sibovc” can be calculated. These production rates from the field “Sibovc” show that

excavation was only done near the surface.

The largest distance between a shaft and the outermost galleries did not exceed 700 meters.

The Sibovc SW field is only partly overlapping with areas of the underground mining field or

older not documented mining fields.

4.4.2 Uncontrolled Coal Fires

4.4.2.1 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 early underground coal mining facilitate supplementary ventilation and

therefore best conditions for oxygen inflow are given. Burned out galleries result in large

cavities and therefore 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), faults 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 whole dump until they are burned out.

Higher risk areas which will be the long excavation front at the Northern Bardh Mirash slope

and areas affected by illegal (private) coal excavation. Actually the northern slope is not

affected by coal fires as predicted. There are no larger zones showing burnt coal with resulting

large cavities, only some core samples of the new exploration drillings showed some smoke

marks indicating limited coal fires.



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Fig.: 4.4-1 Smoke Marks at Samples of Exploration Drilling 2004



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Fig.: 4.4-2 Example of Coal Fire in Old Mining Structures

Fig.: 4.4-3 Example of Coal Fire in Old Mining Structures



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4.4.2.2 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 running mining

activities.

Adequate extinguishing technologies have to be selected under consideration of the local

geotechnical conditions. The extended use of water in most cases may cause landslides.

In the 2nd

half year of 2006 a project will be started by EAR for fire fighting in the Kosovo

Coal Mines. The results of this project shall, as far as the instructions will be carried out

strictly, achieve sustained success and lead to a reduction of coal fires.

4.4.2.3 Prevention of Coal Fires

Prevention of coal fires means to avoid contact of coal and oxygen. The main focus is on the

avoiding of oxygen entry into the underground corridors.

This can be done by means of:

- Protection of cut old galleries against ventilation.

- Inspections of collapsed old galleries near the surface or shafts if oxygen can penetrate

somewhere and where appropriate, refilling of openings.

- Minimising a permanent contact of the coal with atmospheric oxygen (e.g. covering or

sealing of slide faults

- Reducing the time of exposition of the excavation front.

4.5 Further Geological Exploration Required Further geological exploration has to be done considering the special geological and

topographical conditions.

The prospected excavation front will start along the Northern slope of the Bardh-Mirash

Mine. Accordingly the excavation front will cut the W-E lines of the coordinate system with a

possible angle of app. 25° degrees. For an accurate mine planning, a system of close sections

parallel northbound to the excavation front will be computed. These sections will show the

coal characteristics and surface properties including dumps. A sustainable investigation and

planning is important for accurately timed excavation of the overburden regarding the

different slope angles of overburden and coal. These conditions necessitate an anticipated

excavation of the overburden flattening the slopes to eliminate extensive load on the slope of

the coal seam. The topography with hills surrounding the future mining area and the resulting

inclination of the surface requires a thorough investigation of the geological and geotechnical

conditions.

The potential objectives of the exploration work are:

- Distribution of the seam

- Position of the seam with detailed exploration of top of seam and base of seam

- Coal quality distribution model



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- Hydrogeological aspects (problems with drainage and stability)

- Geotechnical aspects regarding the slope stability

Some zones require a special inspection and problem finding:

- Slope near Hade

- Slope stability inn the range of faults and dumps

- Slope of the excavation front

4.5.1 Methods of Further Geological Exploration Besides an exploration by drillings 2 D line seismics investigation seem to be advisable for an

update of the border areas, the faults including the throws. These methods would allow

minimizing the information deficit concerning the structure of the coal deposit, especially

along the Western boundary. The Western border of the Sibovc SW mine requires special

attention. The clarification of the structure can be based on drillings only, but would require a

large amount of drillings for a reliable interpretation.

Fig.: 4.5-1 Planned 2-D Seismic Investigations

4.5.2 Location for Urgently Required Drillholes (2006) All drillings are deepened for a survey of coal thickness and quality. Furthermore the

individual drillings will be examined with following methods:

- The drillhole SW-1 serves the investigation of the slide area and the coal fire situation



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- All drillings (except SW-1) serve the investigation of the faults

- SW-2, SW-5, SW-6 and SW-7 will de deepened to acquire information about

properties and condition of the dumps. In addition the structure and stratification shall

be examined in the range of faults

- Also the drillings SW-2 and SW-5 shall help to investigate the coal fire situation

- SW-9 will be drilled in selected area not affected by faults and will function as

reference profile for the adjustment of coal quality data.

- The geotechnical characterisation of the overburden is important in the drillholes in

the western border area of the Sibovc SW mine. This will be the location of the future

slope.

Besides the standard core sample record additional recorded parameters are listed in the table

below.

Drillhole Total depth

Within seam

bottom

Coal Quality

Water Level

Strata Dip

Geo-technical bottom

Grain Size overburden

Grain Size

Bottom

SW-1 180 m 40 m x x x x x x

SW-2 170 m 5 m x x x x x

SW-3 175 m 5 m x x x x x

SW-4 125 m 5 m x x x x x

SW-5 130 m 5 m x x x x x

SW-6 120 m 20 m x x x x x

SW-7 135 m 5 m x x x x x

SW-8 80 m 5 m x x x x x

SW-9 230 m 40 m x x x x x x

Tab.: 4.5-1 Parameter to be Recorded

It would be advantageous if for all drillings the drill progress would be recorded to identify

strata hardness and faults. The highlighted drillholes are to be understood as the minimum for

the first inspection of the future field.



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Fig.: 4.5-2 Location of the Planned Drillhole SW-1

Fig.: 4.5-3 Location of Planned Drillholes SW-2 und SW-5



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Fig.: 4.5-4 Location of Planned Drillholes SW-3 und SW-9

Fig.: 4.5-5 Location of Planned Drillholes SW-4, SW-6, SW-7 and SW-8



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5 Soil-mechanical Parameters

5.1 General Main task of the soil-mechanical activities within opencast operations comprises the

assessment of the static stability of the slopes and slope systems. Mining and dump slopes

must be distinguished. Whereas the mining slopes represent cuts into the naturally grown

subsoil, dump soils are produced from loose rock influenced by excavation-, transportation

and dumping processes. Another soil-mechanical aspect is the ensuring of bearing capacity of

working levels and transport routes.

The soil-mechanical assessment of the above mentioned problems is made on the basis of

soil-physical parameters by integrating geological, hydrological and technological boundary

conditions. Information regarding the following important aspects is therefore inevitable for a

reliable soil-mechanical work:

- Geological deposit conditions

- Hydrological conditions

- Technological boundary conditions

- Soil-physical properties of all layers contributing to the rock and dump set up

- Site-specific features.

5.1.1 Geology A stable and geotechnical safe management of an opencast mine requires detailed information

about the geological conditions of the deposit. It is necessary to develop and continuously

update a geological model describing the deposit. The information is illustrated suitably in

survey maps and characteristic sectional drawings as well as in describing reports.

Due to the advancing slope system geological profiles shall be continuously prepared and

updated according to the mine position. Further sections have to be prepared in advance due to

the planned head slope systems of the mine. An existing precise geological model allows to

react appropriately to possibly occurring special geological conditions by adjusting the

opencast mine technology.

Subjects of the exploration are thicknesses, location and dipping of the rock layers from the

surface level to the deeper lying bottom layers. Geological fault zones, slide zone to be

overexcavated or underground caverns from old mining activities and/or coal fires require an

increased exploration expense in any case.

5.1.2 Hydrology Parallel to the geological information hydrological condition shall be analysed, e.g. the

formation of aquifers or the discharge behaviour of rainfalls. The hydrological information

shall also be adjusted to the respective state of opencast mine development. Control and

monitoring of the hydrological situation requires a network of level gauges and flow



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measurements. The information is illustrated in form of hydrological maps.

The hydrological information are not only included in the soil-mechanical calculations for

static stability of the slopes but are also basis for a functioning drainage system in the

opencast mine and the direct vicinity.

5.1.3 Technology Slope angles and height are geometrical marginal conditions for the soil-mechanical

calculations of static stability. In principal the opencast mine technology must be adjusted to

the soil-mechanical requirements to ensure stable slopes and slope systems. Whereas

geological and hydrological conditions as well as the soil-physical parameter of the explored

layers are considered to be fixed marginal conditions, opencast mine technology has to be

optimised to enable a safe and at the same time economic opencast mine management.

5.1.4 Soil-mechanical Parameter The soil-physical parameter specific weight, angle of friction and cohesion are the most

important input parameter ort he soil-mechanical calculations. The parameters of potential

areas of weakness in the overburden structure are of special interest. Experiences show that

sliding surfaces may establish in cohesive soils due to stress release by excavation activities

and/or geological and tectonic processes. Their shearing strength is partly lower than 30 % of

the intact soil layers and is called residual shear strength. The residual shear strength is

determined in laboratory by means of a circular shear test apparatus in case of large sliding

amounts. The following picture illustrates the formation of a sliding surface with reduced

shearing strength.



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Fig.: 5.1-1 Sliding Surface with Reduced Shearing Strength

Special importance shall be attached to the properties of the dump material. Owing to

excavation-, transportation- and dumping processes the soil material in-situ is subject to

considerable. Therefore special examinations have to be carried out for the dump materials.

The following figure shows the shearing surfaces of slides in a dump massive.

Fig.: 5.1-2 Dump with Formation of Shearing Areas



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At present, the available data base for the planned Sibovc SW field does not contain any

verified soil-physical parameters. In view to a safe and efficient opencast mine management it

is urgently required to establish a soil-physical data base.

To carry out the static stability calculation within the framework of this study experiences

made in the fields of Mirash and Bardh are used due to the missing data base. It is expected to

have analogue marginal conditions owing to the close location to the partial fields.

The static stability calculations to be carried out base therefore on the soil-physical parameters

from the partial fields of Mirash und Bardh. The results can therefore be characterised as first

assessment and have to be revised if new information are available.

5.1.5 Soil-mechanical Calculation Methods Depending on the marginal conditions (geology, hydrology, soil-physical parameter,

technology) to be integrated in the soil-mechanical model, failure scenarios shall be

developed. Such scenarios could for example describe slope failures on circular cylindrical

test areas or slope failures due to sliding on an existing weak area. The form of failures on

circular cylindrical and existing, polygonal sliding surfaces are schematically illustrated in the

following figures. Further scenarios shall be derived and investigated in dependence of site-

specific characteristics, as for example demonstrated by fault zones or fracture formations.

green clay

gray clay

coal seam

operating floor



KZP

VG

KZP

VG

green clay

gray clay

coal seam

operating floor



KZP

VG

KZP

VG

green clay

gray clay

coal seam

operating floor



KZP

VG

KZP

VG

Fig.: 5.1-3 Failure Scenarios to be Examined

In accordance with the failure scenarios to be examined suitable calculation methods shall be

selected. Wide experiences made in more than 40 years of application of such calculation

methods are available in Germany and in particular in the Lusatian lignite mining area. The

calculation methods most commonly in use are shown in the following table including an

allocation to the respective failure.



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Calculation method Form of failure

BOROWICKA circular cylindrical sliding surfaces

BOROWICKA polygonal sliding surfaces

BLOCKVERFAHREN polygonal sliding surfaces

BISHOP circular cylindrical sliding surfaces

KREY/BRETH circular cylindrical sliding surfaces

Tab.: 5.1-1 Calculation Methods for the Respective Form of Failure

From the table is becomes clear that the calculation method according to BOROWICKA is

universally useable for the calculation of circular cylindrical as well as specific polygonal

sliding surfaces. Moreover, wide experiences are available so that it can be ensured that the

achieved results reflect the real conditions very well. For special tasks and for reasons of

comparison the following methods can be used: BLOCK METHOD, and the methods

according to BISHOP and KREY/BRETH.

5.1.6 Necessary Safety Coefficients In general the safety coefficient bases on the relationship of the powers/moments (depending

on the chosen calculation method) preventing or favouring the failure mechanism. If

preventing powers/moments are named with H and favouring with T the safety coefficient can

be characterized as follows:

Si = H / T

In case of a determined safety coefficient of Si = 1.0 the powers/moments preventing or

favouring the failure mechanism are in a balance.

The selection of the required safety coefficient Sierf. depends on the following influences:

- Knowledge/experiences,

- Economic consequences of failure (objects, equipment, personnel to be protected) and

- Lifetime of the examined slope.

Principally it has to be considered that the selection of the required safety coefficient is

decisively determined by the state of knowledge and the experiences regarding the geological

and hydrological situation as well as the soil-physical experiences. The level of the necessary

safety coefficient to be selected can be reduced with increasing knowledge. It has to be

verified if increased exploration extent can be justified by a safe and economic operation

result.

Furthermore, economic consequences which are always connected with an occurring failure

case shall also be taken into account whereby the required safety coefficient has to be raised

with increasing scope of potential damage.

The lifetime of the examined slopes must also be taken into consideration when selecting the

safety level to be maintained. In case of very short lifetimes, for example for the advancing

mining and dump slopes, the safety coefficients chosen can be lower than for head slopes with

a long lifetime.



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To guarantee both a geotechnically safe and economic opencast mine operation the safety

coefficients included in the following table are regarded necessary from the point of view of

soil-mechanics.

Sierf.

Single Slope ≥ 1.05

Partial slope systems ≥ 1.20

Entire slope systems ≥ 1.20

Objects to be protected ≥ 1.30

Tab.: 5.1-2 Proposal for Necessary Safety Coefficients

More information about the geological, hydrological marginal conditions and the soil-physical

parameters would allow a more differentiated consideration of the required safety coefficient.

5.2 Soil-mechanical Investigations – Mine Sibovc SW

5.2.1 General The following soil-mechanical investigations are of estimating character because of the lack

of information regarding geology, hydrology and the low state of knowledge about the soil-

physical parameter of the geological layers. If further information from a regional and

operational geological exploration will be available the soil-mechanical considerations shall

be revised and intensified. Further exploration stages are urgently required for a

geotechnically safe operational management. This especially applies to the sporadically

occurring interburden in the massive coal seam and the voids in the advancing opencast mine

operation resulting form old mining activities and/or possible uncontrolled coal fires.

5.2.2 Geology A detailed description of the geological extension of the partial field Sibovc SW was already

made in chapter 4 of this study. Therefore the explanations made in the available chapter are

only concentrating on important specific soil-mechanical issues.

The deposit Sibovc SW is in the central part of the Kosova Basin. The lignite seam has a

thickness of 70 m and is bedded within tertiary clay layers. Interburden in the seam is only

occurring sporadically. The overburden thickness varied between only a few meters and 125

m. The structure of the overburden can be differentiated from the surface level into the layers

yellow and/or grey clay. The layers of green clay are occurring in the bottom of the coal seam.

5.2.3 Hydrology Because bottom and roof horizons are exclusively made of clay layers there does not exist any

aquifer with soil-mechanical effects. The in-situ clay tends to strong plastic behaviour when

charged with water under so that soil-mechanical and technical as well as technological

problems may occur in case of long rainfall, heavy rainfalls or during thaw.



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5.2.4 Soil-mechanical Parameters As already mentioned earlier there are not available any safe statistical soil-mechanical

parameters for the planned Sibovc SW field.

Within the framework of this study there are used the experiences made with the Mirash and

Bardh fields for this reason. The neighbourhood of the partial fields promises analogue

marginal conditions so that the adaptation of the parameters is justified. In addition to the

available experiences laboratory test were carried out by GMB and KEK which results

verifying the previous parameter approach.

The following table documents the soil-physical parameters forming the basis for the

following calculations. The parameters of the weak zones at the margins between overburden

and/of bottom clay and coal seam are of relevance for soil-mechanics.

It shall be referred to that the in-situ cohesive materials show a behaviour strongly depending

on the water content so that the shearing strength may be reduced under extreme weather

conditions like for example heavy rainfalls or during thaw. The parameters included in the

following table shall be regarded as mean values for shearing strength.

Soil-physical Parameter

Geological Layers ϕ‘

[°]

c‘

[kN/m²]

γ

[kN/m³]

ϕR

[°]

cR

[kN/m²]

Gray and yellow Clay – Overburden 14.3 16.2 17.5 8.0 5.0

Coal Seam 40.0 50.0 12.2 - -

Green Clay - Floor Strata 14.0 16.0 17.5 8.0 5.0

Dump Material 14.0 10.0 17.5 - -

Tab.: 5.2-1 Soil Mechanical Parameter

5.2.5 Necessary Safety Coefficients The static stability investigations concentrate to principle examinations of static stability of

the advancing winning slopes in overburden operation, head slope systems as well as

information about the dump geometry. It is regarded necessary to maintain the following static

stability coefficients:

Single slopes in advancing system 1.05

Advancing slope system 1.20

Head slope system 1.20

Objects to be protected 1.30



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5.2.6 Investigations of Static Stability

5.2.6.1 Single Slopes

Single slopes in the advancing slope system are stable depending on the slope height with the

following slope angles.

Height of slope Slope angle Si

0 ≤ hBö ≤ 10 65° 1.05

10 ≤ hBö ≤ 15 40° 1.05

15 ≤ hBö ≤ 20 30° 1.05

Tab.: 5.2-2 Slope Angles for Single Overburden Slopes

Under certain circumstances it may be possible that greater slope heights and steeper slope

angles are stable. The static stability coefficient is then Si=1.0. In those cases persons and

equipment shall be protected by special measures. These exceptions shall only be valid for

temporary single slopes with short lifetimes.

5.2.6.2 Slope Systems

The following map gives a survey on the cross section lines being important for the static

stability of the head slope systems.

Fig.: 5.2-1 Layout Plan Sibovc-SW Including the Cross Section Lines



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The following shows an example for total slope system and partial overburden system in the

cut EAST_1.

Fig.: 5.2-2 Cross Section EAST 1

Calculation example Si

Sliding surface between overburden and coal,

consideration of the overburden slope system ≥ 1.30

Sliding surface between overburden and coal,

consideration of the overburden slope system with reduced

shearing strength

≥ 1.10

Sliding surface between coal and bottom clay,

consideration of the total slope system ≥ 1.30

Sliding surface between coal and bottom clay,

consideration of total slope system with reduced shearing

strength

≥ 1.30

Tab.: 5.2-3 Results of Static Stability Calculations for the Cross Section EAST_1

The above table illustrates that most of all the overburden slope system reacts sensitive to a

reduction of the strength. Due to the high shearing strengths of the local layers the total slope

system is stable even if reduced shearing strengths are assumed.

A hypothetical investigation is made to investigate the dependence of static stability from a

possible dipping of a predetermined sliding surface. Dipping of the sliding surface in the

overburden is assumed variably between 0 ≤ ε ≤ 5. The calculation model is schematically

illustrated in the following Figure.



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Fig.: 5.2-3 Calculation Model with Variable Dipping of the Sliding Surface

The following figure illustrates the dependency of the static stability coefficients from dipping

angle of the considered sliding surface between overburden and coal seam. Whereas the blue

curve bases on the proposed residual shearing strengths, the red curve was calculated on the

basis of the reduced parameters.

Fig.: 5.2-4 Static Stability Coefficient in Dependence from Dipping of Sliding Surface

The hypothetic example illustrates the necessity of a continuous regional and operational

exploration. Detailed geotechnical investigations are urgently required due to the non-linear

dependencies between static stability and dipping angle as well as the existing uncertainty in

view to the available parameters and object-related geological information.

According to the present state of knowledge the following general inclinations shall be kept

for the bank slope systems to be planned.



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Fig.: 5.2-5 General Inclinations for Coal and Overburden Cuts

Due to the longer lifetime the head slope system are subject to weather influences to a large

extent. Under certain circumstances this may lead to a reduction of the soil-physical

parameters. Depending on the objects to be protected in the influencing area of the head

slopes general inclinations between 6 und 8°are recommended for the overburden cut.

5.2.6.3 Dump Slopes

For dump slopes the following explanations shall be taken into consideration. By excavation

and following transport on belt conveyors up to the spreader the overburden masses undergo

changes of the soil-physical properties. Table 5.2-1 contains the changes of soil-physical

calculation parameters for the material to be dumped as against the natural overburden. Based

on these data the following can be concluded:

- During dumping a slope angle of approximately β ≈ 30° is yielded; with a dump height

of ca. 12 m the static stability coefficient is Si=1.0.

- This means that the dump slope is in limit equilibrium. Any further increase in height

leads to formation of shearing surfaces and therefore to fracture.

- Due to the residual strength slope angles between 6 and 8° result.

The figure illustrates the described occurrences during spreader operation. During practical

operation the results have to be taken into account for dump direction.



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Fig.: 5.2-6 Dump Slide and Resulting Slope Angle

5.2.7 Conclusion The following can be concluded from the above soil-mechanical investigations:

- Single slopes on the mining side are stable with the slope angles and slope heights

summarized in table 5.2-2. Steeper and higher single slopes are possible but are in a

limit equilibrium (Si=1.0) so that corresponding safety measures for persons ad

equipment are necessary.

- For the exemplary investigated head slope system EAST_1 (cut nearby Hade) it was

possible to verify the static stability both with the existing and a reduced parameter

approach.

- The variant calculation on the dependence of static stability from dipping angle of the

predetermined sliding surface demonstrates that object-related geotechnical

investigations are essential for a safe and economic opencast mine management.

Regional and operational explorations are bases for further detailed analyses.

- Resulting from the calculations for advancing winning slope systems the general

inclinations shall not exceed 22° for the coal- and 10° for the overburden slope system.

- Flatter slope angles (6 to 8°) are recommended for head slopes due to longer lifetimes

in the overburden slope system. Local steeper angles for example in case of low

overburden thicknesses shall be investigated in detail in the operative operation. To

avoid failure of single slopes they can be shaped later on by means of mobile

equipment.



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- The clay material contained in the overburden tends to strong plastic behaviour under

addition of water and resulting from this to a changed soil-mechanical behaviour

which is principally reflected in a reduced shearing strength. For this reason

dewatering measures to be carried out (producing and maintaining of drainage ditches,

inclined working levels) have to be addressed specially.

- Temporary greening is recommended to counteract erosions in the area of the head

slopes. If necessary, use of geo-textiles has to be checked.

- For the dump slope systems, slopes angles (6 to 8°) resulting from the residual

shearing strength shall be taken into consideration when planning the dump geometry.

- Furthermore specific geotechnical features like underground cavities resulting from

coal fires and past mining activities, formation of fissures in fault zones or sliding

masses have to be considered. In this connection the necessary regional and

operational exploration shall be addressed once more.

5.2.8 Measures for a Safe Opencast Mine Management Finally, the measures required for a safe geotechnical opencast mine management shall be

summarized again.

- A geological model approved by the responsible geologist must be available for the

opencast mine in form of maps, cross sections and reports. This model has to be

updated continuously.

- The hydrological situation (i. e. position and course of aquifers) shall be documented

and continuously updated analogue to the geological model

- The opencast mine position shall be identified in a layout plan in regular periods.

- Due to the advancing slope system at least three representative geological profiles

shall be conducted where the achieved mining positions shall be registered in regular

periods. These profiles shall be made right angled to the bench.

- Position and course of the head slopes shall be planned forward-looking. The planned

geometries have to be illustrated by at least one advancing cross section of the

respective head slope. The cross sections shall be made right-angled to the respective

head slope system.

- The lines of all cross sections shall be illustrated in the layout plan.

- Statistically verified soil-physical parameters are required for the decisive geological

layers in the roof and bottom. These parameters shall be continuously verified and if

necessary updated.

- The soil samples shall be analysed in by a recognized soil-physical laboratory. The

results shall be documented in written form.

- Soil-mechanical investigations of static stability for all slopes and slope systems shall

be principally carried out by qualified experts.

- The basics and results of the soil-mechanical investigations shall be documented. Any

changes of the marginal conditions due to geology, hydrology, technology or in case of

changed soil-physical parameters these investigations shall be revised.



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- In cooperation with the mine management targets resulting from the static stability

calculations shall be used and definitely controlled during the running operation.

Qualified personnel are required both for the theoretical soil-mechanical analyses as

well as for the geotechnical control during the running operation.

- A geotechnical expert shall visit the opencast mines in regular periods (at least twice

or three times per week, and in case of demand). The visits shall be documented in

minutes.

- A control and monitoring schedule shall be worked out for the opencast mines. This

document shall contain all specific operating points to be controlled and monitored

continuously. Kind of monitoring and the required reactions in case of variations from

the specific targets shall be documented.

The development of a geotechnically safe opencast mine technology with integration of

the natural marginal condition from geology, hydrology and soil-physics shall be regarded

at iterative process according to the scheme illustrated in the following

figure.

Fig.: 5.2-7 Iterative Process for Developing a Geotechnical Safe Opencast Mine



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6 Main Mining Equipment

6.1 Technical Status of Existing Equipment

6.1.1 Technical Status of Excavators

6.1.1.1 SRs 1300 and SchRs 650

a) Mechanical Part

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. Also the two-yearly safety

inspection of steel construction has not been done. Therefore some larger defects could

develop without knowledge.

For a medium- and/or long-term deployment, a complete inspection of steel construction and 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

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.

Also all discharge and charging chutes are not adapted at the typical bulk characteristics if the

excavator has to work in overburden areas.

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

under-carriage 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 implementation of a comprehensive mechanical reconstruction for medium- and/or

long-term further deployment, a substantial restriction of the equipment availability shall be

taken into account as well as substantially increased running costs for maintenance.



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b) Electrical Part

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 and cable drums,

- Medium voltage systems „6kV AC“ with battery plant 110V DC,

- Logic control (relay- or PLC-Systems) and low voltage systems „230V/400V AC

“including lighting technology;

- Drive systems (400V AC-motors, travel- and slewing gear with rectifier DC),

- Limit switches, buttons, local-control-boxes,

- Cable and cable run and

- Cabins and electric houses

correspond to 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 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

a safe operation (monitoring in the excavator operator cabin).



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The cables and cable routes have been strongly worn due to environmental impacts (e.g.

ozone) and technical 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;

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.

6.1.1.2 SRs 470, SRs 400 and SRs 315

a) Mechanical Part


The main bearing structures of the devices are in an insufficient condition. There are

particularly serious damages at the steel structure at the main superstructure of the E2B. The

equipment is to be rehabilitated in a short-term or better taken out of operation and used for

spare parts. 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. Also the

two-yearly safety inspection of steel construction has not been done accordingly. Therefore

some larger unknown defects could develop. This safety inspection shall be realized before

the detailed plan of maintenance measures will be prepared.

Auxiliary structures


damages. These damages have no direct influence on the efficiency of the equipment, but they

involve dangers for the operating and service personnel.



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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 oil-

proof. 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 proper functioning. Side sealings and scrapers are

ineffective and/or missing. Also all discharge and charging chutes are not adapted to the

typical bulk characteristics if the excavator has to work in overburden areas. Due to the

critical state of the e-plants 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 hardly calculable and incur high running maintenance costs.

b) Electrical Part

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.

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 or SRs 400 as high performance mine equipment

but as excavators for sub benches and as floating machines.

6.1.2 Technical Status of Spreaders a) Mechanical Part


The main bearing structures 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 A2RsB 4400.



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Numerous bent diagonals, tears and large-area corrosion damages can be found at the A2RsB

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. Also the two-yearly safety inspection

of steel construction has not been done accordingly. Therefore some larger unknown defects

could develop. This safety inspection shall be made before the detailed plan of maintenance

measures will be prepared.

Auxiliary structures:





The central lubrication plants of the machines (especially of the spreaders A2RsB 4400) 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.

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 hardly calculable and incur high running maintenance costs.

b) Electrical Part

The electrical equipment has been in operation since the 1980ies.

It can be characterized as follows:



the standard DIN VDE 0100 are in no way given, e.g.:


snow).











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indicating safe operating and status condition (monitoring in the excavator operator cabin.

The cables and cable routes are in a similar insufficient status like those at the BWE’s.






Conclusion: For the further application in overburden operation in the Sibovc SW field the

spreaders P3B (A2RsB 4400), P4M and P3M (A2RsB 5200) has been selected.

6.1.3 Technical Status of Belt Conveyors and Drive Stations a) Mechanical Part

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. Also all discharge and charging

chutes have to be adapted at the typical bulk characteristics (green clay) to allow higher

loading capacity for conveying overburden.

Conveyor belts show considerable defects at the edges and a higher abrasion at the thickness

of the rubber protecting layers. Resulting from misalignment and low maintenance, 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 and the knowledge of an average lifetime of two

years for could vulcanised belt joints.

b) Electrical Part

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.



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the standard DIN VDE 0100 are in no way given e.g.:


snow).















indicating safe operating and status condition (monitoring in the excavator operator cabin.

The cables and cable routes are mostly in a bad technical status.






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.

6.1.4 Technical Status of Belt Wagons a) Mechanical Part

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



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- Twisted pin locks

- Rusty guy ropes

- 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:





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 hardly calculable and which incur high running

maintenance costs.

b) Electrical Part

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 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.

Conclusion: For the further application in the Sibovc SW field three belt wagons have been

selected, one of them only as stand-by machine. The use of the belt wagons is planned in

cooperation with the bucket wheel excavator types SRs 470 / 315 / 400. The main reason for



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this choice is the larger height of the discharge boom of the BRs 1200 compared to the BRs

1600.

6.1.5 Technical Status of Stacker / Reclaimer

6.1.5.1 Stockpile Separation Plant A

a) Mechanical Part

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. The main hydraulic equipment lifting the bucket wheel

boom is worn and without spare parts. This will have also an influence to the safety and

availability of the equipment in the future. 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 long-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 financed by EAR funds is planned at present.

b) Electrical Part

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 standard DIN VDE 0100 are in no way given e.g.:





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indicating safe operating and status condition (monitoring in the excavator operator cabin).






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 during 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)

6.1.5.2 Stockpile TPP B

a) Mechanical Part

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 received

a comparable basic mechanical repair including a complete corrosion protection in the year



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2005 like equipment A. For both devices a low reserve of building groups of mechanical

engineering is missing, so in cases of breakdown of assemblies downtimes have to be taken

into account also after 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

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 to 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 long-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 financed by EAR funds is planned at present.

b) Electrical Part:

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 has been 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 re-

placement 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.

6.2 Planned Short-term Rehabilitation Measures In this chapter the rehabilitation measures are described, which are planned for the main

equipment in the next few years in the existing mines. The implementation of these measures

has to be considered for the scope of refurbishment measures regarding the further application

in the Sibovc SW field.

6.2.1 Measures for Excavators The following rehabilitation measures have been finished respectively planned for the next

years. The measures of the complete refurbishment regarding the further application in the

Sibovc SW field have not been considered in the following table.



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Type Measures Year

E9M

SchRs 650

Replacement of hoisting ropes wheel boom

Change of ball bearing race and gear rim

Refurbishment of lubrication plants TG

Replacement of worn out assemblies

Done 2005

E10M

SchRs 650

Replacement of hoisting ropes wheel boom

Change of ball bearing race and gear rim

Refurbishment of lubrication plants FW


Plan 2006

E8M

SRs 1300

Complete electrical refurbishment

Complete mechanical overhaul including new

uniform bucket wheel drive unit


Planned

refurbishment

KfW Project

E9B

SRs 1300

Replacement of bucket wheel drive


Replacement/Renewal of the Main Control Cabin

and electrically drive for travel gear drive and

slewing drive (with converter)

Done in 2005

E10B

SRs 1300




and electrically drive for slewing drive (with

converter)

Plan 2006

E8B

SRs 1300




and electrically drive for slewing drive (with

converter)

Plan 2006

Tab.: 6.2-1 Measures for Excavators

The expenses for running maintenance per excavator up to a complete reconstruction amount

to average 0.380 MEURO per year.

Necessary Expenses for Required Rehabilitation of Electrical Equipment

A concept including the necessary demand for new technical equipment for the mentioned

bucket wheel excavators was planned by the engineering personnel taking into account safety-



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and cost-relevant aspects. The budget should be available for these measures within the mid-

term period. The selected electrical rehabilitation measures for the excavators represent

minimum requirements which are needed till the end of the operation.

Spare parts according to priorities for excavators of the type SRs 1300 comprise:




boxes)



- 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 MEURO

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


- Motors and thrustors

Necessary expenses: min. 0.40 MEURO

6.2.2 Measures for Spreader Mechanic

The spreaders can be operated until the planned shifting provided 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 P3B will be

refurbished in 2007.

The running maintenance expenses per spreader until a complete reconstruction come to

average 0.18 MEURO 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



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closure of the opencast mines it is 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).

The budget for the mid-term maintenance should be made available timely. Owing to the very

bad technical condition of the steel construction, mechanical engineering and electrical

equipment of this equipment class it is recommended 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 MEURO

- Low-voltage plant 0.09 MEURO

- High-voltage plant 0.10 MEURO

- Slewing and travelling gear 0.08 MEURO

Necessary Expenses [related to 5 years]: max. 0.32 MEURO.

6.2.3 Measures for Belt Conveyors and Drive Stations Mechanic:

In 2004, the drive stations D1 and TP1 were mechanically repaired within the framework of a

complete electrical reconstruction. Station T1 was 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 MEURO per year.

The refurbishment of a complete overburden line is planned for 2007 and includes three (3)

belt conveyors of total 3 kilometres length, three (3) drive stations belt width 1,600 mm, the

Excavator E10B and the Spreader P3B. The financing of 18 Million Euro will be done by

European Agency for Reconstruction (15 MEURO and KTA 3 MEURO).

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 recommended to carry out the necessary running

maintenance measures in order to ensure the demanded reliability. The following priorities

shall be made when planning the running maintenance:



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- 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 was planned for the mid-term period.

Necessary expenses [related to 5 years]: 0.60 MEURO.

The budget for the necessary expenses of the mentioned equipment including the mobile

transfer conveyor shall be applied for as follows:

- Outside facilities 0.08 MEURO

- Low-voltage plant 0.12 MEURO

- High-voltage plant 0.22 MEURO

- Slewing and travelling gear 0.20 MEURO

6.2.4 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 MEURO per

year.

Electric

A concept including the necessary demand for new technical equipment for the belt wagons

has been planned (please see Mid-Term Mining Plan).

The budget for the belt wagons shall amount to the following:

Necessary expenses [related to 5 years]: 0.13 MEURO.

6.2.5 Measures for Stacker / Reclaimer Till end of 2005 both of the Stacker/Reclaimer in Separation Plant B were rehabilitated. These

measures include a basic mechanical maintenance including a complete corrosion protection

and a complete electrical refurbishment. By means of these measures the equipment is in a

good mechanical and electrical condition.

For both of the Stacker/Reclaimer A and Stacker/Reclaimer B in Separation Plant A and B as

well as the belt conveyor system reserve assemblies for the mechanical and electrical



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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 expenses will amount to ca. 0.48 MEURO per year for Separation

Plant A and 0.35 MEURO 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 extent.

A concept including the necessary demand for new technical equipment for the

Stacker/Reclaimer shall be planned by the engineering personnel taking into account safety-

and cost-relevant aspects. The planning document is to be provided until June 2006. The

budget should be available before December 2007.

The scope of expenditures for the Stacker/Reclaimer shall comprise the following:




boxes)




- Motors

Necessary Expenses [related to 5 years]: 0.40 MEURO.

The scope of expenditures for the belt conveyor plants shall comprise the following:




boxes)




- Motors

Necessary Expenses [related to 5 years]: 0.80 MEURO.

A dust reduction system for all transfer points to be financed by EAR is present under

installation (year 2006). After decommissioning of Power Plant A in the future the dust

reduction system can be dismounted and installed then at other necessary transfer points.



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6.3 Planned Refurbishment Measures for Sibovc SW Field SRs 1300 and SchRs 650

All bucket wheel excavators of the size classes SRs 1300 and SchRs 650 can be taken into

consideration for a further operation in the 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).

Type Measures Year

E9M

SchRs 650

Complete corrosion protection;

Reconstruction bucket wheel head;

complete electrical reconstruction including crawler-mounted cable (reel);

Replacement of travel gear units;

Rehabilitation of steel construction, scraper- and sealing systems and belt

conveyor system;

I/2008

up to

IV/2008

E10M

SchRs 650




Replacement of travel gear units;

Rehabilitation of steel construction, scraper- and sealing systems and belt

conveyor system;

I/2009

up to

IV/2009

E8M

SRs 1300




Replacement ball bearing race and gear rim of excavators superstructure;

Rehabilitation of steel construction and scraper- and sealing systems and belt

conveyor system;

III/2007

up to

II/2008

E9B

SRs 1300





conveyor system;

III/2009

up to

II/2010

E10B

SRs 1300





conveyor system;

III/2007

up to

II/2008

E8B

SRs 1300

Complete corrosion protection



conveyor system

II/2011

up to

II/2012

Tab.: 6.3-1 Measures for Main Excavators for Sibovc SW

SRs 470 / 400 and SRs 315



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The bucket wheel excavators SRs 470, SRs 400 and SRs 315 are hardly applicable as main

mine equipment for a long-term operation. The two-yearly safety inspection of steel

construction has not been done accordingly. Therefore some larger unknown defects could

develop. This safety inspection shall be realized before the detailed plan of maintenance

measures will be prepared. 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 2012. The excavators E5M, E7M and E1B may be used in

sub benches regarding as floating machine.

Belt Wagon

Only three belt wagons of the type BRs 1200 are planned for operation in the Sibovc SW

field.

Belt Conveyor

Because of the output capacities of the heavy opencast mine machines, only lines with 1,600

or 1,800 mm belt width will be used in the new 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 as there are electrical equipment,

corrosion protection, steel construction, gears and drums and discharge chutes to adapt

these to the typical bulk characteristics (green clay) to allow higher loading capacity

for conveying overburden

- 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

- Complete electrical and mechanical reconstruction of the feeding hopper car;

- Complete electrical and mechanical reconstruction of the belt tripper car ;

Spreader

It is intended to use only three spreaders with a capacity of 4400 / 5200 lcm/h in the new

mine. The other spreaders can be scrapped. Before the spreaders are used in Sibovc, 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



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- Complete electrical reconstruction including crawler-mounted cable reel car

6.4 Time Schedule for Rehabilitation Measures The next figure illustrates a schematic rehabilitation milestone plan for an excavator of the

size SRs 1300. The decisive element when rehabilitating an equipment line is the excavator.

All other rehabilitations, i.e. spreader and belt conveyor system, can be realised in shorter

periods. As illustrated in the below figure a period of ca. 35 months will be required for one

equipment line starting from the KEK-budget-plan until to capacity operation of the

rehabilitated plant. The downtime of the equipment for the implementation of the measures is

ca. 9 months. The remaining time is needed for the preparatory measures (f. e. preparation of

technical specifications, tendering, contract negotiations and engineering).

The transfer from the existing opencast mine to the Sibovc SW mine is a complex technical

process which is mainly influenced by the following factors:

- Coal production in the existing mine has to be guaranteed according to the aims. Apart

from the coal production overburden operation has to be developed. It shall be

considered here, that not only exposure overburden has to be removed but also

overburden from the widening up of the rim slop systems (please see Mid Term Plan

for existing Coal Mines). These widening operations are urgently required for the safe

continuation of the opencast mine operation. A delay in time for these works and/or

failure in meeting the planned performance targets will automatically lead to delayed

release dates for the machines. A basic precondition for the envisaged performance

level of the main equipment within the mid term period is the provision of the

necessary investments for the required maintenance measures.

- To secure coal production from the Sibovc SW mine according to the time schedule

the selected equipment shall be put into operation in the new mine as soon as possible.

Here also, a delay directly affects the coal production. Before commissioning a

complex rehabilitation of the main equipment will become necessary to allow the

performance targets (partly more than 4 mbcm/a per line in the overburden operation).

This means that only a limited period of time will be available for the required refurbishment

measures. The following figure illustrates the rehabilitation schedule for the single lines. It

can be seen that the 35 month long total duration of the refurbishment process cannot be

ensured for all lines. In those cases time has to be shortened especially for the preparatory

processes.

Otherwise more costly compensations will result due to a delayed commissioning of the main

equipment in the Sibovc field – provided that the planned coal output is ensured.



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1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4

KEK Budget Plan

KEK or Donor Budget Approval

TOR Consultant

Tender Consultant

Contract Sign Consultant

Technical Specifications

Inviatation to Bid

Tender

Contract Sign Contractor

Engineering

Ordering of Material and Delivery

Decommissionning

Transport to Erection Yard, Cleaning

Repair of Steel Construction

Disassembly of electrical and mechanical Components

Corrosion Protection

Mechanical and electrical Installations

Functional Tests

Transport to Site of Operation

Performance Test

Commissionning

X + 2

9 month standstillregular Operation

X X + 1X - 1

Fig.: 6.4-1 Schematic BWE-Rehabilitation Milestone Plan



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E 10B + P3B + 1.6m Conv. T

E 9M + P 4M + 1.8m Conv. T

E 10M + P3M + 1.8m Conv. T

E 5M T

BRs 1200 T

E 8M T

E 9B + 1.6m Conv. T

E 8B + 1.6m Conv. T

E 7M T

BRs 1200 T

Terms of Reference Specification Tendering Engineering

Rehabilitation Corrosion Protection T Transport Commissionning

IVIV I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II III

2010 2011 2012

I II III IV I II III

2006 2007 2008 2009

Fig.: 6.4-2 Linewise Refurbishment Activities for Main Equipment



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6.5 Investment and Cost Calculation of Main Mine

Equipment The following table lists a survey of excavators, spreaders and conveyor belts which are

planned to operate in Sibovc SW.

Overburden Coal Stockpile Other/Res. Total

BWE 4 4 - 1 9

E10B SRs 1300 1 1

E10M SchRs 650 1 1

E9M SchRs 650 1 1

E5M SRs 470 1 1

E8M SRs1300 1 1

E9B SRs 1300 1 1

E8B SRs 1300 1 1

E7M SRs 400 1 1

E1B SRs 315 1 1

Belt Wagon 1 1 - 1 3

1st BRs 1200 1 1

2nd

BRs 1200 1 1

3rd

BRs 1200 1 1

Spreader 3 - - - 3

P3B A2RsB 4400 1 1

P3M A2RsB 5200 1 1

P4M A2RsB 5200 1 1

Stacker / Reclaimer - - 4 - 4

MK 1 (TUSLA) 1 1

MK 2 (TUSLA) 1 1

MK A (MAN TAKRAF) 1 1

MK B (MAN TAKRAF) 1 1

Belt Conveyor System 12 20 14 - 46

Drive Stations (up to 2012) 12 20 14 46

Belt Conveyor Lines [km] 14.3 18.9 4.5 37.7

Tab.: 6.5-1 Survey of Mine Equipment



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Investment

BWE 52.09

E10B SRs 1300 6.99

E10M SchRs 650 8.7

E9M SchRs 650 7.7

E5M SRs 470 3.5

E8M SRs1300 7.2

E9B SRs 1300 7.5

E8B SRs 1300 7.5

E7M SRs 400 3.0

E1B SRs 315 1)

Belt Wagon 3.0

1st BRs 1200 1.5

2nd

BRs 1200 1.5

3rd

BRs 1200 1)

Spreader 14.49

P3B A2RsB 4400 4.39

P3M A2RsB 5200 4.8

P4M A2RsB 5200 5.3

Stacker / Reclaimer 7.4

MK 1+2 (TUSLA) 4.7

MK A+B (MAN TAKRAF) 2.7

Belt Conveyor System 81.4

Drive Stations 41.04

Belt Conveyor Lines 40.36

Total 158.38

1) Standby machines: maintenance covered by opex

Tab.: 6.5-2 Amount for Refurbishment and Investment

The elaboration of technical specification is included in the prices above.

The table below presents the expenditures required for the new mine.

Year ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 SUM

Investment/Refurbish 0.6 28.62 45.47 47.8 11.91 16.19 7.79 158.3Refurbishment Plant

Drive Stations Belt Conveyor Lines

Tab.: 6.5-3 Yearwise Cost for Refurbishment and Investments in MEURO



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The subdivision of costs is described in the following tables.

No. Measure [MEURO]

1 Corrosion protection 0.750

2 Steel construction 0.700

3 Hoisting drive and disc brake (bucket wheel boom) 0.400

4 Belt conveyors (belts, gearboxes, drive-drums, side boards) 0.700

5 Drive units for travelling drives (6 pieces) 0.550

6 switch gears [MV; LV; transformer; battery plant] 0.450

7 PLC system and interlocking system 0.420

8 Variable frequency drives

8.1 all auxiliary drives with motors (> 11kW) 0.700

8.2 bucket wheel drive with motor 0.250

9 Main belt drives in conventionally technique with "dual principle" 0.100

10 Outdoor installation [lighting system; sensors; cable and run; button; ...] 0.400

11 Refurbishment the e-rooms or partly with new container 0.400

12 Operator cabin (2x) 0.080

13 Crawler-mounted cable drum [M+E] 0.450

14 Tripper car [M+E] 0.250

15 Miscellaneous 0.700

16 Technical specification 0.200

Total 7.5 * * E10B only 7.00 MEURO

Tab.: 6.5-4 Costs for E8B, E9B and E10B

No. Measure [MEURO]


2 Steel Construction 0.500

3 Hoisting drive and disc brake (bucket wheel boom) 0.350


5 New bucket wheel ring 0.190

6 Bucket wheel gearbox (inclusive motor) 1.030

7 Switch gears [MV; LV; transformer; battery plant] 0.410









14 Crawler-mounted cable drum [M+E] 0.400

15 Tripper car [M+E] 0.200


17 Technical Specification 0.2

Total 7.2

Tab.: 6.5-5 Costs for E8M



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No. Measure [MEURO]

1 New bucket wheel head 1.200





6 New bucket wheel 0.200










14 Bracket-type cable drum (reel) [complete M+E] 0.250

15 Tripper car [complete M+E] 0.250



Total 8.7 *

* E9M only 7.7 MEURO

Tab.: 6.5-6 Costs for E9M and E10M

No. Measure [MEURO]




4 Electrical System 0.140

5 Switch gear system [LV] 0.150

6 PLC system 0.100

7 Drive units conventionally technique 0.100



Total 1.5

Tab.: 6.5-7 Costs for Belt Wagons



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No. Measure [MEURO]

1 Complete corrosion protection 0.450

2 Steel construction refurbishment 0.300

3 Refurbishment of travelling gears 0.250

4 Overhaul of conveyor systems 0.650

5 Replacement of belt cleaner and sealing systems 0.200



8 Variable frequency drives: all auxiliary drives with motors (> 11kW) 0.550




12 Crawler-mounted cable drum (reel) [M+E] 0.400

13 Operator cabins (2x) 0.200


Total 5.3 *

* P3B only 4.39 MEURO and P3M only 4.8 MEURO

Tab.: 6.5-8 Costs for Spreader

No. Measure [MEURO]


2 Corrosion Protection 0.090

3 Travelling drives 0.100

4 Slewing drives 0.100

5 Lubrication and hydraulic system 0.090



8 Variable frequency drives: all auxiliary drives with motors (> 11kW) 0.200




12 Bracket-type cable drum (spiral) [complete m+e] (for 6kV and control cable) 0.100

13 Operator cabins (2x) 0.080



Total 2.35

Tab.: 6.5-9 Costs for Stacker / Reclaimer TPP A



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No. Measure [MEURO]

1 Complete electrical Reconstruction 0.550


3 Corrosion Protection 0.100

4 Travelling drives 0.150

5 Slewing drives 0.150

6 Lubrication and hydraulic system 0.100



Total 1.35

Tab.: 6.5-10 Costs for Stacker / Reclaimer TPP B



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7 Power Supply System and Electrical Equipment

7.1 Future Energy Demand 2007 2008 2009 2010 2011 2012 2013

Coal mt 0 0 0 3.40 6.00 9.00 9.00

Overburden by

Main Equipment mbcm 0 1.5 5.8 8.48 12.03 11.57 13.23

Number of

Excavators piece 0 2 5 7 7 9 9

Number of

Spreaders piece 0 2 3 3 3 3 3

Number of Drive

Stations piece 0

Tab.: 7.1-1 Planned Requirements of Technological Systems

The 110/35/6 kV Power Substation "Sibovc" shall guarantee a safe supply of electric energy

for the described mining concept for Sibovc SW.

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 SW opencast mine:

a) Overburden operation in three main overburden levels with the following equipment:

- 1 excavator SRs 1300

- 2 excavator SchRs 650


- 1 belt wagon BRs 1200

- 2 spreader A2Rs B 5200

- 1 spreader A2Rs B 4400

- 1 dragline 10/70

b) Coal operation in three main levels with the following equipment:

- 3 excavators SRs 1300


- 1 belt wagon BRs 1200

- 1 excavator SRs 315 as float machine



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c) Overburden belt conveyor system

- 3 Systems

d) Coal belt conveyor system (benches and long-distance conveyors)

- 3 Systems on benches including 2 inclined conveyors and 2 connecting conveyors

- 2 long distance conveyor to TPP A and B

e) Mine Office

- New Office Buildings

f) Workshop and Warehouse

- Substitution for necessary electrical power supply in the territory of Bardh Mine.



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The required installed power for the opencast mine systems are estimated as following:

Description Operating

Time

Installed Power

per Machine Number of

Equipment

Operating

Hours

Year kW

E7M SRs 470 2012 – 2024 1,200 1

E8B SRs 1300 2012 – 2024 2,690 1 5,000

E9B SRs 1300 2010 – 2024 2,690 1 5,000

E8M SRs 1300 2009 – 2024 2,770 1 5,000

E1B SRs 315 2010 - 2024 840 1 3,000

P4M A2Rs B-5200 2008 – 2024 1,600 1 5,000

P3B A2Rs B-4400 2008 – 2024 1,400 1 5,000

P3M A2Rs B-5200 2009 – 2024 1,600 1 5,000

E5M SRs 470 2009 – 2024 1,200 1 5,000

E9M SchRs 650 2008 – 2024 2,700 1 5,000

E10M SchRs 650 2009 – 2024 2,860 1 5,000

E10B SRs 1300 2008 – 2024 2,690 1 5,000

Belt Conveyor Systems [1800] 2008 – 2024 16,200 (1,800) 9 5,000

Belt Conveyor Systems [1600 ] 2008 – 2024 21,420 (1,260) 17 5,000

ESch 10/70 2009 – 2024 1,500 1 4,000

Mine Office 2008 – 2024 250 1 3,500

Workshop 2008 – 2024 500 1 6,000

Warehouse 2008 – 2024 200 1 4,000

Other 2010 – 2024 250 1 4,000

Tab.: 7.1-2 Required Installed Capacity

The long-term demand of installed electric energy is about 64 MW.



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7.2 Measures and Time Schedule Summarizing, the following measures for a 110/35/6 kV Power Substation are assumed:

The capital expenditures for the 110/35 kV Power Substation "Sibovc" [or "Palaj" or "Hade" -

possibly referred to] including the necessary demand for energy for the opencast mine system

"Sibovc" shall be planned, designed and erected including commissioning tests. The punctual

provision of the power substations (availability and reliability) will be of highest priority

during the investment activity for the new opencast mine system. The investment activity for

the power substation shall be organized in three phases as follows:

1. Phase [period 2007 / 2008]

Contents of the planning phase and tender description are:

- planning,

- technical specification and tendering,

- announcement,

- offer and evaluation phase and

- contractual agreement with contract signature till end of November 2007

The following main items should be considered during the planning and in the tender

description of the power substation:

1. Territorial arrangement and local development as:

- Location;

- Road connection;

- Public water supply;

- Drainage of rainwater;

- Drainage;

- Fire protection;

- Water protection;

- Noise protection

- Fencing of the area.

2. Industrial building

- Industrial building with a floorspace (ca): length of 24,000 mm;

width of 12,000 mm and

height of 4,200 mm.

- The industrial building shall contain



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6 kV switchgear room of (17x12) m,

control room of (6.5x 4.2) m,

anteroom and sanitary room of (6.5x2,1) m,

engineering room of (6.5x2.7) m,

battery room of (6.5x3) m.

- The windows should be arranged in a height of 2 m (above the wall).

- Complete equipment of the building with sanitary facilities and electrical equipment

3. Necessary electrical equipment for power substation:

3.1 110 kV outdoor switchgear

- 110 kV overhead line (powered from Power Plant B);

- Disposition of the outdoor switchgear with

* power switch’s,

* current and voltage transformer’s,

* disconnector,

* supporting insulators,

* over-voltage arresters.

- 110 kV Earth-Fault Current Compensation Plant

* 110 kV Earth-fault current quenching coil,

* neutral point plant.

3.2 35 kV outdoor switchgear

- Disposition of the outdoor switchgear with

* power switch’s,

* current and voltage transformer’s,

* disconnector,

* supporting insulators,

* over-voltage arresters.

- 35 kV Earth-Fault Current Compensation Plant


* neutral point plant.

3.3 6 kV indoor plant

* SF6-insulated,

* operator panel on switch panel,



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* interlocking function,

* secondary devices,

3.4 6 kV Earth-Fault Current Compensation Plant


* neutral point plant with disconnector, insulated support and cable;

3.5 110/35 kV, 35 MVA transformer (3), 35/6 kV, 14 MVAtTransformer (4),

35/6 kV, 10 MVA transformer (5) and 35/0,4 kV/ 1,2 kVAtTransformer (1)

3.6 Station Service Plant [internal consumption]

- 35/0,4 kV, 400 kVA transformer,

- 0,4 kV switchgear plant,

- 230V DC current plant,

- 230V DC switchgear plant,

- battery plant with inverter modules.

3.7 Lightning Protection System and Grounding

3.8 Power System Management, Control and Protection

3.9 Protecting Device and Measurement

3.10 Counting of Electrical Energy

- 110 kV registering

- 30 kV registering,

- 6 kV registering.

- central energy management

3.11 Cable and Lines

3.12 Supplementary Plants

- air conditioning system

- fire alarm system,

- lighting systems (outside and inside),



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- Telecommunication,

- Television monitoring.

2. Phase [period 2008 / 2009]

Engineering design and implementation phase containing the scope as follow:

A) Implementation of

- site development and earthworks including enclosure and building of roads,

- construction and building “power substation”,

B) Supply, Erection and Commissioning of Electrical Equipment

- 110 kV overhead line (1. Station),

- 110/35 kV transformer including with 110 kV outdoors plants (two stations),

- 35/6 kV transformer including with 35 kV outdoors plants (four stations),

- internal consumption plants,

- 6 kV switchgear systems,

C) Earthworks for 6 kV cable routes, supply of steel rack, 6 kV bench cable including 4 pieces

static cable reels.

3. Phase [period of time 2009/2011]

Completion of electrical equipment according to the technological development of the

opencast mine:

- 110/35 kV transformer including with 110 kV outdoors plants,

- 35/6 kV transformer including with 35 kV outdoors plants,

- 6 kV switch gear systems,

- 6 kV bench switch gears,

- 6 kV bench cable

- static cable reels



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Central Remote Control System

Coal Quality Management System

Power Supply System

Specification Tendering Engineering and Completion

2010 20112007 2008 2009

I II III IV I II III IV I II III IV I II III IV I II III IV

Fig.: 7.2-1 Time Schedule for Power Supply and Control System

An overview of the energy distribution system for the new mine Sibovc SW is shown in the

figure below:



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2x 110 kV

2x110/35kV, 35 MVA2x110/35kV, 35MVA

reserve

4x35/6kV, 14MVA 3x35/6kV, 10MVA35/6kV, 10 MVA

6kV Switchgear [in SF6-technique]

overburden

6kV outgoing feeder

6kV Switchgear [in SF6-technique]

coal extraction

6kV outgoing feeder

Internal consumption for

power substation

0,4 kV utgoing feeder for

mine office, warehouse,

workshop

3

switchgear room within

the building

1 2 1 2 3

Fig.: 7.2-2 110/35 kV Power Substation “Sibovc” with 6 kV Distribution System



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Fig.: 7.2-3 6 kV Power Supply – Coal Extraction



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Fig.: 7.2-4 6 kV Power Supply – Overburden Removal



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7.3 Investments for Power Supply System The below table shows the year-wise investment:

MEURO 2007 2008 2009 2010 2011 Total

Investments for

Power Supply 0.3 7.0 1.6 1.8 1.0 11.7

1.Phase, see

description above 0.3 0.3

2. Phase, see

description above 7.0 7.0

3. Phase, see

description above 1.6 1.8 1.0 4.4

Tab.: 7.3-1 Investments for Power Supply



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8 Auxiliary Equipment

8.1 Assessment of Technical Status in Existing Mine A complete auxiliary equipment fleet is available in the existing mine. 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 80’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 existing mine 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.

8.2 Demand of Auxiliary Equipment

8.2.1 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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Type Number of auxiliary Equipment

[ kW ] Overb. Coal Stockp Drain. Maint. total

Dozer 230 - 300 7 6 4 17 Pipelayer 180 2 2 4 Wheel Dozer 250 2 2 Wheel Loader 17t 180 2 2 2 6 Wheel Loader 120 1 1 2 Excavator Loader 3 3 Telescope Crane 90t 340 1 1 Telescope Crane 60t 270 1 1 Telescope Crane 45t 270 1 1 Telescope Crane 30t 200 1 2 3 Forklift 2t 2 2 Forklift 5t 2 2 Truck payload 12t, 3-axle 3 3 Truck with hydraulic crane 130 1 1 1 4 7 Truck with lifting Platform 130 2 2 Dump Truck 230 1 1 2 Cable reel Trailer 1 1 Low Bed Trailer 60t 1 1 2 Fuel Truck 180 1 1 2 Lubrication Truck 1 1 Tractor 200 1 1 2 Hydraulic Backhoe (crawler) 180 - 200 1 1 3 5 Hydraulic Backhoe (wheel) 1 1 2 Grader 160 2 2 Trench Cutter 2 2 Single Drum Roller 150 1 1 Jeep 100 3 3 2 2 7 17 Pick-up 75 2 2 1 1 9 15 Jeep 12 seats 100 1 1 2 Personnel Transporters (36

seats)

140 4 3 1 8 Minibus 1 1 2 Ambulance 2 2 Fire Fighting Truck 1 1 Drilling Machine 3 3 Workshop Container 1 1 Mobile Workshop 2 2 Mobile Lightings 0.5 3 3 6 Winding Support Drum 1 1 Vulcanisation Set 2 2 Diesel Generator 2 2 4 Water Truck 1 1 Spraying Galleries 4 4 Pumps 15 15

Tab.: 8.2-1 Number of Auxiliary Equipment



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The calculation of the auxiliary equipment fleet bases on the following:

Dozers 1 per working level in overburden, coal and dumping operation

4 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

1 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.

8.2.2 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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Type 2008 2009 2010 2011 2012

Coal Output [mt] 3.4 6.0 9.0

Overburden [mbcm] 2.56 6.40 9.09 12.24 11.88

Dozer 3 9 15 15 17

Pipelayer 1 2 4 4 4

Wheel Dozer 1 2 2 2

Wheel Loader 17t 1 3 5 5 6

Wheel Loader 0 1 2 2 2

Excavator Loader 1 2 3 3 3

Telescope Crane 90t 1 1 1


Telescope Crane 45t 1 1 1 1

Telescope Crane 30t 1 2 3 3 3

Forklift 2t 1 2 2 2

Forklift 5t 1 1 2 2 2

Truck payload 12t, 3-axle 1 2 3 3 3

Truck with hydraulic crane 1 4 6 6 7

Truck with lifting Platform 1 2 2 2

Dump Truck 1 1 2 2 2

Cable reel Trailer 1 1 1

Low Bed Trailer 1 1 1 1 2

Fuel Truck 1 1 2 2 2

Lubrication Truck 1 1 1 1 1

Tractor 1 1 2 2

Hydraulic Backhoe (crawler) 1 3 5 5 5

Hydraulic Backhoe (wheel) 1 1 2 2 2

Grader 1 1 2 2 2

Trench Cutter 1 1 2 2 2

Single Drum Roller 1 1 1

Jeep 3 9 15 15 17

Pick-up 3 8 13 13 15

Jeep (12 seats) 1 1 2 2 2 Personnel Transporters (36 seats) 2 4 7 7 8

Minibus 1 2 2 2

Ambulance 1 1 2 2 2

Fire Fighting Truck 1 1 1 1 1

Drilling Machine 1 2 3 3 3

Workshop Container 1 1 1 1

Mobile Workshop 1 1 2 2 2

Mobile Lightings 1 3 5 5 6

Winding Support Drum 1 1 1 1 1

Vulcanisation Set 1 1 2 2 2

Diesel Generator 1 2 4 4 4

Water Truck 1 1 1

Spraying Galleries 1 2 4 4 4

Pumps 10 12 13 13 15

Tab.: 8.2-2 Number of Auxiliary Equipment up to 2012

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



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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 3 Years

- Cars and Busses 6 Years

- Ancillary Equipment 6 Years

- Dozer, Wheel Loader, Trucks 6 Years

- Special Trucks, Drilling Machine 8 Years

- Backhoes, Grader 8 Years

- Temporarily used Equipment 10 – 20 Years

The following table illustrates 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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Type ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16

Dozer 3 6 6 2 3 6 6

Pipelayer 1 1 2

Wheel Dozer 1 1 1 1

Wheel Loader 17t 1 2 2 1 1 2 2

Wheel Loader 1 1 1 1

Excavator Loader 1 1 1 1

Telescope Crane 90t 1




Forklift 2t 1 1

Forklift 5t 1 1 1

Truck payload 12t, 3-axle 1 1 1 1 1 1

Truck with hydraulic crane 1 3 2 1 1

Truck with lifting Platform 1 1

Dump Truck 1 1 1 1

Cable reel Trailer 1

Low Bed Trailer 1 1

Fuel Truck 1 1

Lubrication Truck 1

Tractor 1 1

Hydraulic Backhoe (crawler) 1 2 2 1

Hydraulic Backhoe (wheel) 1 1 1

Grader 1 1 1

Trench Cutter 1 1

Single Drum Roller 1

Jeep 3 6 6 2 3 3 6

Pick-up 3 5 5 2 3 5 5

Jeep (12 seats) 1 1 1 1

Personnel Transporters 2 2 3 1 2 2 3

Minibus 1 1 1 1

Ambulance 1 1

Fire Fighting Truck 1

Drilling Machine 1 1 1 1

Workshop Container 1

Mobile Workshop 1 1

Mobile Lightings 1 2 2 1 1 2 2

Winding Support Drum 1

Vulcanisation Set 1 1 1 1

Diesel Generator 1 1 2 1 1 2

Water Truck 1

Spraying Galleries 1 1 2 1 1 2

Pumps 10 2 1 10 4 1 10 4 1

Tab.: 8.2-3 Annual Purchase of Auxiliary Equipment up to 2016



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Type 2017 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 ‘24

Dozer 2 3 6 6

Pipelayer 1 1 2 1

Wheel Dozer 1 1

Wheel Loader 17t 1 1 2 2

Wheel Loader 1 1

Excavator Loader 1 1

Telescope Crane 90t




Forklift 2t 1 1

Forklift 5t 1

Truck payload 12t, 3-axle 1 1 1

Truck with hydraulic crane 3 2 1

Truck with lifting Platform 1 1

Dump Truck 1 1

Cable reel Trailer 1

Low Bed Trailer 1

Fuel Truck 1 1

Lubrication Truck 1

Tractor 1

Hydraulic Backhoe (crawler) 2 2

Hydraulic Backhoe (wheel) 1

Grader 1

Trench Cutter 1 1

Single Drum Roller 1

Jeep 2 3 6 6

Pick-up 2 3 5 4

Jeep (12 seats) 1 1

Personnel Transporters 1 2 2 3

Minibus 1 1

Ambulance

Fire Fighting Truck

Drilling Machine 1 1

Workshop Container

Mobile Workshop 1

Mobile Lightings 1 1 2 2

Winding Support Drum

Vulcanisation Set 1 1

Diesel Generator 1 1 2

Water Truck

Spraying Galleries 1 1 1

Pumps 10 4 1 10 4 1 2

Tab.: 8.2-4 Annual Purchase of Auxiliary Equipment up to 2025



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8.3 Heavy Auxiliary Equipment for Sibovc SW Mine

8.3.1 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 mine. There it will

not be necessary to purchase new ones.

At present 6 draglines are in operation in the existing mine. Except one ESch 10/70 which

was technically overhauled, all draglines are in a bad repair. The overhauled ESch 10/70 has

been selected from technical reasons for a further use in the Sibovc SW Mine.

After 15 years of operation of the dragline in the Sibovc SW opencast mine it is planed to

scrap this machine.

Bucket Volume 10 m³

Boom Length 70 m

Max. Cutting Height

Max. Cutting Depth

34°

30°

26°

22°

17°

12°

35 m

30 m

25 m

20 m

15 m

10 m

Ground Pressure Operation

Transport

0.94 kp/cm²

1.49 kp/cm²

Service Weight 767 t

Installed Power 1,460 kW

Time per Pass 135° 54 s

Tab.: 8.3-1 Technical Data of Esch 10/70



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Fig.: 8.3-1 Scheme Esch 10/70

8.3.2 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 mine.

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 re-commissioning in the

Sibovc mine.

Replacement within the period under review is not taken into consideration due to the

discontinuous use of the transport crawler.

8.3.3 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.



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8.4 Investment and Cost Calculation Based on the average prices of the single auxiliary equipment types (price basis 2006) and the

annual number of machines, the investments were determined according to equipment type

and year. The investments/reinvestments for auxiliary equipment amount to 60 MEUR until

2024. About 24 MEUR are for initial investments, a sum of 34 MEUR for replacement

investments and about 2 MEURO for rehabilitation measures of heavy auxiliary equipment.

A slight reduction of the investments within the developing phase can be achieved by a further

use of selected auxiliary machines from the existing mine. At present it is assumed that the

auxiliary equipment in the existing mine will be worn out at the time of the decommissioning

and cannot be further used. A revision shall be made at a later date.

Type Investment Type Investment

Dozer 17.2 Grader 0.6

Pipelayer 4.7 Trench Cutter 1.0

Wheel Dozer 1.8 Single Drum Roller 0.2

Wheel Loader 17t 3.7 Jeep 1.7

Wheel Loader 1.3 Pick-up 1.4

Excavator Loader 0.6 Jeep 12 seats 0.2

Telescope Crane 90t 0.7 Personnel Transporters 3.0

Telescope Crane 60t 1.0 Minibus 0.2

Telescope Crane 45t 0.8 Ambulance 0.1

Telescope Crane 30t 1.9 Fire Fighting Truck 0.2

Forklift 2t 0.1 Drilling Machine 2.4

Forklift 5t 0.2 Workshop Container 0.1

Truck payload 12t, 3-axle 1.1 Mobile Workshop 0.6

Truck with hydraulic crane 1.8 Mobile Lightings 0.7

Truck with lifting Platform 0.7 Winding Support Drum 0.2

Dump Truck 1.4 Vulcanisation Set 0.3

Cable reel Trailer 0.2 Diesel Generator 0.3

Low Bed Trailer 0.5 Water Truck 0.1

Fuel Truck 0.6 Spraying Galleries 0.1

Lubrication Truck 0.4 Pumps 1.1

Tractor 0.6

Hydraulic Backhoe

(crawler)

1.5 Dragline ESch 10/70 1.5

Hydraulic Backhoe (wheel) 0.6 Reha Transport Crawler 0.4

Tab.: 8.4-1 Investments and Reinvestments for Auxiliary Equipment

Year ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16

Investments 5.9 7.0 9.6 0.3 1.6 0.2 3.7 4.6 5.3

Year ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 ‘24

Investments 2.4 5.0 2.6 3.4 4.1 3.8 - -

Tab.: 8.4-2 Yearwise Investments for Auxiliary Equipment in MEURO



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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 dragline - 0.9 kWh / bcm overburden

- Fuel and lubrication - 30 % of costs for energy in the mines

- Maintenance of auxiliary equipment - 4 ct / bcm (overburden and coal)



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9 Infrastructure and Surface Facilities

9.1 General Remarks and 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



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- 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

9.2 Social Facilities and Administration

9.2.1 Mine Offices To centralise the administration (future head office) there are required about 150 office

workplaces (planning departments like for example mine planning, geology, soil-mechanics,

hydrology, construction planning, mine surveying, accounting and procurement department as

well as other central departments).

Therefore, it is planned to build a new three-floor office building with an investment amount

of ca. 3.5 Mio. €, because the available administration buildings and/or barracks are located

decentral and partly are in a bad repair.

The new building shall be erected at the site of the daily facilities of Bardh.

The layout plan illustrated in the following picture is an example for an office building in

modular design (lifetime ca. 30 years).



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10,82 m

meeting room

reception

washroom

restroomssecretary

pool

canteen coffee shop

10,82 m

14

,18

m10,8

2 m

25,0

0 m

49,36 m

27,72 m

Mine Office

Fig.: 9.2-1 Layout Drawing of New Mine Office

The following office buildings were examined for possible uses by the Sibovc SW opencast

mine:

Office building in Mirash 60 employees (office space ca. 600 m²)

Office building in Bardh 55 employees (office space ca. 550 m²)

KEK Gate 01 85 employees (office space ca. 730 m²)

Total 200 employees

Due to their bad repair as well as their spatial distance to the facilities in Bardh, the buildings

of Gate 01 (light-weight timber construction, only partly solid) and Mirash are only applicable

for a transition period of ca 5 years.

Fig.: 9.2-2 Mine Office Mirash



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Fig.: 9.2-3 Mine Office Gate 01

Fig.: 9.2-4 Mine Office Bardh

The office building of Bardh was reconstructed and extended during the past years and is

presently in a very good repair. It comprises among others a canteen, a large-size meeting

room as well as toilets and washrooms.

This building is intended to be part of the administrative units of Sibovc SW.

The requires office workplaces (mean-level management) for the work preparation of the

production departments, workshops, stockyard and auxiliary equipment complexes are already

available in these complexes and the constructions are in a good repair.



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9.2.2 Mine Control Centre

Fig.: 9.2-5 Current Mine Control Centre of Mirash Mine

For the Mirash opencast mine a new control centre was erected in the past years which cannot

be used for the new opencast mine owing to its location.

Fig.: 9.2-6 Mine Control Centre of Bardh Mine

The operative control for the Bardh opencast mine is directly situated in the daily facilities of

Bardh at the slope and shows multiple settlement cracks. This little building is only applicable

for radiotelephony.

A new operation control centre with adequate equipment shall be erected for the Sibovc SW

opencast mine. This control centre shall be integrated in the new office building.



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A sum of ca. 150,000 € shall be planned for hard-and software.

9.2.3 Washrooms and Sanitary Facilities At present, wash and change rooms are attached decentralized to the respective operation unit.

Central washing facilities exist in the mechanical workshop at Kosovomont, in the Separation

plant as well as the daily facilities of the Bardh mine.

Washing facilities (as far as existing) are mostly integrated in the changing rooms and have

only cold water connection. Kosovomont and Separation plant have separate wash- and

changing rooms.

In 2006 a rehabilitation program is executed for the washing facilities. It comprises most of all

the procurement of new lockers and smaller repairs (sum of 230,000 €). The following

capacities base on the data of this program.

Location Designation Capacity Worker

Kosovomont Mechanical Workshop 480

Kosovomont Electrical Workshop 134

Separation Plant A Electrical and mechanical Workshop 140

Western slope Bardh SH.T.-12 380

Western slope Bardh Garage 384

CPD Gate I For Engineers 30

Mirash 600

Total 2.148

Tab.: 9.2-1 Capacity of Change Rooms and Sanitary Facilities

The two facilities in Bardh are below the daily facilities and have only changing places. The

barrack is in bad repair and not suitable for the new opencast mine.

The washing facilities in Kosovomont and Separation Plant with a total capacity of 754 places

can be used for the Sibovc SW after reconstruction still to be carried out.

The human resources concept for Sibovc SW demands approx. 1,350 wash room places for

the people directly involved in the production. With regard to the wash room places further

useable in Kosovomont and Separation Plant there is yielded a shortage of 600 wash- and

change room places for Sibovc SW.

The erection of a new facility in the daily facilities of Bardh for 600 places including a locker

room area will meet the required capacity.

The investment costs for such a facility amount to 1.8 Mio. €.

The following picture shows a wash- and change room facility for 650 employees:



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Fig.: 9.2-7 Washroom and Sanitary Facility for 650 Workers

9.3 Supply and Disposal

9.3.1 Erection Yards South of the daily facilities of Bardh a central erection yard with ca. 75,000 m² will be built or

Sibovc.

Operative erection yards shall be envisaged for big repairs with the following requirements:

- Horizontal area

- Effective size of the area: 100 m x 80 m

- Basement: 25.00 cm base gravel 0/56 mm

25.00 cm antifreeze layer 0/32 mm

- Ditch for installation: 0.5 m deep and 0.5 m wide

- Drainage ditch around the repair place with connection to a river or a collection basin

with pump

- Connection to access roads

- Connection to power and water supply

- Use of mobile cranes

The containers are equipped for the management personnel of the repair (responsible for

installation: contractor).

The new erection yard costs ca. 1.2 Mio. € including media connection.

An erection yard for a big repair costs ca. 100,000 €.



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9.3.2 Road Construction The relocation of public roads has been described in the chapter “Resettlements”. For the

different types of roads the following design and parameters of road construction have been

considered:

Designation Length of the road

[m]

Width of

the road

[m]

Planned

utilisation

[years]

Type of road

Excavator bench 3,000 4 <3 gravel

Dump bench

1,500 4 <3 gravel

Mine

operating

roads, each

on four

working

levels

Head conveyor 2,000 4 >3 asphalt with

passing places

Access

roads

Main accesses

intended for a

long-term use

each 5,000m in

2008, 2011, 2014,

2017

6 >3 asphalt

Municipal

roads

Connecting roads

between the

locations

Corresponding to

the dislocation of

locations

6 >3 asphalt

Tab.: 9.3-1 Road Construction

9.3.2.1 Plant roads

Parallel to the belt conveyor systems on the single working levels, construction of plant roads

4 m wide are planned as gravel roads. In case of a lifetime greater than 3 years these roads will

be furnished with 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.



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Fig.: 9.3-1 Mine Road in Mirash in Spring 2006

Therefore, the gravel roads in cohesive soils shall be constructed as follows:

10.00 cm gravel base 0/32 mm, sand washed

20.00 cm gravel base 0/56 mm


1 layer Geovlies-mats

60.00 cm Sum

A unit price of 12.00-16.00 €/m² shall be calculated for the cost determination of the gravel

roads. If a share of 50% of the gravel material can be recovered the unit price can amount to

12.00 €/ m².

The following system of plant roads will be required in the opencast mine (depending on

bench lengths):

- Excavator bench on 4 working levels, ca. 1.5 km long and 4 m wide (gravel)

- Dump bench on 4 working levels, ca. 1.1 km long and 4 m wide (gravel)

- Head conveyor belt 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 changing operating conditions about

ca. 15.6 km of gravel roads have to be built every year (until 2024).

The main access roads along the head conveyors are made of asphalt. At the beginning of

opencast mines operation a distance of about 6 km has to be constructed. During regular

operation these roads will be extended on each working level by 150 m (totally 0.5 km per

year).



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9.3.2.2 Access Roads

Roads and main accesses intended for long-term use (lifetime >3 years) are furnished with

asphalt with the following layers:

4.00 cm Bitumen cover 0/11 mm

4.00 cm Bitumen binder layer 0/16 mm

8.00 cm bituminous base 0/32 mm

20.00 cm gravel base 0/56 mm (compaction EV2 > 180 MN/m²)


1layer of Geovlies-mats

80.00 cm Total

Due to opposing traffic the roads shall be 6 m wide. To determine the costs a unit price of

70.00 €/m² is used (construction mainly with local contractors).

The main access road to the Sibovc opencast mine (asphalt) is built parallel to the coal belt

conveyor to the power plant – from the working level of the pit operation to the coal

distribution point of Kosovo A/B. It has a length of ca. 2.5 km and a width of 6 m and has to

overcome a height difference of ca. 20 m.

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.

9.3.3 Fire Department The building of the fire department in the south of the Separation Plant is in a good repair and

can also be used for the Sibovc SW opencast mine.

Until the beginning of the regular operation the mine surveying department will also have its

seat in this building.



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Fig.: 9.3-2 Building of the Fire Department

9.4 Workshops and Warehouses

9.4.1 Principles The mining company KEK owns a number of decentralized located main-and operating work-

shops and warehouses which can be used owing to the low distance to the new opencast mine

field of Sibovc

Currently the following infrastructure elements support the maintenance process.

Auxiliary equipment workshops (totally 5 sites):

- 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 under-

ground mine)

- Workshop and yard Kosovomont (Mirash Brand Field)

- Rubber tired vehicles yard (Mirash gate)

- Workshop separation plant

Main equipment workshops (totally 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



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- 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:

- 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

- 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 South-

western 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



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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 an

EDP-system 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.

Building Designation Departments of CPD KEK

Auxiliary Equipment

Workshop New central aux. Workshop M.S. "BARDHI"

Mechanical Workshop Intervention M.S. "BARDHI"

Electrical Workshop Intervention M.S. "BARDHI"

Electrical Workshop MAINTENANCE DEPARTMENT

"KOSOVAMONT"

Mechanical Workshop MAINTENANCE DEPARTMENT

"KOSOVAMONT"

Main Equipment

Workshops

Electrical & Mechanical Workshop SEPARATION DEPARTMENT

New Warehouse M.S. "MIRASHI"

Warehouse idler and vulcanization SEPARATION DEPARTMENT

Warehouse electrical Bardh M.S. "BARDHI"

Warehouse mechanical Bardh M.S. "BARDHI"

New central Warehouse MAINTENANCE DEPARTMENT

"KOSOVAMONT"

Warehouses

Warehouse for Workshops MAINTENANCE DEPARTMENT

"KOSOVAMONT"

Mine Control Centre M.S. "BARDHI" Mine Control Centre

Mine Control Centre M.S. "MIRASHI"

Office Building M.S. "MIRASHI"

Office Building M.S. "BARDHI"

Mine Offices

Mining Office KEK Gate 01



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Mechanical & Electrical Workshop

MAINTENANCE DEPARTMENT

"KOSOVAMONT"

Petrol Station M.S. "MIRASHI" Petrol Station /

Fuel Depot Petrol Station SEPARATION DEPARTMENT

Mechanical Workshop Intervention M.S. "BARDHI"

Electrical Workshop Intervention M.S. "BARDHI"

Mechanical Workshop MAINTENANCE DEPARTMENT

"KOSOVAMONT"

Washrooms and

Sanitary Facilities

Electrical and mechanical Workshop SEPARATION DEPARTMENT

Tab.: 9.4-1 Further Use of Buildings for Mine Sibovc SW

The planned sites of the workshop- and warehouse complexes are illustrated in the following

picture:

Fig.: 9.4-1 Survey Workshops and Warehouses

9.4.2 Workshops

New Central Auxiliary Equipment Workshop

The future new auxiliary equipment workshop is at the territory of the daily facilities of Bardh

Western slope. The massif hall with portal crane is a new building and will be completed in

2006. The workshop contains the required office space for the preparatory management as

well as areas for equipment and a warehouse for auxiliary equipment.



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Fig.: 9.4-2 New Central Auxiliary Equipment Workshop Bardh

Mechanical workshop intervention

The mechanical workshop intervention (South of Bardh village) is presently used as

mechanical workshop for the Bardh opencast mine and responsible for all mechanical repairs.

The workshop is among other equipped with lathes and drilling machines.

Fig.: 9.4-3 Mechanical Workshop Intervention



of 150

For a later use as workshop for the Sibovc SW mine 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. The maintenance of these

cranes is too expensive so that they can be scrapped.

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 floor is made of a wooden

pavement. The individual workshops are accessible form the central corridor. The building is

equipped with heating. The toilets were reconstructed in 2005. The building is in a good

repair.

Fig.: 9.4-4 Electrical Workshop Intervention Bardh

Electrical Workshop Kosovomont

The workshop complex Kosovomont is 3 km away from the opencast mine nearby the place

of Palaj. At present the village road is used as access to the Bardh and Mirash opencast mines.

The access road to the Sibovc SW mine shall be developed basically.

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 pipe-

lines from Kosovo B power plant were overhauled and/or refurbished



of 150

Fig.: 9.4-5 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.: 9.4-6 Layout Plan for Mechanical Workshop Kosovomont 1



of 150

Fig.: 9.4-7 Mechanical Workshop Kosovomont 1

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.: 9.4-8 Mechanical Workshop Kosovomont 2



of 150

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.

Electrical and mechanical Workshop Separation Plant

Fig.: 9.4-9 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

9.4.3 Warehouses

New Warehouse Mirash

The new warehouse at Mirash (area ca. 1,800 m²) is located in the area of the daily facilities of

Mirash at the road Hade-Obiliq. The outdoor facilities and a paved access road are included in

the plan of KEK for 2006.



of 150

Fig.: 9.4-10 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.: 9.4-11 Warehouse Idler and Vulcanisation



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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

partly roofed at present.

Completion of the building to be used for Sibovc SW shall be planned and realised. About 2

m€ have to be planned to complete the building.

Fig.: 9.4-12 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 work-

shop as well as on an open storage place.

The size of the paved storage space is regarded 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 ware-

house for protective clothing.

The required financial means for the maintenance of the building were already planned in the

Mid Term Plan.



of 150

Fig.: 9.4-13 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

ware-housemen.

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.



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Fig.: 9.4-14 Mechanical Warehouse Bardh

9.4.4 Petrol Station At present, there are two petrol stations in the Mirash opencast mine and in the Separation

Plant.

Fig.: 9.4-15 Petrol Station Mirash

The Mirash petrol station has three tap connections, the tanks having a content of (total

content 126,038 l):



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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

Fig.: 9.4-16 Petrol Station Mirash

Both of the petrol stations do not meet the environmental requirements (no oil separators,

missing tank pits) and will not be refurbished for Sibovc SW.

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 €.

The new petrol station shall have two pieces of tanks each with a content of 50,000 l for

Diesel fuel and petrol.

The investment appraisal contains: roof for petrol station, building, and foundation working

for site pavement, canalization with separation units, and automatic tank appliance with card

reader, telephone connection, power supply and lightning protection



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9.5 Time Scheduling for Infrastructure Measures

New Office Building with Mine Control Centre

New Central Warehouse Kosovomont

Mechanical Workshop Intervention

New Petrol Station and Fuel Depot

New Washroom and Sanitary Facility

Erection Yard Refurbishment

Road Mirash-Obiliq (Palaj)

Road Palaj-Kosovomont

Main Road Mine Sibovc

Specification Tendering Process Construction Commissionning

2009 2010

I II III IV I II III

2006 2007

IV I

2008

II III IV I II III IVIV I II III

Fig.: 9.5-1 Time Schedule for Infrastructure Measures

9.6 Investment and Cost Calculation for Infrastructure Infrastructure measures in connection with the relocation of the villages of Hade, Miren,

Shipitulla and Konxhul are already considered in the chapter Resettlement. This chapter

includes also new roads which will become necessary due to the resettlement.

The investment costs for the infrastructure of the new Sibovc opencast mine include

rehabilitation of the existing opencast mine facilities of the Bardh opencast mine as well as the

workshops and warehouses in Kosovomont.

The investment costs furthermore contain the planned new buildings for administration and

changing and washing facilities at the site of the Bardh daily facilities as well as the roads

necessary for operating the opencast mine.

The following table summarizes all investment costs for the period 2007 to 2012.



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Total 2007 2008 2009 2010 2011 2012 Infrastructure and Surface Facilities

[MEURO] [MEURO] [MEURO] [MEURO] [MEURO] [MEURO] [MEURO]

Mine Offices

New Office Building Bardh 3.500 0.365 2.010 1.125

Mine Control Centre Bardh (Hard- and Software) 0.200 0.050 0.150

Workshops and Warehouses

New Central Warehouse Kosovomont 2.000 0.150 1.000 0.800 0.050

Mechanical Workshop Intervention Bardh 0.550 0.200 0.350

Electrical Workshop Intervention Bardh 0.030 0.030

Mechanical Workshop Kosovomont 0.500 0.100 0.100 0.300

Electrical Workshop Kosovomont 0.030 0.030

Electrical and mechanical Workshop SP 0.050 0.050

New Petrol Station and Fuel Depot Bardh 0.250 0.250

Washrooms and Sanitary Facilities

New Washroom and Sanitary Facility Bardh 1.800 0.200 0.775 0.825

Total buildings 8.910 0.780 1.740 4.265 2.075 0.050

Roads and places

Area pavement daily facilities of Bardh 0.100 0.100

Erection Yards

Erection Yard Bardh Refurbishment 1.200 1.200

Assembly Yards for General Repair 0.500 0.100 0.100 0.100 0.100 0.100

Access Roads

Road Mirash-Obiliq (incl. village road Palaj)

1.5km*5.5m 0.580 0.290 0.290

Road connection to Kosovomont - 1.0km*5.5m 0.385 0.185 0.200

Main access to mine – 2.5km*6m 1.050 0.650 0.400

Mine operating roads (4 working levels)

Head conveyor – Asphalt, 6km 1.680 0.076 1.124 0.480

Extension of Head Conveyor – Asphalt, 0.45 km/a 0.378 0.126 0.126 0.126

Excavator and Dump Benches – Gravel, 15.6 km/a 3.745 0.749 0.749 0.749 0.749 0.749

Total roads + places 9.618 1.851 3.113 1.729 0.975 0.975 0.975

Total Infrastructure 18.528 2.631 4.853 5.994 3.050 1.025 0.975

Tab.: 9.6-1 Investment Calculation for Infrastructural Measures


PREPARATION OF A COMPLEMENTARY MINING PLAN

FOR THE SIBOVC SOUTH WEST LIGNITE MINE




Part II - Technical Planning

April, 2006


Part II Technical Planning


Page 2 of 171


Hans Jürgen Matern

Team Leader

Thomas Suhr


Stephan Peters


Helmar Laube






Page 3 of 171

Table of Contents

1 SUMMARY (PART II) .......................................................................................... 12

1.1 Objective .................................................................................................................. 12

1.2 Tasks and Outputs of the Project.............................................................................. 13

1.2.1 Part I: Basic Investigations ....................................................................................... 13

1.2.2 Part II: Technical Planning....................................................................................... 13

1.2.3 Part III: Environmental Impact Study....................................................................... 14


1.3 Results under Part II – Technical Planning .............................................................. 15

1.3.1 Mining Technology and Mine Development ........................................................... 15

1.3.2 Dewatering ............................................................................................................... 19

1.3.3 Mine Closure and Recultivation Planning ............................................................... 20

1.3.4 Resettlement and Relocation.................................................................................... 21

1.3.5 Manpower................................................................................................................. 22

2 INTRODUCTION.................................................................................................. 23

2.1 Background .............................................................................................................. 23

2.2 Approach / Methodology.......................................................................................... 23

3 COAL DEMAND ................................................................................................... 26

4 MINING TECHNOLOGY OF THE SIBOVC SW MINE................................. 28

4.1 General Remarks / Preconditions ............................................................................. 28

4.2 Technological Equipment Parameter ....................................................................... 29

4.3 Capability / Capacity Calculation for MME ............................................................ 32

4.3.1 Capability of Excavators .......................................................................................... 32

4.3.1.1 Load Factor – Expression of the hourly Capacity .................................................... 34

4.3.1.2 Time Factor .............................................................................................................. 37

4.3.1.3 Capability of Excavators .......................................................................................... 39

4.3.2 Capability of Belt Conveyors ................................................................................... 41

4.3.2.1 Overburden Belt Conveyor System.......................................................................... 42

4.3.2.2 Coal Belt Conveyor System ..................................................................................... 43

4.3.2.3 Dependencies and Conclusions ................................................................................ 43

4.3.3 Capability of Spreaders ............................................................................................ 45

4.3.4 Capability of Mobile Equipment.............................................................................. 45

4.3.4.1 Mass-calculation for Mobile Equipment.................................................................. 45

4.3.4.2 Selection of Mobile Equipment................................................................................ 46

4.3.4.3 Calculation of Capacity and Equipment Fleet.......................................................... 47

4.4 General Mining Development in Sibovc SW........................................................... 50

4.4.1 Excavation Boundary/ Boundary Line ..................................................................... 50

4.4.2 Bench Design ........................................................................................................... 51

4.4.2.1 General Bench Design.............................................................................................. 51

4.4.2.2 Division of Cuts in Overburden Operation .............................................................. 54

4.4.2.3 Division of Cuts in Coal Operation.......................................................................... 55

4.4.3 Main Strategies for Mining Development................................................................ 56

4.4.4 Mass Calculation ...................................................................................................... 56

4.4.5 Stockpile Operation.................................................................................................. 59

4.4.5.1 Stockpile TPP A....................................................................................................... 59

4.4.5.2 Stockpile TPP B ....................................................................................................... 60



Page 4 of 171

4.5 Opening-up Operation.............................................................................................. 62

4.5.1 Preparatory Works in the Year 2007 ........................................................................ 62

4.5.2 Mining Development in the Year 2008.................................................................... 62

4.5.2.1 General Development............................................................................................... 62

4.5.2.2 Overburden Operation.............................................................................................. 63

4.5.2.3 Production Figures ................................................................................................... 65




4.5.3.3 Coal Operation ......................................................................................................... 69





4.5.4.3 Coal Operation ......................................................................................................... 74





4.5.5.3 Coal Operation ......................................................................................................... 80





4.5.6.3 Coal Operation ......................................................................................................... 85

4.5.6.4 Coal Quality Management........................................................................................ 86


4.6 Regular Operation .................................................................................................... 89

4.6.1 Mining Development in the Period 2013 – 2017 ..................................................... 89



4.6.1.3 Coal Operation ......................................................................................................... 93


4.6.2 Mining Development in the Period 2018 – 2022 ..................................................... 96



4.6.2.3 Coal Operation ....................................................................................................... 100

4.6.2.4 Production Figures ................................................................................................. 101

4.6.3 Mining Development in the Period 2023 – 2024 ................................................... 103

4.6.3.1 General Development............................................................................................. 103

4.6.3.2 Overburden Operation............................................................................................ 104

4.6.3.3 Coal Operation ....................................................................................................... 105

4.6.3.4 Production Figures ................................................................................................. 106

4.6.4 Remarks to a Continuation of Mining Development after 2024 ............................ 108

4.6.5 Remarks to Interactions with other Projects........................................................... 108

4.7 Compilation of Production Figures ........................................................................ 110

4.8 Belt Conveyor Balance........................................................................................... 115

4.9 Time Schedule........................................................................................................ 117

4.9.1 Main Equipment Activities .................................................................................... 117

4.9.2 Main Mining Activities .......................................................................................... 118



Page 5 of 171

4.10 Consequences for Development in Existing Mines ............................................... 119

5 MINE DEWATERING........................................................................................ 120

5.1 Hydrological Conditions ........................................................................................ 120

5.2 Drainage Areas ....................................................................................................... 121

5.3 Dewatering Measures ............................................................................................. 122

5.3.1 Surface Dewatering ................................................................................................ 122

5.3.1.1 Drainage Area Bardh / Mirash West ...................................................................... 122

5.3.1.2 Sibovc SW Mining Area ........................................................................................ 122

5.3.2 In-Pit Dewatering ................................................................................................... 126

5.3.2.1 Drainage Area Bardh / Mirash West ...................................................................... 126

5.3.2.2 Sibovc SW Mining Area ........................................................................................ 127

5.3.3 Time Scheduling for Dewatering Measures ........................................................... 129

5.4 Investment and Cost Calculation for Dewatering .................................................. 129

6 MINE CLOSURE AND RECULTIVATION PLANNING.............................. 131

6.1 Principles................................................................................................................ 131

6.2 Area Balance .......................................................................................................... 131

6.3 Mine Closure Plan.................................................................................................. 133

6.4 Concept of Post-Mining Utilization ....................................................................... 135

6.4.1 Principles and Preconditions for Reclamation Planning ........................................ 135

6.4.2 Soil Improvement Measures................................................................................... 136

6.4.3 Interim Greening and Erosion Protection Measures .............................................. 136

6.4.4 Irrigation and Dewatering Measures ...................................................................... 137

7 RESETTLEMENT AND RELOCATION......................................................... 138

7.1 General Remarks .................................................................................................... 138

7.1.1 Situation ................................................................................................................. 138

7.1.2 General Conditions................................................................................................. 138

7.1.3 Legal Resettlement Regulations ............................................................................. 139

7.1.4 Property Situation................................................................................................... 139

7.1.5 Valuation of Compensation.................................................................................... 143

7.1.6 Resettlement Procedure.......................................................................................... 144

7.2 Communities affected by Resettlement.................................................................. 145

7.2.1 Settlements in the Partial Field of Sibovc .............................................................. 145

7.2.2 Locations for Resettlements ................................................................................... 149

7.2.3 Time Scheduling for Resettlement Measures......................................................... 151

7.3 Investment and Cost Calculation for Resettlement ................................................ 152

8 MANPOWER DEVELOPMENT AND ORGANISATION............................. 161

8.1 Actual Situation...................................................................................................... 161

8.2 Proposed Improvement / Benchmark ..................................................................... 164

8.3 Employment and Organisation in Sibovc SW........................................................ 167

Year ........................................................................................................................................ 169

9 LICENSE FOR COAL EXTRACTION ............................................................ 171



Page 6 of 171

List of Figures

Fig.: 1.3-1 Typical Cross Section with Main Equipment Application 16

Fig.: 1.3-2 Main Measures and Activities for Mine Development 18

Fig.: 1.3-3 Manpower Development 22

Fig.: 4.3-1 Principle Calculation Scheme of Effective Capacity 33

Fig.: 4.4-1 Cross Section with Main Equipment Application 53

Fig.: 4.4-2 Sectors of Mass Calculation 57

Fig.: 4.4-3 Scheme of Stockpile TPP A 59

Fig.: 4.4-4 Scheme of Stockpile TPP B 60

Fig.: 4.5-1 Mining Position at the End of Year 2008 63





Fig.: 4.5-6 Coal Transport and Distribution System in the Year 2012 86



Fig.: 4.6-3 Mining Position in the Year 2024 104

Fig.: 4.9-1 Main Mining Activities 118

Fig.: 5.1-1 Catchment Areas of the Sibovc SW Mine 120

Fig.: 5.3-1 Catchment Areas and Surface Dewatering Channels 125

Fig.: 5.3-2 Time Schedule for Dewatering Measures 129

Fig.: 6.4-1 Plant Scheme for Wind Erosion Protection 137

Fig.: 7.1-1 Land Claim for the Mine Sibovc SW 141

Fig.: 7.1-2 Land Acquisition for the Mine Sibovc SW 142

Fig.: 7.2-1 Hade-North (View from Mirene) 145

Fig.: 7.2-2 Hade-North (View from North) 146

Fig.: 7.2-3 Mirene (in the Village) 146

Fig.: 7.2-4 Mirene (View from South) 147

Fig.: 7.2-5 Shipitulla East (View from South) 147

Fig.: 7.2-6 Hade West 1 148

Fig.: 7.2-7 Hade West 2 148

Fig.: 7.2-8 Konxhul (View from Hade-North) 149

Fig.: 7.2-9 Possible Site for Resettlements West of Bardh 150

Fig.: 7.2-10 Time Scheduling for Resettlement Measures 152

Fig.: 7.3-1 By-pass of Hade-Bardh 156

Fig.: 8.1-1 CPD Structure until 2005 162

Fig.: 8.1-2 New CPD Structure to be introduced 163

Fig.: 8.1-3 Age Structure of CPD Employees and Qualification (Source KEK) 163



Page 7 of 171

Fig.: 8.2-1 Proposed Structure of Macroorganisation of the CPD 166

Fig.: 8.3-1 Development of Employees in CPD 169



Page 8 of 171

List of Tables

Tab.: 1.3-1 Land Claim for the Mine Sibovc SW 21

Tab.: 1.3-2 Number of Personnel 22


Tab.: 4.2-1 Basic Geometry of the Bucket Wheel Excavators 29

Tab.: 4.2-2 Cutting Heights and Block Width of Excavators [m] 29

Tab.: 4.2-3 Maximum Inclination of Working Levels and Curve Radii of Excavators 30

Tab.: 4.2-4 Technical Data of Spreaders 30

Tab.: 4.2-5 Technical Data of Belt Wagon 31

Tab.: 4.2-6 Technical Data of Dragline ESch 10/70 31

Tab.: 4.3-1 Principle Equipment Application 32

Tab.: 4.3-2 Theoretical Digging Capacity in lcm/h 34

Tab.: 4.3-3 Theoretical Capacity in bcm/h and t/h 35

Tab.: 4.3-4 Effective Capacity of Excavators - Overburden 36

Tab.: 4.3-5 Effective Capacity of Excavator - Coal 36

Tab.: 4.3-6 Planned Working Time of Single Equipment 38

Tab.: 4.3-7 Normal and Maximum Capacity - Overburden 39

Tab.: 4.3-8 Capability of BWE in Overburden Operation [mbcm/a] 39

Tab.: 4.3-9 Capability of Excavators in Coal Operation 40

Tab.: 4.3-10 Nominal Capacity of Coal Excavators 40

Tab.: 4.3-11 Bulk Density, Angel of Repose and Inclination of Belt Conveyor 42

Tab.: 4.3-12 Factor fi for Considering the Inclination 42

Tab.: 4.3-13 Possible Conveying Capacity for Overburden Belt Conveyors 42

Tab.: 4.3-14 Possible Conveying Capacity for Coal Belt Conveyors 43

Tab.: 4.3-15 Loading Utilisation of Overburden Systems 44

Tab.: 4.3-16 Loading Utilisation of Coal Systems 44

Tab.: 4.3-17 Utilisation of Spreader Capacity 45

Tab.: 4.3-18 Maximum Capacity of Dragline ESch 10/70 47

Tab.: 4.3-19 Capacity of Shovel & Truck Fleet 48

Tab.: 4.4-1 Results of Mass Calculation 58

Tab.: 4.5-1 Planned Production in the Year 2008 65

Tab.: 4.5-2 Belt Conveyor System at the End of Year 2008 65










Page 9 of 171


Tab.: 4.6-1 Planned Production in the Years 2013 – 2017 94





Tab.: 4.6-6 Belt Conveyor System in the Year 2024 107

Tab.: 4.7-1 Lignite Production and Overburden Removal 110

Tab.: 4.7-2 Benchwise Production in Overburden Systems [mbcm] 111

Tab.: 4.7-3 Overburden Removal 1st Bench 112

Tab.: 4.7-4 Overburden Removal 2nd

Bench 112

Tab.: 4.7-5 Overburden Removal 3rd

Bench 113

Tab.: 4.7-6 Bench-wise and Equipment-wise Production in Coal System 114

Tab.: 4.8-1 Available Belt Conveyor Material in Existing Mine 115

Tab.: 4.8-2 Existing and Planned Overland Belt Conveyors to TPP’s 115

Tab.: 4.8-3 Belt Conveyor Balance for the new Sibovc SW Mine 116

Tab.: 4.9-1 Release Time for Main Mine Equipment in Mid Term Period 117

Tab.: 5.2-1 Maximum Drainage Areas 122

Tab.: 5.3-1 Elements of Surface Dewatering 126

Tab.: 5.4-1 Investments for Dewatering Measures 130

Tab.: 6.2-1 Land Claim for the Mine Sibovc SW [ha] 132

Tab.: 6.2-2 Area Balance [ha] 133

Tab.: 7.1-1 Land Claim for the Mine Sibovc SW 140

Tab.: 7.2-1 Communities Affected by Resettlement 145

Tab.: 7.2-2 Cost Estimation for a new Settlement near Bardh 150

Tab.: 7.2-3 Principle Timetable for Resettlement Procedure 151

Tab.: 7.3-1 Cost Calculation for Resettlement of Properties with constructed Buildings 153

Tab.: 7.3-2 Resettlement of Households and Land Claim 154

Tab.: 7.3-3 Substitution Measures Infrastructure inside the Village and other Costs 155

Tab.: 7.3-4 Substitution Measures for Infrastructure outside the Village 157

Tab.: 7.3-5 Claim of Farmland 157

Tab.: 7.3-6 Provisional Estimation of Resettlement 159

Tab.: 7.3-7 Cost of Resettlement – Schedule 160

Tab.: 8.2-1 Productivity Benchmarks in international Coal Industries 166

Tab.: 8.3-1 Employees in the Bardh / Mirash Mine 168

Tab.: 8.3-2 Employees in the Sibovc SW Mine 169

Tab.: 8.3-3 Number of Employees 170



Page 10 of 171

List of Annexes

4 – 1 Overview Map with Mine Positions 1 : 10 000

4 – 2 Mining Position at the End of 2008 1 : 10 000








4 – 10 Cross Sections through the Rim Slope Systems 1 : 5 000

4 – 11 Cross Sections through the Advance Slope System 1 : 5 000

4 – 12 Working Level for mobile Equipment Services 1 : 10 000

4 – 13 Working Level 1st Overburden Bench 1 : 10 000

4 – 14 Working Level 2nd

Overburden Bench 1 : 10 000

4 – 15 Working Level 3rd

Overburden Bench 1 : 10 000

4 – 16 Working Level Overburden Bench 3a 1 : 10 000

4 – 17 Working Level 1st Coal Bench 1 : 10 000

4 – 18 Working Level 2nd

Coal Bench 1 : 10 000

4 – 19 Working Level 3rd

Coal Bench 1 : 10 000

4 – 20 Working Level Coal Bench 3a 1 : 10 000



Page 11 of 171


a year

bcm/h bank cubic meter per hour

BWE bucket wheel excavator

CPD Coal Production Division

GCV gross calorific value

GWh gigawatt-hours

kf hydraulic conductivity

km kilometre

km² square kilometres

kt thousand tonnes

kV kilovolt

kW kilowatt

l/min liter per minute

m meter

m² square meter

m³ cubic meter

mbcm million bank cubic meters

mcm million cubic meters

mlcm million loose cubic meters

mm millimetre

MME main mining equipment

mMSL meter above main sea level

mt million tonnes

m/min meters per minute

m³/min cubic meter per minute

m/s meters per second

NCV net calorific value

OCM open cast mine

TPP thermal power plant

`000 bcm thousand bank cubic meters

`000 lcm thousand loose cubic meters



Page 12 of 171

1 Summary (Part II)


reports:

























Kosovo.












Page 13 of 171
































1.2.2 Part II: Technical Planning The consultants prepared detailed mine development plans/annexes for the first five years of

operation and mine phase documentation for the end of each year, continuing with next five

years periods (end of periods) up to 2024.




Page 14 of 171


plan for the required measures for land acquisition and resettlement into mine planning on all

working levels and along the access roads.

1.2.3 Part III: Environmental Impact Study The mining activities will have a large effect on the environment. The Environmental Study




























mining field.













Page 15 of 171
















capital.









1.3 Results under Part II – Technical Planning

1.3.1 Mining Technology and Mine Development The planning was made to directly follow up mining operations of existing mine. The

planning basis for development of existing mine is the Mid Term Mining Plan, which has

been finished in March 2005.

The main task of the study is the fuel supply of the existing Thermal Power Plants up to the

end of their lifetime (2024). This corresponds to a coal delivery of about 160.7 mt, beginning

from 1st January 2007 onwards.




Page 16 of 171



account.












body south of Hade.


municipal waste.


Mirash-East.

Regarding minimum investment costs for the new mine, the further use of the existing main

equipment has been planned. The following main equipment has been selected.

Coal operation 3 excavators SRs 1300

1 excavator SRs 400 + belt wagon

Overburden operation 1 excavator SRs 1300 + 1600 mm belts + spreader

2 excavator SchRs 650 + 1800 mm belts + spreaders

1 excavator SRs 470 + belt wagon

Fig.: 1.3-1 Typical Cross Section with Main Equipment Application

An extensive capacity calculation for the main mine equipment have been provided. The

capacity calculation bases on the estimation of the principle capability of the equipment under

the conditions of the Sibovc SW deposit considering the impact of:



Page 17 of 171

- Different digging materials in overburden removal

- Climate / weather conditions (snow, fog, rain)

- Skills and motivation of employees

The performance required can be performed only with rehabilitated equipment.

After rehabilitation the capacity for overburden (BWE) complexes shall be 3.6-5.4 million

cubic meters per annum each.

In coal operation was considered that selective mining / quality management will slightly

reduce the excavation effect.

While the predominant part of the overburden removed in the Sibovc SW opencast mine is

handled by means of 3 excavator-belt conveyor-spreader systems it is suggested to use mobile

equipment in areas with local excess heights.

Based on the mass calculation and after careful consideration of different criteria a

combination of dragline and Truck & Shovel operation was chosen.

The consultant calculated the capacity requirements and needed number of equipment.

The mine boundaries have been selected under consideration of:

- Course of old concession line

- Permissible approach to villages

- Thickness of minable coal seam at the boundary

- Necessary general inclination from geotechnical point of view

- Requirements to bench lengths and straight rim slope systems

Altogether the excavation boundary or the technological depletion boundary represents a com-

promise between the criteria mentioned above.

Deviations between the available terrain data and the actual situation were determined during

visits along the western rim slope system. This area has to be surveyed by KEK as soon as

possible. On this basis both the geological model and the technological planning of the

western rim slope system shall be updated.

The mass calculation has been realised with MicroStation-Programs as well as specialised

programs developed by Vattenfall on the basis of triangulation. As basis have been used the

digital deposit model.

Based on the current stockpile design and the future supply demand have been considered an

optimal stockpile level of

- 400,000 tons in Kosovo A and

- 350,000 tons in Kosovo B.

The opening up of the Sibovc SW opencast mine starts from the northern rim slope system of

the existing opencast mine. The overburden thickness in the opening up area is only 30m and

the coal layer is partly more than 70m thick. The opening-up technology have been planned

under consideration of the dump operation in the Bardh mine in this area.



Page 18 of 171

After having executed the first preparatory measures in 2007, the opening up activities will

start in 2008. Directly after the end of the winter season the first mass movements by means of

Shovels and Trucks are planned.

The year-by-year mine development and equipment operation is described in detail from 2008

until 2012. A detailed time schedule of main measures and activities required for mine

development was given:

II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV

Foundation of a Project Development Group

Development Engineering (KEK)

Project Support and Training

Business and Annual Mining Plans

Detailed Surveying of Opening up Area

Additional Geological Exploration and Modelling

Special Geological Investigations (f.e. Seismic)

Environment Impact Assessment

Drainage of Water Ponds

Construction of Box Culvert

Construction of Channels

Landaccquisition

Establishment Local Resettlement Office

Resettlement of Hade West

Resettlement of next Villages

Road from Hade to Grabovc

Construction of Erection Yard

Main Roads

Warehouse, Workshop and Petrol Station

Washroom and Sanitary Facilities

New Office Building and Mine Control Centre

Rehabilitation E10B; Belt Conveyors; P3B

Rehabilitation E8M

Rehabilitation E9M; Belt Conveyors; P4M

Rehabilitation E10M; Belt Conveyors; P3M

Rehabilitation E9B; Belt Conveyors

Rehabilitation E5M, BRs

Rehabilitation E8B; Belt Conveyors

Rehabilitation E7M, BRs

Power Supply System

Central Remote Control System

Coal Quality Management System

Application of mobile Fleet

Commissioning of Overburden Systems

Commissioning of Coal Systems

Rearrangement of Overburden Belt Connections

Specification Tendering Process Realisation

2011 2012

En

gin

eeri

ng

2007 2008 20092006

Infr

astr

uct

ure

Mec

han

ic,

Ele

ctri

c &

Co

mm

unic

atio

nM

inin

g

2010

Dew

ater

ing

Preparation

Preparation

74 ha 22 ha

Res

ettl

emen

t

Fig.: 1.3-2 Main Measures and Activities for Mine Development



Page 19 of 171

In the 5-year period 2013-2017 the mine will develop into northern direction. After passing of

the village Hade operation switches to slewing operation for a short period.

From 2016 total cutting thickness will increase so that mobile operation for removing the

excess heights shall be re-installed.

During that period the overburden masses are dumped in the residual pit of Bardh/Mirash.

In this period will be resettled the communities of Mirene and Shipitulla East.

Within the period 2018-2022 the overburden thickness increases along the whole mining face.

The 3rd overburden cut will changeover to inside dumping in the Sibovc SW mine. The other

two overburden lines will continue dumping in the residual pit of Mirash / Bardh. Aim is the

producing of large final dump surface areas.

Parts of Hade North must be resettled in 2019.

In the period 2023-2024 the mine will further develop into the north until it reaches the

preliminary final position.

The regular overburden systems will continue parallel operation into northern direction

whereby the great cutting heights from the previous operating period will remain. The

dumping system will also be maintained. Complete closure of the residual space of the former

Mirash/Bardh mines cannot be achieved until 2024.

In 2023 parts of the community of Konxhul have to be resettled.

Ceasing of coal mining operations in 2024 would result in a number of negative aspects which

would incur expensive subsequent work at the residual pits.

Continuation of the mining is recommended and offers the following advantages:

- Continuing mining activities would lead to an improved overburden : coal ratio.

- The residual pit of the former Bardh / Mirash mine could be closed finally.

- Continuation of dumping in the Sibovc SW mine improves the safety in the long-run.

Some consequences for the development of the existing mines have been described with

regard to an optimization of the mining development in the Sibovc SW mine. These

adaptations are necessary for a smoothly opening-up of the new mine. In this context the Mid

Term Plan for the existing mines has to be revised.

1.3.2 Dewatering The Kosova Basin forms a smoothly shaped plain that is bordered by hills and mountains.

This basin includes a developed hydrological network with the Sitnica river as main collector.

Based on the survey of drainage areas and expected water flow a detailed surface water

catchment system was designed.





times to the North.



Page 20 of 171

The first surface dewatering measure in the field Sibovc SW must be the drainage of the water

ponds in the opening-up area beginning from summer 2006.

The quantity of water to be pumped directly from the Sibovc SW mine will continuously

increase with progressing opencast mine development.


The water pumped from the main dewatering plants shows increased contents of chloride and

sulphate as well as clear contents of suspended matter, consisting of dust or organic matter.

When discharging the water, special attention shall be drawn to separate the suspended

materials. It will be necessary to install additional sedimentation basins on the surface level

before feeding the water into the rivers.

1.3.3 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.

- Areas which are no longer needed for mining activities shall be recultivated as soon as

possible.

- Financial means will be reserved already during the active mining operations to en-

sure the proper closure of the mining field.

- Authorities and the concerned people (later users) are integrated in the process of

planning and detailed shaping of the post-mining areas.

The area claimed for mining will come to 5 km² within the period until 2024.

Until 2024 totally 383 ha final dump areas can be shaped, completely situated in the

Bardh/Mirash mine. This balance does not include:

- the former outside dumps of the Bardh and Mirash mines;

- the reserved area for ash dumping in the Mirash East area;

- the reserved area for sanitary landfill in the Mirash Brand area incl. slope systems.

According to the Mid Term Plan the former outside dumps shall be prepared for a future use

and sale by the existing opencast mines.

For the operating period until 2024 a total sum of 325 ha land have to be purchased.

After closure of the residual area of the Bardh/Mirash mine by spreading the overburden

material from the Sibovc mine, the areas shall be intended for agricultural use to provide

substitute areas for claimed ones.

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.

Principle measures for achieving these goals are defined.



Page 21 of 171

1.3.4 Resettlement and Relocation The land swaps affected by resettlement are mainly private property.

The opencast mine of Sibovc will claim the following areas:

Claim of Land for Sibovc

Digging Safety

Zone

Channel

s

Infra-

structure Total

Property

of KEK

Land

Acquisition Year

[ha] [ha] [ha] [ha] [ha] [ha] [ha]

2006-2010 128 36 15 179 105 74

2011-2012 35 4 39 17 22

2013-2017 133 16 149 55 94

2018-2022 102 14 116 0 122

2023-2024 14 4 18 1 17

Total 412 74 15 501 172 329

Tab.: 1.3-1 Land Claim for the Mine Sibovc SW

The following resettlement and relocation measures shall be executed for the claim of land:

- Land purchase

- Resettlement of properties of the settlement with scattered buildings of Sibovc (Hade

West, Hade North (extension), Mirene, ShipitullaEast and Konxhul)

- Compensation of property

- New construction of a by-pass from Hade to Sibovc

- New construction of a by-pass from Sibovc to Grabovc

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.

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.

To prepare the resettlement and/or compensation, the residents of the concerned communities

shall be informed as soon as possible and questionnaires shall be offered regarding the desired

kind of compensation.

Recommendations for the resettlement procedure based on the wide experience of the

consultant have been provided.

The options for providing properties for a joint and/of separate resettlement of the household

shall be checked by KEK on the basis of land owned by KEK currently.

A democratic socially acceptable resettlement procedure compliant to EU law would take at

least 8 years.



Page 22 of 171

The resettlement of Hade West must be completed by the end of the year of 2009. It is

necessary to have a tight project organisation with responsibilities and freedom of action for

the head of the project.

The total costs for resettlements and compensations amount to approx. 32 MEURO.

1.3.5 Manpower The manpower of the Sibovc SW mine will be recruited mainly from the personnel of KEK.


Year 2007 2008 2009 2010 2011 2012



Staff transfer 10 485 500 300 80 40

Sibovc SW per 31.12. 15 500 1000 1300 1380 1420

Tab.: 1.3-2 Number of Personnel


0

500

1000

1500

2000

2500

3000

3500

2007 2008 2009 2010 2011 2012 2013 2014 2015

Employees

Staff in Sibovc SW

Staff in Mirash/Bardh

Fig.: 1.3-3 Manpower Development



Page 23 of 171

2 Introduction

2.1 Background Kosovo has lignite reserves assessed at some 10 billion tons, concentrated in the Kosovo Coal

Basin. This coal deposit, especially the Sibovc deposit is regarded as one of the best

throughout Europe.

The geological context of Sibovc is characterised by an average stripping ratio 1.0 to 1.2 m³ of

overburden per 1 ton of lignite. The new mine Sibovc South West is a part of this favourable

lignite deposit. The first coal supply is expected in 2010.

Up to this time the existing mine (former Bardh and Mirash mine) supplies TPP Kosovo A

and Kosovo B.

Around 97% of the total generation capacity comes from these two coal-fired power plants,

while hydropower accounts for only 3%. KEK has established a Coal Production Division

(CPD) being responsible for coal production, transportation, separation and stocking activities

before the coal is eventually delivered to the power plants.

The existing mine has been in operation since 1963/64. This mine is located in the same field

in the central northern part of Kosovo Lignite Basin. The overburden and coal excavation is

carried out by continuous systems: Bucket Wheel Excavator – Belt Conveyors – Spreader and

Bucket Wheel Excavator – Belt Conveyors – Separation Plants – TPP. At the present time the

mine is actually capable of supplying the power plants within around 6 to 7 mt/a of coal.

In 2009 the lignite production in the existing mine begins to drop (at the projected rate of

consumption) and in the following year coal supply from the new mine should start.

The reason to head in northern direction with a new mine is because expansion of the existing

mine into the east is impeded by surface water issues. An expansion to the south is impeded

by an unfavourable overburden to coal ratio and large outside dumps from earlier mine

developments. Along the northeast side of the mine is the village Hade, which poses an

equally significant challenge to settle a significant resettlement. In order to maintain the

supply of coal to Kosovo A and Kosovo B power stations, KEK should develop the new mine

in a way of by-passing Hade.

This is the subject of the mining plan Sibovc SW.

2.2 Approach / Methodology According to the existing situation and pursuant to the TOR the project work has been mainly

focused on the following activities:

1) Assumption of the future coal demand

2) Revision of geological model including

- Analysis of available borehole and other exploration data

- Localization of cracks and geological faults,

- Calculation of minable reserves

3) Calculation of mining development and equipment application including



Page 24 of 171

- Mining development in opening-up phase (5 years) in annual steps,

- Further mining development up to 2025 in 5-year-steps,

- Application of the main equipment

- Calculation of auxiliary and ancillary processes

4) Revision of environmental investigations

5) Financial calculations

General Approach

The plan describes the measures to be undertaken and the timeframe for these measures.

Special focus has been given on investment and the required resettlement including land

acquisition to guarantee the operation of the new mine. The complementary mining plan is in

compliance with the relevant legal and technical regulations, i.e. mining law, environmental

law, spatial planning and expropriation regulations.

Approach for Mining

The Sibovc SW mining plan bases on related projects (financed by the European Agency for

Reconstruction), which are for instance the Mid term Mining Plan for the existing mines

(completed in April 2005) and the Main Mining Plan Sibovc (completed in the June/August

2005).

The Steag – Consortium has elaborated the CMP (complementary mining plan) for first 5

years (opening-up phase; 2008 -2012) on an annual basis and with an outlook covering the

entire mining field Sibovc SW.

Approach for Environment

The assessment of the environmental situation is based on available data base (data available

per February 2006) and is an update of the environmental assessment of the main mine plan.

The budget and time frame did not allow carrying out own environmental measurings since

only 15 man days were planned for the updating.

Thus further measures should be performed (organised by KEK / Ministry) in order to meet

European standards.

Approach for economic and financial Analysis

A complex finance mathematic consideration will be made resulting in the real average costs

per t of run of mine coal. The economic analysis will identify possible project risks regarding

the costs and achievable price. Where major variations are expected over the project life,

sensitivity tests will be applied.

The economic and financial analysis will reflect the proposed investment programme. It is

assumed for the mining plan that KEK will have access to the investment as required. This

assumption was approved during the Kick-off Meeting.



Page 25 of 171

Within the first years 236 m€ (real) will be required. The most important and crucial part of

the investment is the refurbishment of main mine equipment (MME), which amounts to 158

MEURO.

The consultant points out that without a timely refurbishment of the MME the fuel supply

from Sibovc to the existing TPP’s can not be provided as planned.



Page 26 of 171

3 Coal Demand A detailed output programme with the medium- and long-term fuel supply demand of the

different power plants was not available at project start. According to the decision made at the

Kick-off Meeting an assumption about the coal demand was agreed – amounting to 9 mt/a.

This coal demand was agreed between KEK, EAR, MEM and the Consultant. If this coal

demand would be changed the mining plan would need an alteration too. This could not be

done within the planned time schedule.

Nevertheless the mining plan will be adaptable (to a great deal without problems) in a range of

+10% of the envisaged coal demand.


2006 6.8 - 6.8

2007 7.2 - 7.2

2008 7.9 - 7.9

2009 7.8 - 7.8

2010 4.6 3.4 8.0

2011 3.0 6.0 9.0

2012 - 9.0 9.0

2013 - 9.0 9.0

2014 - 9.0 9.0

2015 - 9.0 9.0

2016 - 9.0 9.0

2017 - 9.0 9.0

2018 - 9.0 9.0

2019 - 9.0 9.0

2020 - 9.0 9.0

2021 - 9.0 9.0

2022 - 9.0 9.0

2023 - 9.0 9.0

2024 - 6.0 6.0

Total 37.3 123.4 160.7




Page 27 of 171



mainly.



2010.


2023/24.





units (capital refurbishment or major overhaul) differ a lot.

However it is assumed that the coal supply to Kosovo A will last for the time being

(amounting to 2.5 - 4.7 mt). In case Kosovo A will be out of operation before 2020/24

the new mine will deliver the coal to the TPP replacing Kosovo A. At least the fuel

supply is calculated with 9 mt in total for Sibovc SW.


available timely.



Page 28 of 171

4 Mining Technology of the Sibovc SW Mine

4.1 General Remarks / Preconditions The planning was made to directly follow up mining operations of existing mine. The

planning basis for development of existing mine is the Mid Term Mining Plan, which has

been finished in March 2005.

The main task of the study is the fuel supply of the existing Thermal Power Plants up to the

end of their lifetime (2024). This corresponds to a coal delivery of about 160.7 mt, beginning

from 1st January onwards (thereof 37.3 mt from existing mine and 123.4 mt from the new

Sibovc SW mine).

Being the most efficient mining field the south western part of the coal field Sibovc has been

selected, considering an annual output of about 9 mt. Basic investigations and a ranking of

different future mining fields has already been done in the Main Mining Plan for the new

Sibovc Mine in 2005.

Regarding minimum investment costs for the new mine, the further use of the existing main

equipment has been planned. Considering the technical state and the annual mass volume the

following main equipment has been selected.

Coal operation 3 excavator SRs 1300 (E8M, E9B, E8B)

1 excavator SRs 400 (E7M) + belt wagon

Overburden operation 1 excavator SRs 1300 (E10B) + 1600 mm belts + spreader (P3B)

1 excavator SchRs 650 (E10M) + 1800 mm belts + spreader

(P3M)

1 excavator SchRs 650 (E9M) + 1800 mm belts + spreader

(P4M)

1 excavator SRs 470 (E5M) + belt wagon

The partly refurbished excavator E1B has been considered as float machine for the mine

Sibovc SW. He is suitable for operation in overburden to a limited extent only.



Page 29 of 171

4.2 Technological Equipment Parameter The basic technology is among others determined by the constructive parameters of the avail-

able main mine equipment. For planning purposes the following parameters has been used:

Type Length of

machine

Width of

machine

Height of

machine

Bucket

wheel

diameter

Mid of bucket

wheel to mid

of excavator

Mid of excavator

to mid of

discharge chute

m m m m m m

SchRs 650

(E9M, E10M) 141 24 36 10.56 36 90

SRs 1300.24

(E8B, E9B, E10B) 125 22 32 9 36.5 82.5

SRs 1300.26

(E8M) 135 22 32 9 36.96 92

SRs 470.20/3.0

(E5M) 62 15.5 22.5 6.7 31 25

SRs 400.14/1.0

(E7M) 42 12 13 7.5 14.5 22.5

SRs 315.15/3.5

(E1B) 50 15.5 22 6.3 23.2 22.5

Tab.: 4.2-1 Basic Geometry of the Bucket Wheel Excavators

Type Max. cutting height Max. cutting depth Block width

SchRs 650

(E 9M, E10M) 28 5 45 (2 times)

SRs 1300.24

(E8B, E9B, E10B) 26 (24) 5 37

SRs 1300.26

(E8M) 26 5 37 / 45

SRs 470.20/3.0

(E5M) 20 3 30.6

SRs 400.14/1.0

(E7M) 14 1 18

SRs 315.15/3.5

(E1B) 15 3.5 22

Tab.: 4.2-2 Cutting Heights and Block Width of Excavators [m]



Page 30 of 171

Type Smallest curve

radius

Max. longitudinal

inclination

Max. cross

inclination

Admissible inclination

for transport

m - - -

SchRs 650

(E9M, E10M) 60 1 : 25 1 : 25 1 : 20

SRs 1300.24

(E8B, E9B, E10B) 80

1 : 33 or

1: 20

1 : 20 or

1 : 33 1 : 20

SRs 1300.26

(E8M) 80

1 : 33 or

1 : 20

1: 20 or

1 : 33 1 : 20

SRs 470.20/3.0

(E5M) 1 : 33 1 : 33 1 : 20

SRs 400.14/1.0

(E7M) 1 : 33 1 : 33 1 : 20 1 : 33

SRs 315.15/3.5

(E1B) 1 : 30 1 : 50 1 : 20 1 : 30

Tab.: 4.2-3 Maximum Inclination of Working Levels and Curve Radii of Excavators

A2Rs-B 4400.60

(P3B)

A2Rs-B 5200.55

(P3M, P4M)

Length of Spreader m 115 110

Width of Spreader m 16 16

Height of Spreader m 20 20

Length of Receiving Boom m 58 49

Length of Discharge Boom m 56 54

Max. Dumping Height m 17 18

Block Width m 40 40

Smallest Curve Radius m 10 10

Max. longitudinal Inclination - 1 : 33 1 : 33

Max. cross Inclination - 1 : 33 1 : 33

Adm. Inclination for Transport - 1 : 33 1 : 20 1 : 33 1 : 20

Tab.: 4.2-4 Technical Data of Spreaders



Page 31 of 171

BRs 1200.29/32

Theoretical Capacity lcm/h 1,800

Length of Machine m 65

Width of Machine m 12

Height of Machine m 17

Length of Receiving Boom m 29

Length of Discharge Boom m 32

Max. Dumping Height m 14

Smallest Curve Radius m 7

Max. longitudinal Inclination - 1 : 33

Max. cross Inclination - 1 : 33

Adm. Inclination for Transport - 1 : 33 1 : 20

Tab.: 4.2-5 Technical Data of Belt Wagon

ESch 10/70

(A10)

Bucket capacity m³ 10

Boom Length m 70

Radius of Digging and Discharging m 66.5

Max. Height of Discharging m 27.5

Max. Cutting Depth m 35

Cycle Time (135°) sec 52.5

Ground Pressure (Working) MPa 0.097

Ground Pressure (Transport) MPa 0.166

Transport Velocity km/h 0.2

Tab.: 4.2-6 Technical Data of Dragline ESch 10/70



Page 32 of 171

4.3 Capability / Capacity Calculation for MME The following equipment application scheme is foreseen. The overburden will be extracted by

3 equipment lines. While the upper benches are working with one excavator in high cut

operation, in the coal uncovering cut will be use 2 excavators in a main cut and a deep cut for

cleaning the coal. For local excess heights the application of a mobile fleet has been planned.

In coal operation there will be used also three equipment lines with 1,600 mm belt conveyor

lines. The three bench belt conveyors are linked with 2 head belt conveyor systems of the

same width. On the surface the coal can be distributed to both power plants, via two long-

distance belt conveyor lines each, with different belt width. The following table illustrates the

principle equipment application.

Local application of mobile equipment

E10B SRs 1300 1,600 mm belt conveyor line Spreader P3B

E10M SchRs 650 1,800 mm belt conveyor line Spreader P3M

E9M SchRs 650

Ov

erb

urd

en

E5M SRs 470 1,800 mm belt conveyor line Spreader P4M

Bench belt conveyors Head belt conveyors Overland belt conveyors E8M SRs 1300

1,600 mm 1,800 mm

E9B SRs 1300 1,600 mm 1,600 mm

1,200 mm

Stockpile A

E8B SRs 1300 1,400 mm

Co

al

E7M SRs 400 1,600 mm 1,600 mm

1,400 mm Stockpile B

Tab.: 4.3-1 Principle Equipment Application

4.3.1 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 SW deposit,

whereby a tolerance range is taken into account (lower and upper limit). This range describes

the practical capacity considering the impact of:

a) Different digging materials in overburden removal

b) Climate / weather conditions (snow, fog, rain)

c) Skills and motivation of employees

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 ηB) is yielded, thus the hourly capacity and

secondly, the time factors [time factor ηT], which determine the annual output capacity. The

following scheme gives an overview of the calculation method.

Subdivision of Tb

or

or

planned not planned

VE = Ve * Tb

Ve = Vth * EtaB Tb = Tk - Tp -Ts Tb = Tk * EtaT

TbA = Tk -Tp

Tp = Tp1 +Tp2 +Tp3

Tp1

Working time regime

(shift use)

Tp2

Transport

Tp3

Planned Maintenance

Ts = Ts1 +Ts2 +Ts3+Ts4+Ts5

Tb1

High Cut

Tb2

Deep Cut

Tb3

special operation

(reduced performance)

Tb4

double removed

masses

Tb =Tb1+Tb2+Tb3+Tb4

Vth = Vbu * nbu* 60

Ve = Vtheo * fload

EtaB = fbu * fload

Vtheo = Vth * fbu

Tb = TbA * EtaTA

Tb = TbA - Ts

Ts = Tb * s

Ts = TbA * sA

Ts1 technical breakdowns on BWE

Ts2 standstill, operational reasons on BWE

Ts3 standstill caused by conveyor system

Ts4 standstill via mining system / Environm.

Ts5 other standstills

Fig.: 4.3-1 Principle Calculation Scheme of Effective Capacity

4.3.1.1 Load Factor – Expression of the hourly Capacity

Basis of the calculation is the theoretical capacity 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 * nd * 60

Theoretical Capacity Bucket

capacity

Number

of

buckets

Rotation

bucket

wheel

Number of

discharges Calculated According

documentation

Vbu nbu Ubu nd Vth(calc) Vth

Typ

lcm - 1 / min 1 / min lcm/h lcm/h

SchRs 650

(E9M, E10M) 0.65 21 5.15 108 4,212 4,212

SRs 1300.24

(E8B, E9B and E10B)

original

0.52 18 7.14

/5.857

128.6 4,011 4,000

currently 0.52 21 7.5 157.5 4,914

SRs 1300.26

(E8M) original 0.52 23 5.857 134.7 4,203 4,200

currently 0.52 23 7.5 172.5 5,382

SRs 470

(E5M) 0.47 8 7.5 60 1,692 1,690

SRs 400

(E7M) 0.52 12 5.83 70 2,184 2,200

Tab.: 4.3-2 Theoretical Digging Capacity in lcm/h

The minable 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 (bucket) 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 SW the following can be applied:



Page 35 of 171

Theoretical

digging Capacity

Loosening in

Bucket

Theoretical

Capacity

Vth fbu Vtheo Type Material

lcm/h lcm/bcm bcm/h t/h

SchRs 650

(E9M,E10M)

Overburden (Clay) 4,212 1.55 2,700

Coal 1.7 2,800

SRs 1300.24

(E8B,E9B,E10B)


Coal 1.7 2,680

SRs 1300.26

(E8M)


Coal 1.7 2,800

SRs 470

(E5M)


Coal 1.7 1,130

SRs 400

(E7M)

Overburden (Clay) - - -

Coal 2,200 1.7 1,475

Tab.: 4.3-3 Theoretical Capacity in bcm/h and t/h

The effective capacity Ve:

Ve = Vth * fbu * fload

Ve = Vtheo * 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 state and the

inadequate organisation and lack of motivation.

This realized capacity level which is considered too low shall be raised by means of

implementing several measures.

One example for the reduced capacity in the existing mine 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 SW, all machines will be refurbished. This measure aims at

improving the realisable load factor directly.



Page 36 of 171

The human factor has also decisive influence on the actual result (effective capacity). In order

to allow for this fact and the specific conditions, a maximum bucket filling (load factor) is

indicated.

Theoretical

Capacity Validity Load factor

Effective

Capacity

Vtheo fload Ve Type

bcm/h - % bcm/h

SchRs 650 2,700 bcm/h Currently 23% 615 bcm/h

(E9M, E10M) Plan Mid Term 27% 740 bcm/h

Max Sibovc SW 37% 1,000 bcm/h

SRs 1300.24 2,580 bcm/h Currently (2004) 18% 470 bcm/h

(E10B) Plan Mid Term 22% 575 bcm/h

Max Sibovc SW 33% 850 bcm/h

SRs 470 1,090 bcm/h Currently 23% 250 bcm/h

(E5M) Plan Mid Term 28% 300 bcm/h

Max Sibovc SW 28% 300 bcm/h

Tab.: 4.3-4 Effective Capacity of Excavators - Overburden

Further capacity increases 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 SW which lowers the excavator effects.

It was considered that selective mining / quality management will slightly reduce the

excavator effect in the coal operation too.

Type Theoretical

Capacity Validity Load factor

Effective

Capacity

Vtheo - fload Ve

t/h - % t/h

SRs 1300.24 2,680 t/h Max Sibovc SW 45% 1,200 t/h

(E8B,E9B)

SRs 1300.26 2,800 t/h Max Sibovc SW 43% 1,200 t/h

(E8M)

SRs 400 1,475 t/h Currently 20% 295 t/h

(E7M) Plan Mid Term 30% 440 t/h

Max Sibovc SW 35% 515 t/h

Tab.: 4.3-5 Effective Capacity of Excavator - Coal



Page 37 of 171

The human factor plays an important role for the load 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 will be reduced.

4.3.1.2 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 * Tb

VE = Ve * Tk * ηT

Tk = Tb + Ts + Tp

VE = Ve * (Tk-Tp) * ηTA

VE…effective annual capacity in bcm/a

Ve�…effective hourly capacity in bcm/h

Tb…operating time in h

Tk…calendar time in h

ηT…time factor regarding calendar time in %

Ts …time for unscheduled standstills in h

Tp….time for planned standstills in h

ηTA .time factor regarding available working time in %

The table below which contains the range of planned operating time assumes the following

premises:

a) The calendar time of 8,760 h per year is assumed as potential working time

b) An annual 3-weeks general repair is scheduled

c) 2 shifts per week are reserved for short maintenance / function tests and shifting

d) Unscheduled stops are taken into account with 5% - 7% of the possible working time



Page 38 of 171

e) 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:

a) Meteorological conditions (stop due to fog, continuous rain, extreme freeze and wind)

b) Utilization of shift working time (usual rate is 80% -90%)

c) Time needed for auxiliary works / smaller shifting operations and transports

d) Human factor (efforts of personnel / work organisation) and

e) 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.

The following table includes the absolute efficient working time:

Validity Calendar Time Operating Time Time Factor

Tk Tb ηηηηT

h h %

Normal-daily capacity 24 19.2 80

Maximum daily capacity 21.6 90

Normal weekly capacity 168 110.4 65.7

Maximum weekly capacity 128.2 76.3

Normal monthly capacity 730 385 52.7

Maximum monthly capacity 484 66.3

Normal annual capacity 8,760 4,266 48.7

Maximum annual capacity 5,474 62.5

Tab.: 4.3-6 Planned Working Time of Single Equipment



Page 39 of 171

4.3.1.3 Capability of Excavators

Basing on the above mentioned down-times / operating times the following normal and maxi-

mum capacities result for the planning of Sibovc SW:

Operating Time SRs 470 SchRs 650 SRs 1300

300 bcm/h 1,000 bcm/h 850 bcm/h

Tb VE VE VE

h ‘000 bcm ‘000 bcm ‘000 bcm

Normal daily capacity 19.2 5.7 19.2 16.32

Max. daily capacity 21.6 6.5 21.6 18.36

Normal weekly capacity 110 33 110 94

Max. weekly capacity 128 38 128 109

Normal monthly capacity 385 115 385 327

Max. monthly capacity 484 145 484 411

Normal annual capacity 4,266 1,280 4,266 3,626

Max. annual capacity 5,474 1,640 5,474 4,653

Tab.: 4.3-7 Normal and Maximum Capacity - Overburden

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 of the

overall of capacity (low system interdependence). The long-term planned overall capacity for

the overburden operation is shown in the table below:

Reliable VE Maximum VE

SRs 1300 (E10B) 3.6 4.6

SchRs 650 (E9M) 4.3 5.4

SchRs 650 (E10M) 4.3 5.4

SRs 470 (E5M) 1.3 1.6

Total 13.5 17.0

Tab.: 4.3-8 Capability of BWE in Overburden Operation [mbcm/a]

The listed excavators are therefore in principle capable of meeting the required coal

uncovering of 9 mt per year (Ratio Overburden to Coal is 1.7 : 1 m³/t).



Page 40 of 171

Operating Time SRs 1300.24 SRs 1300.26 SRs 400

1,200 t/h 1,200 t/h 515 t/h

Tb VE VE VE

h kt kt kt

Normal daily capacity 19.2 23.0 23.0 9.9

Max. daily capacity 21.6 25.9 25.9 11.1

Normal weekly capacity 110.4 132 132 57

Max. weekly capacity 128.2 153 153 66

Normal monthly capacity 385 462 462 198

Max. monthly capacity 484 580 580 249

Normal annual capacity 4,266 5,120 5,120 2,190

Max. annual capacity 5,474 6,560 6,560 2,810

Tab.: 4.3-9 Capability of Excavators in Coal Operation

Regarding the foreseen excavators in the coal operation (3 * SRs 1300 and 1 * SRs 400) it

would be theoretically possible to extract up to 22.3 mt coal. The before mentioned data are

annual specifications which are only valid for the single excavators without consideration of

the connected belt conveyor system and requirements to coal quality management.

Reliable VE Maximum VE

SRs 1300 (E8M) 5.1 6.5

SRs 1300 (E9B) 5.1 6.5

SRs 1300 (E8B) 5.1 6.5

SRs 400 2.2 2.8

Total 17.5 22.3

Tab.: 4.3-10 Nominal Capacity of Coal Excavators



Page 41 of 171

4.3.2 Capability of Belt Conveyors For the Sibovc SW project belt conveyors will be used with a width between 1,800mm and

1,400mm. The capacity of such conveyor belts depends on:

- Belt width

- Belt troughing

- Belt speed

- Utilization ratio of belt width

- Inclination and

- Bulk density of material

Further the following factors should be considered in order to define the effective capacity of

the conveyor belt:

- Climatic conditions (especially rain)

- Skills and motivation of employees

The capability of the belt conveyor with a belt troughing of 36° is determined according to the

following relation:

me = Ve * ρl

Ve = A * vc * fi * 3600

Ve = we * we * (390 + 725 * tan φ) * vc * fi

we = 0.9 * wc - 0.05

ρl�… density of the conveyed material, loose in t/lcm

Ve�…effective conveying capacity on the belt in lcm/h

A … bulk surface of the conveyed material in m²

vc …speed of the belt conveyor in m/s

fi … factor considering belt inclination -

we …effective belt width in m

wc …belt width in m

φ …. angle of repose in °

Density and maximum belt inclination for the conveyed material:



Page 42 of 171

Bulk density Angle of repose Maximum inclination Material

t/lcm ° °

Overburden, dry 1.6 – 1.7 15 17

Overburden, wet 1.7 – 1.8 4 10 - 15

Coal 0.75 15 18 - 20

Tab.: 4.3-11 Bulk Density, Angel of Repose and Inclination of Belt Conveyor

Inclination βc 0° 12° 15° 18° 20° 22° 25°

fi 1 0.97 0.93 0.89 0.85 0.84 0.78

Tab.: 4.3-12 Factor fi for Considering the Inclination

Example for determining capacity of the 1,800 mm belt conveyor:

Effective belt width we = 0.9 * 1.8m + 0.5 = 1.57 m

Vc … 4.5 m/s

φ … 10°

conveying capacity (φ�= 10°) Ve = 1.572 * (390+725 tan 10°) * 4.5 fi = 5,743 * fi lm³/h

4.3.2.1 Overburden Belt Conveyor System

Summarizing, the following volume streams (bold figures) for a 1,800mm respectively

1,600mm belt conveyor has been calculated. Basis of the calculations were the following

technical conditions.

- Angle of repose 10°

- Belt inclination 10°

- Velocity of belt conveyor 4.5 m/s

Width Bulk

surface

Belt

inclination

Conveying capacity in

lcm/h

mm m² ° 4.5 m/s 5.24 m/s

1,600 0.3017 0° 4,502 5,243

10° 4,412 5,138

15° 4,187 4,876

1,800 0.3545 0° 5,744 6,688

10° 5,629 6,554

15° 5,342 6,220

Tab.: 4.3-13 Possible Conveying Capacity for Overburden Belt Conveyors



Page 43 of 171

4.3.2.2 Coal Belt Conveyor System

Summarizing, the following volume and mass streams (bold figures) for a 1,600mm

respectively 1,400mm belt conveyor has been calculated. Basis of the calculations were the

following technical conditions.

- Angle of repose 15°

- Belt inclination 10° / 0°

- Velocity of belt conveyor 3.5 m/s respectively 4.65 m/s

Width Velocity Bulk

surface

Belt

inclination Conveying capacity

mm m/s m² ° lcm/h t/h

1,600 3.5 0° 3,950 2,965

10° 3,870 2,900

20° 3,360 2,518

1,400 4.65 0° 3,975 2,983

10° 3,900 2,924

20° 3,380 2,536

Tab.: 4.3-14 Possible Conveying Capacity for Coal Belt Conveyors

4.3.2.3 Dependencies and Conclusions

When determining the quantity throughput of the planned overburden conveyor systems, two

different cases were distinguished:

- Loading with the respective main winning equipment on the bench

- Simultaneous loading of 2 excavators to one belt conveyor

It was assumed that loading with only one excavator can achieve a maximum of 100 % of the

theoretical performance for a short period. In case of using a second excavator for loading and

homogenization of the two conveyed material flows, a maximum of 85% of the theoretical

conveying capacity will be achieved. The following tables summarize the results of the

calculation:



Page 44 of 171

Bench 1st Bench 2

nd Bench 3

rd Bench

Excavator Type E10B E10B +

SRs 470 E10M E9M

E9M +

E5M

Vtheor [lcm/h] 4,000 4,000

1,690 4,212 4,212

4,212

1,690

Max Load Factor [%] 100 85 100 100 85

Max. Veff [lcm/h] 4,000 4,840 4,212 4,212 5,015

Belt Width [mm] 1,600 1,800 1,800

Belt Velocity [m/s] 4.5 4.5 4.5

Angle of Side Idler [°] 36 36 36

Volume Stream [lcm/h] 4,412 5,629 5,629

Capacity Reserve [%] 10 -10 33 33 12

Tab.: 4.3-15 Loading Utilisation of Overburden Systems

Loading of the envisaged belt conveyor lines by the respective excavator (SRs 1300 and/or

SchRs 650) is possible without restrictions. The full theoretical capacity of the excavators can

be achieved with capacity reserves of the belt conveyor to the amount of 10% (1,600 mm)

and/or 33% (1,800 mm). Additional charging of the 1,600 mm belt conveyor by an excavator

SRs 470 is not applicable. A deep stage in the 3rd

overburden system has to be carried along to

uncover the coal. The excavator SRs 470 (E5M) used here and the main extraction machine

can operate at the same time. The capacity reserve of the 1,800 mm belt conveyor reduces

with simultaneous loading to 12%.

Bench 1st Bench 2

nd Bench 3

rd Bench

Excavator Type E8M E9B E8B E8B +

E7M

Vtheor [lcm/h] 4,200 4,000 4,000 4,000

2,200

Max Load Factor [%] 90 90 90 75

Max. Veff [lcm/h] 3,780 3,600 3,600 4,650

Belt Width [mm] 1,600 1,600 1,600

Belt Velocity [m/s] 3.5 3.5 3.5

Angle of Side Idler [°] 36 36 36

Volume Stream [lcm/h] 3,870 3,870 3,870

Capacity Reserve [%] 2 7 7 - 17

Tab.: 4.3-16 Loading Utilisation of Coal Systems



Page 45 of 171

The capacity of the coal belt conveyors is determined especially by the connecting belt

conveyor system to the power plant and the installations on the Stockpile. The theoretical

capacity of the 1,400 mm connecting belt conveyor systems amounts to 2,983lcm/h in case of

horizontal conveying. The belt velocity of the bench- and inclined belt conveyors was adjusted

to 3.5 m/s to handle mass throughput. The above table illustrates that the excavators SRs 1300

working in the coal cuts can charge the belt with full capacity. The capacity reserves at full

output still amounts to 2 – 7%. A deep stage in the 3rd

overburden system has to be carried

along to uncover the coal. The capacity of the belt conveyor system is not sufficient for a

parallel operation of the SRs 400 and the E8B operated in this cut. Both excavators have to

work with reduced output or at different times.

Another dependency results from the charging of 2 head belt conveyor systems by 3 bench

belt conveyors. A mass transfer from 2 bench belt conveyors to one head belt conveyor is also

not possible due to capacity reasons. This means, that only 2 pit systems can be operated

simultaneously. This fact does not have any influences to the required annual output capacity

since the pit operation is over-dimensioned with regard to the installed excavators to 100 %.

4.3.3 Capability of Spreaders The following spreaders are envisaged to be employed in Sibovc SW.

- P3M A2RsB-5200

- P4M A2RsB-5200

- P3B A2RsB-4400

Vth Ve peak, estimated

(15 min) Spreader

Nominal

Capacity Reserve

lcm/h % lcm/h lcm/h %

1st Bench SRs 1300 (E10B) 4,000 90 3,600 P3B 4,400 18

2nd

Bench SchRs 650 (E10M) 4,212 90 3,800 P3M 5,200 27

SchRs 650 (E9M) 4,212 90 3,800 27

3rd

Bench SchRs 650 (E9M) +

SRs 470 (E5M) 5,900 75 4,425

P4M 5,200 15

Tab.: 4.3-17 Utilisation of Spreader Capacity

In contrary to the excavator side, the capacity reserve of the spreaders ranges between 15 and

27%. Therefore full load operation is also guaranteed from the spreader side.

4.3.4 Capability of Mobile Equipment

4.3.4.1 Mass-calculation for Mobile Equipment

The predominant part of the overburden removed in the Sibovc SW opencast mine is handled

by means of 3 excavator-belt conveyor-spreader systems. Despite ramp excavation the large



Page 46 of 171

cutting heights in the area of the hills can not be mastered with these equipment systems. It is

suggested to use mobile equipment in the areas with local excess heights. The mass

calculation yielded a volume of 14.03 mbcm to be removed by means of mobile equipment.

The use mainly concentrates to the opening-up phase but also to the last operating years. The

annual volume to be removed achieves in the maximum 1.6 mbcm. The result of the mass

calculation is included in chapter Mass calculation.

4.3.4.2 Selection of Mobile Equipment

The mobile equipment was selected with regard to transport distance and soil types but also

considering the capacity utilization of the first regular cut in the overburden. After careful

consideration of the different criteria a combination of dragline and Truck & Shovel was

chosen. This equipment use offers the following advantages:

- The excavator SRs 1300 (E10B) in the first regular overburden system is not used to

capacity over a number of years. Because the use of a draglines ESch 10/70 is

envisaged in the Sibovc SW opencast mine this machine can remove part of the

masses (up to 0.4 mbcm/a) and replace the E10B. Due to the low operating costs of the

draglines this variant will be cost-effective.

- The remaining mass portion (up to 1.4 mbcm/a) will be removed by Shovel & Truck.

The transport distances lying between 3 and 4 km in the first operating years will allow

an efficient operation of the Trucks. The closure of the mining operations in the Bardh

/ Mirash mines will reduce the transport distances.

- The Shovel- and Truck operation enables a high mobility which is of enormous

importance with regard to the dumping space problem until 2012.

- Compared to other mobile equipment the use of Shovels and Trucks in the mainly

cohesive material causes the least operating problems.

- In case of need Shovel- and Truck operation is also capable of selectively removing

the top soil layer and distribute this layer on areas with lower soil quality.

The above mentioned dumping space problem is a significant factor for the opencast mine

operation in the opening up phase. Upon complete exhaustion of the Bardh / Mirash opencast

mines in 2011 dumping space will be limited in this opencast mine. This is mainly due to the

fact that the seam further dips within the pillar area and therefore the lowest dumping slice can

only be developed under certain conditions. Enough dumping space will be immediately

available after decommissioning and disassemblage of the plants in 2012.

It is suggested to dump the masses of the mobile equipment operation in the inside dump area

of the Mirash mine in the first operation years. The transport distances are between 3 and 4

km, here. This alternative serves to easing the dumping space problem in the western part of

the opencast mine (Bardh). From 2012 the transport distance can be reduced to ca. 2 km. For

this period it is suggested to use the masses for covering the coal rim slope systems in order to

prevent the danger of self-ignition.



Page 47 of 171

4.3.4.3 Calculation of Capacity and Equipment Fleet

Unit ESch 10/70

Material Type - Clay

Bucket Capacity cbm 10

Swell Factor - 1.50

Fill Factor - 0.80

Dipper Load per Pass bcm 5.33

Slewing Angle ° 120

Cycle Time sec 49

Cycles per Hour No. 73

Production per Hour bcm/h 390

Hours per Shift h 8

Preparation Time min 60

Break Time min 60

Break Time for Personnel Activities min 30

Production Time per Shift h 5.5

Job Efficiency - 0.85

Production per Shift bcm/sh. 1,800

Shifts per Day No. 3

Days per Week No. 7

Public Holidays d 10

Weather Conditions d 14

Maintenance d 40

Non-planned Breaks d 60

Technological Breaks d 30

Shift Breaks d 10

Non-Working Days per Year d 164

Working Days per Year d 201

Coefficient for Climate - 0.95

Coefficient for Reliability - 0.90

Total Working Hours per Year h 4,120

Production per Year mbcm 0.940

Tab.: 4.3-18 Maximum Capacity of Dragline ESch 10/70



Page 48 of 171

Unit 1a 1b 1c 2a 2b 2c

Production per Year mbcm 0.66 0.66 0.66 1.4 1.4 1.4

Uncontinuous Factor - 1.1 1.1 1.1 1.1 1.1 1.1

Dipper Capacity cbm 2 3 5 2 3 5

Swell Factor - 1.3 1.3 1.3 1.3 1.3 1.3

Efficiency Dipper Using - 0.9 0.9 0.9 0.9 0.9 0.9

Dipper Load per Pass bcm 1.38 2.08 3.46 1.38 2.08 3.65

Time per Pass s 40 40 40 40 40 40

Job Efficiency Shovel - 0.85 0.85 0.85 0.85 0.85 0.85

Ex

cav

ato

r

Truck Presentation Factor - 0.9 0.9 0.9 0.9 0.9 0.9

Truck Capacity t 12.3 20.0 30.8 12.3 20.0 30.8

Truck Capacity cbm 8 13 20 8 13 20

No. of Passes - 5 5 5 5 5 5

Truck Payload bcm 6.2 10.0 15.4 6.2 10.0 15.4

Truck Efficiency Factor - 0.9 0.9 0.9 0.9 0.9 0.9

Loading Time min 3.3 3.3 3.3 3.3 3.3 3.3

Average Velocity km/h 20 20 20 20 20 20

Transport Distance km 3.5 3.5 3.5 2.0 2.0 2.0

Truck Reserve Factor - 1.1 1.1 1.1 1.1 1.1 1.1

Tru

cks

Cycle Time min 26.6 26.6 26.6 17.6 17.6 17.6

Operating Days per Year d 200 200 200 200 200 200

Shift System - 7/3 7/3 7/3 7/3 7/3 7/3

Shift Changing Time min 20 20 20 20 20 20

Breaks min 30 30 30 30 30 30

Truck Changing Time min 1 1 1 1 1 1

Op

erat

ion

Tim

e

Spot Time min 5 5 5 5 5 5

Annual Production Shovel mbcm 0.6 0.9 1.5 0.6 0.9 1.6

Number of Shovels 2 1 1 3 2 1

Annual Production Truck tbcm 56.6 92.0 141.6 85.5 139.0 213.8 Fle

et

Number of Trucks 15 9 7 21 14 9

Tab.: 4.3-19 Capacity of Shovel & Truck Fleet



Page 49 of 171

When calculating the necessary Shovel- and Truck-fleet 2 alternatives were considered (please

see table above):

1 annual output capacity 0.66 mbcm with a transport distance of 3.5 km

2 annual output capacity 1.4 mbcm with a transport distance of 2.0 km

3 different equipment classes were calculated for the two alternatives:

a 2 cbm Shovel and 8 cbm Trucks

b 3 cbm Shovel and 13 cbm Trucks

c 5 cbm Shovel and 20 cbm Trucks

For the calculation a continuous operation of 200 days per year was taken into account. The

included downtimes and reserve factors are shown in the above table.

Comparing the examined variants the equipment alternative with 2cbm Shovels and 8 cbm

Trucks shall be preferred. The decision is justified in the following:

- Only one shovel is required for alternative c owing to the low annual capacity.

Downtime of this excavator would accordingly lead to outage of the whole system.

That is the reason why this alternative shall be rejected.

- For a number of years the annual capacity of the mobile equipment operation is lower

than expected. This would also lead to a reduction to one winning equipment for

variant b.

- A decisive advantage of variant a is the availability of this equipment in Kosovo so

that the performances can be carried out at reasonable costs by companies from

Kosovo.



Page 50 of 171

4.4 General Mining Development in Sibovc SW

4.4.1 Excavation Boundary/ Boundary Line The following was taken into consideration when the excavation boundary (upper edge of first

level) was established:

- Course of old concession line

- Permissible approach to villages

- Thickness of minable coal seam at the boundary

- Necessary general inclination from geotechnical point of view

- Requirements to bench lengths and straight rim slope systems

Altogether the excavation boundary or the technological depletion boundary represents a com-

promise between the criteria mentioned above. The following applies to the single criteria:

Course of old concession line

Already in the past it was planned to excavate the Sibovc coal field. This area was defined by

a limitation line. The limitation of the excavation area for the field Sibovc SW planned in the

Complementary Mining Plan is within this area.

Permissible approach to villages

Despite the reduced coal demand, a partly relocation of villages within this field can’t be

avoided. This applies to the villages of Hade and Shipitulle. A complete resettlement of these

villages is not necessary. Between the mining boundary and the residential buildings a safety

zone with a width of 100 m has been considered. Near the village of Shipitulle little coal

losses have been accepted to keep the infrastructure.

Thickness of minable coal seam at the boundary

The thickness of the coal seam in the field Sibovc SW varies between 60 and 70m. In the

southern part the seam thickness is a little bit higher and can reach locally 80m. Along the

western boundary, where the seam is disturbed, the thickness goes back to 40 m. So there are

no restrictions regarding the seam thickness.

Necessary general inclination from geotechnical point of view

All slope systems comply with the requirements regarding the stability required from a geo-

technical point of view. i.e.:

- general inclination overburden system < 8°

- overburden (single slope) < 45°

- general inclination coal system < 22°



Page 51 of 171

- coal (single slope) < 75° to 20m or < 70° to 25m

Requirements to bench lengths and straight rim slope systems

The general opencast mine design is directly linked with the height of the planned output.

Especially the annual progress of the opencast mine is of essential importance for geotechnical

reasons. The lower the opencast mine advance, the higher the risks caused by slope failures ad

coal fires. These dependencies are still more complex in the available case of the Sibovc

deposit because the surface is strongly structured. This aspect has furthermore negative

influences to the mine development with straight routes for the head belt conveyors systems.

A bench length of ca. 900 m related to the coal benches was chosen for an annual output of

9mt. With an average coal thickness of 65 m this corresponds to an annual opencast mine

advance of ca. 130m. An opencast mine similar to that of the Main Mining Plan including

bench lengths of ca. 3000 m cannot be accepted since the annual mine advance will reduce to

40m. Another disadvantage of the long bench length arises due to the high investment and

operating costs for the belt conveyor systems. Other alternatives will also be not useful

because the mountain range with the Hade village is in the middle of the field.

In addition to that it was taken into account that the head belt conveyors should be in more or

less straight direction, with a justifiable number of single conveyors.

4.4.2 Bench Design

4.4.2.1 General Bench Design

The Sibovc field shows a varying thickness and a varying inclination of the benches and of the

roof and floor of the seam. The benches must follow these inclinations with the least possible

mining loss.

Overburden operation

Taking both the cut height and the capacity of the machines into consideration, 3 main levels

were provided for overburden removal and one additional level for following and cleaning the

seam. The 3 main levels are equipped with excavator types SRs 1300 and SchRs 650. For

these machines slope heights of about 20 m have been planned. During ramp excavation the

main machines cuts a ramp of additional 8 m thickness above the level of the belt conveyor

system. The ramp has to be excavated in a second block. In the lowest overburden bench the

application of a SRs 470 with belt wagon has been planned.

In some only locally spread areas, the total overburden thickness comes to about 120 m. In

these parts the additional application of mobile equipment can’t be excluded.

Coal operation

Coal mining is also implemented in 3 main levels and one additional bench at the bottom of

the seam. The main levels are equipped with excavator types SRs 1300 and SchRs 650,

respectively. In the lowest cut an excavator SRs 400 will be in operation. The coal from this

bench will be loaded to the next higher level by means of a belt wagon.

The inclination possible to be managed by the machines is 1:33 for excavator operation.

Inclinations of 1:40 were chosen for the benches in order to be able to follow the big gradients

of the terrain, roof and floor. This maximum inclination puts very high demands to keeping



Page 52 of 171

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.

The minimum inclination should not be less than 1:150. This is necessary to enable drainage

of the working levels. Drainage ditches must be provided on the benches and pump stations

shall be provided in the deep positions of the benches.

Fig.: 4.4-1 Cross Section with Main Equipment Application

Recommendation for more detailed planning

Deviations between the available terrain data and the actual situation were determined during

visits along the western rim slope system (area western and north-western of the shooting

range). This area has to be surveyed by KEK as soon as possible. On this basis both the

geological model and the technological planning of the western rim slope system shall be

specified.

4.4.2.2 Division of Cuts in Overburden Operation

The total overburden thickness in the field of Sibovc SW varies between 30 and 110 m. These

strong variations are mainly caused by the terrain profile but also in the tectonic conditions of

the seam. The largest cutting heights occur in the north of the mining field of Sibovc SW and

along the eastern rim slope system. The lowest overburden coverage is in the south of the

mining field along the northern rim slope system of the Bardh opencast mine.

Therefore the design of the single cuts shall be adjusted according to the morphology and

presents as follows:

Mobile Equipment

The use of Shovels and Trucks is envisaged in the sections with the largest cutting heights.

The operational area covers a curved zone along the mountain range in the central and

northern part of the mining field of Sibovc SW. The cutting depths in the overburden reach

here partly up to 110 m. This cutting height cannot be handled with the help of the main

equipment despite ramp excavation; therefore the use of mobile equipment is proposed. The

separation level of the mobile operation is on a level of +625 mMSL n the central part and

rises into the direction of the rim slope systems to +645 mMSL. The overall cutting height is

maximum 20m. The thickness of the single cuts shall be ca. 6 m.

1st Overburden system

Due to the terrain rising into northern direction the first overburden system will only begin

immediately in the south of the outside dump of Shipitulla (shooting range). The bench runs

from west to east on an average level of +595 mMSL. In the valley west of Hade (middle

bench zone) this cut runs on the surface level during the first business years. There is

practically no cutting. With progressing development the cutting depth increases continuously

on the entire bench. At the end of the period under review ramp excavation will be necessary

on large bench sections.

2nd

Overburden system

The starting position for this cut is on the present surface level at a height of +565 mMSL,

too. This height corresponds to the present height of working level of spreader P3B. From this

position on the 2nd

overburden system will be developed into northern direction. During the

first operating years this cut also works with reduced cutting heights in the valley location.

With progressing development the cutting depth increases so that ramp excavation will

become necessary. on large bench sections.



Page 55 of 171

3rd

Overburden system

The 3rd

overburden system is the cut exposing the coal seam. During the opening-up phase the

eastern part of the bench can be developed rim the existing northern rim slope system. In

contrast to this, an opening cut will be necessary the western part, because the bank rim slope

system was overdumped. Recovering of the dump masses is not recommended. The working

level is on a height of +550 / +535 mMSL and reaches the roof of the coal only at the western

rim s lope system. Therefore a deep cut following the 3rd

overburden system will be installed

which will expose the roof of the seam continuously. In this cut, there will be used a SRs 470

with belt wagon and without own bench belt conveyor.

The 3rd

overburden system works continuously with maximum cutting height.

4.4.2.3 Division of Cuts in Coal Operation

The coal seam in the field Sibovc SW has an average thickness of ca. 70 m. In the area of the

opening-up the coal has local seam thickness of up to 80 m. In the tectonic fault zones along

the western rim slope system the thickness reduces to partly below 40 m. The seam is more or

less deposited flat whereby a general dipping into eastern and southern direction can be

recognized. The dipping is mainly bound to geological faults (cracks); especially along the

western field boundary they lead to larger differences in the seam levels. Therefore the seam is

partly reaching the 3rd

overburden system.

Generally, it is envisaged to extract the seam in 3 cuts each being equipped with one

excavator of the 1300-class. The design of the single cuts is illustrated in the following:

1st Coal Cut

In the area of the opening up the working level of the 1st coal cut runs on a level between +525

and +515 mMSL. The working level is continuously dipping into eastern direction with a

gradient of ca. 1 : 80. The cutting thickness of the 1st coal cut is 15 to 20 m. The dipping of the

working level remains over the whole operating lifetime, the gradient increases to 1 : 40. At

the same time the working level increases by ca 15 m into north in the first operating years.

2nd

Coal Cut

The second overburden system is mainly 20 to 25 m thick. Analogue to the 1st coal cut the

working level is dipping into mining direction Compared with the 1st coal cut the dipping is

lower.

3rd

Coal Cut

The 3rd

coal cut is 25 m thick. Direction and dipping follow the 2nd

coal cut. This working

level can only reach locally the seam bottom. Therefore, a deep stage was planned for this cut.

A SRs 400 (E7M) with belt wagon shall be used in this additional cut which excavates the

coal to the technological bottom and loads it to the belt conveyor of the 3rd

coal cut. The

cutting depth in the deep stage is maximum 10 m.



Page 56 of 171

By means of single drillings, interburden containing clay was identified within the level of the

3rd

coal cut. These interburden layers are of low thickness and are not spread regularly. These

interburden layers occur only in the lowest coal cut; therefore they can be directly dumped to

the bottom with low technological expense. The decision to separate the interburden should be

made in case of need. In general layers greater 0.5 m shall be selectively extracted.

4.4.3 Main Strategies for Mining Development The following main strategies for the mining development have been considered in the

Complementary Mine Plan:

- Opening-up of the Sibovc SW opencast mine shall be made from the northern rim

slope system of the existing opencast mine. In the western opening-up area the inside

dump of P3B shall be taken into account.

- For the coal operation, a coal pillar shall be considered in the opening-up figure

between the mine fields of Sibovc and Bardh in order to stabilize the masses of he

inside dump the Bardh opencast mine.

- The masses are preferably dumped in the mined-out area of the existing opencast

mines in order to stabilize the slope south of Hade and to establish final dump surfaces

as soon as possible.

- Moreover, the mined-out bottom in Sibovc SW shall be covered and as far as possible

also the coal rim slope systems in order to prevent coal fires.




reducing the transport distance and the quickest possible establishment of the slope

system south of Hade.


municipal waste.


Mirash-East.

All in all is to be noticed, that the development of the new Sibovc SW mine is directly linked

to the advance of the existing mine and therefore to the realisation of the Mid Term Plan.

4.4.4 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 were prepared for

the purpose of 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 coal 1.14 t/m³



Page 57 of 171

- 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 0.5 m at each strata boundary

Fig.: 4.4-2 Sectors of Mass Calculation

Overburden Operation Coal Operation Total

Mobile E. Level 1 Level 2 Level 3 Level 3a Coal Level 1 Level 2 Level 3 Level3a Overb. Overb. Coal Ratio

[mbcm] [mbcm] [mbcm] [mbcm] [mbcm] [mt] [mt] [mt] [mt] [mt] [mbcm] [mbcm] [mt] [bcm/t]

1 0.855 1.836 4.986 0.684 0.464 0.375 8.361 0.839 9.96 : 1

2 1.105 1.112 6.230 8.434 2.223 0.352 5.488 4.835 0.099 0.031 19.135 10.773 1.78 : 1

3 0.415 7.109 11.208 8.708 1.847 1.840 6.341 9.658 5.376 1.071 0.554 29.841 24.286 1.23 : 1

4 0.175 5.018 10.522 8.308 1.777 0.824 6.291 9.166 5.860 1.184 0.373 26.173 23.324 1.12 : 1

5 2.521 7.358 13.341 9.238 1.920 0.905 6.130 8.240 5.974 1.827 0.396 34.774 23.076 1.51 : 1

6 4.644 11.393 13.781 10.804 1.945 0.161 6.374 8.641 6.680 2.009 0.447 43.014 23.865 1.80 : 1

7 6.773 16.126 15.078 11.006 1.226 0.072 6.096 6.060 5.850 1.427 0.375 50.584 19.506 2.59 : 1

8 7.807 15.569 16.265 11.256 1.291 0.067 6.164 5.553 5.637 1.883 0.369 52.557 19.304 2.72 : 1

9 2.399 12.388 16.164 11.891 1.294 0.612 6.565 5.258 5.502 2.039 0.411 44.547 19.976 2.23 : 1

Total 26.69 76.07 104.42 84.63 14.21 5.30 49.82 57.41 40.98 11.44 2.55 308.99 164.95 1.82 : 1

Tab.: 4.4-1 Results of Mass Calculation

4.4.5 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.

4.4.5.1 Stockpile TPP A

TPP ASeparation A

Mirash-WestMirash-Southeast

SHT-15

SHT-5.13

SH

T-2

b

Blocks 1, 2 and 3

Blo

cks

3,

4 a

nd

5

MK 1

MK 2

T

T ..... Truck Loading Point ... Active Belt Conveyors ... Passive Belt Conveyors

Fig.: 4.4-3 Scheme of Stockpile TPP 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 560,000 t. The total filling for a continuous handling amounts to 400,000 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 1,800t/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 60 of 171

- 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.

4.4.5.2 Stockpile TPP B

The coal is transported via two stationery belt conveyors to the stockpile.

Mira

sh-W

est

Bardh

MK B

MK A

TP

P B

C

C ... Crusher

Fig.: 4.4-4 Scheme of Stockpile TPP B

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.



Page 61 of 171

The Stockpile consists of four parallel arranged stockpile sections (at surface) with a

maximum total volume of 500,000 t. The optimal total filling for a continuous handling

amounts to 350,000 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 1,800t/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.



Page 62 of 171

4.5 Opening-up Operation

4.5.1 Preparatory Works in the Year 2007 In the calendar year 2007 the rehabilitation of the first overburden line will start, consisting of

Excavator E10B, 1,600 mm belt conveyor system and spreader P3B. The start of the

performance test is planned for end of February and the full load operation for end of March

2008 in the field Sibovc SW. The excavator will start on a level of +570/+555 mMSL on the

surface.

The necessary levelling works, to be done by dozers, should be realised in 2007 already. The

grading is required for erection of frames and drive and return stations before finishing the

refurbishment of the main equipment. At the same time the foreseen surface dewatering

measures (drainage of water ponds and the box culvert) and the land acquisition have to be

finished.

The grading works have to be done by KEK own equipment.

4.5.2 Mining Development in the Year 2008 Illustration of technology see attachment 4- 2

4.5.2.1 General Development

The opening up of the Sibovc SW opencast mine starts from the northern rim slope system of

the existing opencast mine. The overburden thickness in the opening up area is only 30m and

the coal layer is partly more than 70m thick. Parallel with the rising terrain the overburden

thickness is increasing into the mining direction.

In the western area of the northern rim slope system spreader P3B has been distributing the

masses of the first over the Bardh mine since 2003. In this zone the inside dump is directly

and completely bordering the northern rim slope system up to reaching the surface level.

Due to the low cutting height and the terrain increasing to the North first and second

overburden system can be put into operation on the area and reach full cutting depth only with

advancing extraction. Only the 3rd

overburden system must produce a cut-in. The dumped

inside dump masses will not be reclaimed.

After having executed the first preparatory measures in 2007, the proper opening up activities

will start in 2008. Directly after the end of the winter season the first mass movements by

means of Shovels and Trucks are planned. These works concentrate on preparing the positions

for the main equipment and the cutting of excess heights at the western bench end. The first

overburden line (E10B, 1,600mm belt conveyor system, P3B) is planned to take up operation

on 1st June. At year end (1

st November) another overburden line (E9M, 1,800 mm belt

conveyor system, P4M) will start operation. The masses are completely dumped in the

existing residual pits of the Bardh / Mirash mines. Coal will not be exposed in this year.



Page 63 of 171

Fig.: 4.5-1 Mining Position at the End of Year 2008

4.5.2.2 Overburden Operation

Mobile Equipment

In March 2008 overburden removal starts in the Sibovc SW field by means of mobile

equipment. First, the use of this equipment is planned until 2012. It is suggested to assign

these operations to a subcontractor. This will be the most economic alternative because the

required output capacity varies from year to year.

In 2008, mobile equipment operation will concentrate on producing the start positions for the

overburden lines 1 and 3 which will start operation already in this year. The following

working areas are resulting from this:



Page 64 of 171

Start position for 1st overburden system level: +565 / +555 mMSL

volume: 0.20 mbcm

completion: May 2008

Start position for 3rd

overburden system level: +560 / +550 mMSL

volume: 0.10 mbcm

completion: July 2008

Widening of highest overburden level: +595 / +580 mMSL

volume: 0.36 mbcm

completion: Dec 2008

It is suggested to use the area east of the dump pillar to dump the overburden masses. The

concrete determination of the dumping spaces shall be done according to the specific opencast

mine situation in 2008. Transport distances will amount between 3.0 to 4.0 km. Road

construction shall be planned and performed by the Subcontractor.

1st Overburden System

The installation of the first overburden line (E10B, 1,600 mm belt conveyor system, P3B) will

start in April 2008. On the winning side the bench belt conveyor line shall be established on

the route prepared by the mobile equipment (+565 / +555 mMSL – later working level of the

2nd

overburden bench). The connection to the dump is made along the western field margin.

The former bench of P3B in the Bardh mine will be continued as dump bench (+552 / +546

mMSL). Therefore this system will reach a total bench length of only 3,000 m using 3 single

belts in the start position.

Test operation and performance tests are planned for May 2008; continuous operation will

start on 1st June. Extraction is performed in parallel operation first with low cutting heights.

The maximum cutting heights (10 m) are reached at the western bench end. Totally 1.0 mbcm

of overburden have to be removed until the end of the year. This production considers a

moderate capacity development in the first operating months (3 months with 50% of the

maximum capacity and further 3 months with 70 % of the maximum capacity).

The dump will first be developed in high dumping with maximum dumping height 12 m. The

high-dumping directly borders the existing natural terrain surface. In the south of the high-

dumping area a corridor shall be considered for the natural dewatering of the later dump

surface. After dumping of the first block the head belt conveyor shall be extended and an

additional head belt conveyor shall be installed parallel to the existing head belt conveyor. At

the same time the dump bench belt conveyor shall be shifted parallel.

3rd

Overburden System

In September 2008, the 3rd

overburden line (E9M, 1,800 mm belt conveyor system, P4M) will

be installed in the starting position. The start position on the mining side (+ 560 / + 550

mMSL) was prepared by means of mobile equipment. The head belt conveyor also runs along

the western mining boundary. The dump bench will also be installed on the Bardh inside

dump on a working level of +540 / +536 mMSL. In the start position the belt conveyor system

consists of 4 single belts with a total length of 2.7 km.



Page 65 of 171

Test operation for this overburden system is planned for October before the capacity operation

will start in November. Restrictions with regard to capacity have been taken into account

analogue to the 1st overburden system the first months.

But the prepared start position does not yet correspond to the planned level of the working

bench of the E9M. Therefore winning operations in the first months will focus on lowering

the working level as soon as possible to the planned level (+550 / +535 mMSL). The lowering

of this working level is performed by excavating 2 deep cuts each having maximum depth of

8m. The belt conveyor line shall then be shifted to the next deeper level. In 2008 only the first

deep stage will be excavated.

The spreader works in high and deep dumping operation. Shifting on the dump side will not

be planned for the first operating year.

4.5.2.3 Production Figures

Overburden Coal

[ mbcm ] [ mt ] Remarks

Mobile 0.660 Commissioning 1st March

1 E10B 1.000 Commissioning 1st June

Ov

erb

urd

en

3 E9M 0.500 Commissioning 1st November

Total 2.160

Tab.: 4.5-1 Planned Production in the Year 2008

Level

Excav. Conveyor Width Length Return St. Drive St. Spreader

[ mm ] [ m ] [ mMSL ] [ mMSL ]

E10B Bench Belt Conveyor 1,600 1,500 + 550 + 570

Head Belt Conveyor 1,600 340 + 570 + 552


Dump Bench Belt Conveyor 1,600 1,100 + 552 + 546 P3B

E9M Bench Belt Conveyor 1,800 970 + 544 + 550



Dump Bench Belt Conveyor 1,800 1,100 + 540 + 536 P4M

Tab.: 4.5-2 Belt Conveyor System at the End of Year 2008



Page 66 of 171

4.5.3 Mining Development in the Year 2009 Illustration of technology in attachment 4 - 3


Operation in the Sibovc SW opencast mine is continued with the equipment put into operation

in the previous year. The 3rd

overburden system will be assisted by the excavator E5M from

June 2009. This excavator is used on the deep cut side of the bench belt conveyor and

removes the residual overburden up to the roof of the coal seam. In November the next

equipment line will be put into operation (E10M, 1,800 mm belt conveyor system, P3M). This

line will work in the 2nd

overburden system. The excavator E10B used previously on that level

will be shifted to the first overburden system. Therefore, the overburden operation in Sibovc

SW will be completely equipped.

Like in the year before the overburden will be dumped on the inside dumps of the Bardh and

Mirash mines. Both of the mines will still be in operation in 2009 so that the dumping

activities of the existing mines and the Sibovc SW mine shall be coordinated. This means that

the dumping space problem will furthermore influence the opencast mine operation

decisively. This fact especially results due to:

- Blocking of dumping space by sanitary landfill area in Mirash Brand

- Blocking of dumping space by ash dump area in Mirash East

- Low general slope angle of dumped material of 6°

- Blocking of lowest dumping slice in Bardh mine because of the dipping bottom of

seam

The new line to be put into operation will therefore operate in a dumping sector east of the

dump pillar.

In 2009 coal will be exposed for the first time in the mining field of Sibovc SW, but this coal

will not be extracted. Parallel to this the precondition for taking up coal production in 2010

must be provided.

Another important task will be the finishing of the resettlement of the western village part of

the community of Hade.



Page 67 of 171



Mobile Equipment

The overburden quantity to be removed by means of mobile equipment in 2009 will amount to

0.6 mbcm. About 0.2 mbcm will come to the cutting of excess heights at the western rim

slope system and 0.4 mbcm to shaping the eastern rim slope system southwest of Hade. In this

connection it will be necessary to partly resettle the western village part of Hade (please see

chapter 7). The level of the mobile equipment in the area of Hade will be produced with an

inclination of 1 : 6. Analogue to the previous year the overburden shall be dumped in the

dumping space east of the dump pillar of Mirash.




Page 68 of 171

The first overburden system will be operated on the level of the later second overburden

system until the 3rd

quarter. Afterwards excavator and bench belt conveyor will be shifted to

the new working position in the first overburden system. This position extends along the

contour lines from WSW to NNE and lies not parallel to the mining direction. A ramp leading

through the terrain shall be prepared by means of mobile equipment for transporting the

excavator. The new working level of the line is on + 595 / +585 mMSL. Owing to the terrain

structure the first overburden system will only be necessary in the western part of the mining

field during the first operating years. After re-commissioning in November the system will

mainly work at the western bench end to produce parallel position of the benches.

Connection to the dump side via the western rim slope system will be maintained also after

the reconstruction. Only the head belt conveyor shall be extended via a ramp (1 : 10) to the

higher level. The ramp shall be prepared by means of mobile equipment.

The dump will be further developed in parallel operation into eastern direction with constant

extension of the head belt conveyor. The spreader works exclusively in high dumping

operation.

2nd

Overburden System

The 2nd

overburden system consisting of E10M, 1,800 mm belt conveyor system and P3M

shall be put into operation in November 2009. The installation of the belt conveyor will

already start in September and in the following month spreader and excavator shall be

transported from the assembly yard to the work position. The performance tests for the entire

system shall be scheduled for October.

Parallel with the commissioning of the new line excavator E10B and the belonging bench belt

conveyor shall be shifted to the first overburden system in order to avoid hindrances.

Contrary to the other equipment line this system will be connected by belt conveyor to the

dump already via the eastern rim slope system. Reason for this is the limited dumping space in

the Bardh mine in 2009; therefore the overburden has to be dumped east of the dump pillar.

The head belt conveyors must lead into southern direction through the open pit space of Bardh

and then into eastern direction via the dump pillar of Mirash. The dump bench belt conveyor

shall be laid on a level of ca. +545 mMSL along the outside dump South. The dumping slice

will then be developed in deep and high dumping in slewing operation. The belt conveyor

system of this overburden line consists of 5 single belts with a total length of 6.4 km.

The belt routes shall be prepared during the summer months by mobile equipment available in

the opencast mine.

Already in 2009, the newly installed equipment line will remove 0.200 mbcm overburden.

3rd

Overburden System

The third overburden system will be further operated in parallel. Deep stage excavation started

in 2009 will be continued until the planned working level height is reached (+535 / +545

mMSL). When this level will be reached, the working level on the excavation side shall be

further developed slightly rising. Therefore the working level follows the rising coal seam.

Except the western bench end, the roof of the coal will not be reached with this working level.

For this reason an additional cut (3a) shall be installed on the deep cut side of the belt

conveyor which exposes the coal seam. Excavator E5M will be used in this cut. The extracted



Page 69 of 171

masses are transferred by mean of BRs 1200 to the belt conveyor of the 3rd

overburden

system. The thickness of cut 3a was limited to 8m height depending on the technical

parameters of the belt wagon. Commissioning of E5M including belt wagon is scheduled for

June 2009. Rehabilitation of the excavator is only planned for 2010 so that the excavator can

be directly used in the Sibovc SW mine after decommissioning in the Mirash mine.

The western bench end of the 3rd

overburden system is already in the area of high coal seam

position. Here the coal reaches into the 3rd

overburden system. In the annual slice for 2009 the

coal quantity comes to 0.29 mt in this cut. As the coal systems will not yet be installed in

Sibovc SW at that time coal has to be extracted and stored on a stockpile in the mine. This

quantity shall be reclaimed after commissioning of the first coal line.

The dump is further developed analogue to the previous year into eastern direction. The height

of the working level is between +540 und +536 mMSL. The spreader works in high- and deep

dumping.

Permanent control and supervision of the advance conditions and general slope angles will be

of essential importance during the dump development. The dump stability is a decisive

precondition for maximum coal output of the existing mines and also for the operating safety

of the belt conveyor line of the 2nd

overburden system in Sibovc SW.

4.5.3.3 Coal Operation

Coal production is not yet scheduled for 2009; it will become necessary from beginning of

2010. Therefore the required preconditions for taking up coal production shall be provided in

2009, especially:

- Shifting of the already in 2007/2008 rehabilitated E8M to the coal operation Sibovc

SW

- Finishing of rehabilitation of the first coal belt conveyor

- Preparation of routes for the installation of the belt conveyors (summer)

- Installation of the first coal belt conveyor line (autumn, winter)


Overburden Coal


Mobile 0.600

1 E10B 2.000 Relocation to 1st overburden level up to Oct

2 E10M 0.200 Commissioning 1st November

3 E9M 3.100 Ov

erb

urd

en

3a E5M 0.500 0.290 Commissioning 1st June

Total 6.400




Page 70 of 171

Level


[ mm ] [ m ] [ mMSL ] [ mMSL ]

E10B Bench Belt Conveyor 1,600 1,070 + 585 + 580



Dump Bench Belt Conveyor 1,600 1,100 + 552 + 546 P3B

E10M Bench Belt Conveyor 1,800 1,500 + 575 + 565



Head Belt Conveyor 1,800 2,200 + 538 + 545

Dump Bench Belt Conveyor 1,800 1,000 + 545 +545 P3M

E9M Bench Belt Conveyor 1,800 1,350 + 535 + 548

E5M Head Belt Conveyor 1,800 300 + 548 + 553


Dump Bench Belt Conveyor 1,800 1,100 + 540 + 536 P4M




Page 71 of 171



In 2010 coal production from the existing mine declines to 4.6 mt. To cover the coal demand

of the power plants a coal output of 3.4 mt is required from the Sibovc mine.

Overburden operation in the Sibovc mine will be continued analogue to the previous year

period. All system on the mining side will be further developed into northern direction in

parallel operation. Technological development started in 2009 will also be continued on the

dump side.

In the first quarter of 2010excavator E1B will be shifted to the Sibovc SW mine. This

excavator was already partly rehabilitated in 2005 and will be used as float machine in Sibovc

SW. The commissioning of this excavator provides the preconditions for the rehabilitation of

excavator E5M in the coal exposing cut. This measure will start beginning from March 2010.

At the beginning of the year the coal operation installed in the previous year will start

operation. Excavator E8M will begin on the coal roof and develop via several deep stages

until it reaches its planned working level. The coal is transported via a coal conveyor belt to

the distribution point.

In the first half of the year the preconditions for the commissioning of the second coal

excavator and the second stationery coal belt conveyor shall be provided. Start of operation

for this line is scheduled for July 2010. The development of the 2nd

coal cut is made analogue

to excavator E8M via several deep stages.



Page 72 of 171



Mobile Equipment

In 2010, the overburden volume to be removed by means of mobile equipment will reduce to

0.3 mbcm. Mobile equipment operation is only performed at the western bench end. During

the year the mining face of mobile operation reaches the south western boundary of the

outside dump (shooting area).

The masses can both be dumped on a suitable place of the Mirash dump and in Bardh. On the

Bardh dump side it is possible to additionally heighten the high dump produced by P3B once

again. This dumping shall only be done with limited volume (max. 0.3 mlcm) and serve

shaping the terrain surface at the western field margin in the area of the natural elevation of



Page 73 of 171

the base rock. Advantages for this alternative are the short transport distances of only 1.4km.

Dumping in this area requires a soil-mechanical evaluation of the total dump slope system.


The first overburden system will be further developed in slewing operation until a position

orthogonal to the planned mining direction will be reached. Afterwards excavation changes to

parallel operation. Also in 2010 the first overburden system will only be operated in the

western bench half owing to the terrain structure. The constantly low thickness in this cut at

the beginning of the year will increase with advancing development. This will be mainly due

to the fact that the cut reaches the southern boundary of the outside dump (shooting range).

The thickness of the cut will then come to 20 m in the western part of the bench and will

decrease continuously to 0m into eastern direction.

Due to the short bench length and the partly low cutting heights the annual output capacity in

this cut only comes to 0.47 mbcm. Starting from 2010 extraction in this cut will be decisively

determined by the additionally heightened outside dump masses. The thickness of the outside

dump varies between 0 and 20m. Therefore the height of the working level of E10B is

continuously in unspoilt material. Performance restrictions can be expected when the dumped

material will be reclaimed. The operating experiences from the existing mine and comparable

deposits show that the dumped material itself will flatten to 6°. During excavation in the

dumped areas slides have to be taken into account which will develop gradually. Dangers

caused by these slides for personnel and equipment will not be expected. Excavation in areas

with dumped materials shall be accompanied soil-mechanically; if required special measures

shall be taken.

The dump will be further developed in parallel operation into eastern direction exclusively by

high-dumping. Owing to the small output quantity in 2010 the advance of the dumping slice is

limited to ca. 50 m.

2nd

Overburden System

The 2nd

overburden line will be continued in parallel operation. The annual output capacity

comes to 3.3 mbcm, which corresponds to an advance of ca. 150 m. Excavator E10M will cut

for the most part of the annual slice from its working level to the surface level. Cutting height

is maximum 20 m. The thickness of the material to be excavated decreases to 5 m in the

valley site. The working level dips into eastern direction from ca. + 578 to + 565 mMSL.

Drainage measures are of special importance for the operation. The water quantities not

covered by the advancing surface drainage will flow into the 2nd

overburden system owing to

the valley position and must be discharged via the working level into eastern direction. By

means of constant surface drainage these water quantities can be minimized but not fully

excluded. Therefore it is urgently required to operate a functioning drainage channel on the

working level.

Belt connection to the dumping sector east of the dump pillar will be maintained. The dump

shall be further developed in slewing operation.

3rd

Overburden System



Page 74 of 171

Totally 4.71 mbcm overburden will have to be removed in the 3rd

overburden system in the

annual slice for 2010. About 3.62 mbcm of it come to the main cut (E9M) and 1.09 mbcm to

the coal exposing cut (E5M). Furthermore about 0.27 mt coal to be exposed is in the 3rd

overburden system; this coal shall be excavated and added to the pit operation.

The 3rd

overburden system will be further developed in parallel operation. In 2010 the advance

into mining direction will amount to ca. 140 m. The working level will slightly increase into

mining direction and will dip from west to east from + 553 to + 536 mMSL. The cutting

height in the main cut is constantly 20m.

Directly behind the bench belt conveyor on the mining side the coal exposing cut is carried

along. The thickness of the cut is limited to 10 m to be able to load the overburden masses to

the above lying bench belt conveyor on the main working level. The cut will be required for

the total area of the deep coal position; therefore it extends completely over the central and

eastern bench section.

On 1st March 2010 the rehabilitated excavator E1B which was damaged during a heavy slide

in 2002 will be shifted to the Sibovc SW mine. This excavator is scheduled as float machine

and shall be used in areas of special importance to be decided upon operatively. This

excavator shall be preferably used for extracting and moving coal from the 3rd

overburden

system because its technical parameters allow only a limited use in overburden.

The first special task in the Sibovc SW mine will be scheduled for excavator E1B directly

after commissioning of it. The excavator E5M previously working in the uncovering coal cut

was not rehabilitated before shifting to Sibovc SW. In 2010there will be the possibility and

necessity to catch up this rehabilitation. During the 7-month outage the excavator shall be

replaced by E1B. This excavator works with reduced performance owing to the restricted

applicability in overburden operation. Re-commissioning of E5M is scheduled for 1st October

so that E1B can be released. This excavator will then remain on the main working level of the

3rd

overburden system for extracting the coal occurring there.

The masses of the two cuts are charged to spreader P4M. Dumping of the section which

started in the previous year shall be finished at the beginning of the year. Another shifting of

the dump bench belt conveyor would lead to steeper slopes of the total dump system. It is

therefore proposed to re-install the dump bench belt conveyor on a lower working level (+510

/ +507 mMSL). Therefore the dump-side head belts shall be extended via a ramp to the new

height level. In the dump sector too, parallel operation is performed. At the end of the year

dumping has to be stopped again. The bench belt conveyor shall be re-shifted into the

previously left dumping sector and put into operation again.


Preconditions for the commissioning of the first coal line have already been made in 2009, so

that the E8M can directly start operation at the beginning of 2010. To reach the planned height

of working level between +525 and +515 mMSL the excavator shall start cutting from the

eastern bench end where the cutting height is only 12 m. From this position the opening up

figure shall be widened to a maximum extend into western and southern direction with

permanent extension of the bench belt conveyor.

The widening into South (Bardh opencast mine) is divided into two parts. The eastern bench

area can be widened to maximum extent to the existing northern rim slope system. The

boundary of the widening can be determined operatively and depending on different factors:



Page 75 of 171

- Impurification of the coal seam by dump materials

- Impurification / cavities in the coal seam by coal fires (not yet identified)

In the western bench area the southern field boundary is limited by the mining configuration

of the 3rd

overburden system. The cutting height of the 1st overburden system increases to 20

m in this section.

Parallel to the widening works in the first coal cut the provisions for putting the second coal

line into operation shall be made. The route for the second stationery coal belt conveyor has to

be prepared and the existing route shall be widened, respectively. Afterwards the coal bench

belt conveyor of the 2nd

line shall be installed and excavator E9B shifted into the pit. First the

2nd

coal bench belt conveyor shall be connected to the existing head belt conveyor system (A).

Commissioning of the line is scheduled for 1st July 2010.

The thickness of the 2nd

coal cut is maximum 30m. The start position of the excavator will be

on the working level of the 1st coal cut. Cutting to the planned height of the working level is

made stepwise via deep stages.

A reduced equipment performance was considered for the whole operating year owing to the

complicated technological mode of operation. In 2010 totally 3.4 mt coal shall be extracted in

the mine. This sum includes the double mass movement resulting from the moved coal from

the 3rd

overburden system.

One fact to be considered during this operating phase it the coal quality. Whereas in the

Sibovc SW mine only high-quality coal will be extracted there is in parallel mined the residual

coal from the lower seam horizons of the existing mine. Therefore it will be required to blend

the two mass flows for getting homogeneous coal qualities.


Overburden Coal


Mobile 0.300

1 E10B 0.470

2 E10M 3.300

3 E9M 3.620

3a E5M 0.590 0.270 Refurbishment March to September

Ov

erb

urd

en

3a E1B 0.500 Commissioning 1st March as Float Machine

1 E8M Commissioning 1st November 2009

Co

al

2 E9B 3.400

Commissioning 1st July 2010

Total 8.780 3.400




Page 76 of 171

Level


[ mm ] [ m ] [ mMSL ] [ mMSL ]

E10B Bench Belt Conveyor 1,600 1,070 +585 +590

Head Belt Conveyor 1,600 900 +590 +552


Dump Bench Belt Conveyor 1,600 1,100 +552 +547 P3B

E10M Bench Belt Conveyor 1,800 1,510 +578 +565



Head Belt Conveyor 1,800 2,200 +538 +545

Dump Bench Belt Conveyor 1,800 1,000 +545 +545 P3M


E5M Head Belt Conveyor 1,800 430 +552 +548



E8M Bench Belt Conveyor A 1,600 1,010 +525 +518

E9B Bench Belt Conveyor B1 1,600 570 +520 +516

Bench Belt Conveyor B2 1,600 110 +516 +518

Inclining Belt Conveyor A 1,600 100 +518 +520

Head Belt Conveyor A 1,600 2,000 +520 +560

Inclining Belt Conveyor A 1,600 240 +560 +580 DP TML-A1 1,400 1,300 horizontal TML-A2 1,400 1,300 horizontal TML-B1 1,400 1,300 horizontal

Connection Belt Conveyors to

TPP B

TML-B2 1,400 1,300 horizontal TPP B K-14 1,200 1,433 horizontal K-15 1,200 1,515 horizontal K-14a 1,800 1,450 horizontal


TPP A

K-15a 1,800 1,520 horizontal TPP A




Page 77 of 171



In 2011 mining operations shall be continued analogue to the previous year. Equipment stock

remains the same as well.

Coal production shall be increased to 6.0 mt in 2011. As the E8M can be operated in the first

coal cut without capacity restrictions and the E9B increases also performance with increasing

cutting thickness this output can be realised with the help of the installed equipment.

In the overburden operation too, capacity shall be increased by almost 40%. The capacity

increase shall be performed by all equipments used. Parallel to the advancing development the

application conditions for the main equipment are improving (rising in cutting height of single

cuts), which will be basis for improving the performance.

Expensive special measures regarding resettlement, infrastructure and dewatering are not

scheduled for this year.



Page 78 of 171



Mobile Equipment

The mass portion for mobile equipment will further reduce in 2011 and will be limited to

0.200 mbcm. The mass movements are equally distributed to the two bench ends. With a

cutting of 0.100 mbcm at the western bench end the excavation of excess heights are finished

in this area. Contrary to this the eastern rim slope system of the mine will reach a terrain

elevation west of Hade so that subsequently removing of excess heights will become

necessary here.

The dumping of masses follows analogue to the previous year optional in the residual pit of

Mirash and/or as neighbouring dumping of the base rock elevation west of the Bardh mine.



Page 79 of 171


The first overburden system is further developed in parallel operation. The advance will

amount to ca. 150m. Due to the reduction of the valley in width the bench length in the first

cut can be slightly lengthened. The cutting height reaches continuously 10 to 20 m which is

due to the terrain rising into northern direction. The share of the mining front which is covered

by dumped masses reaches ca 400 m at the year end. The dumped masses are deposited in the

upper slope range; the working level will not be influenced by these masses.

The eastern bench half will not be covered by the first overburden system due to the valley

cut.

In 2011, excavatorE10B will have to remove totally 1.76 mbcm overburden. This corresponds

to less than half of the realisable capacity of the excavator.

The dump will further be developed in parallel operation and exclusively in high dumping.

2nd

Overburden System

Excavator E10M will have to remove 4.1 mbcm in the second overburden system. The bench

extends over the whole width of the mine. Whereas the cutting depth reaches 20 m in the

western bench area, they reduce to partly 10 m in the eastern bench part (valley cut). The

problem of surface drainage described for 2010 will also apply to this year.

Dump development will also be continued in the 2nd

overburden system like in the previous

year. The dumping sector is east of the dump dam in the area of the former Mirash-East mine.

3rd

Overburden System

A total quantity of 6.17 mbcm overburden will have to be removed in the 3rd

overburden

system in 2011. About 4.81 mbcm of it will come to the main cut (E9M) and 1.36 mbcm to

the uncovering cut (E5M).to removed 0.20 mt of coal in the 3rd

overburden system which will

be assigned to the pit operation.

The 3rd

overburden system is further developed in parallel operation. The advance in mining

direction is ca. 160 m. The working level slightly rises in mining direction and lowers from

west to east from + 555 to + 540 mMSL. The cutting height in the main cut is constantly 20m.

The annual capacity of 4.81 mbcm to be realised by E9M requires a strict operating regime

and avoiding of longer outage. The maximum possible capacity of 5.4 mbcm/a will not be

reached.

Thickness of the coal-uncovering cut is again 10m. The masses to be removed by E5M are

loaded by means of belt wagon to the belt conveyor of the main cut. This cut will be necessary

throughout the entire area of the deep coal layer and stretches therefore via the complete

middle and eastern bench area.

The coal to be exposed in the 3rd

overburden system is extracted by excavator E1B and added

to the first coal system. This excavator will also take over special operations to be determined

if required.



Page 80 of 171

The dump development will be continued on the level taken end of 2010 (+540 / +537

mMSL). Distribution of the masse is performed in parallel operation in high- and deep

dumping.


Whereas excavator E8M can work in the first coal system over the entire bench, excavator

E9B will continue widening operation in the second coal system at the beginning of the year.

In the last quarter E9B can also start regular operation on its planed working level (+ 500 /

+485 mMSL). The necessary widening works up to the southern rim slope system will be

completed as well. The thickness of the 2nd

coal system is maximum 30 m so that excavator

E9B shall perform ramp excavation.

At the beginning of the year the 2nd

head belt conveyor (B) will be put into operation in the

coal operation. The necessary routes were already prepared in 2010.

In 2011, total coal output will amount to 6.0 mt. This figure also includes double mass

movements resulting from the extracted coal from the 3rd

overburden system (0.200 mt).

Analogue to the previous year the coal quality management system of the existing mine and

the Sibovc SW mine requires special attendance and increased coordinating expenses.

Blending of coal of the two mines is urgently required because the coal extracted in the lower

seam part of the existing mine is only of minor quality.


Overburden Coal


Mobile 0.200

1 E10B 1.760

2 E10M 4.100

3 E9M 4.810

3a E5M 1.360

Ov

erb

urd

en

3a E1B 0.200 Coal double moved by E8M

1 E8M

Co

al

2 E9B 6.000

Total 12.230 6.000




Page 81 of 171

Level


[ mm ] [ m ] [ mMSL ] [ mMSL ]















E9B Bench Belt Conveyor B 1,600 980 +495 +485

Head Belt Conveyor A 1,600 170 +518 +518


Inclining Belt Conveyor B 1,600 180 +500 +520


Head Belt Conveyor B 1,600 2,000 +520 +560

Inclining Belt Conveyor A 1,600 240 +560 +580 DP

Inclining Belt Conveyor B 1,600 240 +560 +580 DP TML-A1 1,400 1,300 horizontal TML-A2 1,400 1,300 horizontal TML-B1 1,400 1,300 horizontal


TPP B



TPP A





Page 82 of 171



In 2011 coal production from the existing mine will phase out so that the power plants will be

fully supplied by the Sibovc SW mine from 2012. Precondition for the long-term coal output

of 9 mt/a will be the completion of the equipment fleet in the Sibovc SW mine. Rehabilitation

of excavators E8B and E7M shall be finished in this year and put into operation in the 3rd

coal

system.

Due to the closure of coal production in the existing mine and the dismounting of the

equipment system considerable dumping space will be available. Therefore, conversion of

single lines to inside dumping is scheduled. This conversion offers advantages for different

reasons:

- Reduction of the problem of dumping space

- Shortening of transport distances in overburden operation

- Improvement of the geotechnical safety with regard to stability of the dump slope

system mainly the northern rim slope system south of Hade

Complete conversion of dump integration is only made for the first overburden line. The

second line which was used till then east of the dump pillar in the former Mirash East mine

shall only be shortened. The downtime during the conversion for this line will only be

restricted to the shifting and connection of the spreader into the new bench belt conveyor. The

3rd

overburden system will remain in its position.



Page 83 of 171



Mobile Equipment

In 2012, mobile equipment will only remove 0.150 mbcm overburden. This equipment will

only work in the eastern bench end area where the elevation west of Hade has to be removed.

The plateau to be provided by the mobile equipment will serve as level for the overburden

conveyor line of the 1st overburden system.

The materials will be dumped in the residual pit of Mirash.




Page 84 of 171

The first overburden system will continue parallel operation with the existing dump

connection until March. Analogue to the previous year the material is spoilt in high-dumping.

At this time the quantity will amount to 0.74 mbcm. From April the dismounting work of the

main equipment of the existing mine will have to be completed to such an extent that the 1st

overburden line can be reconstructed.

Besides the reduction of the problem of dump space the reconstruction mainly aims at

securing the northern rim slope system opposite of Hade. The following single measures have

to be accomplished:

- Transport of spreader P3B from present level to +550 mMSL via the dump system to

the northern rim slope system (level +468 mMSL). Thereby the belt lines of the 2nd

and 3rd

overburden system shall be crossed. The transport will be performed in spring

so that problems will not be expected.

- Reversing of transport direction and in parallel extension via the entire bench. The

route for the belt conveyor in the eastern bench section shall be prepared by mobile

equipment until March 2012.

- Shifting of the head belt conveyor from western to eastern rim slope system parallel to

the head belt conveyor of the 2nd

overburden system. For this shifting a belt bridge

over the two coal belt conveyor lines shall be planned.

- Shifting of the dump belt conveyor to the level of the new dump working bench (+468

mMSL). The transport of the two drive stations and the spreader shall be performed in

parallel.

Reconstruction measures shall be completed within one month.

In the new dumping sector the spreader only works in deep dumping. From the start position

the dump bench develops ahead until the connection to the dump system of the former Mirash

West mine is produced. Dump base in the technological bottom of the exhausted mine. Partly

the material is dumped to a depth of 30 m. This depth is possible because the area is limited to

a restricted space. Before re-commissioning of the line, a soil-mechanical assessment shall be

made.

In 2012 totally 2.7 mbcm have to be moved in the first overburden system.

2nd

Overburden System

The 2nd

overburden system will continue parallel operation. In 2012 a total output capacity of

4.0 mbcm is planned. The cutting heights amount to 20m in the western bench half and 15m

in the eastern section.

The belt connection to the dump via the eastern rim slope system will be maintained. The

exhaustion of the Bardh/Mirash mine in 2011 will provide considerable dumping space in the

residual pit which will already be available for the 2nd

overburden system at the beginning of

2012. Owing to the already described dump space problems the conversion shall be made as

early as possible, if possible already in 2011. The available study assumes a conversion date

of 1.1.2012. The conversion will comprise the following measures:

- Transport of the spreader via the southern rim slope system to a level of +465 mMSL

directly at the 2nd

head belt conveyor of the same system.



Page 85 of 171

- Shortening of the 2nd

head belt conveyor to 500m and linking of the spreader to this

belt conveyor

- Re-building of the 3rd

head belt conveyor and bench belt conveyor

After recommissioning the spreader works in slewing operation exclusively by deep dumping.

Dumping heights reach up to 30m. These heights are possible because the area is limited to a

restricted space. Parallel to this spreader P3B starts dumping operation on the same working

level. Both spreaders will then slew in opposite direction with will result in additional

limitation of the slopes. Before re-commissioning of the line, a soil-mechanical assessment

shall be made.

Overdumping of the main drainage by spreader P3M requires the installation of a new

drainage on the working level of the spreader. The water yielded on the technological bottom

shall be drained by means of mobile pump station until complete covering of the area.

3rd

Overburden System

An output capacity of 4.1 mbcm is scheduled for the 3rd

overburden system in 2012. In the

additional cut 3a another 0.94 mbcm have to be removed for uncovering the coal. Therefore

totally 5.04 mbcm have to e dumped by the spreader. In addition 0.63 mt coal are to be

exposed in the 3rd

overburden cut which will be selectively extracted by excavator E1B and

assigned to the coal operation.

Dump development is performed according to the same principle like in the previous year.

The spreader works in parallel operation in high-and deep dumping. If the dumping slice has

reached the next deeper dump slice taking into account the maximum general slope angle,

spreader and dump bench belt conveyor shall be reconstructed on the next deeper level ( +510

/ +508 mMSL ). The head belt conveyor on the dump side has to be extended via a ramp.

Afterwards dumping is continued on this level in high- and deep dumping until the advance to

the next dumping slice is used up. Subsequently the system is re-built to the before left level.


In 2012 the scheduled production of the mine will amount to 9.0 mt coal. This also includes

the double mass movement resulting from the coal extraction in the 3rd

overburden system

(90% of 0.630 mt).

Coal systems 1 and 2 will already work under regular conditions so that the main part of the

output shall come from these cuts. In the first half of the year the advance conditions have

developed to such an extent that the preparatory works for the 3rs coal system can start.

Excavator E8B including the belonging bench belt conveyor will start production on 1st June

2012. The scheduled capacity will be reduced during the first months until the excavator will

reach the planned height of working level and a sufficient bench length. The cutting height of

the 3rd

coal system is 25m. From November excavator E7B including belt wagon will be used

additionally in this system. This excavator is planned for developing the additional cut below

the E8B. In 2012 this excavator will still work together with E8B on one joint bench.



Page 86 of 171

4.5.6.4 Coal Quality Management

In 2012 the pit operation of the Sibovc SW opencast mine will be fully equipped. The

commissioning of a coal quality management system will become possible and necessary

when the operation in the Bardh/Mirash mine is closed and the Sibovc SW mine will be the

sole supplier for the power plants TPP A and TPP B. Main reason for this are the considerable

variations in the coal quality in vertical seam direction.

Basis of the coal quality management system is the technical equipment of the pit operation

including possibilities for distribution and blending of the mass streams of the pit operation.

The installed belt system offers the following distribution possibilities:

- The three head belt conveyors on the benches in the coal system shall be equipped

with drive station furnished with shuttle head. By means of this the coal can be

charged from each of the benches optional to one of the two inclined belt conveyors.

- The two inclined belt conveyors leading to the surface level shall also be furnished

with shuttle heads. These inclined belt conveyors can supply optionally each of the

connecting belt conveyors to TPP A and TPP B.

Fig.: 4.5-6 Coal Transport and Distribution System in the Year 2012

Totally 5 pieces of 1,600mm-drive stations with shuttle head are required. Optionally it will

also be possible to equip the 2 km long head belt conveyors along the northern rim slope



Page 87 of 171

system with shuttle heads. This would offer another possibility for the coal distribution. This

variant shall be regarded as option.

The following possibilities for blending result for the coal system in Sibovc SW:

- Control of excavator use at the mining face due to knowledge of in-situ-coal quality

distribution in the seam

- Pre-blending of coal quality by special control of mass flows of the 3 head belt

conveyors to 2 inclined belt conveyors

- tailored direction of mass flows to TPP A and/or TPP B

- Control o coal quality by layer-wise spreading of raw coal on the stockpile sections of

the stockyards

- Blending of coal quality when reclaiming the heaps including the option of admixing

of coal from the run-of-mine stream

Measuring devices for online-measurement of coal qualities (heating value, ash, water

content) and the output quantity shall be installed at different places of the belt system. The

following measuring points are suggested: discharge belts of excavators, inclined belt

conveyor in pit operation and connecting belt conveyors to power plants.

A separate project shall be worked out for the detailed specification of the coal quality

management system.


Overburden Coal


Mobile 0.150

1 E10B 2.700

2 E10M 4.000

3 E9M 4.100

3a E5M 0.770

Ov

erb

urd

en


1 E8M

2 E9B

3 E8B Commissioning 1st June C

oal

3a E7M 0.095

9.000

Commissioning 1st November

Total 11.815 9.000




Page 88 of 171

Level


[ mm ] [ m ] [ mMSL ] [ mMSL ]



Dump Bench Belt Conveyor 1,600 700 +467 +470 P3B



Dump Bench Belt Conveyor 1,800 850 +467 +467 P3M







E8B Bench Belt Conveyor C 1,600 430 +468 +462

Head Belt Conveyor A 1,600 290 +520 +518

Head Belt Conveyor B 1,600 100 +490 +490

Head Belt Conveyor C 1,600 130 +461 +480








TPP B



TPP A





Page 89 of 171

4.6 Regular Operation

4.6.1 Mining Development in the Period 2013 – 2017 Illustration of technology in attachment 4 - 7


In the 5-year period from 2013 until 2017 development of the mine will be continued into

northern direction. Mining is executed in parallel operation. After passing of the village Hade

operation switches to slewing operation for a short period. With progressing development the

cutting heights increase over the whole bench length so that ramp excavation will become

necessary over long distances. Local excess heights are removed by draglines and added to the

1st overburden system. From 2016 total cutting thickness will increase to partly more than

110 m in the overburden operation so that mobile operation for removing the excess heights

shall be re-installed in the western bench section.

During that period the overburden masses are dumped only in the residual pit of

Bardh/Mirash. Dumping into the mined out area of the Sibovc SW mine is not possible due to

the limited advance conditions.

Another important issue in the period 2013 to 2017 is the resettlement of the communities of

Mirene and Shipitulla East.



Page 90 of 171



Mobile Equipment

The increasing cutting thickness in the overburden especially in the western bench area will

require removing of excess heights already from 2013. To reduce the mass portion for a Sub-

contractor (truck and shovel) the additional use of a dragline is proposed. This machine shall

remove local excess heights and add the masses to the 1st regular overburden system. The

dragline works in high-cut. This measure allows removal of up to 0.400 mbcm overburden per

year at reasonable costs. A higher mass portion will not be possible because the capacity of

E10B in the 1st overburden system is fully used.



Page 91 of 171

The masses which were not taken by the dragline have to be removed by a Truck & Shovel-

operation. Start for the Subcontractor can be delayed due to the dragline use to 2016.

Within the period between 2013 and 2017a total overburden quantity of 2.41mbcm have to be

removed. The dragline portion is thereby 1.22 mbcm, the subcontractor 1.19 mbcm.

Two variants are recommended for the dumping of the masses removed by the Subcontrac-

tors. The first alternative is dumping along the northern rim slope system south of Hade. A

second alternative would be the dumping on the technological bottom. This alternative would

offer the shortest transport distances and allows covering of the technological bottom for pre-

venting coal fires. The disadvantage of this alternative would be the extreme gradient of the

accesses (difference in height almost 200m, full load drive falling, empty load drive rising).


The 1st overburden system is further developed in parallel operation. After passing the village

Hade the eastern rim slope system is adjusted to the run of the contour lines of the area. For a

short term operation switches to slewing operation in clockwise direction and afterward chan-

ges into parallel operation. An additional head belt conveyor shall be put into operation in

parallel.

With progressing mining operation the 1st overburden cut develops out of the valley site. The

cutting thicknesses will therefore also rise in the eastern bench section step by step. In the

western bench area cutting thickness is 26 m so that ramp excavation will be necessary. The

working level falls from west to east from +620 to 600 mMSL.

In the period between 2013and 2017 about 14.78 mbcm have to be removed in the first over-

burden system. Another 1.22 mbcm (1.342 mlcm) for double movements are added due to the

masses moved by the dragline.

Dumping of the masses is further continued in the residual pit of the Bardh/Mirash mine south

of Hade by means of spreader P3B. The spreader works in slewing operation in clockwise

direction. At the beginning of the period under review the spreader is on a height of +467

mMSL. This dumping sector will be closed both by the P3B (from north) as well as by P3M

(2nd overburden cut from south). If connection of the two benches is established the head belt

conveyor can be shortened and installed on the next higher level (+499 mMSL) along the

northern rim slope system. From this position the spreader works in slewing operation in deep

dumping. The dumping heights are 26 m. (Spreader P3M, too, will be installed on that level

and works in counter direction to P3B.) After this sector will be closed the system will be

installed on the next higher level (+526 mMSL) and dumping will be continued. The follow-

ing masses will be removed:

- Level +467 mMSL 1.79 mlcm



Total 17.60 mlcm = 16.00 mbcm

According to the advance in the dumping slices and the re-installation on the next higher level

the operative drainage system including the installed pumps and pipelines shall be moved.

2nd

Overburden System



Page 92 of 171

The development of the second overburden system follows the first overburden system. Here

also, the bending of the rim slope system requires putting an additional head belt conveyor

into operation. The cutting height is in this cut 20 – 28m, so that the E10M has to work con-

tinuously in ramp excavation to shape a stable slope. The normal cutting height should be

maximal 20m. This mean a ramp is necessary for a cutting height of 8 m. The maximum ad-

missible height difference between travelling gear of the basic equipment and the loading

equipment is 10m.

The overburden quantity to be removed within the period under review amounts to 24.5

mbcm. This corresponds to an annual output capacity of 4.9 mbcm. To be able to realise this

capacity continuously over a period of 5 years a consistent operational management shall be

performed. However, such a capacity is realistic; the maximum possible capacity (considering

the specific deposit conditions as well as technical and climatic conditions) was not assessed.

The masses are dumped synchronous to the first overburden system. Dumping site is the re-

sidual pit of Bardh / Mirash south of Hade. Spreader P3M works on the same working level

like spreader P3B of the first overburden system. The machine works in slewing operation

counter-clockwise and therefore in opposite direction of the P3B. If the respective dumping

sector is closed the dump bench belt conveyor will be shifted to the next higher level and

dumping is continued. Contrary to the P3B the installation position of the dump bench belt

conveyor is directed north-south. At the end of the period under review the working level lies

at a height of +525mMSL. The following quantities are dumped:





3rd

Overburden System

An output capacity of 20.41 mbcm is planned for the 3rd overburden system within the period

from 2013 to 2017. Additionally 4.32 mbcm are required for exposing the coal in auxiliary cut

3a. Therefore spreader P4M has a total dumping capacity of 24.73 mbcm (27.2 mlcm).

Furthermore, about 4.32 mbcm coal are to be extracted selectively and added to the coal op-

eration.

This overburden cut will also reach cutting heights of more than 20m, so that here ramp exca-

vation will be required. The auxiliary cut 3a has to remove a constant cutting height of 10m.

The connection to the dump side via the western rim slope system will remain. A changeover

to inside dumping in Sibovc SW cannot be implemented in this period since the available

bench lengths would result in a rapid approach to the coal operation. Thereby it is of disad-

vantage that the exposed bottom will not continuously be covered by an inside dump. The

following principle problems result from this.

- The residual coal on the exposed bottom as well as at the rim slope systems is subject

to self-ignition due to the long lifetime. This can be avoided by placing a thin cover

with cohesive material (mobile equipment).

- Due to the missing inside dump the rim slope systems cannot be integrated over a pe-

riod of more than 5 years. The long lifetime of the rim slope systems shall be consid-

ered in the soil-mechanical assessment.



Page 93 of 171

The dumping is therefore continued in the area of the former Bardh mine. In 2013 the advance

conditions require reconstruction of the dump bench belt conveyor to a lower level. The head

belt conveyor on the dump side shall be lengthened and lead via ramps to a height of +523

mMSL. The dump bench belt conveyor shall also be installed on this level. In the start posi-

tion the dump bench belt conveyor runs in north-south direction. The spreader works in slew-

ing operation counter-clockwise. During the ca. 4-years operation with a total volume of

22.1mlcm the bench is extended from 1,100 to 1,550 m.

If spreader P4M will approach spreader P3M of the 2nd overburden system in 2016 dump

bench belt conveyor and spreader shall be shifted to the level +540 mMSL. Therefore the head

belt conveyor on the dump side has to be shortened by ca. 200 m. The spreader works then in

deep- and high dumping in slewing operation counter-clockwise. In this dump slice more than

5.1 mlcm overburden have to be spread again until the end of 2017.

The high-dumping operation produces the later surface level. To guarantee drainage of the

terrain the final dumping must have a continuous gradient (1 : 150) in south-western direc-

tion.. This ensures the drainage of the surface water into the direction of the Drenica.


The coal benches follow the uncovering cut in parallel operation. The head belt conveyors

shall be lengthened according to the opencast mine advance. At the beginning of 2013 the 3rd

coal cut has to be widened completely, afterwards this cut also changes over to regular opera-

tion.

Within the period of 2013to 2017 the mine has a coal production 45.0 mt (9.0 mt/a). This in-

cludes also the coal quantity of 2.7 mt from the 3rd overburden cut.


2013 2014 2015 2016 2017

OB Coal OB Coal OB Coal OB Coal OB Coal

[mbcm] [mt] [mbcm] [mt] [mbcm] [mt] [mbcm] [mt] [mbcm] [mt]

Remarks

Mobile 0.360 0.830

Dragline 0.190 0.140 0.090 0.400 0.400 Masses double moved by E10B

1 E10B 3.470 3.080 2.710 3.280 3.460

2 E10M 4.900 4.900 4.900 4.900 4.900

3 E9M 4.010 4.170 4.340 4.050 3.840

3a E5M 0.850 0.890 0.930 0.850 0.800

Over

burd

en

3a E1B 0.850 0.640 0.430 0.400 0.380 Coal double moved by E8M

1 E8M

2 E9B

3 E8B Coal

3a E7M 0.130

9.000

0.140

9.000

0.140

9.000

0.145

9.000

0.155

9.000

Total 13.360 9.000 13.180 9.000 13.020 9.000 13.585 9.000 13.985 9.000

Tab.: 4.6-1 Planned Production in the Years 2013 – 2017

Level


[ mm ] [ m ] [ mMSL ] [ mMSL ]





Dump Bench Belt Conveyor 1,600 1000 +525 +518 P3B













E7M Head Belt Conveyor A 1,600 850 +520 +518

Head Belt Conveyor B 1,600 650 +499 +490









TPP B



TPP A





Page 96 of 171



The development of the Sibovc SW mine will be continued into northern direction within the

period from 2018 to 2022. The overburden thickness increases along the whole mining face so

that the mass portion for the Subcontractor will also increase. At the end of the period under

review the terrain elevation is cut so that cutting thicknesses in this area will further decrease.

This fact is likewise of advantage for the dewatering of the pre-mining area.

The 3rd

overburden cut will changeover to inside dumping that means the masses will not be

dumped any longer in the residual pit of the former Bardh mine but in the Sibovc SW mine.

The other two overburden lines will continue dumping in the residual pit of Mirash / Bardh.

Aim is the producing of large final dump surface areas.

Owing to the opencast mine advance parts of Hade North must be resettled in 2019.



Page 97 of 171



Mobile Equipment

The further increasing cutting thickness in the overburden requires continuation of removal of

excess heights over the whole bench length. In this operation there are further used dragline

(mass transfer to the 1st overburden system) and the subcontractor with Shovel & Truck-

operation.

The mass portion of the dragline reduces from 0.4 mbcm in 2018 to 0.2 mbcm in the follow-

ing years. This reduction is due to the capacity of the following 1st overburden system. The

E10B is not able to cope with a higher mass portion in addition to its planned annual capacity

of 3.9 mbcm.



Page 98 of 171

Therefore the capacity of the mobile equipment operation shall be increased to 1.4 mbcm/a. It

is proposed to dump the masses in a dumping space in the inside dump of Sibovc SW. The

western rim slope system is ideal due to the short transport distances and minimal crossing of

obstacles.

With advancing development the crest of the terrain elevation is cut in the central bench area.

The resulting gap in the mining face of the mobile equipment operation is used to drain the

surface water from the pre-mining field and the working level of the mobile equipment opera-

tion in the future. The before installed ditch system for pre-mining field dewatering with the

box-culvert is for the most part overexcavated at this time and therefore out of operation. Dur-

ing the progressing opencast mine development both the catchment area and the water quanti-

ties of surface water have considerably reduced.


The 1st overburden system will further develop in parallel operation. Due to the increasing

total cutting thickness in the area of the terrain elevation the rim slope system has to be wid-

ened. The bench length in the 1st overburden system will therefore extend from 1,800 m in

2017 to 2,300 m in 2022. Except for the bench ends the cutting thickness continuously a-

mounts to 26 m. Therefore ramp excavation is necessary on the entire bench. The working

level falls from west to east from +620 to 605 mMSL.

Within the period from 2018 to 2022 the first overburden cut has to remove 19.22 mbcm. In

addition 1.20 mbcm (1.32 mlcm) have to be removed due to double movement of the masses

taken by the dragline.

The masses are dumped in the residual pit of the Bardh/Mirash mine south of Hade by sprea-

der P3B. The spreader works in slewing operation clockwise. At the beginning of the period

under review the spreader is on a level of +526 / +519 mMSL. This dumping sector will be

closed both by P3B (from the north) and by P3M (2nd overburden system from the south). If

connection of the two benches is established the bench belt conveyor and the spreader can be

installed on the next higher level (+546 / 539 mMSL) along the northern rim slope system.

From this position the spreader works in slewing operation in deep- and high dumping. The

dumping heights amount to 20m, the thickness of high dumping is 12m. (Spreader P3M will

again work on this working level and operate opposite direction of the P3B).

The high dumping shall produce the planned final surface level. It is planned to shape a main-

ly flat final dump area which is suitable for agricultural use. In the area of Hade a slight eleva-

tion shall be re-established with gradient (1 : 150) into western direction to the Drenica River

and into eastern direction to the Sitnica. The connection to the original surface level is the area

of the terrain elevation south of Hade will not be reached.

In the described dumping slices P3B shall dump the following quantities:

- Level +526 / +519 mMSL 7.53 mlcm

- Level +546 / +539 mMSL 19.43 mlcm


According to the advance in the lower dumping slices and operative drainage system includ-

ing the installed pumps and pipelines shall be put out of operation and moved. Parallel to that

the respective ditch systems on the dump surface shall be installed and activated.



Page 99 of 171

2nd

Overburden System

The 2nd overburden system follows in its development the 1st overburden cut in parallel

opera-tion. The cutting thickness remains at 26 m over the entire period under review and

requires continuous ramp excavation.

Within the period from 2018 – 2022 an output capacity of 23.56 mbcm will be required. This

corresponds to an annual capacity of the E10M between 4.9 and 4.45 mbcm.

The masses are dumped synchronous to the first overburden system. Dumping site is the re-

sidual pit of Bardh / Mirash south of Hade. Spreader P3M works on the same working level

like spreader P3B of the first overburden system. The machine works in slewing operation

counter-clockwise and therefore in opposite direction of the P3B. If the dumping sector on the

level +524 mMSL will be closed, dump bench belt conveyor and spreader will be shifted to

the level +545 mMSL. The P3B takes its position on the bench left by the P4M (3rd overbur-

den system) and developed in the following period into parallel operation into eastern direc-

tion.

The spreader works now in deep- and high dumping whereby the final dump surface is pro-

duced by high-dumping. The required surface profile will be shaped as already described for

the 1st overburden system.

The following quantities are dumped by P3M:




The produced final dump areas shall be graded and ditch systems installed.

3rd

Overburden System

An output capacity of 18.14 mbcm is planned for the 3rd overburden system within the period

from 2018 to 2022. Additionally 3.06 mbcm are required for exposing the coal in auxiliary cut

3a. Therefore spreader P4M has a total dumping capacity of 21.20 mbcm (23.232 mlcm).

Furthermore, about 0.51 mbcm coal are to be extracted selectively by E1B and added to the

coal operation.

The cutting height of the 3rd overburden cut will come to more than 20m, so that here con-

tinuous ramp excavation will be required. The auxiliary cut 3a has to remove a constant cut-

ting height of 10m.

The connection to the dump side via the western rim slope system will remain. By mid of

2019 the masses will be dumped in the former Bardh opencast mine producing thereby final

dump areas. The spreader operation develops with slightly rising working level.

In 2019 preconditions shall be arranged for changeover to inside dumping in Sibovc SW. The

respective ramps shall be produced by means of mobile equipment. The actual changeover of

the dumping is planned for mid of 2019. The head belt conveyor shall be shortened and the

head belt conveyor on the dump side as well as the dump bench belt conveyor shifted. The

inside dumping slice will be developed beginning in the south into northern direction. During

the dumping operation the head belt conveyors of the coal systems running along the eastern

rim slope systems shall be considered.

The following quantities are dumped by P4M:



Page 100 of 171


- Level +478 / +498 mMSL 16.52 mlcm



The coal benches follow the uncovering cut in parallel operation. The head belt conveyor

plants shall be extended according to the opencast mine advance.

An output capacity of 45.0 mt (9.0 mt/a) coal have to be excavated within the period from

2018 to 2022. This capacity includes also the 0.51 mt coal extracted in the 3rd overburden cut.


2018 2019 2020 2021 2022

OB Coal OB Coal OB Coal OB Coal OB Coal

[mbcm] [mt] [mbcm] [mt] [mbcm] [mt] [mbcm] [mt] [mbcm] [mt]

Remarks

Mobile 0.860 1.320 1.320 1.280 1.410

Dragline 0.400 0.200 0.200 0.200 0.200 Masses double moved by E10B

1 E10B 4.020 4.100 4.100 4.100 4.100

2 E10M 4.900 4.770 4.770 4.670 4.450

3 E9M 3.820 3.740 3.740 3.590 3.250

3a E5M 0.780 0.670 0.670 0.580 0.360

Over

burd

en

3a E1B 0.320 0.060 0.060 0.050 0.020 Coal double moved by E8M

1 E8M

2 E9B

3 E8B Coal

3a E7M 0.155

9.000

0.155

9.000

0.165

9.000

0.165

9.000

0.165

9.000

Total 14.535 9.000 14.755 9.000 14.765 9.000 14.385 9.000 13.735 9.000


Level


[ mm ] [ m ] [ mMSL ] [ mMSL ]













Inclining Belt Conveyor 1,800 250 +550 +500


E8M Bench Belt Conveyor A 1,600 890 +545 +530



E7M Head Belt Conveyor A 1,600 1,290 +530 +518










TPP B



TPP A





Page 103 of 171



The Sibovc SW opencast mine will further develop into the north until it reaches the prelimi-

nary final position. Except a ca. 400 m long area in the eastern bench section the crest of the

terrain elevation is cut so that the total cutting thickness in the overburden will slightly re-

duce. The mass portion of the excess height removal can therefore also be decreased.

The regular overburden systems will continue parallel operation into northern direction whe-

reby the great cutting heights from the previous operating period will remain. The dumping

system will also be maintained. The 3rd overburden system is dumping in the inside dump of

Sibovc SW. The spreaders of the other two overburden lines work in the final dumping slice

of the residual pit Mirash / Bardh. Complete closure of the residual space cannot be achieved

until 2024.

In 2023 the coal output comes to 9.0 mt, in the last operating year the demand will reduce to

6.0 mt.

In 2023 parts of the community of Konxhul have to be resettled.



Page 104 of 171

Fig.: 4.6-3 Mining Position in the Year 2024


Mobile Equipment

In 2023 another 1.4 mbcm overburden have to be removed by mobile equipment. Owing to

the advance conditions and the decreasing total cutting thicknesses the mobile equipment can

be put out of operation at the end of 2023. The masse are dumped on the inside dump of Si-

bovc SW.

The remaining excess heights can be removed by the dragline and added to the first overbur-

den line. This mass portion amounts to totally 0.22 mbcm for both of the annual slices.



Page 105 of 171


The first overburden system continues its development into northern direction with the exist-

ing dump connection. In 2023 E10B has to remove about 4.1mbcm overburden. This quantity

includes the double mass movements of the overburden masses removed by the dragline. If

development of the mine will not be continued beyond 2024 the first overburden line will be

put out of operation in the 1st quarter. In 2024 the mass portion for this line is 0.11 mbcm.

The overburden (4.63 mlcm) is dumped in high-and deep dumping in the final dumping slice

in the residual pit of Bardh / Mirash.

2nd

Overburden System

The 2nd overburden system is further developed in parallel operation. This cut also shall be

put out of operation in the first quarter of 2024 if the Sibovc SW mine will not be continued.

Excavator E10M will remove 4.5mbcm overburden in the two years whereby the main por-

tion is to be excavated in 2023.

The belt connection to the dump via the eastern rim slope system remains. The dumping slice

will be further developed parallel into eastern direction. The spreader has to distribute 4.95

mlcm in the dumping slice. Complete closure of the residual space of Bardh / Mirash until the

planned final dump level will not be possible until 2024 (please see next chapter).

3rd

Overburden System

In 2023/24 the output capacity for the 3rd overburden system is planned with 3.33 mbcm. An

additional volume of 0.37 mbcm will be removed in the auxiliary cut 3a for uncovering the

coal. During this period spreader P4M has to distribute totally 3.7 mbcm on the inside dump

of Sibovc SW. Moreover about 0.02 mt of coal are to be excavated in the 3rd overburden cut

and added to the coal operation.

In the inside dump of Sibovc SW the spreader works in parallel operation in high- and deep

dumping taking account of the head belt conveyors of the coal operation.


Whereas in 2023 the coal quantity to be extracted will amount to 9.0 mt the demand will re-

duce to 6.0 mt in 2024. This reduction is due to the stepwise decommissioning of the existing

power plant capacities.

The 3 coal systems are further developed in parallel operation. With regard to the closure of

the operation in 2024 the regular working level width of ca 100 m will be reduced to 50 m in

the final position. This measure does neither affect the soil-mechanical requirements nor im-

pede the resumption and/or continuation of the operations.



Page 106 of 171


2023 2024

OB Coal OB Coal

[mbcm] [mt] [mbcm] [mt]

Remarks

Mobile 1.400

Dragline 0.200 0.020 Masses double moved by E10B

1 E10B 4.100 0.050

2 E10M 4.450 0.050

3 E9M 3.250 0.080

3a E5M 0.360 0.010

Ov

erb

urd

en


1 E8M

2 E9B

3 E8B Co

al

3a E7M 0.160

9.000

0.110

6.000

Total 13.720 9.000 300 6.000




Page 107 of 171

Level


[ mm ] [ m ] [ mMSL ] [ mMSL ]













Inclining Belt Conveyor 1,800 500 +565 +500


E8M Bench Belt Conveyor A 1,600 890 +537 +520



E7M Head Belt Conveyor A 1,600 1,470 +520 +518


Head Belt Conveyor C 1,600 1,240 +485 +470








TPP B



TPP A


Tab.: 4.6-6 Belt Conveyor System in the Year 2024



Page 108 of 171

4.6.4 Remarks to a Continuation of Mining Development after

2024 At the end of the coal production in the Sibovc SW field the following situation will be found:

- The winning front will stop directly at and/or behind the crest of the elevation south of

the Sibovc valley. Therefore the final slope system of the winning front has reached

the section with the highest overburden thickness.

- On the inside dump of Sibovc SW only one dumping slice was distributed consisting

of deep- and high dumping. The residual pit of Sibovc SW will therefore be entirely

surrounded by free standing rim slope systems except the in 3rd coal system.

- Although the overburden of Sibovc SW was almost exclusively dumped in the resid-

ual pit of Bardh / Mirash a complete closure of the pit will not be possible. There re-

mains a dumping space deficit of ca. 50 mlcm up to the complete closure. It has to be

considered that the concept took account of a filling only up to a height of +546 / +558

mMSL and not a connection on the surface level. This way the dumping space was

minimized with simultaneously ensuring a natural drainage of the surface water in the

post-mining landscape.

Ceasing of coal mining operations in 2024 would therefore result in a number of negative

aspects which would incur expensive subsequent work at the residual pits. Continuation of the

mining is therefore recommended and offers the following advantages:

- Continuing mining activities would lead to an improved overburden : coal ratio be-

cause the terrain elevations along the northern and to a certain extend also the eastern

rim slope system were mainly removed.

- The residual pit of the former Bardh / Mirash mine could be closed finally and a use-

able surface would be provided.

- Continuation of inside dumping in the Sibovc SW mine leads to an increasing securing

of the rim slope system and improves the geotechnical safety in the long-run.

4.6.5 Remarks to Interactions with other Projects At present it is planned to flush the ash of TPP B in the residual pit of the former Mirash East

opencast mine. Analogue to the Mid Term Plan for existing Mines this area was also not

planned for dumping of overburden in the Complementary Mine Plan.

Apart from this, it is considered to change the ash dumping of TPP A. The ash of TPP A is

presently dumped on a separate outside dump by means of belt conveyor and spreader. The

ash dump is produced on an outside overburden dump which is subject to extreme high pres-

sure due to the applied load and results in cracks in the ash body. Future dumping space could

also be the residual pit of Mirash East.

The project for removing the existing ash dump A is directly connected with the change of the

ash dumping of TPP A for geotechnical and environmentally relevant reasons. According to

rough estimations the volume of this ash dump comes to ca. 25 mbcm. In addition to the ash



Page 109 of 171

yield of the two power plants up to their decommissioning there results a total volume of ca.

50 mbcm power plant ash if all projects will be implemented.

The dumping space in the partial field of Mirash East will not be sufficient enough so that

dumping has to be continued in the residual pit of n Bardh / Mirash. Therefore, dumping ac-

tivities of the Sibovc SW opencast mine are directly affected. The respective adjustments and

the temporal as well as spatial dependencies are required in connection with the correspond-

ing project works.

A positive side effect of these projects would be the considerable reduction of the residual pit

south of Hade.



Page 110 of 171

4.7 Compilation of Production Figures Overburden Coal Working Ratio

[mbcm] [mt] [bcm/t]

2008 2.160 - -

2009 6.400 - -

2010 8.785 3.4 5.10 : 1

2011 12.230 6.0 2.04 : 1

2012 11.720 9.0 1.32 : 1

2013 13.435 9.0 1.49 : 1

2014 13.250 9.0 1.47 : 1

2015 13.025 9.0 1.45 : 1

2016 13.590 9.0 1.51 : 1

2017 13.990 9.0 1.55 : 1

2018 14.540 9.0 1.61 : 1

2019 14.760 9.0 1.64 : 1

2020 14.770 9.0 1.64 : 1

2021 14.390 9.0 1.60 : 1

2022 13.740 9.0 1.53 : 1

2023 13.730 9.0 1.53 : 1

2024 0.385 6.0 0.06 : 1

Total 195.075 123.4 1.58 : 1

Tab.: 4.7-1 Lignite Production and Overburden Removal



Page 111 of 171

Truck & Dragline OB OB OB OB Coal Total

Shovel Bench 1 Bench 2 Bench 3 Bench 3a Bench 3/3a Overb. Coal

[mbcm] [mbcm] [mbcm] [mbcm] [mbcm] [mbcm] [mt] [mbcm] [mt]

2008 0.660 1.000 0.500 2.16

2009 0.600 2.000 0.200 3.100 0.500 0.290 6.40 0.29

2010 0.300 0.470 3.300 3.620 1.090 0.270 8.78 0.27

2011 0.200 1.760 4.100 4.810 1.360 0.200 12.23 0.20

2012 0.150 2.700 4.000 4.100 0.770 0.630 11.72 0.63

2013 0.190 3.280 +0.190

4.900 4.010 0.850 0.850 13.23 +0.19

0.85

2014 0.140 2.940 +0.140

4.900 4.170 0.890 0.640 13.04 +0.14

0.64

2015 0.090 2.620 +0.090

4.900 4.340 0.930 0.430 12.88 +0.09

0.43

2016 0.360 0.400 2.880 +0.400

4.900 4.050 0.850 0.400 13.44 +0.40

0.40

2017 0.830 0.400 3.060 +0.400

4.900 3.840 0.800 0.380 13.83 +0.40

0.38

2018 0.860 0.400 3.620 +0.400

4.900 3.820 0.780 0.320 14.38 +0.40

0.32

2019 1.320 0.200 3.900 +0.200

4.770 3.740 0.670 0.060 14.60 +0.20

0.06

2020 1.320 0.200 3.900 +0.200

4.770 3.740 0.670 0.060 14.60 +0.20

0.06

2021 1.280 0.200 3.900 +0.200

4.670 3.590 0.580 0.050 14.22 +0.20

0.05

2022 1.410 0.200 3.900 +0.200

4.450 3.250 0.360 0.020 13.57 +0.20

0.02

2023 1.400 0.200 3.900 +0.200

4.450 3.250 0.360 0.020 13.56 +0.20

0.02

2024 0.020 0.020 0.090 +0.020

0.050 0.080 0.010 0.25 +0.02

Total 10.710 2.640 45.920 +2.640

64.160 58.010 11.470 4.620 192.91 +2.64

4.62

Masses from dragline has to be moved double

Tab.: 4.7-2 Benchwise Production in Overburden Systems [mbcm]



Page 112 of 171

T & S Dragline SRs 1300 E10B A2Rs B 4400 P3B [mbcm] [mbcm] [mbcm] [mbcm] [mlcm]

2008 0.660 1.000 1.000 1.100

2009 0.600 2.000 2.000 2.200

2010 0.300

double moved

overburden by

dragline

0.470 0.470 0.517

2011 0.200 1.760 1.760 1.936

2012 0.150 2.700 2.700 2.970

2013 0.190 0.190 3.280 3.470 3.817

2014 0.140 0.140 2.940 3.080 3.388

2015 0.090 0.090 2.620 2.710 2.981

2016 0.360 0.400 0.400 2.880 3.280 3.608

2017 0.830 0.400 0.400 3.060 3.460 3.806

2018 0.860 0.400 0.400 3.620 4.020 4.422

2019 1.320 0.200 0.200 3.900 4.100 4.510

2020 1.320 0.200 0.200 3.900 4.100 4.510

2021 1.280 0.200 0.200 3.900 4.100 4.510

2022 1.410 0.200 0.200 3.900 4.100 4.510

2023 1.400 0.200 0.200 3.900 4.100 4.510

2024 0.020 0.020 0.020 0.090 0.110 0.210

Total 10.710 2.640 2.640 45.920 48.560 53.416

Tab.: 4.7-3 Overburden Removal 1st Bench

SchRs 650 E10M A2Rs B 5200 P3M [mbcm] [mbcm] [mlcm]

2008

2009 0.200 0.200 0.220

2010 3.300 3.300 3.630

2011 4.100 4.100 4.510

2012 4.000 4.000 4.400

2013 4.900 4.900 5.390

2014 4.900 4.900 5.390

2015 4.900 4.900 5.390

2016 4.900 4.900 5.390

2017 4.900 4.900 5.390

2018 4.900 4.900 5.390

2019 4.770 4.770 5.247

2020 4.770 4.770 5.247

2021 4.670 4.670 5.137

2022 4.450 4.450 4.895

2023 4.450 4.450 4.895

2024 0.050 0.050 0.055

Total 64.160 64.160 70.576

Tab.: 4.7-4 Overburden Removal 2nd

Bench



Page 113 of 171

SchRs 650 E9M E5M E1B A2RsB 5200 P4M Coal [mbcm] [mbcm] [mt] [mbcm] [mlcm] [mt]

2008 0.500 0.500 0.550

2009 3.100 0.500 0.290 3.600 3.960 0.290

2010 3.620 1.090 0.270 4.710 5.181 0.270

2011 4.810 1.360 0.200 6.170 6.787 0.200

2012 4.100 0.770 0.630 4.870 5.357 0.630

2013 4.010 0.850 0.850 4.860 5.346 0.850

2014 4.170 0.890 0.640 5.060 5.566 0.640

2015 4.340 0.930 0.430 5.270 5.797 0.430

2016 4.050 0.850 0.400 4.900 5.390 0.400

2017 3.840 0.800 0.380 4.640 5.104 0.380

2018 3.820 0.780 0.320 4.600 5.060 0.320

2019 3.740 0.670 0.060 4.410 4.851 0.060

2020 3.740 0.670 0.060 4.410 4.851 0.060

2021 3.590 0.580 0.050 4.170 4.587 0.050

2022 3.250 0.360 0.020 3.610 3.971 0.020

2023 3.250 0.360 0.020 3.610 3.971 0.020

2024 0.080 0.010 0.090 0.099

Total 58.010 11.470 4.620 69.480 76.428 4.620

Coal from E1B has to be moved in the 1st coal cut by direct dumping technology

Tab.: 4.7-5 Overburden Removal 3rd

Bench



Page 114 of 171

Coal Coal Total

OB Bench Cut 1

Coal

Cut 2

Coal

Cut 3

Coal

Cut 3a

Overburden

Cut 3/3a Coal Overburden

E1B E8M E9B E8B E7M E8B

E7M

[mt] [mt] [mt] [mt] [mt] [mbcm] [mt] [mbcm]

2008

2009 0.290

2010 0.270 2.420 +0.560

0.420 3.400

2011 0.200 2.540 +0.200

3.260 6.000

2012 0.630 2.970 +0.630

4.070 1.180 0.150 0.095 9.000 0.095

2013 0.850 2.300 +0.850

3.510 1.950 0.390 0.130 9.000 0.130

2014 0.640 2.360

+0.640 3.590 2.010 0.400 0.140 9.000 0.140

2015 0.430 2.400 +0.430

3.490 2.230 0.450 0.140 9.000 0.140

2016 0.400 2.400 +0.400

3.510 2.240 0.450 0.145 9.000 0.145

2017 0.380 2.400 +0.380

3.370 2.280 0.570 0.155 9.000 0.155

2018 0.320 2.400 +0.320

3.230 2.340 0.710 0.155 9.000 0.155

2019 0.060 2.470 +0.060

3.320 2.410 0.740 0.155 9.000 0.155

2020 0.060 2.410 +0.060

3.270 2.510 0.750 0.165 9.000 0.165

2021 0.050 2.410 +0.050

3.270 2.520 0.750 0.165 9.000 0.165

2022 0.020 2.510 +0.020

3.160 2.570 0.740 0.165 9.000 0.165

2023 0.020 2.820 +0.020

2.800 2.700 0.660 0.160 9.000 0.160

2024 0.960 1.870 2.520 0.650 0.110 6.000 0.110

Total 4.620 35.770 +4.620

46.140 29.460 7.410 1.880 123.400 1.880

Coal from E1B has to be moved double by E8M

Tab.: 4.7-6 Bench-wise and Equipment-wise Production in Coal System



Page 115 of 171

4.8 Belt Conveyor Balance In the existing KEK-mine (including the transfer at the Separation Plant) conveyor belts are

used with varying width between 1,200 und 1,800 mm. The 1,800 mm belts are exclusively

used in the Mirash mine in the powerful overburden lines 2 and 3 – with attached SchRs 650 –

and partly in the coal connecting belt systems.

The following table summarises the available belt conveyor lines in the existing mine (up to

boundary of stockpiles).

1,200 mm 1,400 mm 1,600 mm 1,800 mm

active Drive Stations 6 20 11 9

Frames 5,600 m 13,070 m 6,800 m 6,800 m

passive Drive Stations 13 7 1 9

Frames

Tab.: 4.8-1 Available Belt Conveyor Material in Existing Mine

For the mine Sibovc SW it is foreseen to use predominately refurbished material from the

existing mine. It has been calculated and decided that predominantly belt conveyors with a

width of 1,800 and 1,600 mm will be applied in the mine Sibovc SW except the connecting

belt conveyors to the TPP B and partly to the TPP A (please see following table).

Width No. Total Length Remarks

TPP B 1,400 mm 4 5,200 m existing

TPP A 1,200 mm 2 2,950 m existing

1,800 mm 2 2,950 m planned connection belt conveyor line in case

of rehabilitation of two units in TPP A

Tab.: 4.8-2 Existing and Planned Overland Belt Conveyors to TPP’s

The next table illustrates the belt conveyor balance for the new Mine Sibovc SW. In the first

columns the available belt conveyor material in the existing mine is presented. The following

columns the demand on material for the new mine is presented. The figures don’t include the

demand in the existing mine in the parallel operation phase of existing mine and Sibovc SW

mine (2008 – 2011).

For the 1,600mm and 1,800 mm belt conveyor system it is partly planned to purchase new

plant parts (stations and frames). This means that the strongly worn out passive reserves of the

Mine Bardh / Mirash will not be reactivated. The new purchase is made step-wise via several

years and will amount to a total number of 6 pieces 1,600 mm drive stations, 4 pieces 1,800

mm drive stations and 16 km frames.

Especially for the 1,200 mm and 1,400 mm belts there will be a surplus for stations and

frames. In this connection it is recommended to replace the 1,200 mm connecting belt

conveyor line to TPP A by a 1,400 mm belt conveyor.

available

active passive 2008 2009 2010 2011 2012 2017 2022 2024

Drive Stations 6 13 2 2 2 2 2 2

Conv. Length 5,600

Connection belt conveyors

to TPP A in responsibility

of existing mine 2,948 2,948 2,948 2,948 2,948 2,948

Purchase DS

1,200

mm

Purchase Conv.

Drive Stations 20 7 4 4 4 4 4 4

Conv. Length 13,070

Connection belt conveyors

to TPP B in responsibility

of existing mine 5,200 5,200 5,200 5,200 5,200 5,200

Purchase DS

1,400

mm

Purchase Conv.

Drive Stations 11 1 4 4 10 13 15 17 17 17

Conv. Length 6,800 3,100 3,220 7,600 10,730 11,320 14,480 17,190 17,960

Purchase DS 2 2 2

1,600

mm

Purchase Conv. 4,900 2,600 400 800 2,460

Drive Stations 9 9 4 9 11 11 9 11 11 11

Conv. Length 6,800 2,990 9,650 12,950 13,460 10,700 12,510 11,570

11,050

Purchase DS 2 2

1,800

mm

Purchase Conv. 3,000 2,000

Tab.: 4.8-3 Belt Conveyor Balance for the new Sibovc SW Mine



Page 117 of 171

4.9 Time Schedule

4.9.1 Main Equipment Activities

E1M 2nd Line Mirash Coal Operation Mirash

E2M Coal Operation Mirash



E5M 2nd Line Mirash 1st Line planned Reha 3rd OB Line Sibovc

E6M further Application in Mirash possible

E7M Coal Operation Mirash planned Reha

E8M 3rd Line Mirash planned Reha Coal Sibovc

E9M 1st Line Mirash planned Reha 3rd Line Sibovc

E10M 2nd Line Mirash 3rd Line Mirash planned Reha 2nd Line Sibovc

E1B Coal Operation Bardh Float Machine

E2B

E4B Coal Operation Bardh

E6B 3rd Line Bardh Coal Operation Bardh

E7B 1st Line Bardh Coal Operation Bardh

E8B 3rd Line Bardh planned Reha Coal

E9B 2nd Line Bardh further Application in Mirash possible planned Reha Coal Sibovc

E10B 1st Line Bardh fixed Reha 1st Line Sibovc

P1M 3rd Line Mirash 3rd Line Mirash (Replacement P3M)

P3M 2nd Line Mirash 3rd Line planned Reha 2nd Line Sibovc

P4M 1st Line Mirash planned Reha 3rd Line Sibovc

P1B 3rd Line Bardh

P2B 2nd Line Bardh 3rd Line Bardh

P3B 1st Line Bardh fixed Reha 2nd Line Sibovc 1st Line Sibovc

Application in existing mines (has to be revised with actualisation of Mid Term Plan) Decommissioning

fixed Rehabilitation planned Rehabilitation Application in SibovcSW mine

2010IV

2006 2007 2009II III IV

2008I III I

2011I II III IV I II III II III IV IIII II

2012I II III IVIVIIIIV

Tab.: 4.9-1 Release Time for Main Mine Equipment in Mid Term Period



Page 118 of 171

4.9.2 Main Mining Activities

Preparation of ToR

Tendering Phase and Contract

Preparation of Operation

Operation

Preparation of Start Position

Transport, Installation

Commissioning, Operation

Relocation to highest Level

Relocation of Conveyor System



Relocation of Conveyor System




Commissioning Cut 3a

Relocation to Inside Dump


Transport, Installation Head Systems

Transport, Installation Bench Systems

Operation 1st System

Operation 2nd

System

Operation 3rd

System

Operation System 3a

Installation Quality Management

2n

d O

B S

yst

em3

rd O

B S

yst

emC

oal

Sy

stem

s

20

11

20

12

mo

bil

e F

leet

1st O

B S

yst

em

20

07

20

08

20

09

20

10

20

13

20

14

20

15

20

16

20

17

20

18

20

23

20

24

20

19

20

20

20

21

20

22

Fig.: 4.9-1 Main Mining Activities



Page 119 of 171

4.10 Consequences for Development in Existing Mines Some adaptations of the mid term development in the existing mine have to be done with

regard to an optimization of the mining development in the Sibovc SW mine. These

adaptations are necessary for a smoothly opening-up of the new mine. In this context the Mid

Term Plan for the existing mines has to be revised. Another reason for the necessity of

reworking of the Mid Term Plan is, that the planned mine position for 2005 could not be

reached. This applies predominantly to the flattening works of the border slope systems.

Among others the following main measures have to be considered:

- The head belt conveyors of the coal system in the mine Sibovc SW should be installed

on a level of +560 mMSL up to the long run belt conveyors to the TPP’s to avoid

unnecessary power due to grade. Therefore a general corridor is necessary on this level

along the existing northern slope system. This fact has to be considered during the

further planning works for flattening of this slope system.

- In addition to this, a water channel (2b) has to be installed along the existing northern

slope system, starting on a level of +595 mMSL (western site) up to the existing

channel on the Mirash site +581 mMSL (description please see next main chapter).

The necessary levelling has to be considered and to be done during the widening of the

northern slope system.

- Regarding the minimisation of transport distances and the creation of more spacious

dump volumes during the opening-up phase, the dumping development in the western

part of existing mine has to be adapted.

a. The Mid Term Plan describes for the Overburden system III (P3B) from 2007

dumping along the western rim slope system in deep- and high dumping. This high

dumping affects the placing of the opening up masses of the Sibovc SW mine. It is

suggested to spread the masses of this overburden system only in deep dumping

operation. So it will be possible to use the free dumping space for the opening

masses from Sibovc SW.

b. To provide additional dumping space in the area of the Bardh mine it is suggested

to convert dumping of the masses of excavators E8B and E6B to Mirash from the

beginning of mid 2007. Parallel to this the transport distance for this cut is

shortened contrary to the Mid Term Plan.

- The securing of coal production from the Sibovc SW field requires a timely shifting of

the selected main equipment from the existing opencast mines. In contrast to the Mid

Term Plan there are time changes for single equipment. They originate from the

general choice of equipment and the scheduled necessary rehabilitation measures. This

mainly concerns the E10B and the spreader P3B which goes out of operation mid of

2007 for a complex refurbishment. According to the Mid Term Plan an application of

both facilities up to the end of 2008 was envisaged. The equipment use shall be

adjusted with regard to this.



Page 120 of 171

5 Mine Dewatering

5.1 Hydrological Conditions 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

Drenica River in the west and Lab River 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 1,000 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.

Fig.: 5.1-1 Catchment Areas of the Sibovc SW Mine



Page 121 of 171

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 the figure above. A

subdivision into different drainage areas is shown in different colours when the mine Sibovc

SW develops towards the north.

The mining field Sibovc SW will be largely influenced by the catchment area A (360 ha). The

surface water coming from this area will flow directly to the mine. The catchment areas B

(north-western part) and C (northern part) will have only a minor importance, since it

discharges the water into the neighbouring valleys.

5.2 Drainage Areas These areas shall be included in the dewatering planning because the opening-up of the

Sibovc SW mine follows the existing mine and the residual area of this existing mine can be

used for inside dumping. The following drainage areas result from this:

Mirash East

The drainage area Mirash East is east of the dump pillar in the Mirash mine and comprises

both the inside dumping areas and the reserved areas for ash dumping and sanitary landfill.

The drainage of this area lies not in the responsibility of the Sibovc SW mine. After

completion of the dumping of the disposal sites and the residual corridors a ditch system shall

be installed draining into the direction of the Sitnica.

Mirash West

These areas border the dump pillar in the east and the present mining face in the west.

Drainage is ensured by the active opencast mine operation upon complete depletion of the

existing mine. Afterwards drainage shall be continued by the Sibovc SW mine.

Bardh

The drainage area Bardh follows the Mirash west area in the west and extends to the western

rim slope system of the existing opencast mine. This area has to be drained as well upon

complete depletion under the chief responsibility of the active opencast mine. Part of the

drainage services have to be rendered by the Sibovc SW mine since there are also dumped

overburden masses from the Sibovc mine in parallel with the active opencast mine operation.

The depletion of the existing mine results in merging of the drainage areas of Mirash West

and Bardh into a one single area. The dewatering shall then be completely carried out by the

Sibovc SW mine. Upon completion of dumping in this area it has to be ensured that the

surface waters will naturally run-off into the East (Sitnica) and the West (Drenica),

respectively.

Sibovc SW

This drainage area covers the southern area of the u Sibovc SW mine and is separated by a

coal pillar from the Bardh drainage area. Due to the valley location most of the surface water

(catchment area A) flows directly into the direction of the opencast mine. This water shall be

collected by ditch systems before reaching the opencast mine and drained into the direction of

the Drenica. Only in the north (C) and northwest (B) of the mining field a part of the surface

water flows into north-eastern direction towards the Sitnica and in western direction towards

the Drenica, respectively.



Page 122 of 171

The quantity of water to be pumped directly from the Sibovc SW mine will continuously

increase with progressing opencast mine development.

Using an average yearly rainfall of 600 mm and a run-off coefficient of 0.45 the rain water

volumes to be drained yearly can be calculated. Pumping rates of the last years allow a first

calculation of expected drainage volumes.

Surface Area Annual Drainage Remarks

[ ha ] [ `000 m³/a ]

Mirash East 340 918

Mirash West 345 931

Bardh 365 985

Reduction of annual drainage with

further completion of final dump

areas

In-p

it d

ewat

erin

g

Sibovc SW 460 1,240 Increasing of annual drainage with

progressive mine development

Surface Drainage

Sibovc SW

368

Catchment Area A 1.000

Reduction of annual drainage with

progressive mine development

Tab.: 5.2-1 Maximum Drainage Areas

5.3 Dewatering Measures

5.3.1 Surface Dewatering

5.3.1.1 Drainage Area Bardh / Mirash West

Simultaneous with the depletion of existing mine the new mine Sibovc SW is responsible for

the dewatering in this area. The surface dewatering around this area has to be continued, the

existing dewatering facilities have to be maintained. New dewatering elements are not

necessary.

The stepwise continuation of final dump areas requires installation of ditches on the dumped

surface to drain off the surface water. Therefore the dumping surface is to be shaped with a

gradient between 1 : 150 to 1 : 200. The watershed should pass along the former ridge in the

south of the village of Hade. From there the ditches should run in eastern direction to the river

Sitnica and in western direction to the river Drenica, respectively. The ditches shall be

integrated in the future landscape. A lining of the ditches (e.g. with concrete) is not foreseen.

5.3.1.2 Sibovc SW Mining Area

(Illustration in mine position maps)

The Sibovc SW mine is opened-up from the existing opencast mine and developed into

northern direction. In the centre of the mining field there is a wide valley bordered by a

mountain range at both rim slope systems and in mining direction. North of the mountain

range the terrain dips into mining direction. The gradient of the terrain partly reaches

7° (1 : 8).



Page 123 of 171

Due to the surface profile and the size of the catchment area (A) the Sibovc SW mine will be

influenced by inflowing surface water during a long operating period. This especially refers to

heavy rainfalls since the mining area is not covered by forests and the water quantities are

drained for a great part at the surface. The size of the catchment area and the inflow reduce

with progressing mine development.

At the beginning of the opening-up the catchment area has a size of 360 ha. In case of heavy

rainfalls of 64 mm/d and a surface runoff coefficient of 70%, the water quantity to be drained

amounts to maximum 160,000 m³/day (= 2 m³/sec). The water quantity reduces with

progressing mine development.

The first surface dewatering measure in the field Sibovc SW must be the drainage of the water

ponds in the opening-up area. These water ponds result from former slope movements. Since

a hydraulic connection with existing fissure systems cannot be excluded these water

collections incur an increased soil-mechanical risk. The drainage of the ponds should

therefore start immediately, beginning from summer 2006. The following working steps are

proposed:

- Pumping of water by means of waste water pumps and discharge via existing concrete

channel

- Installation of ditches for preventing further water collection on these basins (the road

and/or dump bench belt conveyor GD3 shall be equipped with culverts)

Depending on the mine advance a system of channels and drains has to be installed at the

surface. The drainage of the surface water in this area is complicated, because of the closed

ridge around the mining boundary. Therefore the following facts must be considered for

calculation of channel system:

- The surface water should be drained off under use of natural gradient. The minimum

gradient should be 1 : 200 to allow a sufficient velocity of flow.

- A lifting of surface water by pumps is not envisaged because of the flooding danger in

case of power cuts.

- Complete water drainage via the northern slope system of the existing mines is not

advisable, because of the ongoing operation up to 2012 and the latent danger, caused

by slope movements.

- The main channels should be developed with concrete to increase the lifetime and to

reduce maintenance expenditure

In a first step a possibility for water drainage has been chosen, considering the surface

structure and the before mentioned principles. The best way for draining the surface water is

the anticline in the ridge at the northern boundary of the Sibovc SW mining field. The

anticlines at the eastern and western boundaries are blocked by the village Hade and/or

outside dump masses (shooting range). The level of the anticline in the north is +640 mMSL.

We recommend the following: The anticline is to deepen orthogonally by digging a box cut on

a level of +625 mMSL. In this opening cut a covered concrete channel (1) has to be installed,

before re-closing the cut. This channel connects the catchment area A and the valley north of

the planned mining field. The culvert is the core component of the surface dewatering and

must be finished at the end of 2007 (please see the following figure).

In 2008 the channels to be connected shall be completed. On the one hand this refers to the

channel for draining the surface water (1a) north of the box culverts and on the other hand the

channels (1b und 1c) within the catchment area A. The latter lead into south-eastern and/or



Page 124 of 171

south-western direction starting form a height level of + 625 mMSL, with rising gradient (1 :

200). This ditch system collects the surface water of a catchment area of 92 ha and discharges

it to the North via the box culvert into the natural drain in the direction of the Sitnica River.

The advantage of this system is that the surface water is directly drained to the north and can

therefore be kept away from the mine operation. The system will be in operation beyond the

year 2020 whereby the charging channels have to be shortened according to the mine advance.

Additionally another channel (2a) is planned along the eastern rim slope system. It runs from

north (+605 mMSL) to south (+595 mMSL) and will include a working level of the northern

rim slope system south of Hade. On this working level the water is charged via channel (2a) to

the existing ditch system of the Mirash opencast mine (feeding point +585 mMSL). The

preconditions for a continuous gradient along the northern rim slope system corresponding

planning targets in the annual technologies. This channel which has to be produced in 2008 as

well will collect and drain the surface water from a 45 ha catchment area.

From the remaining valley the surface water cannot be drained via a natural gradient. Drainage

of surface water via the active bench of the Sibovc SW mine shall be excluded except residual

rainwater quantities. It is suggested to install a dewatering in the valley from which the

collected surface water is pumped into the higher located channel 1c by means of sewage

pumps. Additionally a 600 m long unfixed channel (3a) shall be connected to the dewatering

in south-western direction. According to the opencast mine advance the dewatering shall be

shifted several times to the North.

Further channels shall be installed according to demand.



Page 125 of 171

Fig.: 5.3-1 Catchment Areas and Surface Dewatering Channels

The fixed ditches shall be dimensioned as follows:

- Bottom width 1.0 m

- Depth 0.8 m

- Slope inclination 45°

- Profile 1.44 m²

- Wall thickness of lining 0.15 m



Page 126 of 171

Name Indic. Length Development Comm.

Box Culvert 1 440 m

Cross section: 2m * 1m

Gradient: 1 : 100

Development with concrete

2007

Channel 1a 320 m Open concrete channel with settling

basin 2008

Channel 1b 1,350 m Open concrete channel 2008

Channel 1c 1,300 m Open concrete channel 2008

Channel 2a 1,430 m Open concrete channel 2008

Channel 2b 1,500 m Open concrete channel 2008

Storage Basin 3 -

Size 40m * 40m

Depth 2m

Development with concrete or foil

equipped with 4 waste water pumps

plus 2 in reserve and 4 pipes with a

length of 700 m each

2009

Channel 3a 620 m Open channel without any development 2009

Tab.: 5.3-1 Elements of Surface Dewatering

5.3.2 In-Pit Dewatering (Illustration in mine position maps)

5.3.2.1 Drainage Area Bardh / Mirash West

After depletion of the existing mines the remaining hole will be further used as dumping area

of the new Sibovc SW mine. That’s why it will be necessary to continue the drainage works.

Therefore the existing dewatering facilities can be further used.

Simultaneous with finishing the coal extraction works in the existing mines the overburden

dumping of the Sibovc SW mine will start in the deepest part of the residual hole, south of the

village Hade. According to the advance of the dump the main dewatering basins (Mirash and

Bardh site) must be relocated. After closing the first dumping slice, a new main dewatering

basin has to be installed and connected with the pipe system. This procedure must be repeated

up to finishing the final dumping slice. Beginning from this time, a ditch system for a natural

surface dewatering shall be installed on the surface. The drainage facilities can be dismantled,

if no further use is intended.



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5.3.2.2 Sibovc SW Mining Area

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 in-pit dewatering is restricted

to the collection and drainage of the pit water.

The following works shall be realised for a sufficient in-pit dewatering:

- Planned installation of main collecting ditches from the working levels and dump

surfaces to the main dewatering 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

- Use of the collected water to reduce dust formation /dust control

Ditch System

Drainage ditches shall be installed on all working levels. An appropriate downward gradient is

to be considered towards the bench ends. The water shall be connected in equalizing basins at

the bench ends and supplied alternatively by way of pipelines or open collecting ditches of the

main dewatering. These ditches along the working levels must 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 ≥ 0.5 m (effective)

- Ditch depth 0.5 - 1.0 m (effective)

- Gradient min. 1 : 200

- Inclination of the ditch slope 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 is suggested to establish a mobile group for these

works, so that damages at the ditches can be recognized and repaired.

Central Main Dewatering / Pump Sumps



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The in-pit dewatering by ditches accumulates the rainwater from excavation and dumping site

in the main dewatering and pump it out in case of excess of the storage capacity. The storage

capacity of the main dewatering has to be dimensioned to accumulate a maximum of the

rainfalls of one day. Parallel to the progressive mine development the active mining area will

expand. The storage volume of the main dewatering has to be enlarged the same way.

The pumps have to be designed in that way that they are able to handle a maximum of two-

day rainfalls considering the accumulation capacity of the pump sumps. One additional pump

per pump sump should be reserved among the number of pumps which are required for the

pumpage of the in-pit water.

The pumps lift the pit water by means of pipelines via the eastern rim slope system and the

northern rim slope system of the existing opencast mine into the existing installed ditch

systems. With progressing dumping of the residual pit south of Hade and the improving

stabilisation of the northern rim slope system the pipeline system can be replaces by an open

ditch. The time for conversion shall be defined at a later date.

The main dewatering basin should be arranged in the deepest part of the mine and has to be

relocated according to the mine advance. The basins shall be produced in deep cut excavation

with the help of main equipment.

From 2018 the surface water from the working levels of the mobile equipment operation and

the first regular overburden system can be discharged into the existing concrete channel 2a.

Therefore the drainage into the main dewatering and following lifting by means of pumps is

inapplicable.

Pumps

The main dewatering of the mine shall be equipped with 5 powerful high-pressure pumps, 2

pumps for normal operation, 2 pumps as support in case of heavy rainfall and 1 pump as

reserve. The change-over to high-pressure pumps is due to the increasing lifting height (up to

130m). There are recommended pumps each with a capacity of 180 m³/h (90 kW). In order to

specify the pumps it is necessary to know the quality of the water to be pumped.

Additionally, waste water pumps (for lifting height up to 25m) are required. In total 15 waste

water pumps should be procured, for application on the working benches at the excavation site

and on the dumping site as well as on the stockpile.

Mine Water Purification

The water pumped from the main dewatering plants in the existing mine, shows increased

contents of chloride and sulphate as well as clear contents of suspended matter, consisting of

dust or organic matter. The same water quality is to be expected in the new Sibovc SW mine.

When discharging the water, special attention shall be drawn to separate the suspended

materials. That’s why 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 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



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fixed by a possibly wide overflow. The installations shall be controlled quarterly. The settled

particles shall be removed regularly once a year in 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.

Recommendations for Mining Development

The shape of the working levels is of great importance when draining the rainwater and

avoiding collection of water. In order to minimise the earthworks for drainage ditches the

working levels in the mines shall have a continuous gradient into the direction of the bench

ends. Preferably, a “roof construction” shall be produced with a gradient starting at the mid of

the bench into the direction of the two bench ends or a gradient from one bench end to the

other one.

5.3.3 Time Scheduling for Dewatering Measures

Drainage of Water Ponds

Box Culvert (1)

Channel 1a with Settling Basin

Channel 1b

Channel 1c

Channel 2a

Channel 2b

Storage Basin (3)

Channel 3a

Specification Tendering Process Construction Commissionning

2009I

2006 2007 2008I II III IVI II III IV II III IVII III IV I

Fig.: 5.3-2 Time Schedule for Dewatering Measures

5.4 Investment and Cost Calculation for Dewatering Only the planned concrete channels including settling and sedimentation basins were

considered in the investments for the drainage. Except the Storage Basins (3) these plants

have to be erected only once. The Storage Basin has to be relocated several times according to

the mine advance. These performances shall not be carried out by KEK and have to be

tendered. All other channels to be installed operatively shall be built by KEK itself. The costs

are acquired in the position personnel. The same applies to the maintenance of the channels.

The necessary investments for mobile equipment as well as pumps and pipelines shall be

considered with the auxiliary equipment.

As basic prices has been considered:



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- Box culvert 120 EURO/m

- Earth moving for box culvert 4 EURO/bcm

- Concrete channel 70 EURO/m

- Settling basin 0.030 MEURO

- Storage basin 0.050 MEURO

The following table compiles the required investments for the pre-mining area dewatering of

the opencast mine. The storage basin (3) shall be installed new every 3 years. Due to the

continuously reducing catchment area necessary investments are also declining. From 2020

storage basin looses its importance; therefore further use is not envisaged.

Year ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

Investments 0.97 0.45 0.10 0.05 0.04

Year ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 ‘23

Investments 0.02

Tab.: 5.4-1 Investments for Dewatering Measures



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6 Mine Closure and Recultivation Planning

6.1 Principles The dumping of the overburden masses of the Sibovc SW mine will be continued on the

inside dump of the existing opencast mine. This means that the area of responsibility of the

Sibovc SW mine extends also to the existing mine. This mainly refers to the area between

dam crest of the dump pillar in Mirash and the western rim slope of the Bardh mine.

The areas east of the crest of the dump pillar refer to the area of responsibility of the existing

opencast mine. The same applies to the existing outside dump areas.

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.


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 en-

sure 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.

6.2 Area Balance To meet the demand for run-of-mine coal from the mine Sibovc SW at an amount of 123.4

mt, the area claimed for mining will come to 5 km² within the period until 2024. The

following area balance is resulting for the mine Sibovc SW. The land claim is divided in areas

for digging and other areas (f. e. canals, surface facilities).

The land acquisition has to be carried out before to the actual land claim in order to prepare

the areas for mining activities. This comprises such measures as clearing the surface by

removing buildings, installing embankments and building mine roads and installing

dewatering systems. Depending on the size and location of the lots of land and the required

preparatory works, the land should be acquired one to two years before the actual land claim.



Page 132 of 171

Land Claim for Sibovc SW

Digging Safety

Zone Channels

Infra-

Structure Total

Creation of

Final Dump

Areas

2006 - 2010 128 36 15 179 50

2011-2012 35 4 39 141

2013 - 2017 133 16 149 16

2018 - 2022 102 14 116 142

2023 - 2024 14 4 18 34

Total 412 74 15 501 383

Tab.: 6.2-1 Land Claim for the Mine Sibovc SW [ha]

The above table contains the necessary land claim for the Sibovc SW mine. The total area to

be claimed is 501 ha, whereby 412 ha of it are pure land to be excavated. The other 89 ha refer

to the safety zone (a ca. 100 wide stripe along the mining edge) and other areas.

Dumping of overburden from Sibovc SW mine in the residual pit of the Bardh / Mirash mine

offers the possibility to produce the final dump surfaces very early. Via the lifetime of the

Sibovc SW mine totally 383 ha final dump areas can be shaped. These areas lie completely in

the area of the Bardh/Mirash mine; in Sibovc SW it will not be possible to produce final dump

areas. The shaped final dump areas distribute as follows:

- 100 ha east of the dump pillar in the area of the former Mirash-east mine

(2009 – 2012)

- 52 ha high dump area at the western field margin of the Bardh mine

(2011 – 2012)

- 231 ha final dump area in the Bardh / Mirash opencast mine

(2011 – 2024)

This balance does not include the former outside dumps of the Bardh and Mirash mines.

According to the Mid Term Plan these areas shall be prepared for a future use and sale by the

existing opencast mines. This balance does also not include the reserved area for ash dumping

in the Mirash East area and the reserved area for sanitary landfill in the Mirash Brand area

including their slope systems.

Therefore the mine Sibovc SW produces less final dump areas than occupied by the mining

operations. This negative area balance is mainly caused due to the large share of slope systems

along the reserved areas for ash and sanitary landfill sites. Another reason is the remaining pit

(205 ha) south of the community of Hade which cannot be closed until 2024.

The required land purchase is different from the land demand because parts of the mining

field are already property of KEK. This especially refers to the area north of the rim slope

system of t he Bardh mine and the outside dump on the mining field of Sibovc SW (shooting

range). For the operating period until 2024 a total sum of 325 ha land have to be purchased.

Moreover, drainage ditches have to be installed in the entire mining field already with the start

of the opening up activities. It is suggested to conclude user’s contracts with the owners of the



Page 133 of 171

plots for those areas. Nevertheless a large part of the mining fields should already be

purchased at the beginning of the opening up.

The areas to be purchased in periods are illustrated in the following table. The sale of final

dump areas (please see table above) will be possible after a 2-years lay time. The below table

also contains the share of areas to be sold. Up to 2024 about 349 ha of the produced final

dump areas from total 383 ha can be sold. The difference of 34 ha comes to a safety zone

along the mentioned remaining pit.

If one only considers the share of areas still to be purchased the area balance is positive. In

case of a sale of totally 349 ha a surplus of about 20 ha of areas can be sold compared with the

area to be purchased within the operating period. As already mentioned the existing outside

dump areas (selling in Mid Term Period of Bardh / Mirash Mine) and the areas reserved for

disposal sites (out of responsibility of Complementary Mine Plan) were not taken into

account.

Land Purchase Usufructuary Right Land for Sale Balance acc.

2006 - 2010 74 7 0 -74

2011 - 2012 22 50 -46

2013 - 2017 94 141 +1

2018 - 2022 122 81 -40

2023 - 2024 17 77 +20

Total 329 349

Tab.: 6.2-2 Area Balance [ha]

6.3 Mine Closure Plan Recultivation of the Sibovc field is closely connected with the existing mine.

After depletion of the existing mine, 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 existing 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 in-

stalled large corridors due to the flat slope angle.



Page 134 of 171

It is envisaged that coal mining will be continued in the follow-up field of Sibovc after

depletion of the existing opencast mine. 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 mine is 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 of 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

drainage 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.

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.



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The Sibovc SW mine is responsible for refilling the area western of the dumping pillar only.

The final shaping of the eastern area with the sanitary landfill area and the ash dump is not

part of the Complementary Mine Plan.

6.4 Concept of Post-Mining Utilization

6.4.1 Principles and Preconditions for Reclamation Planning 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

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

- 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.

Due to the large quantity of minable coal, it will not be possible to fill up the entire opencast

mine. There are basically two opportunities for the further use of the residual pit.

The first alternative is the flooding of the residual area after completion of the mining

activities in the Sibovc SW mine. This alternative can only be implemented of the mining in



Page 136 of 171

the Sibovc field will not be continued after 2025. This refers both to KEK and a possible

independent investor. This alternative can be excluded with a high probability because the

remaining Sibovc field will contain huge coal reserves with favourable deposit conditions.

Therefore this alternative will not be further followed up.

The second and most probable alternative bases on the continuation of extraction in the

Sibovc field. The residual pit of Sibovc SW will then be used as dumping space. It is thereby

not relevant if the Sibovc SW mine is further developed or if a new mine will be opened. In

this case, the residual pit shall be proceeded analogue to Midterm Plan. The coal slopes shall

be flattened and covered by overburden in order to prevent coal fires in the long run. The

seam floor shall be continuously covered by cohesive overburden material too. Moreover, all

overburden slopes which are not directly developed by the follow-up mine shall be flattened

to 1 : 6. The detailed measures shall be determined when the future development in the mining

region is known.

6.4.2 Soil Improvement Measures The areas are flattened after dumping to be prepared for recultivation. The final shape of the

surface should consider both 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 agriculturally 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.

6.4.3 Interim Greening and Erosion Protection Measures For the later management it is assumed that the plots will have an average size of

approximately 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.



Page 137 of 171

3.50 m

Shrubs

Trees (2 size)nd

Trees (1 size)st

Fig.: 6.4-1 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.

6.4.4 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 0.5 m – 1.0 m, effective

- Ditch depth ca. 1 m


- Inclination of the ditch slope 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. 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, if necessary.



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7 Resettlement and Relocation

7.1 General Remarks

7.1.1 Situation The opencast lignite mine of Sibovc SW north-west of the capital Pristina will occupy about

328.9 ha of land during its active phase with a North-South extension of 3 km and East-West

extension of 1.7 to 2.7 km.

The following resettlement and relocation measures shall be prepared and executed for the

claim of land:

- Land purchase

- Resettlement of properties of the settlement with scattered buildings of Sibovc (Hade

West, Hade North (extension), Mirene, ShipitullaEast and Konxhul)

- Compensation of property

- New construction of a by-pass from Hade to Sibovc

- New construction of a by-pass from Sibovc to Grabovc

The safety zone of the community of Hade south of the village road passing the mosque is

already cleared from estates. Since May 2005 new residential building have already been built

along the village road from Hade to Bardh which lie in the slope area of the new Sibovc SW

opencast mine.

7.1.2 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 €/

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.



Page 139 of 171

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.

7.1.3 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 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:

The Special Representative of the UN-Secretary-General decided about the evacuation of the

Hade 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.

7.1.4 Property Situation According to information of the ministry for spatial planning KEK already owns 500 ha of

land. Parts of this area are located in the future mining field Sibovc SW.

The opencast mine of Sibovc will claim the following areas:



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Claim of Land for Sibovc

Digging Safety

Zone

Channel

s

Infra-

structure Total

Property

of KEK

Land

Acquisition Year

[ha] [ha] [ha] [ha] [ha] [ha] [ha]

2006-2010 128 36 15 179 105 74

2011-2012 35 4 39 17 22

2013-2017 133 16 149 55 94

2018-2022 102 14 116 0 122

2023-2024 14 4 18 1 17

Total 412 74 15 501 172 329

Tab.: 7.1-1 Land Claim for the Mine Sibovc SW

From a map handed over by KEK it can be seen that the company intended to purchase 28

agricultural properties with a total area of 22.56 ha in 2005. These areas are in the direct

neighbourhood of the slide area (Grabovci i ulët) north of the road Bardh-Hade.

In addition, KEK shall conclude user’s contracts for 7 ha reserved for drainage ditches and

settling basins.



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Fig.: 7.1-1 Land Claim for the Mine Sibovc SW



Page 142 of 171

Fig.: 7.1-2 Land Acquisition for the Mine Sibovc SW

The land swaps affected by resettlement are mainly private property.

Upon written application and several requests the Kosovo Cadastre office submitted only in-

formation about the number of built-up estates in the concerned villages in the mining field of

Sibovc (as of February 2005).

Because there is no land parcel map available for this list the properties cannot be assigned to

the topographical map.

It seems that the land parcel maps (including Serbian remarks) handed over by KEK are out of

date because they do not correspond to the land parcel lists of the Cadastre office.

It was also not possible to check whether there are Serbian properties in the mining field. The

compensation of Serbian property located within the mining field (former Serbian settlement)

has to be negotiated with the corresponding owner.



Page 143 of 171

7.1.5 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 SW 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.

The valuation of the estates must 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.

This interdisciplinary body consists of an architect, a civil engineer, two lawyers, three survey-

ors, two agricultural experts and three economists.

The regulations developed for the compensation of the people concerned in Hade can be used

to compensate the concerned inhabitant living in the area of the Sibovc SW field. The

government shall extend the validity of these documents to the villages inside the Sibovc SW-

field:

(1) A price of 350 EURO/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:

In analysis of above listed parameters a price of 23 EURO/m² for residential sites was

established.

Agricultural property was divided in 9 categories as listed below:

Class I 5.00 EURO/m²

Class II 4.75 EURO/m²

Class III 4.50 EURO/m²

Class IV 4.25 EURO/m²

Class V 4.00 EURO/m²

Class VI 3.75 EURO/m²

Class VII 3.50 EURO/m²

Class VIII 3.25 EURO/m²

Infertile land 3.25 EURO/m²

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.



Page 144 of 171

To prepare the resettlement and/or compensation, the residents of the concerned communities

shall be informed as soon as possible and questionnaires shall be offered regarding the desired

kind of compensation. The following options shall be offered:

- 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

- Private-property flat

- Land for compensation within the municipality

- Joint resettlement to a newly developed place

For the further resettlement of the village Sibovc, 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

7.1.6 Resettlement Procedure Planning of the basic principles for the resettlement should be socially acceptable.

To re-organise the process, 3 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.

- 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 145 of 171

7.2 Communities affected by Resettlement

7.2.1 Settlements in the Partial Field of Sibovc Due to the new opencast mine technology by-passing of the community of Hade is possible

and only single groups of housing estates are within the mining boundary.

Preliminary stocktaking was carried out based on the map handed over by KEK (M 1:10 000),

by means of aerial photography and a visit.

It can be assumed that the provided map with information about the estates (location and

number) is obsolete due to destruction and reconstruction. Even according to the available

aerial photographs of 2005 new building were constructed afterwards. .

The settlement groups belong to the community of Obiliq.

Number of households Settlement area Year

of the

resettlemen

t

Based

on aerial

view

Structu-

rally

complete

without

roof

De-

stroyed

new Total

Mirene Dec 2015 7 2 2 1 12

Shipitulla East Dec 2015 7 2 8 17

Hade Western Slope Dec 2009 15 20 35

Hade North Dec 2019 35 2 4 41

Konxhul Dec 2023 1 3 4

Total 65 6 2 16 20 109

Tab.: 7.2-1 Communities Affected by Resettlement

Fig.: 7.2-1 Hade-North (View from Mirene)



Page 146 of 171

Fig.: 7.2-2 Hade-North (View from North)

The one and two-storey houses in Hade North which were for the most part destroyed have

been reconstructed. On four properties the residential houses are still destroyed.

Fig.: 7.2-3 Mirene (in the Village)



Page 147 of 171

Fig.: 7.2-4 Mirene (View from South)

In the settlement of Mirene there are 7 residential houses. 2 houses have finished structural

work, 1 house is still destroyed. West of the settlement there are 2 residential houses without

roof.

Fig.: 7.2-5 Shipitulla East (View from South)

The settlement of Shipitulla-East has 7 residential houses. 2 residential houses have finished

structural work, 8 houses are destroyed and abandoned.



Page 148 of 171

Fig.: 7.2-6 Hade West 1

Fig.: 7.2-7 Hade West 2

About 15 newly constructed houses are in the future slope area west of the community of

Hade. For safety reasons about 20 houses into the direction of the community of Hade have to

be taken down.



Page 149 of 171

Fig.: 7.2-8 Konxhul (View from Hade-North)

The most southern property of the settlement Konxhul lies within the mining area and has to

be resettled.

There are no public utilities in these settlements.

The inhabitants use the facilities in the neighbouring communities (school and doctor’s

practice in Bregowinska, mosque in Megjuani or Hade).

The departed family members were buried in the nearby communities of Hade, Shipitulla or

Barbatoska.

7.2.2 Locations for Resettlements The options for providing properties for a joint and/of separate resettlement of the household

shall be checked by KEK.

According to information of the World Bank a study was ordered among other for the use of

fallow land in the area of the community of Bardh. According to first knowledge there is a

KEK-disposal site west of Bardh where property for residential houses can be developed to be

applicable for construction. The filled overburden area behind the hills can serve as substitute

for agriculturally used land.

This area is sufficient in size but has to be still examined soil-mechanically owing to the

bearing capacity (filled area).

Assuming about 109 households to be resettled an area of ca. 27.25 ha will be required for the

resettlement. For the calculation about 1,500 m² per property were considered plus 1,000 m²

for public areas.

The figure below is an abstract from the layout plan of KEK showing the own areas of KEK.



Page 150 of 171

Fig.: 7.2-9 Possible Site for Resettlements West of Bardh

If the inhabitants concerned wish a joint resettlement this has to be planned and supervised via

a relatively long period if time (2009 to 2023).

The below table contains the expenses necessary for the development of a settlement area of

ca. 27.25 ha including the land purchase. For the place of Bardh West soil-improving

measures are required for the sites of the houses according to the site examination report (ca.

1,600 EURO/ household).

Units Price per Unit Investments [TEURO]

Acquisition of Land 272.500 m² 4 ,75 1.294

Asphalt Access Road 19.200 m² 25 480

Bridge over Drenica 600 m² 3.000 1.800

Fresh Water Pipe 3.100 m 50 155

Power supply 3.100 m 50 155

Transformer Station 1 30.000 30

Road System inside Village 9.700 m² 25 242

Electric Supply of Houses 3.000 m 50 150

Fresh-Water Pipe inside Village 3.000 m 50 150

Waste Water disposal 109 4.500 491

Total 4.947

Tab.: 7.2-2 Cost Estimation for a new Settlement near Bardh

For properties to be resettled from Hade West the use of areas Skhabaj (nearby Obiliq) shall

be checked since there were already considered areas for the resettlement of Hade here.



Page 151 of 171

7.2.3 Time Scheduling for Resettlement Measures A democratic socially acceptable resettlement procedure compliant to EU law would take at

least 8 years.

The resettlement of Hade West must be completed by the end of the year of 2009. 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 re-

survey 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.

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.

Year Measures

1 year Detailed information of the inhabitants, distribution of questionnaires

4 to 5 years

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)

1 year Stocktaking of estates by Cadastre office

1 year Financial assessment of estates by a working team

1 year

Preparation of a socially acceptable offer for each household (assistance for looking

for estates and/or flat.)

Negotiations with the concerned people

8 years Look for estates, planning and building of private houses/apartments

1 year Resettlement of the inhabitants

3 months Finishing of land purchase by mining company, Completion of deconstruction

works incl. basements of buildings

Tab.: 7.2-3 Principle Timetable for Resettlement Procedure

Including all preparatory measures (principles and contracts) a period of 6 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.

For smaller settlements up to 30 houses the resettlement time can be assessed shorter. But in

order to secure social acceptance it shall take at least 4 years.

To start the project, financing of the resettlement according to the single project stages shall

be ensured.



Page 152 of 171

Main Resettlement Activities

Resettlement of Hade West

Resettlement of Hade North

Resettlement of Mirene

Resettlement of Shipitulla East

Resettlement of Konxhul

Establishment local consulting office *)

Look for estates, planning and building

Road from Hade to Grabovc

Road from Hade to the road Sibovc-Palaj

Road from Sibovc to Grabovc (Shipitulla)

Deconstructing of the Road Bardh-Hade

Stocktaking of estates Financial assesment of estates

Preparation of socially aceptable offers Resettlement of the inhabitants

Completion of deconstructing works incl. basements

Specification Tendering process Construction Commissionning

*) Information of the inhabitants, distribution of questionnaires, social and technical assistance

20

22

20

23

20

24

20

18

20

19

20

20

20

21

20

14

20

15

20

16

20

17

20

10

20

11

20

12

20

13

20

06

20

07

20

08

20

09

Fig.: 7.2-10 Time Scheduling for Resettlement Measures

7.3 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.

The following assumptions were made for the compensations of the households in the Sibovc

field with regard to the resettlement time and the maintenance of value to be expected:

Average compensation per built-up estate: 100,000 EURO

Average compensation for building land: 500 m²

Average compensation for farmland: 2,000 m²

Average size of estates: 2,500 m²



Page 153 of 171

The following table includes the compensation sums per estate:

Title Criteria for evaluation

(Results of the GWG) Area

Price per

property

[€/m²] [m²] [€]

Residence 350 200 70,000

Building Land 23 500 11,500

Agriculture Land - Class I 5 2,000 10,000

Economic Building (workshops, farm etc.) 120 600 7,200

Auxiliary Buildings (garage, depot, yard...) 50 30 1,500

Total 100,200

Round Price per Property with Buildings 100,000

Tab.: 7.3-1 Cost Calculation for Resettlement of Properties with constructed Buildings

The number of estates to be resettled was taken from aerial photography and local visit in

February 2006 and summarized in the following tables.



Page 154 of 171

Investment

House-

holds

Members of

Households

estimated

Land

Claim Payment

per

Household

Households Settlement Area Year of the

Resettlement

[No.] [No.] [m²] [€/No.] [MEURO]

Mirene Dec 2015 12 96 100.000 1.200

Household without land 12 78.500 0.942

Building land households 12 6,000 11.500 0.138

Gardenland households 12 24,000 10.000 0.120

Shipitulla East Dec 2015 17 136 100.000 1.700

Household without land 17 78,500 1.334

Building land households 17 8,500 11,500 0.195

Gardenland households 17 34,000 10,000 0.170

Hade Western Slope Dec 2009 35 280 100,000 3.500




Hade North Dec 2019 41 328 100,000 4.100




Konxhul Dec 2023 4 32 100,000 0.400




Total 109 872 272,500 10.900

Tab.: 7.3-2 Resettlement of Households and Land Claim

Public Facilities

There are no public facilities in the concerned area.

Infrastructure within the villages

For substitute measures of infrastructure inside the villages (Roads, Power supply, Water sup-

ply) 5,000 EURO 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

EURO/m³ enclosed space (app. 2.500 EURO per household).



Page 155 of 171

Investments

Infra-

structure Demolition

Social and

technical

Assistance

per Household

5,000 2,500 1,500

Total Allocated to the

Settlements

Year of the

Resettlement

House-

holds

[€] [€] [€] [€]

Mirene Dec 2015 12 60,000 30,000 18,000 108,000

Shipitulla East Dec 2015 17 85,000 42,500 25,500 153,000

Hade Western Slope Dec 2009 35 175,000 87,500 52,500 315,000

Hade North Dec 2019 41 205,000 102,500 61,500 369,000

Konxhul Dec 2023 4 20,000 10,000 6,000 36,000

Total 109 545,000 272,500 163,500 981,000

Tab.: 7.3-3 Substitution Measures Infrastructure inside the Village and other Costs

Infrastructure outside the villages

Owing to the opencast mine development of the Sibovc mine from South to North connecting

road and accesses to the settlements are over-excavated.

Separate accesses to the settlements will not be produced. Existing ways will be maintained

up to the claim of areas for the resettlements.

Substitute for the road Bardh-Hade

The communal road from Bardh to Hade will be claimed by the mine in December 2009. For

safety reasons this road will be blocked for transit traffic in December 2008. Therefore the

substitute measure shall be planned and finished until end of 2008.

The connection between Bardh and Hade is made by extending the road from Grabovc to

Shipitulla up to the connection to the new asphalt road near Sibovc. From this road Sibovc-

Palaj the existing access to Hade-Nord will be developed as paved road.

The substitute road Hade-Bardh will be constructed in two sections. In the first section (2007-

2008) the existing gravel road will be developed as asphalt road from the mosque in Hade via

Hade-North, in the south passing Megjuani and Konxhul to Shipitulla and from there into

southern direction to Grabovc up to the connection to the present road Grabovc-Hade. The

route of this road is illustrated in dark blue colour in the following figure (length ca. 6,890m).

This substitute road will be deconstructed in 2019 with the occupation of the settlements of

Hade-Nord and Konxhul. The by-pass of the Sibovc mine shall than be made via the

community of Sibovc.

The road connection of Hade to the road Sibovc-Palaj according to the investment plan will

already be made in 2009 (length ca. 1,680m).

It is planned to continue the asphalt road from Shipitulla to Sibovc in 2018/19 (length ca.

3,420m). This route is illustrated red in the below figure.



Page 156 of 171

Fig.: 7.3-1 By-pass of Hade-Bardh

The following assumptions are bases for the determined compensation sums for the

substitution of the available infrastructure outside the villages:

- Road construction (450,000 EURO/km) asphalt road from Hade to the road Sibovc-

Palaj and Sibovc to Grabovc.



Page 157 of 171

- Power supply (45,000 EURO/km disassembly and assembly of medium-voltage

overhead transmission line)

- Water supply (120,000 EURO for drinking water DN 200)

Investments

Power supply Water

supply Roads

Total Settlement

Year of the

Resettlements

[€] [€] [€] [€]

Mirene Dec 2015 54.000 144.000 93.500 291.500

Shipitulla East Dec 2015 0 0 0 0

Hade Western Slope Dec 2009 31.500 84.000 41.000 156.500

Hade North Dec 2019 67.500 180.000 87.700 335.200

Konxhul Dec 2023 13.500 36.000 17.500 67.000

Road from Hade to Grabovc 2007-2008 2.900.000 2.900.000

Road from Hade to the Road

Sibovc-Palaj 2009 706.000 706.000

Road from Sibovc to Grabovc 2018-2019 1.440.000 1.440.000

Total 166.500 444.000 5.285.700 5.896.200

Tab.: 7.3-4 Substitution Measures for Infrastructure outside the Village

Claim of Land (Farmland)

The table below gives a summary of the compensation sums to be expected in connection with

re-settlement and land purchase. The purchase of the settlement properties (500 m² building

land per property) is separately indicated in the table „Provisional estimation of resettlement“.

Investments

Land Use Land Use

Settlements Farmland Price

Total Claim of land

[ha] [ha] [ha] [€ /ha] [€ ]

2006-2010 74 1.75 72.25 47.5 3,431.88

2011-2012 22 0 22.00 47.5 1,045.00

2013-2017 94 1.45 92.55 47.5 4,396.13

2018-2022 122 2.05 119.95 47.5 5,697.63

2023-2024 17 0.20 16.80 47.5 798.00

Total 329 5.45 323.55 15,368.63

Tab.: 7.3-5 Claim of Farmland

In the following tables all estimated costs connected with the resettlement are summarized

according to the individual settlements and annual periods of occupation:



Page 158 of 171

- Payment for households without land

- Payment for building land households

- Payment for garden land households

- Payment for demolition of buildings

- Social and technical assistance for the resettlers

- Payment for the community for infrastructure (roads, power supply, water supply)

inside village

- Infrastructure outside village (roads, power supply, water supply) with substitution of

public roads

- Payment for farmland

The total costs for resettlements and compensations amount to ca. 32 MEURO.



Page 159 of 171

House-

holds

Land

Use Payment Investments

Total Costs per

Settlement Settlement Term

[No.] [ha] [€/No.] [MEURO] [MEURO]

Households without Land 35 78,500 2.748

Building Land Households 35 1.75 11,500 0.403

Garden Land Households 35 7.00 10,000 0.350

Demolition 35 2,500 0.088

Social and technical Assistance 35 1,500 0.053

Hade West

Infrastructure inside Village 35 5,000 0.175

3.815

Households 41 78,500 3.219





Hade North


4.469

Households 12 78,500 0.942





Mirene


1.308

Households 17 78,500 1.335





Shipitulla East


1.853

Households 4 78,500 0.314





Konxhul


0.436

Substitute Public Roads 5.046 4.210

Community Compensation for Power supply 0.167

Community Compensation for Water supply 0.444

Infrastructure

outside Village

Community Compensation for Gravel Roads 0.240

Farmland 301.75 47,500 14.333 14.333

TOTAL PAYMENT 329.00 32.110

Tab.: 7.3-6 Provisional Estimation of Resettlement

thereof Total Purchase of Land Infrastructure inside and outside Settlement Total Land-

Claim Hade

West

Hade

North Mirene

Shipitulla

East Konxhul

Farm-

land

Hade

West

Hade

North Mirene

Shipitulla

East Konxhul

Farm-

land

Hade

West

Hade

North Mirene

Shipitulla

East Konxhul Year

[ha] [ha] [MEURO] [MEURO] [MEURO]

2006

2007 29.60 4.00 25.60 0.344 1.216 3.622 5.182

2008 14.80 4.75 10.05 0.409 0.477 2.498 3.383

2009 14.80 14.80 0.703 0.706 1.409

2010 14.80 14.80 0.703 0.703

2011 11.00 11.00 0.523 0.523

2012 11.00 11.00 0.523 0.523

2013 18.80 18.80 0.893 0.893

2014 18.80 18.80 0.893 0.893

2015 18.80 3.00 4.25 11.55 0.258 0.366 0.549 1.342 1.488 4.001

2016 18.80 18.80 0.893 0.893

2017 18.80 18.80 0.893 0.893

2018 24.40 5.00 19.40 0.430 0.922 2.964 4.316

2019 24.40 5.25 19.15 0.452 0.910 2.399 3.760

2020 24.40 24.40 1.159 1.159

2021 24.40 24.40 1.159 1.159

2022 24.40 24.40 1.159 1.159

2023 8.50 1.00 7.50 0.086 0.356 0.417 0.859

2024 8.50 8.50 0.404 0.404

Total 329 8.75 10.25 3.00 4.25 1.00 301.75 0.753 0.882 0.258 0.366 0.086 14.333 6.120 6.069 1.342 1.488 0.417 32.110

Tab.: 7.3-7 Cost of Resettlement – Schedule

8 Manpower Development and Organisation The manpower of the Sibovc SW mine will be recruited from the personnel of KEK. The

actual situation and changes which will become effective during the mid-term period have to

be taken into account. A parallel operation of the mines Mirash/Bardh and Sibovc SW will be

done from 2008 until the closure of the existing mine which is scheduled for 2012. For a

better evaluation of the future manpower demand in the new Sibovc SW opencast mine the

present situation and changes in Mirash/Bardh is therefore addressed.

8.1 Actual Situation Compared with other European opencast mines the present specific manpower assignment is

considerably high.

This current situation is caused by:

- Unacceptable weak condition of the main mine equipment

- Insufficient utilisation and maintenance of auxiliary equipment

- Level of education to be improved

- Poor motivation of staff

- Insufficient logistics / organisation of the production process

- Social and historical conditions

- The political environment in Kosovo and in particular for KEK

Especially the high unemployment rate in Kosovo and missing social insurance system make

it very difficult to downsize the number of KEK employees.

However the KEK management has prepared a program of rightsizing the structure through

the utility including coal production. This program includes a package of different social

instruments like a sewerage package and an early retirement model.

An outsourcing strategy for non-core businesses has been developed as well.

Currently about 3,600 employees are involved in the Coal Production Division performing 6-7

mt coal per year. An accountable number of employees in the past have been involved in

repair measures mainly financed by EAR.

KEK’s CPD currently is in the process of introducing a new structure to:

- eliminate parallel services performed by different units, e.g. vulcanizers are now

concentrated in one unit;

- concentrate the production units (coal and overburden) on pure production processes,

all services around (auxiliary equipment, transport, maintenance etc.) will be

concentrated in special units;

- merge the mines Bardh and Mirash and organize along the production chain;

- deploy surplus human capacities for urgently needed non-core processes like scrap

collection and decommissioning of not more needed equipment.



Page 162 of 171

It is remarkable that the share of maintenance personnel is even too high when taken into

account the insufficient conditions of the equipment.

Currently KEK is restructuring the maintenance units with the aim to concentrate the

equipment maintenance in two units:

- field maintenance department;

- the Kosovamont main workshop.

Apart from that a specialized maintenance unit is organized under the new auxiliary

equipment department.

The current and future division structure is shown in the following charts:

Centraldispatcher

Mechanical

eng.

Mine planning& reclamation

Electrical

eng.

Geotechnics/Geology

Civil works Surveyors

Auxiliary

equip.

EngineeringDepartment

A

B

Maintenance

Technicaloffice

Mobile

equipment

Separation plantDepartment

FieldRepair

Mechanicalworkshop

Electricalworkshop

MaintenanceDepartment

CoalProduction

Overburdenremoval

Mobile

equipment

Electrical

Maintenance

Mechanical

Maintenance

Mirash MineDepartment

CoalProduction

Overburdenremoval

Mobile

equipment

Electrical

Maintenance

Mechanical

Maintenance

Bardh MineDepartment

Coal Production DivisionManager

Fig.: 8.1-1 CPD Structure until 2005



Page 163 of 171

ExecutiveDirector

Engineering SurveyorsCoal

Production

Secretary

Overburden removal

Safetyoffice

MainDispatcher

Auxiliaryequipment

Kosova-mont

MaintenanceServices

Mine planning

Geology

Soilmechanics

Hydrology

Environment

Civil works

A

B

C

D

A

B

C

D

Kosovo A

Kosovo B

Vulcanisation

Conveyorservices

Dewatering

Maintenance

Comm & Decomm.

Active mines

Potential fields

Mapping

Cadastre

Engineering

Mechanical

Electrical

Warehouse

Input/output

Preparation

Mechanical

Electrical

Selfmaintenance

Quality control

Preparation

Engineering

Operative equ.

Transport equ.

Vehicles

Operators

BusinessSupport

Budget & Controlling

Staff issues

Procurement

Warehouses

ExecutiveDirector

Engineering SurveyorsCoal

Production

Secretary

Overburden removal

Safetyoffice

MainDispatcher

Auxiliaryequipment

Kosova-mont

MaintenanceServices

Mine planning

Geology

Soilmechanics

Hydrology

Environment

Civil works

A

B

C

D

A

B

C

D

Kosovo A

Kosovo B

Vulcanisation

Conveyorservices

Dewatering

Maintenance

Comm & Decomm.

Active mines

Potential fields

Mapping

Cadastre

Engineering

Mechanical

Electrical

Warehouse

Input/output

Preparation

Mechanical

Electrical

Selfmaintenance

Quality control

Preparation

Engineering

Operative equ.

Transport equ.

Vehicles

Operators

BusinessSupport

Budget & Controlling

Staff issues

Procurement

Warehouses

Fig.: 8.1-2 New CPD Structure to be introduced

The new structure includes a “Commissioning & Decommissioning” unit as mentioned

earlier.

24%

23%

18%35%

<= 40

41 - 46

47 - 52

>= 53

Fig.: 8.1-3 Age Structure of CPD Employees and Qualification (Source KEK)

The above figures illustrate that almost half (47%) of the total workforce of KEK´s Coal

Production Division is within the age group 41 – 52 years. 35% of the employees are younger

than 40 years and about 18% are older than 53 years.

The age structure shows the relevant share of personnel at an age of over 40 years.



Page 164 of 171

This is the main group that should drive the movement towards a competitive business unit in

technical and organizational means.

As 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

low-grade training and/or no qualification. About 10% of the employees have graduated at a

technical college or a university.

Considerable training measures should be realized during the next years as a basis for higher

performance.

As a reaction to the low number and low level of qualification of good engineers KEK has

developed and started a so called young educates program. Under this program:

- a number of trainees will be employed by KEK based on a selection process of best

performing university students;

- a number of young KEK engineers get support for their further qualification (PhD,

masters exams).

It must be considered that between 1990 and 1999/2000 the 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 but the lower income balances

the involved cost increase.

8.2 Proposed Improvement / Benchmark As mentioned the envisaged measures mainly refer to:

- Improving of qualification

- Improvement the structure and

- Adaptation of personnel employment of phasing out Mirash / Bardh operations

Qualification Measures

It is extremely important to develop a skilled and motivated workforce with the ambition to

run a competitive mine. 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



Page 165 of 171

- Electrical maintenance for the Mine and Separation plant and

- Environmental issues

A breakdown of this is described in the Mid Term Plan.

Organizational Development within the Mid-term Period

The Mid Term Mining Plan also 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

- More emphasis on maintenance with increasing equipment productivity

- A changeover from reactive maintenance to scheduled preventative maintenance

As mentioned earlier KEK has started a process of outsourcing of non-core businesses. Within

the CPD there are different processes presenting potential candidates for outsourcing and

involvement of third party companies.

Potential for outsourcing of processes and personnel have been identified with different

services like:

- vulcanization and idlers repair;

- the main workshops (Kosovamont);

- auxiliary equipment maintenance;

- partly heavy equipment maintenance.

This involvement of international leading companies (e.g. for vulcanization and maintenance

of heavy equipment) will lead to introduction of state of the art technologies, where KEK has

no sufficient resources.

The restructuring of KEK’s CPD should be continued.

A proposal for the next step of concentration of resources is shown in the graphic below:



Page 166 of 171

Central

dispatcher

Engineering

Department

Surveying

Department

Services

Department

Production

Department

Maintenance

Department

CPDExec.Dir.

Fig.: 8.2-1 Proposed Structure of Macroorganisation of the CPD

Adaptation of the Employment of Staff

Currently, the overall productivity is about 1750 tons per man and year (3,646 persons). As

already mentioned there are various reasons for this.

A comparison to some benchmark mines reveals:

Production Name Technology Remarks

[mt/a] Staff [t/man]

Eagle Butte (US) OCM / Truck & Shovel Mine only 16 400 40,000

Jänschwalde (GER) OCM / BWE & BCE Mine only 16 550 30,000

Foundation Coal (US) OCM / UGM Organization 60 4000 15,000

Burton (AUS) OCM / Truck & Shovel Mine only 6 400 15,000

VEM (GER) OCM / BWE & BCE Organization 60 5,000 12,000

Cumberland (US) UGM / Longwall Mine only 6 550 11,000

Kingston (US) UGM / Continuous Miner Mine only 0.8 100 8,000

Bogatyr (KAZ) OCM / BWE & Shovel & Train Mine only 25 5,000 5,000

CPD (2005) OCM Mirash/Bardh Division 6.4 3,646 1,750

Tab.: 8.2-1 Productivity Benchmarks in international Coal Industries

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 essential 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.



Page 167 of 171

As already mentioned: 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 and catering. 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.

- The dig ability of the material

Summarizing, it seems to be appropriate, to set the goal for the long term productivity of

KEK-CPD with at least 6,000 tons per man-year. This means a 3.4 fold increase in

productivity compared to the year 2005. The mine plan assumes that this goal can’t be

achieved up to the end of the opening –up phase of Sibovc SW. The stepwise reduction in

overall staff numbers has been started and will be continued.

8.3 Employment and Organisation in Sibovc SW 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 to a great

extent.

Such existing obstacles are:

- insufficient social measures in case of unemployment and illness

- general financially weak industry of Kosovo

- lack of sufficient alternative employment opportunities

- overstaffing in other industries and other businesses and therefore staff reduction

requirements not only in KEK

- availability of better qualification opportunities

- insufficient legal bases regarding labour law

Irrespective of the elimination of existing obstacles, the experiences, the mentality of the

people and the actual economic development will influence the employment of staff.

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)



Page 168 of 171

- 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 for the employment of labour in Sibovc it

is assumed that suitable staff will be qualified and employed if motivated. The jobs shall be

advertised throughout the company.

The following tables give a specification of employees in existing mines and in the future

mine Sibovc SW.

Year 2007 2008 2009

01.01 31.12 01.01 31.12 01.01 31.12

Mirash / Bardh per 01.01. 3,500 3,000 2,100

- Fluctuation / Redundant 490 415 300

- Employees for Sibovc SW 10 485 500

Mirash / Bardh per 31.12. 3,000 2,100 1,300

Year 2010 2011 2012

01.01 31.12 01.01 31.12 01.01 31.12

Mirash / Bardh per 01.01. 1,300 900 350

- Fluctuation / Redundant 100 470 260

- Employees for Sibovc SW 300 80 40

Mirash / Bardh per 31.12. 900 350 50

Tab.: 8.3-1 Employees in the Bardh / Mirash Mine



Page 169 of 171

Year 2007 2008 2009

01.01 31.12 01.01 31.12 01.01 31.12

Sibovc SW per 01.01. 5 15 500

+ new staff from

Mirash/Bardh

10 485 500

Average of the year 10 350 700

Sibovc per 31.12. 15 500 1,000

Year 2010 2011 2012

01.01 31.12 01.01 31.12 01.01 31.12

Sibovc SW per 01.01. 1,000 1,300 1,380

+ new staff 300 80 40

Average of the year 1,250 1,350 1,400

Sibovc SW per 31.12. 1,300 1,380 1,420

Tab.: 8.3-2 Employees in the Sibovc SW Mine

0

500

1000

1500

2000

2500

3000

3500

2007 2008 2009 2010 2011 2012 2013 2014 2015

Employees

Staff in Sibovc SW

Staff in Mirash/Bardh

Fig.: 8.3-1 Development of Employees in CPD

It is shown that there will be redundant personnel in the existing mines, which can not be

employed in Sibovc SW. Some reductions will result from employees entering the retirement



Page 170 of 171

age and/or personal terminations. However the staff rightsizing program started by KEK

(retirement, early retirement, sewerage package) shall be continued over the upcoming years.

The following gives a survey on the staffing in Sibovc:

2009 2010 2011 2012 2013 >2014

Administration 70 110 120 125 125 130

Main Equipment + Belt

Conveyor

270 520 580 585 620 650

Auxiliary Equipment 190 310 310 330 330 330

Workshops 100 210 230 240 250 260

Other 70 100 110 120 125 130

SUM Personnel 700 1250 3361 1400 1450 1500

Tab.: 8.3-3 Number of Employees

The organisation chosen for Sibovc SW assists the goal to achieve competitive costs for coal

supply and to guarantee these costs in the long run.

KEK is currently undergoing an incorporation to be finished by end of 2006. The new

structure as approved by the Kosovo government foresees to create independent units along

the value chain of energy generation and distribution. Consequently all services currently

performed by the KEK head office including commercial and financial units, legal and human

resources are integrated in the organization.



Page 171 of 171

9 License for Coal Extraction Since the existing mine Mirash/Bardh will be depleted by 2011 the purpose of this document

is to provide a plan to open up a new mine timely. The start of coal supply is planned for

2010. Therefore the first overburden has to be removed 2008.

For this mining activity an exploitation licence is requested.

One essential principle for granting such a license for coal extraction is:

The licenses for coal mining should be compliant to the planned power generation. The

mining licenses should provide sufficient security of supply in terms of coal quantities and

quality.

To feed the existing TPP’s Kosovo A and B with fuel till their decommissioning a license

over 123 mt mineable reserves would be necessary in addition to the remaining reserves in the

existing coal mines Bardh and Mirash. Due to the available amounts of coal in Mirash / Bardh

and the designed Sibovc SW mine this can be provided:

According to the mining plan KEK has the resources regarding sufficient coal reserves and the

adequate coal quality. The deposit can be exploited in an environmentally friendly way.

Further the investigation revealed that the new Sibovc SW mine will be economically viable.

The Complementary Mining Plan verifies that the Sibovc South West mine has the potential

for being the coal supplier to the existing power plants in technical and economical terms.







Part III – Environmental Assessment

April, 2006


Part III Environmental Assessment


Page 2 of 77


Hans Jürgen Matern

Team Leader

Thomas Suhr


Stephan Peters


Helmar Laube






Page 3 of 77

Table of Contents

1 SUMMARY (PART III) .......................................................................................... 8

1.1 Objective .................................................................................................................... 8

1.2 Tasks and Outputs of the Project................................................................................ 9

1.2.1 Part I: Basic Investigations ......................................................................................... 9

1.2.2 Part II: Technical Planning......................................................................................... 9

1.2.2.1 Mine Development ................................................................................................... 10

1.2.2.2 Dewatering ............................................................................................................... 10

1.2.2.3 Manpower................................................................................................................. 11



1.3 Results under Part III – Environmental Assessment ................................................ 13

2 INTRODUCTION.................................................................................................. 15

2.1 Geographical Overview and Historical Development.............................................. 15

2.2 Coal Demand and Fuel Supply Strategy................................................................... 16

3 DESCRIPTION OF THE PROJECT .................................................................. 19

4 CURRENT STATE OF THE ENVIRONMENT ................................................ 21

4.1 Topography............................................................................................................... 21

4.2 Atmosphere .............................................................................................................. 21

4.3 Soils.......................................................................................................................... 25

4.4 Surface Waters Run-Offs and their Qualities........................................................... 27

4.5 Hydrogeological Situation........................................................................................ 29

4.6 Noteworthy Side Issues ............................................................................................ 33

5 ALTERNATIVES .................................................................................................. 39

5.1 Overview of Potential Future Mining Fields............................................................ 39

5.2 Description of Alternative Mining Fields ................................................................ 40

5.3 Alternatives of Opening-up and Mine Development for the Sibovc Field .............. 42

5.4 Environmental Aspects of Mining Fields Alternatives ............................................ 43

5.5 Valuation of the Mining Fields ................................................................................ 46

5.6 Environmental Ranking of Alternatives................................................................... 48

6 ENVIRONMENTAL ASPECTS OF THE SIBOVC SW PROJECT ............... 49

6.1 Soil ........................................................................................................................... 50

6.2 Surface Waters ......................................................................................................... 52

6.3 Groundwater............................................................................................................. 53

6.4 Ecological Resources ............................................................................................... 54

6.5 Economic Development ........................................................................................... 55

6.6 Social and Cultural Resources.................................................................................. 56

7 ANTICIPATED ENVIRONMENTAL IMPACTS ............................................. 58

7.1 General Environmental Impacts ............................................................................... 58

7.2 Topography............................................................................................................... 59

7.3 Soil ........................................................................................................................... 59

7.4 Surface Waters ......................................................................................................... 60

7.5 Groundwater............................................................................................................. 60

7.6 Ecological Resources ............................................................................................... 61



Page 4 of 77

7.7 Economic Development ........................................................................................... 61

7.8 Social and Cultural Resources.................................................................................. 62

7.9 Health and Safety ..................................................................................................... 62

8 IRREVERSIBLE AND IRRETRIEVABLE IMPACTS.................................... 63

9 MITIGATING MEASURES................................................................................. 64

10 ACTION PLAN ...................................................................................................... 66

10.1 Environmental Management .................................................................................... 66

10.2 Environmental Monitoring Measures....................................................................... 66

10.2.1 Surface Water ........................................................................................................... 66

10.2.2 Groundwater............................................................................................................. 67

10.2.3 Air Quality................................................................................................................ 68

10.2.4 Noise......................................................................................................................... 69

10.2.5 Vibrations ................................................................................................................. 69

10.2.6 Intensified Assessments ........................................................................................... 69

10.2.7 Fauna and Flora ........................................................................................................ 69

10.2.8 Cultural Heritage ...................................................................................................... 70

10.2.9 Compensation of Farmland and Utilization of Top Soil .......................................... 70

10.2.10 Protection of Villages........................................................................................... 70

10.2.11 Future Treatment of Ash Dumps.......................................................................... 71

11 MINE CLOSURE AND RECULTIVATION PLANNING................................ 72

11.1 Principles.................................................................................................................. 72

11.2 Mine Closure Plan.................................................................................................... 72

11.3 Concept of Post-Mining Use for the Fields Bardh, Mirash and Sibovc................... 74

12 LEGAL FRAMEWORK ....................................................................................... 77

12.1 Legal Mining Regulations ........................................................................................ 77

12.2 The Environmental Protection Law ......................................................................... 77



Page 5 of 77

List of Figures

Fig.: 2.1-1 General Location Map 16

Fig.: 2.2-1 Location of intended Opencast mine 19

Fig.: 4.2-1 Variation of monthly mean temperatures 21

Fig.: 4.2-2 Variation of monthly temperatures 22

Fig.: 4.2-3 Direction and velocity of wind (Source Rudarski Institute) 22

Fig.: 4.2-4 Long-term variation of monthly precipitation 23

Fig.: 4.2-5 Average, minimum and maximum monthly precipitation 24

Fig.: 4.2-6 Daily Precipitation 24

Fig.: 4.3-1 Soil Map 26

Fig.: 4.4-1 Catchment Areas 27

Fig.: 4.4-2 Characteristic Water Quality Values for the River Sitnica 28

Fig.: 4.4-3 Characteristic Mine Water Quality 28

Fig.: 4.5-1 Bottom of yellow Clay (Redrawn from Rudarski Institut) 31

Fig.: 4.5-2 Complemented Extract from Hydrogeological Map 32

Fig.: 4.6-1 Former Underground Mining in Field D 33

Fig.: 4.6-2 Gallery of an old Underground Mine with wooden Support System 34

Fig.: 4.6-3 Underground Mining Structures in the Mirash Mine 35

Fig.: 4.6-4 Coal Fire at Base of Dump and near a Fault with burn out Zones 36

Fig.: 4.6-5 Areas of potential Risk of toxic Waste Deposits 37

Fig.: 5.1-1 Potential Mining Fields 40

Fig.: 5.6-1 Area of the Complementary Mine Plan 49

Fig.: 6.1-1 Distribution of Soils 50

Fig.: 6.2-1 Surface Waters and Catchment Areas 52

Fig.: 6.3-1 Complemented Extract from the Hydrological Map, Rudarski Institut 54

Fig.: 10.2-1 Net of Groundwater Monitoring Wells 68

Fig.: 11.3-1 Plant Scheme for Wind Erosion Protection 76



Page 6 of 77

List of Tables

Tab.: 2.2-1 Installed TPP Capacity (Source KEK) 17


Tab.: 2.2-1 Demand of Surface Area [km²] 20

Tab.: 4.2-1 Intensity of Precipitation at Rainfall Gauging Station Pristina 25

Tab.: 4.4-1 Comparison of Water Qualities 29

Tab.: 4.6-1 Underground Coal Production 35

Tab.: 5.6-1 Valuation of Mining Fields 48

Tab.: 6.5-1 Claim of occupied Farm Land 55

Tab.: 6.6-1 Resettlement of Households 57

Tab.: 7.7-1 Development of Employees 62



Page 7 of 77


a year

bm³ bank cubic meter

bm³/h bank cubic meter per hour

`000 bm³ thousand bank cubic meter

EN European Norm

EnO Energy Office

ESTAP Energy Sector Technical Assistance Project

GWh gigawatt-hours

IPP International Power Provider

k~ kilo-

lm³ loose cubic meter

`000 lm³ thousand loose cubic meter

m~ million

m² square meter

m³ cubic meter

mlm³ million loose cubic meters

MME Main Mine Equipment (BWE, belt conveyor and spreader)

mMSL meter above Main Sea Level

MW mega watt

OCM Open Cast Mine

t tonne

TPP Thermal Power Plant

TPS Thermal Power Station



Page 8 of 77

1 Summary (Part III)


reports:

























Kosovo.












Page 9 of 77






































Page 10 of 77








account.












body south of Hade.


municipal waste.


Mirash-East.


beginning of works.









1.2.2.2 Dewatering






Page 11 of 77


times to the North.


1.2.2.3 Manpower


Year 2007 2008 2009 2010 2011 2012



Staff transfer 10 485 500 300 80 40

Sibovc SW per 31.12. 15 500 1000 1300 1380 1420






























Page 12 of 77



mining field.


























capital.











Page 13 of 77

1.3 Results under Part III – Environmental Assessment The existing coal mines Bardh and Mirash, west of Pristina, will be exhausted within the next

years. With the Sibovc Southwest field a new deposit, adequate to supply the existing thermal

power plants in Kosovo, was identified and will be developed.

The “Complementary Mining Plan for Sibovc Southwest Mine” describes how the future

lignite mine, physically forming an extension of the existing mines Bardh and Mirash, can be

operated to serve the existing power plants until 2024. This description follows the demand of

coal presented by the Energy Ministry in the year 2006.

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.







developing from the existing opencast mines to the north. 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 Southwest 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 whole Sibovc 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. Out of this an area of about

4.8 km² will be needed until 2024 to deliver about 123 million tonnes of lignite 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



time, it will be possible to return reclaimed areas to agricultural use in a landscape with

changed appearance.

Surface waters to be affected are mainly small and of non perennial flow. The rivers Sitnica

and Drenica will not be directly affected, as clayey sediments with sufficient thickness protect

them from the mine. Indirect effects can result from the outlet of mine drainage water with

enlarged contents of Chloride and Sulphate as well as suspended matter.

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.

Dust emissions as well as noise emissions will shift from the current to the future working

points with an equal or, based on applied technologies, even minor extent of emissions.

This Environmental Study attempts to follow in general the applicable EU directives on






Page 14 of 77


mining field.







2024. Resettlement refers to single houses and small settlements and it will not be necessary

to resettle significant villages.

With the objective to improve knowledge on the environment and to allow control of the




Not directly connected with the mining activities but environmentally very beneficial will be

depositing of the ash from the power plants in abandoned parts of the existing mines. The

geological circumstances generally favour this way of disposal. It is conceivable, that also the

existing ash dumps can be relocated to the mines in parts or as a whole.

To start the Environmental Impact Assessment procedure the Environmental Authorities

require a specific applicant for the Complementary Mining Plan. Following the legal

regulations it is the duty of the applicant to file this Environmental study with the Ministry, to

obtain the official Scoping Opinion and to ensure updates to this report where needed.



Page 15 of 77

2 Introduction To obtain extensive and independent energy supply for Kosovo currently there is no

alternative but the excavation and combustion of lignite. The existing lignite mines of Bardh

and Mirash will be exhausted in the near future. Therefore a new mining field close to the

existing power plants and able to feed the existing power plants at least until 2024 is needed.

Geological investigations and modelling, latest done in 2005, showed the Sibovc field in

general will be able to meet the fuel demand for the next thirty years.

The basics of the environmental issues connected with lignite mining in the Kosovo Basin are

described in the “Main Mining Plan for New Sibovc Mine”, dated 24 June 2005 and will be

repeated in this report where reasonable.

This Environmental Assessment adjusts the existing findings to the Sibovc Southwest field (in

the following called Sibovc SW field) and 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 respective 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

operations started in the 1920’ties. First activities were reported to start with underground

mining in at least five locations. Underground exploitation was going on until the year 1966

when mining focussed on large scale surface mining at Bardh and Mirash mines. Large-scale

extraction 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 within the period from 1962 until 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 opencast mines. Hence at least seven outside dumps were formed

surrounding the today mines.



Page 16 of 77

Fig.: 2.1-1 General Location Map

2.2 Coal Demand and Fuel Supply Strategy Kosovo does not have any important fossil fuel resource but is rich in lignite. There is neither

natural gas import nor gas supply infrastructure. Kosovo also does not have any oil refinery

and depends entirely on imported liquid fuels. The hydroelectric potential is very modest.



Page 17 of 77

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.

Gross Power Net Power Available Net

Power

Start of

Operation TPP

[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

Tab.: 2.2-1 Installed TPP Capacity (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:

- The geological reserves of the existing mines total about 37.3 mt (mineable). This is

calculated from 2006 onward (see report “Mid Term Plan”).

- Kosovo will export energy based on lignite (so it will enter in South East European

Regional Market).

- The grid of the ECSEE will be reinforced to allow power transmission.



Page 18 of 77


2006 6.8 - 6.8

2007 7.2 - 7.2

2008 7.9 - 7.9

2009 7.8 - 7.8

2010 4.6 3.4 8.0

2011 3.0 6.0 9.0

2012 - 9.0 9.0

2013 - 9.0 9.0

2014 - 9.0 9.0

2015 - 9.0 9.0

2016 - 9.0 9.0

2017 - 9.0 9.0

2018 - 9.0 9.0

2019 - 9.0 9.0

2020 - 9.0 9.0

2021 - 9.0 9.0

2022 - 9.0 9.0

2023 - 9.0 9.0

2024 - 6.0 6.0

Total 37.3 123.4 160.7




Page 19 of 77

3 Description of the Project Type of Project:

Subject of the project is the excavation of overburden and lignite in the neighbourhood of

existing opencast 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.

Location:

The Sibovc SW 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 4.8 km² with a maximum mineable width (east-west

extension) of 2.3 km and a length of about 2.5 km.

The following figure shows the location of the intended mining in the Sibovc SW field as well

as the distances to the power plants and surrounding towns of Kastiot, Fushe Kosove and

Prishtina.

Fig.: 2.2-1 Location of intended Opencast mine



Page 20 of 77

Need for Project:

Kosovo does not have any important fossil fuel resource but it is rich in lignite. There is

neither natural gas import nor gas supply infrastructure. Moreover, Kosovo does not have any

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.

Because the existing coal mines will be exhausted within the next years a new deposit

adequate for stable supply has to be identified and developed to provide the necessary lignite

supplies to the existing power plants in Kosovo.

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.

Demand Accumulated

2006 - 2010 1.79 1.79

2011-2012 0.39 2.18

2013 - 2017 1.49 3.67

2018 - 2022 1.16 4.83

2023 - 2024 0.18 5.01

Tab.: 2.2-1 Demand of Surface Area [km²]

Opencast mining requires removal of soil, overburden and extraction of the coal seam with a

total thickness of up to 80 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 120 m. For detailed information please refer to part mining technologies of this

report.



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4 Current State of the Environment

4.1 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.

4.2 Atmosphere 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.

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.

Fig.: 4.2-1 Variation of monthly mean temperatures



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Supplementary information was found at www.qwikcast.com presenting in 2004 a statistical

compilation on the basis of eighteen years.

Fig.: 4.2-2 Variation of monthly temperatures

Wind

The wind is predominantly blowing from north and northeast with an average velocity near 3

m/s. In 1985, the Rudarski Institute 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.: 4.2-3 Direction and velocity of wind (Source Rudarski Institute)

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.



Page 23 of 77

Precipitation

Data on precipitation were collected from different sources. The Hydro-Meteorological

Institute of Kosovo produced a study in 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 – 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.

The 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.

Fig.: 4.2-4 Long-term variation of monthly precipitation

The range of monthly precipitation can be described on the basis of values recorded from the

years 1979 until 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.



Page 24 of 77

Fig.: 4.2-5 Average, minimum and maximum monthly precipitation

The variation of daily precipitation values for the years 2001 to 2004 has been made available

by 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).

Fig.: 4.2-6 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.



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mm Duration

Repetition

(years) 15 min 30 min 1 h 2 h 8 h 16 h 24 h

1 5.52 4.36 8.65 9.66 12.88 15.64 18.40

2 12.09 16.12 18.94 21.16 28.21 34.26 40.30

5 16.5 22.00 25.85 28.88 38.50 46.75 55.00

10 19.17 25.56 30.00 33.48 44.73 54.32 63.90

50 25.5 34.00 39.95 44.63 59.50 72.25 85.00

100 28.29 37.72 44.32 49.50 66.00 80.15 94.30

1000 37.8 50.40 59.22 66.15 88.12 107.10 126.00

m³/(s km²) Duration

Repetition

(years) 15 min 30 min 1 h 2 h 8 h 16 h 24 h

1 6.13 4.08 2.40 1.34 0.44 0.27 0.22

2 13.43 8.95 5.26 2.93 0.98 0.59 0.47

5 18.33 12.22 7.18 4.00 1.34 0.82 0.64

10 21.33 14.20 8.33 4.65 1.55 0.95 0.74

50 28.33 18.80 11.10 6.19 2.06 1.25 0.98

100 31.43 20.95 12.31 6.87 2.29 1.40 1.10

1000 42.00 28.90 16.45 9.18 3.06 1.85 1.45

Tab.: 4.2-1 Intensity of Precipitation at Rainfall Gauging Station Pristina

4.3 Soils A general description of types of soils is given with the “Soil map of SAP Kosovo”, 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. The 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 in 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.



Page 26 of 77

Fig.: 4.3-1 Soil Map



Page 27 of 77

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. The 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.: 4.4-1 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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Fig.: 4.4-2 Characteristic Water Quality Values for the River Sitnica

The parameters shown in the figure above are found adequate to represent the up to date

quality of river water without effects to 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.: 4.4-3 Characteristic Mine Water Quality



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The table below 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.

Minimum Average Maximum

Units? Sitnica Mirash Sitnica Mirash Sitnica Mirash

pH value 6.8 6.7 7.9 7.8 8.4 8.7

El. Conductivity µS/cm 230 175 486 1,381 1,100 3,700

Chloride mg/l 3 4.5 28 90 70 290

Sulphate mg/l 29 75 78 924 516 1,741

Hydrocarbonate 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

Tab.: 4.4-1 Comparison of Water Qualities

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.

Minimum standard to weaken these effects is to install settling ponds to reduce the load of

suspended solids and coal dust.

4.5 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.

In general, the overlaying lignite having a thickness up to 70m has a low permeability 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. Embedded layers with masses of snail shells are

characteristic. Near to the surface this “grey clay” can change its appearance to “yellow clay”

what can be explained as a result of weathering with oxidation of the iron content within the

material. The clay material generally behaves 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 clay and fissures.



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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 elaboration 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.: 4.5-1 Bottom of yellow Clay (Redrawn from Rudarski Institut)

Recent measurements on the quantity of groundwater and flow directions as well as

expressive maps of the groundwater table are not available. Reviewing of older documents

and field observations shows 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



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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 Laitishte 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. 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.: 4.5-2 Complemented Extract from Hydrogeological Map



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4.6 Noteworthy Side Issues 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 mainly 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.: 4.6-1 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.



Page 34 of 77

Fig.: 4.6-2 Gallery of an old Underground Mine with wooden Support System

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



Page 35 of 77

The underground mining method was abandoned in 1966. The 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.

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

Tab.: 4.6-1 Underground Coal Production

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 close to the surface.

Fig.: 4.6-3 Underground Mining Structures in the Mirash Mine

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



Page 36 of 77

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.

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 these fires especially affect 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 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 next figure).

The characteristics (hardness) of the clinker allow utilization as gravel to improve the stability

of transport roads within the mine.

In case remains of the old underground mines directly reach the Sibovc SW Mine or

connections by open fissures exist, a considerable risk of coal fires remains.

Fig.: 4.6-4 Coal Fire at Base of Dump and near a Fault with burn out Zones



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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.: 4.6-5 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



Page 38 of 77

- what quantities of original or altered materials are deposited in the underground

workings,

potential risks are given 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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5 Alternatives 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 mines and

power plants. Sufficient coal resources are available in the neighbourhood of the existing

mines where environmental intervention already exists. For these reasons exploitation outside

the wider surroundings of the existing mines does not form an alternative.

5.1 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 (also see

following figure):

- Field Sibovc with subfield Sibovc Southwest

- Field D

- Field South



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Fig.: 5.1-1 Potential Mining Fields

5.2 Description of Alternative Mining Fields 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.

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 (East-

West extension) of 3.8 km and a length of about 6 km.

Area use:



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The area of the Sibovc field is mainly 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 before mentioned villages is the major obstacle for the

exploitation. There are no other restrictions for the coal mining.

Field Sibovc Southwest

Location:

The Sibovc Southwest Field forms a part of the larger Sibovc field. It covers some 4.8 km².

The field neighbours the existing mines in the northwest and stretches some 2.6 km to the

north.

Area use:

The area is mainly used for agriculture. The Shipitulla overburden dump covers some 56 ha in

the very southwest. This dump holds a military used shooting range.

Residential areas:

The mining field is sparsely populated and contains only minor settlements or detached

houses.

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.



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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.

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.

The area covers more than 11 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°) in an entire area of 5.5

million m² and an average dumping height of 20 to 30 m.

Residential areas:

Resettlement of the villages of Lismir and Kuzmin is required. There are no other buildings

with relevant influence.

5.3 Alternatives of Opening-up and Mine Development for

the Sibovc Field To find the optimum way to exploit the coal six general scenarios were developed.

For a single mine development two main variants are comparable:

- Variant 1 Mining Sibovc from South to North

- Variant 2 Mining Sibovc from North to South

In addition possibilities of developing two mines in the field were assessed and evaluated:

- Variant 3.1 Parallel mine development in Sibovc (South) and Sibovc (middle)

- Variant 3.2 Parallel mine development in Sibovc (South) and Sibovc (North)

- Variant 4 Parallel mine development of two mines along a South-North

demarcation line.

For further details refer to “Main Mining Plan for New Sibovc Mine”, June 24, 2005.

With the decision to concentrate on supplying the existing power plants a possibility is given

to develop a smaller mine in the field. With respect to minimizing resettlement and optimizing

the opening-up process by using the existing mines the variant of “Sibovc Southwest Mine”

was developed.



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5.4 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 total Sibovc field the highest number of 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.

Sibovc Variant 1 forms an extension of the existing mines, where the excavation moves

forward 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.

Sibovc Variant 2 opens a new mine developing to the south. Hence erecting all infrastructures

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.

Sibovc Variants 3.1 and 3.2 are intensifications of the effects shown in variants 1 and 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.

Sibovc 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.

Developing Field D requires an earlier partial resettlement affecting the east of Dardhisht

village. The connecting road Krushec – Nakarade / Fushe 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.

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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Sibovc variants can only be seen in the difference in time when abandoning becomes

necessary. 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 Sibovc Variants 1

and 2, Field D as well as Field South only one mine is working while in Sibovc Variants 3 and

4 there are two mines working parallel in time. For the latter variants this will lead to

increased dust emissions from enlarged and enforced 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 alternatives 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 excavation is performed in rather watertight materials. Hence

the quantities of water depend mainly on the precipitation. In 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 in case of enlarged exploitation of the field. 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 joining 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. In case of Sibovc SW field operations

will be associated only with less water bearing overburden.

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 in 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



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for agriculture. 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 Kosovo. 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 the chapter “Current state of the Environment – Soils” 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 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 which will result in local

changes of wind direction and wind speed. 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.



Page 46 of 77

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 buried in the underground workings,

this problem forms a potential risk when coal exploitation takes place in the south-eastern part

of Sibovc field as well as within the Field D.

5.5 Valuation of the Mining Fields 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 only affected by recovery of old dump

material in its south western part. Another advantage of this field is the moderate transport

distance to the power plant. The mining of the lignite field of Sibovc offers the best possibility

to supply coal to the power plants. In total the Sibovc field can provide coal for a 2,000 –

2,500 MW power plant capacity.

Developing the Sibovc field from the South has the best potential of all scenarios to fill the

Bardh and Mirash pits with overburden masses.

Only a part of the Sibovc field is needed to supply the existing power plants until 2025.

Works can be optimized by starting exploitation from existing mine slopes and using the

existing infrastructure.

The exploitation of the whole deposit requires considerable resettlements. Concentrating

mining activities on the southwest of the field will minimize the number of resettlements

needed.

Opening-up Sibovc field in any variation mainly affects agricultural used land.

Connecting the Sibovc field with the existing mines requires disconnecting the road from

Bardh to Kastriot. Individual travelling times will increase and social contacts between the

inhabitants can be hindered.

As the overburden mainly consists of clay, bearing smaller quantities of groundwater, and

connections to larger surface waters do not exist the effect on surface waters as well as the

groundwater is assessed low.

To supply the existing power plants the variant of exploiting the Sibovc Southwest field

shows the minimum affects.

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



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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 m³/t.

As only individual households are to be resettled this alternative is the most favourable.

In terms of changes in air quality this alternative can only be assessed when the relocation of

the existing ash dump is taken into account. The large scale dust emission from the dump will

come to an end. Compared to that, the dust production deriving from exploitation works can

be assessed to be considerably less.

With respect to the geographical and geological conditions the mine will be located in the

valley of river Sitnica with courser sediments possibly causing an enlarged inflow of

groundwater and surface water in times of flooding.

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 Field D 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 field is able to supply the power plants until end of their lifetimes.

If the costs for relocating the ash disposal from its current location into the old workings

of Mirash are covered by a third party, 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.

Valuation of Field South

The main pecuniary benefit of the field South is the fact that most of the areas are already

property of KEK.

Increased volumes of overburden have to be removed as the seam dips to the south and

dumped overburden masses are to be re-excavated.

Another disadvantage of the South field is the increasing transport distance to the power

plants TPP A und TPP B.

The mine has to be secured against water inflow from the river Sitnica.

The resettlement of two whole villages forms an expressive social impact.

As the opening-up of the mine can use the existing mine openings additional unfavourable

effects in case of water, air and noise are assessed to be minimized.

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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5.6 Environmental Ranking of Alternatives 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 from 1 to 8. The

increase in number reflects the intensity of the environmental impact. No attempt was made to

weigh the various environmental criteria.

Variant Sibovc Field Field

Effect 1 2 3.1 3.2 4 SW D South

Resettlement 4 5 7 6 8 2 1 3

Local Roads and Transportation 4 5 7 6 8 3 1 2

Water and Air 2 3 5 4 6 1 8 7

Flora, Fauna, natural Heritage 3 4 7 6 5 2 1 8

Soil, Natural Resources and Land Use 4 5 8 7 6 3 1 2

Sum 17 22 34 29 33 11 12 22

Tab.: 5.6-1 Valuation of Mining Fields

The comparison shows that opening-up the Sibovc Southwest field as well as the exploitation

of the Field D will cause the smallest effects on the main environmental issues.

From the environmental point of view opening the field Sibovc with one mine should be

given the preference rather than working with two mines. In the light of the complementary

mining plan the development of the Sibovc SW field from south to north as a section of

variant 1 forms a mitigation of impacts.

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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6 Environmental Aspects of the Sibovc SW Project The comparison of alternatives shows Field D south of TPP Kosovo A to be the most

favourable new mining area from the environmental point of view.

After presentation of the Main Mining Plan for New Sibovc Mine and in the light of the

current development in Kosovo decision was made by the main beneficiary to develop the

Sibovc Southwest field (part of former “New Sibovc Mine”) as best fit to its future energy

demand strategy.

On the basis of this decision and the goals of the Kosovo Government (Ministry for Energy

and Mining) a Complementary Mine Plan was developed, which roughly corresponds to

variant 1. As this Complementary Mine Plan comprises a development from South to North in

a minor area than shown in variant 1 the environmental friendliest way was chosen to exploit

the Sibovc field.

The future area under construction is shown in the following figure.

Fig.: 5.6-1 Area of the Complementary Mine Plan



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6.1 Soil Investigations on the qualities of soils came to the conclusion that most expressive

information is given by “Soil map of SAP Kosovo”, 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. The following figure shows the

situation for the planned mining field including a border area of 1 km width.

Fig.: 6.1-1 Distribution of Soils

Within the future mine Vertisol soil types predominate, covering nearly 100 % of the area.

Only some 0.4 ha at the outer north-western edge can reach reddish sediments at the

geological rim of the coal basin.



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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 tilt 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, 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.



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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 to 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.

6.2 Surface Waters The Sibovc SW field affects four catchment areas of minor surface watercourses. Besides the

Bardh mine catchment area (1002) especially the water course in the valley west of Hade (No

310 - 380 in the figure below) and the water course from the village of Shipitulle to Drenica

river (No 510-520 in fig below) are covered. These run-offs are not perennial. They depend

directly on the intensity of precipitation and mainly function as surface drainages. Flow

measurements for the above mentioned tributaries to the river Sitnica are not available.

The catchment area 310-380 will be nearly totally excavated and has to be integrated to the

future mine drainage system. Since the areas 440 as well as 510 discharge outward only the

excavated parts need to be integrated into the drainage system.

Fig.: 6.2-1 Surface Waters and Catchment Areas



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6.3 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 the map below, prepared by the Rudarski Institut (1996).

The bold arrow in the map 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.

The poor presence of groundwater in the overburden clay is also represented by the surface

run-offs falling dry throughout the summer. The Sibovc SW field has no contact to major

aquifers. Also no negative effects can be expected from neighbouring rivers as the distance

between the mine and the river Drenica is assessed large enough.

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.



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Fig.: 6.3-1 Complemented Extract from the Hydrological Map, Rudarski Institut

6.4 Ecological Resources The Sibovc SW field is characterised by extensive agricultural use. Areas unaffected by

humans are rather seldom. Useful plant varieties prevail in the floral scene. The area holds no

wood, only shrubbery with singe smaller trees enriches the view. This kind of land use can be

followed through the landscape 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



Page 55 of 77

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).

6.5 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 exist. The

economic development was not totally adapted to this as house building activities are going on

and seem 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.

The total 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 123 mt, the area claimed for

mining as Sibovc SW field will extend to some 4.8 km² within the period until 2024 (see

following table). The Sibovc field, combined with the other potential mining fields, forms the

basis for a long term economic development in this region.

Period land Use Thereof occupied land thereof farmland

ha ha ha

2006-2010 74 1.75 72.25

2011-2012 22 22.00

2013-2017 94 1.45 92.55

2018-2022 122 2.05 119.95

2023-2024 17 0.20 16.80

Total 329 5.45 323.55

Tab.: 6.5-1 Claim of occupied Farm Land



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6.6 Social and Cultural Resources Monuments of historical value are not known in the Sibovc SW 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 who 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 source but in the majority of the households, one family member is employed with

KEK.

The resettlement of the single housings will not significantly change the rural structure with

regard to 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 de-central

site.

Some resettlers use the resettlement effect to separate from the large family (extended family).

For example, two-room apartments 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.

Following villages and/or groups of houses are located within the mining field Sibovc SW:

- Mirene

- Shipitulla East

- Hade

- Konxhul

Where resettlement will be needed mainly private properties will be affected. Public buildings

are not affected.

The compensation of Serbian property located within the mining field (former Serbian settle-

ment) has to be negotiated with the corresponding owner.



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Settlement Area Year of the

Resettlement

Number of

Households

Members of

Households

Mirene Dec 2015 12 96

Shipitulla East Dec 2015 17 136

Hade Western Slope Dec 2009 35 280

Hade North Dec 2019 41 328

Konxhul Dec 2023 4 32

Total 109 872

Tab.: 6.6-1 Resettlement of Households



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7 Anticipated Environmental Impacts

7.1 General Environmental Impacts Production of lignite stands for large scale excavation of materials using heavy duty

equipment. 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 opencast mines are being developed to a depth of

more than hundred meters and cover areas of several hundred hectares. As slopes of any

opencast mine have to be constructed in a geotechnical 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 causes noise and dust due to the mining 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 endangers 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 shape of the landscape changes because hills are formed.

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 opencast mines involves a dedicated “Mine Closure Plan” which

indicates the re-utilization of the land after mining and provides for acceptable alternatives for

its environmental and socio-economic integration. In summary the main environmental

impacts by opencast coal mining and dumping of significant quantities of ash are:

- Extensive land occupied by opencast mine, 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



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- 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)

- 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

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.

7.2 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. The Shipitulla dump (about +600 mMSL

today) has to be removed in the early stages of excavation. The local landscape will loose a

typical valley that today is visible to a long range from the South. As spreading of overburden

can only partly be used to backfill the existing mines, 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 incomplete possibilities to backfill the Sibovc SW 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.

Also a possible solution will be given, if the Sibovc SW mine in 2025 forms the starting point

for additional exploitation. As there are 19 years left, it is conceivable to prepare the opening-

up of a new mining area in the east in the meantime following all legal and technological

requirements.

7.3 Soil Vertisol soil on overburden clay materials is predominant. A Vertisol soil does not generally

contain separate fertile topsoil layers and the existing overburden dumps demonstrate the

spread clay to be quite as fertile as the developed topsoil. In addition to this and based on their

local knowledge KEK´s environmentalists recommend to differentially excavate the topsoil as

it would result in significant benefits e.g. for re-cultivation measures. As gradual enrichment

of organic materials is understandable in the upper topsoil, a separated excavation and use to

accelerate the rehabilitation processes, especially at reshaped dump sites, should be

implemented into the mining activities.

Only a rough sketch, showing the thickness of topsoil, is presented by Rudarski Institute

(1997): Investicioni Program Izgraduje Povrsinskog Kopa “Sibovac”. – Kniga III, Beograd.

This sketch is only available as a small scale figure in a text and therefore it is not sufficient to



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be used as a detailed and reliable basis for rehabilitation works. Detailed mapping of the

current soil qualities will be needed.

7.4 Surface Waters Planned mining activities will affect single surface waters from the rims of the catchment

areas in direction to the receiving waters. Therefore the surface water along the village of

Sipitulle 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 the catchment area within the

valley west to Hade (310-380) 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. Diversion of the run-off is part of the mine drainage

concept, which collects the water at higher elevations of the valley and directs it either to the

Sibovc River in the North or with the existing drainage system towards the river Sitnica. The

remaining surface water in the deeper parts will be collected at the low points in the mine and

pumped out. Using the precipitation values mentioned above will result in some 108,000 m³

of water to be drained per month (mean run-off coefficient = 0.4) and a peak water yield of

246,000 m³/day based on a maximum precipitation rate of 64 mm/d and a run-off coefficient

of 0.8. A present problem may be 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 rivers. Once the valley west of

Hade is excavated the mine 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 slopes will arrive at the mine.

Interactions between the river Drenica 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, which prevent enriched groundwater flow.

7.5 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 the 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.



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7.6 Ecological Resources A specific assessment of 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 SW 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 investigations with local experts, as manifold but local

focussed questions are to be answered in limited time.

7.7 Economic Development Kosovo is in need for securing 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 SW field is the

solution with least impacts.

Mining the Sibovc SW field will lead to progressive land use within the next 20 years. Within

this duration no economic use except coal exploitation will be possible in the active mining

area. At the same time some 4.8 km² of agricultural used land will have vanished. Re-

cultivation measures south of and partly within backfilled areas of the existing mines

(realization is part of the budget for the “Mid Term Plan”) can be used to compensate for the

loss of agricultural land in the north.

As soon as mining will start in the field the connecting road Bardh – Hade – Palaj will be

closed. Traffic diversion will be needed using the roads Shipitulla – Sibovc and Bardh -

Lismir. Significant improvements in road conditions are advised 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.

As the existing mines and power plants today are the major employers in the area and the

mines will be exhausted by the year 2012, the new Sibovc SW mine is essential to provide

employment opportunities in future. Based on the technical demands of the Complementary

Mining Plan following numbers of employees are needed to run the mine.



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Year Number of employees in Sibovc SW mine

12 / 2007 15

12 / 2008 500

12 / 2009 1,000

12 / 2010 1,300

12 / 2011 1,380

12 / 2012 1,420

12 / 2013 1,450

2014 - 1,500

Tab.: 7.7-1 Development of Employees

7.8 Social and Cultural Resources Approximately 870 people in 109 households has to be resettled between 2007 and 2023.

Detailed plans where these people will be resettled to are not yet available.

Even though the number of resettlements appears rather small the implementation of the

resettlement has great influence on the future mining development. A socially acceptable

resettlement procedure 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.

7.9 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, the 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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8 Irreversible and Irretrievable Impacts Excavation of lignite will transform the surface. The local appearance of a gentle valley today

will disappear and by 2024 a rather deep hole will be left. Due to the overall exploitation since

beginning in the late 50ies and the volume of coal excavated it will not be possible to backfill

the entire mined area. Trying to achieve elevations adjusted to the surroundings where

possible in the fields of Bardh and Mirage will result in a depression at Sibovc SW field in the

year 2025. This lack of materials can not be compensated under feasible and financially

bearable circumstances. Even if excavation will be continued after 2024, this deficit in masses

will only be shifted. In the end this will lead to the creation of a lake as a new element of

landscape. Even though irreversible this lake 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 an 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 the lifetime of the mine and power plants and, as they remain part of the landscape, they

are regarded as irreversible impacts with significant pollution potential.



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9 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 those stations will mitigate the dust propagation. Dust deriving from

maintenance traffic shall be mitigated by regularly moistening the roads e.g. 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 reduce 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 to contents of heavy metals and

hydrocarbons. If there are no specific anomalies, the material 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 transported 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 if 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 Kosovo.

Noise pollution outside the mine is mainly produced by the coal conveyor belts. Proper

bearings and regular inspection and maintenance of the conveyor idlers will considerably

reduce the level of noise.

Materials from Sibovc SW mine will be used to backfill Mirash and Bardh mines where

possible. As the Mirash mine is in use for ash disposal and for land fill some parts of the mine

can not be backfilled with overburden material without endangering those sites. Material from



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the Sibovc SW mine will contribute to re-cultivating these abandoned mines. By this, the

effects of a historic environmental impact will be mitigated.

Development of the Sibovc SW mine from the south will immediately cut a locally important

road. To decrease the effects on the neighbouring inhabitants the roads Bardh – Shipitulla –

Sibovc and Bardh – Lismir should be developed to allow truck and bus traffic. Pavement

should be asphalted to reduce molestation of residents, travelling times as well as to

strengthen the public acceptance of the mine.

Also ash from combustion of lignite has to be handled 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 suppress dust.

Additionally, also partial re-handling and backfilling of existing ash dumps into the mines will

significantly reduce already existing pollutions.

The largest impact on the landscape, the loss of farmland, can only be compensated by

creating new farmland. Therefore all backfilling activities should focus on a rapid return of

land. A system of re-utilization of topsoil will contribute to improve the acceptance by

resettled or neighbouring farmers.

Where appropriate, the planting of trees combined with undergrowth will reduce visible

effects. This applies to the neighbouring villages of Hade and Shipitulla. In these parts the

mine´s rim can be planted to avoid a direct view into the open pit. In addition this vegetation

belt can help to minimize dust and noise pollution.



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10 Action Plan The current knowledge about the situation is not sufficient to allow detailed assessments of

the environmental effects on the envisaged project. Therefore additional investigations are

necessary, which have to be carried out by appropriate experts. Most of the measures have to

be launched prior to the excavation works. Adequate synchronising and adjustment of the

different measures is necessary. The applicant should therefore implement an appropriate

management.

10.1 Environmental Management Considering the present conditions at Kosovo’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 and surface waters, neighbouring inhabitants as

well as the faunal and floral habitats. Hence a trained team supported by external experts 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.

Procurement and settlement of accounts of external experts will be part of the duty of this

team.

10.2 Environmental Monitoring Measures

10.2.1 Surface Water Surface waters, especially the river Drenica, will be influenced 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 drainage system settling

ponds should be performed at least once a week.

Use of automatic reading stations is recommended only when regular maintenance of the

stations by trained staff can be guaranteed.



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In the course of Sibovc river and the water course from the village Shipitulle to Drenica river

regular flow measurements and samplings with chemical analyses are advised (every three

month recommended) to register a possible enlarged leakage of surface water towards the

mine and to document the effects of mining on the waters. Besides the typical describing

parameters pH and Eh value, el. conductivity, temperature, sensory appearance of sample the

analyses must comprise the list of major anions and cations (at least Na, K, Ca, Mg, Fe, Mn,

Cl, SO4, NO3, NO2, HCO3) as well as other noticeable parameters that might be of

importance.

10.2.2 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 as soon as possible.

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 at different horizons:

- Shallow wells are recommended primary to assess the effects of precipitation on

groundwater. The bottom of the alteration zone from grey to yellow clay gives good

indication to locate the well screen. In general a depth of about 15 m is considered as

suitable.

- Deeper wells shall be sunk to specific water bearing layers within 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.

- To assess the quantity and especially the pressure of groundwater in greater depth a

number of monitoring wells should be positioned within the coal seam and the

underlying green clay. Vague indications are given that the green clay at least locally

contains courser layers, which might function as aquifers. To proof this drillings must

be scientifically accompanied; especially the material sampling must be sufficient to

allow proper identification of the materials.

After installation of the wells the water levels have to be recorded at least monthly and drawn

as graphics showing the development in time. Combining the 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 and coal for the later excavation.

Discussions with the hydrogeological expert of KEK led to a first scheme to place monitoring

wells. Most of the wells are positioned at the mine rim to allow long-term documentation. The

following figure shows the positions.



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The net of monitoring wells shall be adopted in future to up-dated 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.

Fig.: 10.2-1 Net of Groundwater Monitoring Wells

10.2.3 Air Quality The mining activities will cause dust emissions deriving from excavation activities, materials

handling, excavated not yet re-vegetated slopes and benches and the materials dumped

especially throughout the dry seasons. 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



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the mining activities. Focus should be set on possible molestation of neighbouring residents.

As the villages of Sibovc, Shipitulla and Hade are located near to the corners of the mine it is

advised to install the stations at least at the four corners of the mine.

10.2.4 Noise The development of the new mining front will shift the sources for noise by the moving

excavation equipment as well by suspending of pathways. Hence not only the mining

machinery itself but also the shifted traffic around the mine will lead to alterations in noise

emission. First attempts are already undertaken by the INCOS Institute to measure the degree

of noise around the existing mines as well as within the Sibovc SW field. These

measurements should be extended and intensified to create the baseline information for

further assessments. Additional noise measurements should be undertaken within the

neighbouring villages to create a baseline for later assessments on the increase of noise caused

by the mining equipment as well as by the resulting diversion of traffic.

10.2.5 Vibrations The mining activities will locally reach near to housing areas. To assess the future impact a

baseline survey should be performed for the northern part of Hade village, Shipitulle village

and the settlements of Konxhul and Megjuani. Correspondent locations have to be identified

neighbouring the existing mines (i.e. at the southern part of Hade village, Graboc i Ulet or

Bardh village) to record the current influence from the ongoing mining operations.

10.2.6 Intensified Assessments A number of items are identified requiring processing in the near future.

10.2.7 Fauna and Flora Detailed information on the floral and faunistic population as well as a specific catalogue of

endangered species could not be procured

Up to now the knowledge about the fauna and flora in the Sibovc SW field is insufficient. To

achieve baseline data surveys must identify the faunistic and floral inventory prior to any

mining activities. These surveys must cover at least 12 months of identifying and counting the

different species appearing throughout the different climatic periods. The survey leads to an

assessment of the impact of the total loss of that area on the larger countryside.



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10.2.8 Cultural Heritage Currently there is no knowledge about archaeological or historical important locations. Same

refers to the architectural heritage. It is important to confirm the opinion that there is none of

those locations in the Sibovc SW field by local experts prior to excavation.

10.2.9 Compensation of Farmland and Utilization of Top Soil To resettle the inhabitants of the Sibovc SW field adequate and practicable locations have to

be found in short term. A fitting way to compensate the loss of farmland is to intensify the re-

utilization of parts of the outside dumps directly south and in greater distance southwest of the

mines. As reshaping of the dumps in the south is already integrated into the “Mid Term Plan”

for the duration 2009 to 2012, it will be possible to combine the re-utilization of the dumps

with the needs of resettlement. By now it is intended to re-shape the dumps and to gradually

transform the surface into agricultural usable land. From 2012 onwards the occupation of land

will considerably affect local farmers. Providing “ready to use” farmland as compensation

already in 2012 will simplify the process of resettlement. Separate handling of the humus

topsoil offers an important component to fill the gap. The humus topsoil from the Sibovc SW

field will be separately excavated, transported and installed at the compensation areas. This

layer is assessed nearly to hold its full productivity throughout the process whereby in short

term a yield, comparable to the farmland lost, can be achieved. This operation requires some

specific preparatory, monitoring and control work.

Prerequisite is the confirmation of top soil values. This is achieved by additional

investigations on the soil qualities, combining surveying the thickness of the topsoil with

sampling and analyses of the qualities. It is advised to use a working grid with distances of no

more than 250 m. Result will be a comprehensive map as basis for the later excavation works.

The needs to provide specific areas for compensation are known from the mine planning.

Based on this a time schedule has to be developed showing when individual plots of land must

be ready for resettlement. The excavation – transportation – build-in process must be adjusted

to the resulting timely constraints.

During field operations a control system must be implemented to organize appropriate

excavation and building works.

10.2.10 Protection of Villages Where the mining activities reach near to villages intensified interference occurs. With Hade

and Shipitulle two villages will be located rather near to the mine. Disconnecting the villages

from the mining operations will not be possible, but compensating measures can be

undertaken. This means for example to plant trees and bushes to reduce the visual impression.

As additional noise and dust reducing effects might be implementable, intensified assessments

should develop appropriate solutions with choice of appropriate plants and the way of

planting.



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10.2.11 Future Treatment of Ash Dumps The combustion of lignite 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 directly into the mines, as the geological situation with clayey under- and overburden

favours the disposal together with the overburden dumping. Trials already have been initiated

to pump ash as slurry from TPP Kosovo B into the Mirash mine.

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 keep the dust pollution low and 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.


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 insolvency.

- 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 and

avoids placement of additional outside dumps.



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According to the Mid Term Plan the existing mines are 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.

- 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

prevent new coal fires. The dumping technology of the overburden masses of Sibovc

will be adapted 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 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 mine 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 machines 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.



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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.

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.



Page 75 of 77

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 itself.

To raise the yield of crop it may become advisable to apply fertilising measures like manure,

slurry or mineral fertilizer.

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.

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.



Page 76 of 77

3.50 m

Shrubs

Trees (2 size)nd

Trees (1 size)st

Fig.: 11.3-1 Plant Scheme for Wind Erosion Protection

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


- Inclination of the ditch slope ca. 45°

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.



Page 77 of 77

12 Legal Framework During 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 is 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.







Part IV – Financial Analysis

April, 2006


Part IV Financial Analysis


Page 2 of 42


Hans Jürgen Matern

Team Leader

Thomas Suhr


Stephan Peters


Helmar Laube






Page 3 of 42

Table of Contents

1 SUMMARY (PART IV)........................................................................................... 7

1.1 Objective .................................................................................................................... 7

1.2 Tasks and Outputs of the Project................................................................................ 8

1.2.1 Part I: Basic Investigations ......................................................................................... 8

1.2.2 Part II: Technical Planning......................................................................................... 8

1.2.2.1 Mine Development ..................................................................................................... 9

1.2.2.2 Dewatering ................................................................................................................. 9

1.2.2.3 Manpower................................................................................................................. 10



1.3 Results under Part IV – Financial Analysis.............................................................. 12

2 TECHNICAL BASIS FOR THE FINANCIAL ANALYSIS ............................. 17

3 ECONOMIC AND FINANCIAL ANALYSIS..................................................... 19

3.1 Preliminary Remarks................................................................................................ 19

3.2 General Assumptions and Calculation Method........................................................ 22

3.3 Example for DCF-Method ....................................................................................... 22

3.4 Real Average Cost.................................................................................................... 26

3.5 Cash Flow................................................................................................................. 28

3.5.1 Preliminary overburden ............................................................................................ 28

3.6 IRR, Average Costs per Unit.................................................................................... 32

3.7 Sensitivity Analysis .................................................................................................. 33

3.8 Financial Analysis .................................................................................................... 34

3.8.1 Earning-Capacity Value ........................................................................................... 36

3.8.2 Project Financing...................................................................................................... 38

3.9 Cost Calculation, Investment Costs, Operating Costs.............................................. 39

3.9.1 General Data for Cost Calculation ........................................................................... 39

3.9.2 Investment Costs ...................................................................................................... 39

3.9.3 Labour Costs............................................................................................................. 40

3.9.4 Calculation of Operating Cost Items ........................................................................ 40

3.9.5 General Data and Principles for Cash Flow ............................................................. 41

3.9.6 Escalation ................................................................................................................. 41

3.9.7 Lignite Sales Price.................................................................................................... 42



Page 4 of 42

List of Figures

Fig.: 1.3-1 Real Average Cost 13

Fig.: 1.3-2 Development of the ECV in 2024 depending from the Lifetime of the OCM 15

Fig.: 1.3-3 Cumulative Cash Flow before Interest and Tax 16

Fig.: 1.3-1 Coal Output 17

Fig.: 1.3-2 Mining Position in the Year 2024 18

Fig.: 3.1-1 Specific Expenditure 19

Fig.: 3.1-2 Revenues until 2024 21

Fig.: 3.3-1 Overburden and Lignite Performance 22

Fig.: 3.3-2 Total Expenditures 23

Fig.: 3.4-1 RAC for 10 % and 12 % total Return on Investment 27

Fig.: 3.4-2 RAC depending on the Interest Rate 28

Fig.: 3.5-1 Cumulative Cash Flow before Interest and Tax 29

Fig.: 3.5-2 Cumulative Cash Flow with Interest before Tax 29

Fig.: 3.5-3 Expenditures and Revenues until achieving of a positive Operating Result 31

Fig.: 3.6-1 Illustration of Dependence on theoretical total Return on Investment 32

Fig.: 3.7-1 Sensitivity Chart 34

Fig.: 3.8-1 Pre-Overburden of Sibovc SW Mine 35

Fig.: 3.8-2 Revenues of Sibovc SW Mine 35

Fig.: 3.8-3 Equity and Liabilities of Sibovc SW Project 36

Fig.: 3.8-4 Earning-Capacity Value per 31/12/2024 37

Fig.: 3.9-1 Development of the RAC with 4 % Escalation 42



Page 5 of 42

List of Tables

Tab.: 1.3-1 Results and specific Parameters 14

Tab.: 3.1-1 Example RWE 2005 20

Tab.: 3.3-1 Calculation Example 1 23



Tab.: 3.5-1 Escalated Expenditures in Sibovc SW 32



Page 6 of 42


a year

bcm bank cubic meter

CD cost of dept before tax

CE cost of equity before tax

CF cash flow

DR dept ratio

ECV earning capacity value

ER equity ratio

EURO/t Euro per ton

DCF discounted cash flow

IRR internal rate of return

MEURO million Euro

mt million tonnes

mt/a million tonnes per annum

RAC real average cost

WACC weighted average capital cost



Page 7 of 42

1 Summary (Part IV)


reports:

























Kosovo.












Page 8 of 42






































Page 9 of 42








account.












body south of Hade.


municipal waste.


Mirash-East.


beginning of works.









1.2.2.2 Dewatering






Page 10 of 42


times to the North.


1.2.2.3 Manpower


Year 2007 2008 2009 2010 2011 2012



Staff transfer 10 485 500 300 80 40

Sibovc SW per 31.12. 15 500 1000 1300 1380 1420






























Page 11 of 42



mining field.

























All variants until 2011 require about 80 MEURO equity capital and ca. 200 MEURO debt

capital.











Page 12 of 42

1.3 Results under Part IV – Financial Analysis Aim of the economic and financial analysis is to reflect economic efficiency so that

conclusions can be made with regard to the realisation of the project.

The financial and economic analysis shall among others comprise four issues:

1. Is it possible to extract the coal at a competitively reasonable price?

2. Which rate of return will be earned? Will 20 % rate of return be realistic?

3. Which influence will an escalation of 2 and/or 4% have to all payments and revenues?

4. Will a lifetime of only 15 years for coal production be sufficient?

The consultants prepared an economic and financial analysis with a detailed cash flow





The calculations have been made in accordance with IFRS (International Financial Reporting

Standards).

Costs of coal production were determined as well as payment plan, a profit and loss account

and a balance over the project lifetime.

The determination of the operating cost contains among others:

- Future number of employees

- Future equipment fleet

- Output capacity of the opencast mine

- Actual accounting of the opencast mines of Mirash / Bardh

- Experiences from other international opencast mines

The Real Average Cost (RAC) per unit was determined, calculated on the basis of DCF-

method for an Internal Rate of Return (IRR) of 10% and 12%.

A detailed example of DCF calculation have been given to show the methodology.

The economical and financial Analysis was shown especially for an interest rate of equity

capital of 20 %. In line with this as well as the necessary rate of interest for debt capital of 6 %

and/or. 8 % there results Weighted Average Capital Cost (WACC) of 10 % and/or 12 %.

Inflation was considered with 2% (according to Var. 1 and 2) and an additional calculation

was made including 4 % (Variant 3 and 4). The low approach of 2% will thereby be more

likely because even mineral oil and natural gas are below the price level of the 80ies.

According to IFRS the main equipments are depreciated over a period of 12 years. This

condition will be achieved at the end of the period under review in the Sibovc opencast mine.

Therefore the expected profit increases essentially for the last operating years.


The good deposit conditions contribute to low operative costs but will require relatively high

investments within a short period at the beginning of the operation.



Page 13 of 42

If coal will be sold at a price of 7.00 EURO/t assuming an annual increase by 2 %, the owner

will yield remarkable profit of 137 MEURO until 2024 (from the year 2012 to 2019 about 5

MEURO per year and after 2019 approximately 20 MEURO (cost of debt 6%)

A second scenario assuming a coal price of 7.5 EURO/t and a cost of debt of 8 % per annum

will guarantee a profit for the investor of approx. 9 MEURO per annum from the year 2012 on

(after 2019 > 25 MEURO/a).


The costs for the running operation amount to ca. 3.65 EURO/t raw coal. Together with the

average costs for the investments to the amount of 2.37 EURO/t there is yielded ca. 6.00

EURO/t raw coal. The remaining 1.50 and/or 2.00 EURO/t raw coal are financing charges.

0,98 0,99 1,00 1,01 1,03 1,05 1,09

0,59 0,59 0,60 0,60 0,61 0,61 0,63

0,91 0,92 0,92 0,93 0,93 0,94 0,95

0,63 0,63 0,64 0,64 0,64 0,65 0,660,49 0,48 0,47 0,47 0,46 0,46 0,46

2,37 2,37 2,37 2,37 2,37 2,37 2,37

0,33 0,691,08

1,521,99

2,77

4,26

6,30 6,67

8,03

8,85

10,41

7,08

7,54

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

11,0

12,0

4% 6% 8% 10% 12% 15% 20%

RA

C in

€/t

Lig

nit

e

Personnel Power & Fuel Maintenance other & Royalties

service & mobil Overburden Invest Expenditure financing cost total

Fig.: 1.3-1 Real Average Cost

The calculations show the dependency of the Real Average Cost (RAC) from the discount

rate.

The costs of financing are depending on the chosen interest of capital. This financing costs

both contain the costs for debt capital and the rate of interest for equity capital.





As presented the effects on financing are of minor importance. All variants until 2011 require

about 80 MEURO equity capital and ca. 200 MEURO debt capital.





Page 14 of 42

Independent from the financing of the commissioning of the Sibovc SW opencast mine the

sum of the annual payments for the production of coal is smaller than 5.0 EURO per tonne

coal. This applies from 2012, the first year of full production.

Precondition for this statement is that main equipment and auxiliary machines will be in a

modern and fully functioning condition.

Extension of the lifetime would lead to a clear decrease in the cost price of coal.

Results and specific Parameters Opencast Mine Sibovc SW

Item Variant 1 Variant 2 Variant 3 Variant 4

Assumptions

Cost of equity 20% 20% 20% 20%

escaleted 2 % 2 % 4 % 4 %

IRR = WACC 10 % 12 % 12 % 12 %

Cost of debt 6 % 8 % 8 % 8 %

Lignite output in mt 9.00 9.00 9.00 9.00

RAC to 2024 7.54 €/t 8.03 €/t 7.50 €/t 7.50 €/t

Operating cost 3.65 €/t 3.67 €/t 3.65 €/t 3.65 €/t

Invest cost 3.89 €/t 4.36 €/t 3.85 €/t 3.85 €/t

RAC to 2035 6.96 €/t 7.46 €/t 6.88 €/t 6.88 €/t

RAC to end 6.74 €/t 7.26 €/t 6.63 €/t 6.63 €/t

Coal Price 7.00 €/t 7.50 €/t 7.00 €/t 7.50 €/t

Coal Price in 2010 (begin production) 7.73 €/t 8.28 €/t 8.52 €/t 9.12 €/t

Coal Price in 2024 (end the consideration) 10.20 €/t 10.93 €/t 14.75 €/t 15.80 €/t

Financing & dividend

Equity payment 74 Mio. € 76 Mio. € 77 Mio. € 75 Mio. €

long time Equity 47 Mio. € 45 Mio. € 43 Mio. € 44 Mio. €

Borrowings to 2011 193 Mio. € 197 Mio. € 203 Mio. € 199 Mio. €

Dividend 137 Mio. € 178 Mio. € 197 Mio. € 294 Mio. €

Earning-capacity value

Perpetuity 22.0 Mio. € 27.6 Mio. € 19.8 Mio. € 27.0 Mio. €

Earning-capacity value 173 Mio. € 197 Mio. € 156 Mio. € 213 Mio. €

from 01.01.2025 to 31.12.2035

Earning-capacity value 366 Mio. € 345 Mio. € 330 Mio. € 450 Mio. €

from 01.01.2025 to end

Tab.: 1.3-1 Results and specific Parameters



Page 15 of 42

Theoretically there will be a fully functional and equipped opencast mine available in 2024.

After this time high surplus could be earned. Even if it is assumed that a sum of 9.0

MEURO/a for running rehabilitation will be needed the earning capacity value (ECV) as of

31.12.2024 would be greater than 300 MEURO.

Already with considerations until 2035, i.e. 25 years of production the financial calculation

results in an ECV of at least 150 MEURO as of 31.12.2024.

0

50

100

150

200

250

300

350

2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

earn

ing

-ca

pa

city

va

lue

20

24

in

ME

UR

Development earning-capacity value Variant 1 Development earning-capacity value Variant 2


Fig.: 1.3-2 Development of the ECV in 2024 depending from the Lifetime of the OCM

Provided the Sibovc SW opencast mine is brought to a functioning condition – as planned in

the CMP – it will be possible to produce coal with favourable terms and profits of 20 % on the

employed equity capital can be earned.



An essential assumption for the financial analysis is that the equipment from the phasing out

mine operations to be re-used doesn’t have any noteworthy book value.

In 2010, the company will extract coal from the new mine for the first time. Until 2011 total

payments of 296 MEURO (of it 238 MEURO for investments) are required.

The company will need an equity capital base of 74 MEURO (Var.1) to finance the required

equipment configuration.

The first positive cumulative Cash Flow (CF) before interests and taxes will occur in 2018.



Page 16 of 42

Cumulative Cash Flow before Interest and Tax

-300

-250

-200

-150

-100

-50

0

50

100

150

200

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

Year

m E

UR

kum. CF without interest Investments Operating Costs Lignite REVENUES 2 % Escalation

Fig.: 1.3-3 Cumulative Cash Flow before Interest and Tax

Within the period until 2012 credits to an amount of about 193 MEURO (dept capital) will

have to be taken up.

From 2011 onwards the annual coal revenues will be at least as high as the annual payments,

means until 2011 the company has to allocate capital. These payments amount to 267

MEURO. With regard to total 74 MEURO coal revenues until 2011 this represents a capital

requirement of 193 MEURO (including operational cost until 2011)

The sensitivity analysis approves the large dependency of the real average cost (RAC) from

the in-vestment expenditures (including financing costs). Furthermore, personnel costs as well

as costs for maintenance are relevant.

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

Assuming 70 % debt capital the company will achieve a positive operating result for the first

time in 2011. The first dividend payment will be in 2012 after the losses of 2010 have been

balanced.

Until 2019 the company will earn annually 5 MEURO net profit after taxes on the average.

From 2020 this profit will increase to ca. 20 MEURO/a, because the main equipment will be

depreciated until that time.

A project financing model have been developed and used as basis for the financial analysis.

The project will be profitable under the assumptions made with a lignite sales price of 7.00

EUR per ton as of 01/01/2006.



Page 17 of 42

2 Technical Basis for the Financial Analysis Power plant concept and coal demand

The specific objectives are the elaboration of a mining plan on the development of the new

mine in the Sibovc South West Lignite Field which will identify the necessary technical and

operational measures for production and supply of sufficient volumes of coal from the new

mine to supply the existing thermal power plants until the end of their lifetime.

Considering the potential of the existing mines and the required supply to the Kosovo A and B

power plants the following coal extraction from Sibovc SW has been determined:

Year All Mines Mirash / Bardh Sibovc SW

2005 6.4 6.4 0

2006 6.8 6.8 0

2007 7.2 7.2 0

2008 7.9 7.9 0

2009 7.8 7.8 0

2010 8.0 4.6 3.4

2011 9.0 3.0 6.0

2012 9.0 0 9.0

2013 9.0 0 9.0

2014 9.0 0 9.0

2015 9.0 0 9.0

SUM 89.1 43.7 45.4

Fig.: 1.3-1 Coal Output

Main mine equipment and mine development

The complementary mine plan Sibovc SW describes a mining development beginning in

Bardh / Mirash and heading in Northern direction, whereas the village Hade will be by-

passed.

This is described in the Complementary Mining Plan Sibovc SW Part I and II.



Page 18 of 42

Fig.: 1.3-2 Mining Position in the Year 2024



Page 19 of 42

3 Economic and Financial Analysis

3.1 Preliminary Remarks Aim of the economic and financial analysis is to reflect economic efficiency so that

conclusions can be made with regard to the realisation of the project.

Resulting from the previous investigations low coal costs are expected – even with relatively

high interests and a short lifetime of the opencast mine.

The description of the financial and economic analysis shall among others comprise the

following four issues:

1. Is it possible to extract the coal at a competitively reasonable price?

2. Which rate of return will be earned? Will 20 % rate of return be realistic?

3. Which influence will an escalation of 2 and/or 4% have to all payments and revenues?

4. Will a lifetime of only 15 years for coal production be sufficient?

Apart from the below explanations the following shall be already mentioned here:

To 1) Specific Expenditure

The coal deposit is characterized by a favourable overburden : coal ratio. This allows a

principally possible coal production at very favourable prices of below 5.00 EURO/t coal.

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

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

tsp

ecif

ic E

xp

en

dit

ure

s in

EU

R/t

co

al

0,0

2,0

4,0

6,0

8,0

10,0

Lig

nit

e o

utp

ut

Mio

. t/

a

Personnel Electricity Fuel running Maintenance

other opex other Internal costs Royalties Recultivation

Overburden mobil Investments Output Lignite RAC-Lignite

Fig.: 3.1-1 Specific Expenditure



Page 20 of 42

The figure above illustrates that in 2012 when the full production capacity will be achieved,

the annual payments for coal production will be below 5.00 EURO/t.

Precondition for this is that main equipment and auxiliary machines will be in a modern and

fully functioning condition. At present these preconditions are not fulfilled in Kosovo. It is

intended to provide these preconditions with the available mining plan. ‘This will lead to a

clear price raise of the coal owing to the connected initial investments (explained in detail

below).

To 2) Rate of return

The large German energy groups EON and RWE (with a relatively good rating) expect from

their company activities a total weighted average capital cost before tax of 9 %.

WACC … Weighted Average Capital Cost = 9% before tax

WACC ~ IRR (Internal rate of return)

This total weighted average capital cost is derived from the desired return on equity of ca. 9 %

after tax and loan capital of ca. 6 % taking account of the capital structure of ca. 30 % equity

capital.

� RWE is slightly less risky than investing in the Risk-free interest rate 5.5%

DAX as a whole. Risk is reduced since water Market premium 5.0%

accounts for a significant portion of the business. Beta factor 0.7

Cost of equity after-tax 9.0%2)

� According to the tax rate, RWE only has long-term Cost of debt before tax 6.0%

debt interest, only half of which is trade Tax shield -1.6%

tax-deductable. Tax rate for debt 26.4%

Cost of debt after-tax 4.4%

� Equity/debt ratio derived based on Share of equity 30.0%

market values Share of debt 70.0%

WACC after-tax 5.8%

� Weighted average for equity tax rate

(39%) and debt tax rate (32%) Average tax rate 35.0%

WACC before tax 9.0%

Derivation of RWE Group WACC1)

1) WACC = weighted average cost of capital.

2) Cost of equity (pretax): 15%.

RWE AG - Facts & Figures 2005

RWE Group Cost of Capital

Tab.: 3.1-1 Example RWE 2005



Page 21 of 42

Also the aim of Vattenfall AB to achieve 11 % rate of return on capital costs before taxes

resulting from a rate of return on equity capital of 15 % after taxes will lie below the

mentioned 20 %.

To 3) Escalation

After a high-price period in the first half of the 80ies the world market price for coal (SKE –

hard coal equivalent) has stabilised on a low level at ca 40 EURO/t SKE over the past 20

years. The escalation rate of the development of the coal price is therefore below 2 %.

Also for other fuels like mineral oil and natural gas the real price (i.e. the price adjusted by the

inflation rate) is now as again below the price at the beginning of the 80ies.

To 4) Lifetime of the opencast mine

The lifetime of the opencast mine is adjusted to the planned residual lifetime of the existing

power plants. For the complementary mining plan this means 15 years.

According to IFRS the main equipments are depreciated over a period of 12 years. This

condition will be achieved at the end of the period under review in the Sibovc opencast mine.

Therefore the expected profit increases essentially for the last operating years.

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

100.000

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

Year

T€

Labour Power&Fuel Maintenance Overb. mobil Royalties Recultivation Other

Depreciation Amortisation Provisions Interest Tax Net Profit Revenue

Revenue

Fig.: 3.1-2 Revenues until 2024

This is clearly illustrated in the above figure by the strongly increasing yellow area (i.e. the

increase in the net profit).

Extension of the lifetime would lead to a clear decrease in the cost price of coal.



Page 22 of 42

3.2 General Assumptions and Calculation Method Within the framework of the economic and financial analysis costs of coal production were

deter-mined as well as payment plan, a profit and loss account and a balance over the project

lifetime.

One important goal of the economic investigations is the determination of the exact price at

which the coal production is just cost-effective, i.e. the sum of all income is greater than the

sum of all expenditures.

The determination of the operating cost contains among others:

- Future number of employees

- Future equipment fleet

- Output capacity of the opencast mine

- Actual accounting of the opencast mines of Mirash / Bardh

- Experiences from other international opencast mines

The following Real Average Cost (RAC) per unit was determined, calculated on the basis of

DCF-method for an Internal Rate of Return (IRR) of 10% and 12%.

3.3 Example for DCF-Method The DCF-method considers the scheduling of investments and/or all relevant expenditures.

Apart from the normal investments for example for purchase of new equipment additional

expenditures are arising for the new opencast mine opening up, i.e. for the removal of

overburden until coal production start.

The following figure illustrates this issue. It can be seen that up to achieving of full capacity

of the mine the annual ratio overburden : coal (red line) is higher than in the following years.

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

11,0

12,0

13,0

14,0

15,0

16,0

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

Mio

. t and M

io. m

³

0,00

1,00

2,00

3,00

4,00

5,00

6,00

7,00

8,00R

atio O

verb

urd

en : C

oal

SUM Overburden Lignite Ratio Overburden : Coal

Fig.: 3.3-1 Overburden and Lignite Performance



Page 23 of 42

The expenditures for the opening up of the opencast mine leads to inharmonious payment

flows and mean high initial financial load for the company.

0

10

20

30

40

50

60

70

80

90

100

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

tota

l E

xpenditure

s in m

EU

R

0,0

2,0

4,0

6,0

8,0

10,0

Lig

nite o

utp

ut M

io. t/a

Personnel Electricity Fuel

Maintenance Other Opex Other Internal Costs

Royalties Recultivation Overburden mobil

Investments Output Lignite Lignite REVENUES 2 % Escalation

Fig.: 3.3-2 Total Expenditures

A simple determination of the coal costs according to the average method (also called

statistical calculation) does not lead to a representative result because financing of the

mentioned initial expenditures was not considered.

This shall be explained in an example (period under review 10 years):

Example: a) without considering interests

A mining company achieves full production of 9.0 mt raw coal with an initial investment of

170 MEURO after a starting phase of 3 years. From this time operating costs are yielded to an

amount of 30 MEURO annually as well as follow-up investments of 5 MEURO per annum.

(For reasons of simplification inflation was not taken into account, i.e. increasing revenues

and expenditures).

static calculation

year total 0 1 2 3 4 5 6 7 8 9 10

coal Mio. t 84,0 0,0 5,0 7,0 9,0 9,0 9,0 9,0 9,0 9,0 9,0 9,0

Investment costs Mio. € -218,0 -170,0 -3,0 -5,0 -5,0 -5,0 -5,0 -5,0 -5,0 -5,0 -5,0 -5,0

Operating Costs Mio. € -290,0 -10,0 -15,0 -25,0 -30,0 -30,0 -30,0 -30,0 -30,0 -30,0 -30,0 -30,0

Interest 0,0% Mio. €

total costs Mio. € -508,0 -180,0 -18,0 -30,0 -35,0 -35,0 -35,0 -35,0 -35,0 -35,0 -35,0 -35,0

spezific average cost = total costs / coal €/t 6,05 3,6 4,3 3,9 3,9 3,9 3,9 3,9 3,9 3,9 3,9

revenues Mio. € 508,0 30,2 42,3 54,4 54,4 54,4 54,4 54,4 54,4 54,4 54,4

total anual Cash Flow Mio. € 0,0 -180,0 12,2 12,3 19,4 19,4 19,4 19,4 19,4 19,4 19,4 19,4

cum total Cash Flow Mio. € -180,0 -167,8 -155,4 -136,0 -116,6 -97,1 -77,7 -58,3 -38,9 -19,4 0,0

Tab.: 3.3-1 Calculation Example 1

According to this method Average Cost of coal of 6.05 EURO/t arise. This would be the

necessary minimum proceeds at which revenues and expenditures are equal, i.e. the

cumulative Cash Flow is 0 over the period under review.



Page 24 of 42

Until achieving of first proceeds, the company has to make expenditures of totally 180

MEURO (see column 0 in the above table). Financing costs for that were not taken into

account.

b) Consideration of interests:

For a comprehensive presentation of a company it is necessary to complement the calculation

by the payment of the interests. This also includes interests lost for the entrepreneur because

he was not able to put money interest bearing to a bank but uses it for coal production.

dynamic calculation (dcf)

year total 0 1 2 3 4 5 6 7 8 9 10

coal Mio. € 84,0 0,0 5,0 7,0 9,0 9,0 9,0 9,0 9,0 9,0 9,0 9,0



Interest costs 10,0% Mio. € -122,6 -18,0 -17,8 -17,4 -15,9 -14,2 -12,3 -10,3 -8,1 -5,7 -3,0 0,0

total costs Mio. € -630,6 -198,0 -35,8 -47,4 -50,9 -49,2 -47,3 -45,3 -43,1 -40,7 -38,0 -35,0

spezific average cost = total costs / coal €/t 7,51 7,2 6,8 5,7 5,5 5,3 5,0 4,8 4,5 4,2 3,9

revenues Mio. € 630,6 37,5 52,6 67,6 67,6 67,6 67,6 67,6 67,6 67,6 67,6

total anual Cash Flow Mio. € 0,0 -198,0 1,7 5,2 16,7 18,4 20,2 22,2 24,5 26,9 29,6 32,6

cum total Cash Flow bevor interest Mio. € -180,0 -178,5 -173,8 -158,6 -141,8 -123,5 -103,2 -81,0 -56,5 -29,6 0,0

cum total Cash Flow Mio. € -198,0 -196,3 -191,1 -174,4 -156,0 -135,8 -113,6 -89,1 -62,2 -32,6 0,0


This calculation shows that over the period under review interests in the amount of 122.6

MEURO are accumulating and therefore the average lowest coal costs to be earned amount to

7.51 EURO/t. All other assumptions remain unchanged. Here also the sum of revenues and

expenditures is 0 over the period under review. Auch hier ist die Summe der Einnahmen und

Ausgaben über den Betrach-tungszeitraum gleich 0.

Mathematic considerations lead now to a simplified calculation.

calculation chemata for dcf

year total 0 1 2 3 4 5 6 7 8 9 10

coal Mio. € 84,0 0,0 5,0 7,0 9,0 9,0 9,0 9,0 9,0 9,0 9,0 9,0



Interest Mio. € 0,0

total costs Mio. € -508,0 -180,0 -18,0 -30,0 -35,0 -35,0 -35,0 -35,0 -35,0 -35,0 -35,0 -35,0

real average cost RAC

disc costs

=---------------

disc coal €/t 7,51

discounted total costs 10,0% Mio. € -341,3 -163,6 -14,9 -22,5 -23,9 -21,7 -19,8 -18,0 -16,3 -14,8 -13,5 -12,3

discounted coal production 10,0% Mio. € 45,5 0,0 4,1 5,3 6,1 5,6 5,1 4,6 4,2 3,8 3,5 3,2

revenues Mio. € 630,6 37,5 52,6 67,6 67,6 67,6 67,6 67,6 67,6 67,6 67,6

discounted revenues 10,0% Mio. € 341,3 0,0 31,0 39,5 46,2 42,0 38,1 34,7 31,5 28,7 26,1 23,7


By discounting of both expenditures and quantities the division of the sums yields the same

result like in figure 5: real average cost (RAC) of 7.51 EURO/t. So it will not be necessary to

calculate the annual interests for the determination of the RAC.

In this calculation the total discounted costs are equal to the total discounted revenues.



Page 25 of 42

For reasons of simplification this approach assumes that the return on loan, deposit and equity

capital is made at the same interest rate.

The interest rate in this dcf-calculation is called internal rate of return (IRR). It does not

necessarily represent the interest of the capital market because there are also included risks

and hazards.

The normal case is calculated with 10 - 12 % consisting of:

Basic interest 4 - 6 %

Project risk 2 %

Taxes (20%) 2 % � 8 - 10 % real

Inflation 2 % � 10 - 12 % escalated.

Another possible approach for calculating the rate of interest is the determination of the

Weighted Average Capital Cost (WACC) on the basis of the desired rate of return on equity.

WACC before-tax = ER * CE + CD* DR

There were assumed cost of debt with 6 % and/or 8 %, based on the requirement for an

interest rate of 20 % for the employed equity capital and considering the fact that the rating of

the company does not yet correspond to the international standard. Therefore this approach

yields the following total return on investment:

CE … Cost of equity before-tax 20 %

CD … Cost of debt before tax 6 % 8 %

ER … Equity ratio 30 %

DR … Debt ratio 70 %

� WACC before tax 10.2 % 11.6 %

In variants 1 and 2 our illustration therefore refers to the calculation with 10 % and

12 % total return on investment.



Page 26 of 42

3.4 Real Average Cost V2 12% V1 10%

Expenses over whole project life Total RAC RAC

MEURO EURO/t EURO/t

Total Investment 328 4.36 3.89

thereof Investment 328 2.37 2.37

thereof financing Investment 1.99 1.52

Total Operating Expenditure

567 3.67 3.65

thereof

Maintenance 144 0.93 0.93

Overburden mobile 27 0.16 0.16

Fuel 31 0.21 0.21

Personnel Expenses 153 1.03 1.01

Other internal Expenses 39 0.26 0.26

Royalties 40 0.25 0.25

Recultivation 0.4 0.00 0.00

Electricity 60 0.40 0.39

Other opex costs 58 0.39 0.39

Mine closure 15 0.04 0.05

Total Expenditure (Invest and Operating Exp.) 3.952 8.03 7.54

Coal costs with 12% IRR amount to 8.03 EURO/t as against 7.54 EURO/t with 10% IRR.



Page 27 of 42

1,01 1,03

0,60 0,61

0,93 0,93

0,64 0,64

0,47 0,46

2,37 2,37

1,521,99

8,037,54

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

4,50

5,00

5,50

6,00

6,50

7,00

7,50

8,00

8,50

9,00

9,50

10,00

10% 12%

RA

C E

UR

/t C

oal

Personnel Power & Fuel Maintenanceother & Royalties service & mobil Overburden Invest Expenditurefinancing cost total

Fig.: 3.4-1 RAC for 10 % and 12 % total Return on Investment

The costs for the running operation amount to ca. 3.65 EURO/t raw coal. Together with the

average costs for the investments to the amount of 2.37 EURO/t there is yielded ca. 6.00

EURO/t raw coal. The remaining 1.50 and/or 2.00 EURO/t raw coal are financing charges

which are arising because the payments cannot be distributed proportionally over the lifetime

and the main part of these payments ahs to be made before starting production.

The period under review only covers 15 years of coal production. This is an unusually short

period for an opencast mine. In 2024 there will exist a functioning fully equipped opencast

mine with rich coal reserves. With expenditures to the amount of ca. 54 MEURO the opencast

mine generates payment surplus to the amount of ca. 35 MEURO.

The calculation ends here as per order.

Considering the above mentioned expenditures to the amount of ca. 54 MEURO in 2022 (this

is the last year with representative payments) further estimations were made with regard to the

effects on the RAC when continuing production. From 2025 additional annual investments of

1 EURO/t coal were considered, i.e. 9.0 MEURO/a for rehabilitation for reasons of a

reasonable commercial assessment.

If the period considered is extended by 10 years there are arising real average cost to the

amount of 7.00 EURO/t for 10 % and/or 7.50 EURO/t for 12 % total return on investment.



Page 28 of 42

Development of the RAC as a function of the lifetime opencast mining

5,0

5,5

6,0

6,5

7,0

7,5

8,0

8,5

9,0

9,5

10,0

10,5

11,0

11,5

12,0

2015 2020 2025 2030 2035 2040 2045

Year

RA

C in

EU

R/t

Co

al

Development of the RAC with WAAC 10% Development of the RAC with WAAC 12%

Fig.: 3.4-2 RAC depending on the Interest Rate

Depending on the possible lifetime of the opencast mine, the series illustrates the development

of RAC. It can be seen that the RAC limit values of 6.80 EUR for 10 % and/or 7.3 EURO/t

for 12 % approach and from 2040, i.e. after a lifetime of ca. 30 years, this value will stay

relatively constant.

In the economic analyses the following assumptions were concluded from this possible

development:

Variant 1: coal price 7.00 EURO, interest rate on borrowings 6.0 %, discount rate 10 %,

Variant 2: coal price 7.50 EURO, interest rate on borrowings 8.0 %, discount rate 12 %.

3.5 Cash Flow The Cash Flow Analysis describes a variant which can be realised. It fully reflects the

opencast mine (like a separate company). Assuming the specific conditions in Kosovo and/or

during negotiations about financing conditions (interest rate) there can be achieved cost

reduction potentials which are not included in the assumptions.

An essential assumption for the financial analysis is that the equipment from the phasing out

mine operations to be re-used doesn’t have any noteworthy book value.

3.5.1 Preliminary overburden In 2010 first coal will be extracted. From 2011 the annual coal revenues will be at least as

high as the annual payments, i.e. until 2011 the company has to be allocated capital. Until

2011 total payment of 296 MEURO (of it 238 MEURO for investments) are required. With

regard to totally 74 MEURO coal revenues until 2011 this represents a capital requirement of

222 MEURO until 2011.



Page 29 of 42

Cumulative Cash Flow before Interest and Tax

-300

-250

-200

-150

-100

-50

0

50

100

150

200

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

Year

m E

UR

kum. CF without interest Investments Operating Costs Lignite REVENUES 2 % Escalation

Fig.: 3.5-1 Cumulative Cash Flow before Interest and Tax

The first positive cumulative Cash Flow (CF) before interests and taxes will occur in 2018.

Assuming that these expenditures are financed with 70 % by credits there are resulting interest

expenditures to the amount of 39 MEURO with a loan interest of 6.0 % until 2011. The

payments increase therefore to 335 MEURO and the necessary capital requirement to 261

MEURO.

Cum Cash Flow with Interest before Tax

-300

-250

-200

-150

-100

-50

0

50

100

150

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

Year

m E

UR

kum. CF with interest Investments Operating Costs Interest Lignite REVENUES 2 % Escalation

Fig.: 3.5-2 Cumulative Cash Flow with Interest before Tax

The cumulative Cash Flow after interests and taxes will only be positive in 2021.



Page 30 of 42

Although the CF will only be positive 3 years later such an outside financing is reasonable be-

cause only 74 MEURO equity capital will be required instead of 261. In addition the rate of

return of the employed capital also increases because the debt capital bears interests of only 6

%.

Contrary to the cost of equity the interest on debt capital is fully tax deductible. This releases

the company in terms of taxes so that the effective debt capital interest in this variant is only

4.8%.

Cost of debt after tax = Cost of debt before tax * (1-tax rate)

4.8% = 6% * (1-20%)



Page 31 of 42

-260

-240

-220

-200

-180

-160

-140

-120

-100

-80

-60

-40

-20

0

20

40

60

80

100

2007 2008 2009 2010 2011

Year

Mio

. E

UR

cum Investments cum CF with interest

Investments Operating Costs

Interest Lignite REVENUES 2 % Escalation

7.00 €/t

Fig.: 3.5-3 Expenditures and Revenues until achieving of a positive Operating Result

The detailed payments without interests are presented in the following table.



Page 32 of 42

Projekt: Sibovc - Variant (9,0 mio. tons) - Lignite price 7.00 Euro/t with 2 % Escalation - TEuro

ITEM Description Expenditure escaleted Cost

Year Total 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Production (Mio. Tons) 123,40 0,00 0,00 0,00 3,40 6,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00

1. Material 91.605 0 283 1.268 3.106 4.771 5.243 5.738 5.943 6.081 6.358 6.549 6.872 7.020 7.239

therof Fuel 31.177 0 127 502 1.050 1.626 1.905 2.102 2.127 2.147 2.211 2.248 2.347 2.369 2.417

therof Power 60.428 0 156 766 2.056 3.145 3.338 3.636 3.815 3.934 4.147 4.301 4.525 4.652 4.822

therof Material 0

2. Maintenance 143.625 0 258 1.775 4.591 7.382 7.643 8.305 8.858 9.215 9.781 10.222 10.807 11.206 11.687

3. Labour Cost 152.945 38 1.833 3.450 6.212 7.125 7.873 8.692 9.589 9.874 10.167 10.469 10.780 11.100 11.430

4. Overburden mobil 27.273 0 1.401 1.299 221 225 345 0 0 0 895 2.105 2.225 3.483 3.553

5. Other Cost 151.930 0 398 1.570 4.220 6.771 8.538 9.206 9.337 9.453 9.708 9.880 10.245 10.371 10.697

therof Recultivation 458 0 0 0 0 0 0 0 0 0 0 0 0 0 115

therof closing mine 14.568 0 0 0 0 0 0 0 0 0 0 0 0 0 0

therof Royalities 39.477 0 0 0 938 1.689 2.585 2.636 2.689 2.743 2.798 2.854 2.911 2.969 3.028

therof Other Internal Costs 38.971 0 159 628 1.313 2.033 2.381 2.628 2.659 2.684 2.764 2.810 2.934 2.961 3.021

therof Other Opex 58.456 0 239 942 1.969 3.049 3.572 3.942 3.989 4.026 4.146 4.216 4.401 4.441 4.532

Subtotal opex 567.379 38 4.173 9.362 18.350 26.275 29.642 31.942 33.726 34.623 36.909 39.225 40.930 43.182 44.606

Average opex Cost (Euro/Tons) 4,60 0,00 0,00 0,00 5,40 4,38 3,29 3,55 3,75 3,85 4,10 4,36 4,55 4,80 4,96

6. Investment 328.273 39.805 72.330 71.287 31.367 23.090 13.850 1.806 6.021 11.021 8.262 4.759 11.241 8.565 6.776

total 895.652 39.842 76.503 80.649 49.717 49.364 43.492 33.748 39.747 45.645 45.171 43.984 52.171 51.747 51.382

Average Cost (Euro/Tons) 7,26 0,00 0,00 0,00 14,62 8,23 4,83 3,75 4,42 5,07 5,02 4,89 5,80 5,75 5,71

with WAAC= 10% RAC 7,54

Tab.: 3.5-1 Escalated Expenditures in Sibovc SW

3.6 IRR, Average Costs per Unit For different discounted rates the average cost per unit before tax over the entire project life

amount to:

0,98 0,99 1,00 1,01 1,03 1,05 1,09

0,59 0,59 0,60 0,60 0,61 0,61 0,63

0,91 0,92 0,92 0,93 0,93 0,94 0,95

0,63 0,63 0,64 0,64 0,64 0,65 0,660,49 0,48 0,47 0,47 0,46 0,46 0,46

2,37 2,37 2,37 2,37 2,37 2,37 2,37

0,33 0,691,08

1,521,99

2,77

4,26

6,30 6,67

8,03

8,85

10,41

7,08

7,54

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

11,0

12,0

4% 6% 8% 10% 12% 15% 20%

RA

C in

€/t

Lig

nit

e

Personnel Power & Fuel Maintenance other & Royalties

service & mobil Overburden Invest Expenditure financing cost total

Fig.: 3.6-1 Illustration of Dependence on theoretical total Return on Investment



Page 33 of 42

The calculations show the greater dependency of the Real Average Cost (RAC) from the

discount rate. The higher the intended rate of interest, the higher the Real Average Cost.

Thereby it becomes apparent that the costs of financing are depending on the chosen interest

of capital.

Once again it shall be clearly mentioned at this point that this financing costs both contain the

costs for debt capital and the rate of interest for equity capital.

3.7 Sensitivity Analysis

To illustrate the dependence of Average Costs from the single cost types sensitivity analyses

were made from the below mentioned positions.

It was examined how the Average Costs will change if this data would vary by +/- 30%

annually.

(This analysis shows the sensitivity for)

Investments

Personnel Expenses

Electricity

Maintenance

Other costs

Royalties

Recultivation

Fuel

Sensitivity is shown in the following figure:



Page 34 of 42

6,00

6,10

6,20

6,30

6,40

6,50

6,60

6,70

6,80

6,90

7,00

7,10

7,20

7,30

7,40

7,50

7,60

7,70

7,80

7,90

8,00

8,10

8,20

8,30

8,40

8,50

70% 75% 80% 85% 90% 95% 100% 105% 110% 115% 120% 125%

RA

C in

€/t

Personnel

RunningMaintenance

Electricity

Fuel

Overburdenmobil

Recultivation

Other Internal

costs

Royalties

Other opex

Investment

Fig.: 3.7-1 Sensitivity Chart

This analysis again approves the large dependency of the real average cost (RAC) from the in-

vestment expenditures (including financing costs). Furthermore, personnel costs as well as

costs for maintenance are relevant.

Payments for electricity, fuel, other costs and recultivation are of minor influence on the

Average Costs.

3.8 Financial Analysis 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 pre-overburden into year

wise amortisation.

Die opening-up phase will last until 2012. Up to this time about 17 mbcm overburden have to

be removed for the opening up of the opencast mine (preliminary overburden).



Page 35 of 42

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

11,0

12,0

13,0

14,0

15,0

16,0

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

Mio

. t and M

io. m

³

Overburden without Pre_overburden Pre-overburden Lignite

Fig.: 3.8-1 Pre-Overburden of Sibovc SW Mine

The costs for this overburden removal amount to 59 MEURO. They will be activated and

depreciated over the period under review (to 2024).

Assuming 70 % debt capital the company will achieve a positive operating result for the first

time in 2011. The first dividend payment will be in 2012 after the losses of 2010 have been

balanced.

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

100.000

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

Year

T€



Revenue

Fig.: 3.8-2 Revenues of Sibovc SW Mine

The capital demand amounts to 261 MEURO up to this time. In the considerations it is

assumed that of this sum has to be spent as equity capital.



Page 36 of 42

Until 2019 the company will earn annually 5 MEURO net profit after taxes on the average.

From 2020 this profit will increase to ca. 20 MEURO/a, because the main equipment will be

depreciated until that time. With regard to this aspect the advantage of a longer lifetime

>2024) becomes apparent.

-250

-200

-150

-100

-50

0

50

100

150

200

250

2006 2008 2010 2012 2014 2016 2018 2020 2022 2024

mio

. E

UR

Land Mine Development & Pre-Op. Exp. Technical plants and equipmentequity Provisions liabilitiesLiquid funds Total assets Total equity and liabilities

Assets

equity and liabilities

Fig.: 3.8-3 Equity and Liabilities of Sibovc SW Project

This figure illustrates the capital structure of the company. For financing the necessary

equipment as well as the opening-up of the opencast mine the company needs equity capital

base of

75 MEURO. Our calculation model considers that from 2013 parts of the equity capital can be

step-wise repaid so that in 2024 only 46 MEURO will remain for the company.

Until 2011 credits to the amount of 194 MEURO have to be taken up.

For reasons of a reasonable commercial assessment revenues for the sale of land were not

considered after completion of the reclamation.

3.8.1 Earning-Capacity Value According to the project the consideration ends in 2024. As already mentioned the company

will earn after finishing of the depreciations of the main equipment in variant 1 a cash flow

(perpetuity) of about 29 MEURO and in variant 2 of 35 MEURO after tax.

This approach allows determining the earning-capacity value according to the dcf-method

(discounting of the cash flow with the WACC after tax) referring to the 31.12.2024. As

already explained there were also considered additional annual investments for rehabilitation

to the amount of 1 EURO/t coal, i.e. 9.0 MEURO/a for reasons of a reasonable commercial

assessment.



Page 37 of 42

Regarding a tax rate of 20 % the depreciations lead to a tax release of 1.8 MEURO, so that the

annual cash flow would reduce by 7.2 MEURO to 22.0 MEURO in variant 1 and 27.6 in

variant 2.

The earning-capacity value will be determined with the help of the following formula from the

perpetuity.

e-cv … earning-capacity value

p … perpetuity = cash flow – 7. 2 MEUR

WACC after-tax = WACC before-tax – 2 % tax – 2 % escalation (= 6 % and/or 8 %)

The available calculation earning-capacity value amounts to366 MEURO in variant 1 and 345

MEURO in variant 2. Similar to the real average cost (RAC), the influence of the lifetime of

the opencast mine on the earning-capacity value was examined.

Development of the earning-capacity value in 2024 as a function of the liftime opencast mine

0

50

100

150

200

250

300

2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

year

earn

ing

-ca

pacit

y v

alu

e

2024

in

mio

. E

UR


Fig.: 3.8-4 Earning-Capacity Value per 31/12/2024

The figure illustrates that under the assumption made the earning-capacity value approaches

the respective limit value. Regarding a consideration until 2050, i.e. a lifetime of 40 years, this

value comes to ca. 300 MEURO in both variants.

A longer lifetime of the opencast mine would lead to a considerable increase of the earning-

capacity value.

p

e-cv = --------------------

WACC after-tax



Page 38 of 42

3.8.2 Project Financing 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 are financed to 100% by the manufacturer.

In variant 1 which bases on a total return on investment of 10 % before taxes and which

economic analyses was calculated with a coal price of 7.00 EURO/t the following financing

variants were assumed:

- Auxiliary equipment – 100 % debt capital over the entire lifetime.

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 until 2012:



Tenor 13 years

Nominal interest rate 6% p.a.

Up front Fee 0 %

Repayments are to do in equal portions.

- loan conditions for main equipment to 2012:



Tenor 14 years


Up front Fee 0 %

Repayments are to do in equal portions.



Page 39 of 42

- loan conditions for short-term loans for running costs:


Working capital is assumed with 10 % of personnel cost.

The income tax rate is 20 %.

The surplus after taxes is distributed to the shareholders.

In variant 2 with assumed 12 % rate of return on equity and a coal price of 7.50 EURO/t there

was used an interest rate of 8 % for the debt capital.

3.9 Cost Calculation, Investment Costs, Operating Costs

3.9.1 General Data for Cost Calculation General assumptions for the mid term 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 10 % escalated

- Escalation Rate 2 %/year.

- Cost Base 2005

- Fuel 0.08 EURO/m³+t

- Labour Costs 3,440 EURO/employee/year in 2005

- Maintenance 0.08 EURO/(m³+t)*km

- Overburden (T&S) 2.00 EURO/m³

- Royalties 0.25 EURO/t Lignite

- Tax 20% of profit

- Other Operational expenses 0.15 EURO/m³+t

- Other Internal Costs 0.10 EURO/m³+t

- Electricity 4.00 Cent/kWh

3.9.2 Investment Costs All necessary payments for starting coal production, i.e. purchase and rehabilitation of large

equipment and belt conveyors, auxiliary equipment, claim of areas, resettlements and others

are included in the investment.



Page 40 of 42

3.9.3 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: 5 %/year until 2014

1 %/year from 2015

Considering an inflation rate of 2 % there are resulting increases in personnel costs to the

amount of 7%/year and/or 3%/year.

Additional cost for personnel in the amount of 250 TEURO/year was considered in the

calculation.

3.9.4 Calculation of Operating Cost Items - Maintenance: The demand was determined on the basis of the equipment

performances and the specific value.

- Overburden (T&S) This performance is assigned to contractors.

- Electricity 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 5 GWh/a was assumed taking into

account data of similar opencast mines.

For power purchase there was assumed a European average value of 30

EURO/MWh for the production and 10 EURO/MWh for transmission.

- Fuel: Basing on the accounting of 2004 and regarding rise in power prices as

well as reduced consumption of new equipment, a consumption of 0.08

EURO/m³+t was estimated.

- Royalties: 0.25 EURO/t coal

- Reclamation: The necessary expenses were estimated after analysing the local

circumstances on the basis of experiences.

- Other Costs: Based on the accounting of 2004 and international experiences a

specific value was estimated.



Page 41 of 42

3.9.5 General Data and Principles for Cash Flow All amounts paid out an inpayments are escalated with an inflation rate of 2 % per year.

The depreciations were calculated according to the valid European Standards of IFRS.

Depreciation time Auxiliary equipment 5 years,

Belt conveyors 10 years,

Heavy-duty equipments 12 years,

Resettlement 10 years,

Energy plants 15 years,

Buildings and workshops 25 years,

Others 10 years,

Payments for real estates are not depreciated.

Recultivation is part of operating cost.

The shaping of the post-mining area is considered as expenditure and included in the

provisions. These expenditures will only activated in 2024 (end of period under review) to the

amount of

14 MEURO.

The pool of liquidity is calculated with 10 % of the personnel costs per year

3.9.6 Escalation The variants 1 and 2 were calculated with the presently used escalation rate of 2 %. Due to

actual development of the energy prices on the world market there is the threatening danger of

a rising inflation. Therefore another calculation was made for all expenditures as well as the

revenues for the coal with an escalation of 4 %.

For the interest rate on borrowings there is assumed percentage of 8 % so that the WAAC will

come to 12 %.

The coal costs for 12% IRR amount to 7.50 EURO/t.



Page 42 of 42

Development of the RAC as a function of the lifetime opencast mining

5,0

5,5

6,0

6,5

7,0

7,5

8,0

8,5

9,0

9,5

10,0

10,5

11,0

11,5

12,0

2015 2020 2025 2030 2035 2040 2045

Year

RA

C in

EU

R/t

Co

al

Development of the RAC 10% Development of the RAC 12%

Fig.: 3.9-1 Development of the RAC with 4 % Escalation

Assuming a production until 2035, a total return on investment of 12 % would result in a

value of ca. 7.00 EURO/t for the RAC.

The economic analysis was therefore also carried out for the escalation with 4% assuming a

coal price of 7.00 and 7.50 EURO/t coal.

3.9.7 Lignite Sales Price It was explained above that for 70% debt capital employment there can be expected a RAC to

the amount of 7.00 EURO with 6 % interest rate on borrowings. The available calculation

therefore assumes this lignite price of 7.00 EURO/t as of 01.01.2006. The calculation is

nominal, i.e. every year the coal price is increased by the escalation factor compared to the

previous year.

Because the rating of the company does not correspond to international standards a further

consideration was calculated with 8 % interest rate on borrowings. This calculation resulted in

another economic analysis with 7.50 EURO/t coal.

Variant 1

Project: Sibovc South West

Coal Price: 7.0 EURO/t

Escalation: 2%

Cost of Debt: 6%

Cost of Equity: 20%

Var1_7.0_EURO-2 perc Esc_6 perc Debt-110406.xls

date: 10.04.06

Expenditures Project: Sibovc SW - Variant 1 - Coal Price 7.0 EURO/t, 2 % Escalation, 6 % Cost of debt

in 1,000 EURO

ITEM Description Expenditure escalated Cost

Year Sum 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Production (mt) 123,40 3,40 6,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 6,00

1. Energy 91.605 283 1.268 3.106 4.771 5.243 5.738 5.943 6.081 6.358 6.549 6.872 7.020 7.239 7.355 7.342 7.580 2.856

thereof fuel 31.177 127 502 1.050 1.626 1.905 2.102 2.127 2.147 2.211 2.248 2.347 2.369 2.417 2.427 2.389 2.437 742

thereof power 60.428 156 766 2.056 3.145 3.338 3.636 3.815 3.934 4.147 4.301 4.525 4.652 4.822 4.928 4.952 5.143 2.114

2. Maintenance 143.625 258 1.775 4.591 7.382 7.643 8.305 8.858 9.215 9.781 10.222 10.807 11.206 11.687 12.011 12.132 12.679 5.075

3. Labour cost 152.945 38 1.833 3.450 6.212 7.125 7.873 8.692 9.589 9.874 10.167 10.469 10.780 11.100 11.430 11.770 12.120 12.480 7.944

4. Overburden (mobil) 27.273 1.401 1.299 221 225 345 895 2.105 2.225 3.483 3.553 3.514 3.949 3.999 58

5. Other Cost 151.930 398 1.570 4.220 6.771 8.538 9.206 9.337 9.453 9.708 9.880 10.245 10.371 10.697 10.788 10.729 10.943 19.077

thereof recultivation 458 115 114 112 114 3

thereof royalties 39.477 938 1.689 2.585 2.636 2.689 2.743 2.798 2.854 2.911 2.969 3.028 3.089 3.151 3.214 2.185

thereof other internal costs 38.971 159 628 1.313 2.033 2.381 2.628 2.659 2.684 2.764 2.810 2.934 2.961 3.021 3.034 2.987 3.046 928

thereof other opex 58.456 239 942 1.969 3.049 3.572 3.942 3.989 4.026 4.146 4.216 4.401 4.441 4.532 4.551 4.480 4.570 1.392

thereof mine closure 14.568

Subtotal opex 567.379 38 4.173 9.362 18.350 26.275 29.642 31.942 33.726 34.623 36.909 39.225 40.930 43.182 44.606 45.438 46.270 47.681 35.009

Average opex cost 4,60 5,40 4,38 3,29 3,55 3,75 3,85 4,10 4,36 4,55 4,80 4,96 5,05 5,14 5,30 5,83

(Euro/t)

6. Investment 328.273 39.805 72.330 71.287 31.367 23.090 13.850 1.806 6.021 11.021 8.262 4.759 11.241 8.565 6.776 7.861 7.581 1.876 775

Total 895.652 39.842 76.503 80.649 49.717 49.364 43.492 33.748 39.747 45.645 45.171 43.984 52.171 51.747 51.382 53.299 53.851 49.557 35.784

Average cost (Euro/t) 7,26 14,62 8,23 4,83 3,75 4,42 5,07 5,02 4,89 5,80 5,75 5,71 5,92 5,98 5,51 5,96

7. Interest 90.648 1.542 4.301 7.736 8.975 10.459 9.913 8.786 7.499 6.632 5.787 5.077 4.145 3.400 2.386 1.515 904 948 643

8. Taxes 34.310 510 1.281 1.060 1.233 1.890 2.011 1.738 1.839 1.539 2.318 3.349 4.441 5.370 5.733

9. Net Profit 137.239 2.038 5.123 4.242 4.932 7.561 8.042 6.950 7.356 6.154 9.273 13.395 17.763 21.479 22.931

Total project cost 1.157.848 41.384 80.803 88.385 58.692 62.371 59.809 47.836 53.410 61.729 61.010 57.749 65.510 62.840 65.358 71.559 76.958 77.354 65.090



Profit and Loss Project: Sibovc SW - Variant 1 - Coal Price 7.0 EURO/t, 2 % Escalation, 6 % Cost of debt date: 10.04.06

in 1,000 EURO

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

I. Operating result1. Income

A. Sales revenues 1.105.357 0 0 0 26.277 47.299 72.367 73.815 75.291 76.797 78.333 79.899 81.497 83.127 84.790 86.485 88.215 89.980 61.186

E Mine development & pre-op. exp. 59.134 1.577 9.280 20.892 13.958 13.428 0 0 0 0 0 0 0 0 0 0 0 0 0

Total income 1.164.492 1.577 9.280 20.892 40.235 60.727 72.367 73.815 75.291 76.797 78.333 79.899 81.497 83.127 84.790 86.485 88.215 89.980 61.186

2. ExpensesA. Personnel expenses 152.945 38 1.833 3.450 6.212 7.125 7.873 8.692 9.589 9.874 10.167 10.469 10.780 11.100 11.430 11.770 12.120 12.480 7.944

B. Power expenses 60.428 0 156 766 2.056 3.145 3.338 3.636 3.815 3.934 4.147 4.301 4.525 4.652 4.822 4.928 4.952 5.143 2.114

C Fuel expenses 31.177 0 127 502 1.050 1.626 1.905 2.102 2.127 2.147 2.211 2.248 2.347 2.369 2.417 2.427 2.389 2.437 742

D Overburden (mobil) 27.273 0 1.401 1.299 221 225 345 0 0 0 895 2.105 2.225 3.483 3.553 3.514 3.949 3.999 58

E Maintenance 143.625 0 258 1.775 4.591 7.382 7.643 8.305 8.858 9.215 9.781 10.222 10.807 11.206 11.687 12.011 12.132 12.679 5.075

F Recultivation 458 0 0 0 0 0 0 0 0 0 0 0 0 0 115 114 112 114 3

G Royalties 39.477 0 0 0 938 1.689 2.585 2.636 2.689 2.743 2.798 2.854 2.911 2.969 3.028 3.089 3.151 3.214 2.185

H Depreciation 292.975 0 815 3.808 13.143 20.277 22.194 23.554 23.653 21.823 21.299 22.606 22.905 24.510 21.845 18.406 14.444 10.211 7.482

I Amortisation 42.708 0 0 0 0 0 3.285 3.285 3.285 3.285 3.285 3.285 3.285 3.285 3.285 3.285 3.285 3.285 3.285

J Other internal costs 38.971 0 159 628 1.313 2.033 2.381 2.628 2.659 2.684 2.764 2.810 2.934 2.961 3.021 3.034 2.987 3.046 928

K Other opex 58.456 0 239 942 1.969 3.049 3.572 3.942 3.989 4.026 4.146 4.216 4.401 4.441 4.532 4.551 4.480 4.570 1.392

L Provisions 14.568 0 0 0 350 627 955 973 992 1.011 1.031 1.051 1.071 1.091 1.112 1.132 1.154 1.175 843

Total Expenses 903.062 38 4.987 13.170 31.843 47.179 56.075 59.754 61.656 60.743 62.524 66.166 68.191 72.068 70.848 68.262 65.153 62.352 32.052

Operating result 261.430 1.539 4.293 7.722 8.392 13.547 16.292 14.061 13.634 16.054 15.809 13.733 13.306 11.059 13.942 18.223 23.062 27.627 29.134

II. Extraordinary income from tangible assets 0

III. Net income from affiliated companies 0

IV. Net interest -89.882 -1.539 -4.293 -7.722 -8.955 -10.436 -9.889 -8.759 -7.470 -6.602 -5.756 -5.045 -4.112 -3.367 -2.351 -1.479 -859 -778 -471

V. Special net income 0

Net income from ordinary activities 171.548 0 0 0 -563 3.111 6.403 5.302 6.165 9.451 10.053 8.688 9.194 7.693 11.591 16.744 22.203 26.849 28.663

Income tax -34.310 0 0 0 0 -510 -1.281 -1.060 -1.233 -1.890 -2.011 -1.738 -1.839 -1.539 -2.318 -3.349 -4.441 -5.370 -5.733

Net income for the year 137.239 0 0 0 -563 2.601 5.123 4.242 4.932 7.561 8.042 6.950 7.356 6.154 9.273 13.395 17.763 21.479 22.931

Application of profits

Loss carryback / retaines profits brought forward 510 -563 3.111 -2.038

Balance-sheet net income 139.277 0 0 0 0 2.038 7.161 4.242 4.932 7.561 8.042 6.950 7.356 6.154 9.273 13.395 17.763 21.479 22.931

NPV to end 365.922

Total lignite production mt/year 123 0,00 0,00 0,00 3,40 6,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 6,00


date: 10/04/2006

Payment Plan Project: Sibovc SW - Variant 1 - Coal Price 7.0 EURO/t, 2 % Escalation, 6 % Cost of debt in 1,000 EURO

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

InpaymentsSales revenues 1.105.357 26.277 47.299 72.367 73.815 75.291 76.797 78.333 79.899 81.497 83.127 84.790 86.485 88.215 89.980 61.186

Interest income 766 3 8 14 20 22 25 27 29 30 31 32 33 34 35 36 45 170 172

Equity contribution 46.800 12.469 24.287 26.927 9.467 938 297 -3.061 -3.441 -1.978 -3.340 -3.356 -2.439 -2.420 -2.546 -1.575 -3.431

Change in liabilities 244.176 29.095 56.670 62.830 25.540 18.739 5.980 234 4.422 5.607 6.590 3.044 6.468 3.431 4.576 5.628 5.321

Total inpayments 1.397.099 41.567 80.965 89.772 61.304 66.999 78.669 71.015 76.301 80.456 81.613 79.619 85.559 84.171 86.855 90.575 90.151 90.149 61.358

ExpenditurePersonnel expenses 152.945 38 1.833 3.450 6.212 7.125 7.873 8.692 9.589 9.874 10.167 10.469 10.780 11.100 11.430 11.770 12.120 12.480 7.944

Energy expenses 60.428 156 766 2.056 3.145 3.338 3.636 3.815 3.934 4.147 4.301 4.525 4.652 4.822 4.928 4.952 5.143 2.114

Fuel expenses 31.177 127 502 1.050 1.626 1.905 2.102 2.127 2.147 2.211 2.248 2.347 2.369 2.417 2.427 2.389 2.437 742

Overburden (mobil) 27.273 1.401 1.299 221 225 345 895 2.105 2.225 3.483 3.553 3.514 3.949 3.999 58

Maintenance 143.625 258 1.775 4.591 7.382 7.643 8.305 8.858 9.215 9.781 10.222 10.807 11.206 11.687 12.011 12.132 12.679 5.075

Recultivierung 458 115 114 112 114 3

Royalties 39.477 938 1.689 2.585 2.636 2.689 2.743 2.798 2.854 2.911 2.969 3.028 3.089 3.151 3.214 2.185

Investments in assets 328.273 39.805 72.330 71.287 31.367 23.090 13.850 1.806 6.021 11.021 8.262 4.759 11.241 8.565 6.776 7.861 7.581 1.876 775

Plant and construction

Other internal costs 38.971 159 628 1.313 2.033 2.381 2.628 2.659 2.684 2.764 2.810 2.934 2.961 3.021 3.034 2.987 3.046 928

Other opex 58.456 239 942 1.969 3.049 3.572 3.942 3.989 4.026 4.146 4.216 4.401 4.441 4.532 4.551 4.480 4.570 1.392

Mine closure 14.568 14.568

Total expenses 895.652 39.842 76.503 80.649 49.717 49.364 43.492 33.748 39.747 45.645 45.171 43.984 52.171 51.747 51.382 53.299 53.851 49.557 35.784

Income tax 34.310 510 1.281 1.060 1.233 1.890 2.011 1.738 1.839 1.539 2.318 3.349 4.441 5.370 5.733

Loan interest 90.648 1.542 4.301 7.736 8.975 10.459 9.913 8.786 7.499 6.632 5.787 5.077 4.145 3.400 2.386 1.515 904 948 643

Loan repayment 237.325 1.111 2.521 4.553 18.778 23.090 22.862 18.698 20.573 21.839 20.017 21.298 21.462 18.982 12.596 5.088 3.858

Distribution of dividend 137.239 2.038 5.123 4.242 4.932 7.561 8.042 6.950 7.356 6.154 9.273 13.395 17.763 21.479 22.931

Total expenses 1.395.173 41.384 80.803 89.496 61.213 66.924 78.587 70.926 76.273 80.427 81.583 79.588 85.527 84.138 86.821 90.540 89.554 82.442 68.948

Change in pool of liquidity 1.927 183 162 276 91 75 82 90 28 29 30 31 32 33 34 35 597 7.708 -7.590

Pool of liquidity 183 345 621 713 787 869 959 987 1.017 1.047 1.078 1.110 1.143 1.177 1.212 1.809 9.516 1.927


Balance Sheet Project: Sibovc SW - Variant 1 - Coal Price 7.0 EURO/t, 2 % Escalation, 6 % Cost of debt date: 10.04.06

in 1,000 EURO

Assets Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance

31.12.07 31.12.08 31.12.09 31.12.10 31.12.11 31.12.12 31.12.13 31.12.14 31.12.15 31.12.16 31.12.17 31.12.18 31.12.19 31.12.20 31.12.21 31.12.22 31.12.23 31.12.24

A Fixed assetsII Tangible assets 41.381 122.177 210.548 242.729 258.969 247.341 222.308 201.391 187.304 170.982 149.851 134.901 115.671 97.316 83.486 73.338 61.717 51.724

1 Land 1.265 1.772 2.533 3.309 3.897 4.497 5.544 6.611 7.280 8.390 9.523 10.715 11.915 13.475 15.066 16.689 17.198 17.786

2 Mine development & pre-op. exp. 1.577 10.857 31.749 45.706 59.134 55.849 52.564 49.279 45.993 42.708 39.423 36.138 32.852 29.567 26.282 22.997 19.711 16.426

3 Technical plants and equipment 38.540 109.548 176.266 193.714 195.938 186.994 164.201 145.501 134.031 119.884 100.905 88.049 70.904 54.275 42.139 33.652 24.808 17.512

Total fixed assets 41.381 122.177 210.548 242.729 258.969 247.341 222.308 201.391 187.304 170.982 149.851 134.901 115.671 97.316 83.486 73.338 61.717 51.724

B Current assetsIV Liquid funds 183 345 621 713 787 869 959 987 1.017 1.047 1.078 1.110 1.143 1.177 1.212 1.809 9.516 1.927

Total current assets 183 345 621 713 787 869 959 987 1.017 1.047 1.078 1.110 1.143 1.177 1.212 1.809 9.516 1.927

C Financial assets

Total assets 41.565 122.522 211.169 243.442 259.757 248.210 223.267 202.378 188.321 172.029 150.929 136.011 116.814 98.493 84.698 75.146 71.233 53.651

Equity and liabilities

A Stockholders' equity 12.469 36.757 63.684 72.588 74.089 74.386 71.325 67.884 65.906 62.566 59.210 56.771 54.351 51.805 50.230 46.800 46.800 46.800

I Subscribed equtiy 12.469 36.757 63.684 73.151 74.089 74.386 71.325 67.884 65.906 62.566 59.210 56.771 54.351 51.805 50.230 46.800 46.800 46.800

II Capital reserve 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Profit/Loss brought forward 0 0 0 -563 0 0 0 0 0 0 0 0 0 0 0 0 0 0

III Revenue reserve

V Balance-sheet net income 0 0 0 0 2.038 5.123 4.242 4.932 7.561 8.042 6.950 7.356 6.154 9.273 13.395 17.763 21.479 22.931

VI Distribution of dividend 0 0 0 0 -2.038 -5.123 -4.242 -4.932 -7.561 -8.042 -6.950 -7.356 -6.154 -9.273 -13.395 -17.763 -21.479 -22.931

Total equity 12.469 36.757 63.684 72.588 74.089 74.386 71.325 67.884 65.906 62.566 59.210 56.771 54.351 51.805 50.230 46.800 46.800 46.800

C Provisions 0 0 0 350 978 1.932 2.906 3.898 4.909 5.940 6.991 8.061 9.152 10.264 11.396 12.550 13.725 0

D Account payable and other liabilities 29.095 85.765 147.485 170.503 184.690 171.892 149.036 130.596 117.505,5 103.523 84.728 71.179 53.311 36.425 23.071 15.796 10.709 6.851

1 Long-term liabilities 27.992 72.475 114.798 126.156 138.919 125.027 111.135 97.243 83.351 69.459 55.567 41.676 27.784 13.892 0 0 0 0

Other 5.691 14.309 18.505 20.658 20.658 18.592 16.526 14.461 12.395 10.329 8.263 6.197 4.132 2.066 0 0 0 0

Main equipment 20.843 54.621 90.839 100.043 112.806 101.526 90.245 78.964 67.684 56.403 45.123 33.842 22.561 11.281 0 0 0 0

Resettlement (without farmland) 1.457 3.545 5.455 5.455 5.455 4.909 4.364 3.818 3.273 2.727 2.182 1.636 1.091 545 0 0 0 0

2 Short-term liabilities 1.104 13.291 32.687 44.347 45.771 46.865 37.901 33.353 34.154 34.063 29.160 29.503 25.527 22.533 23.071 15.796 10.709 6.851

Short-term liabilities 1.104 7.030 19.959 23.542 29.181 33.323 29.631 25.051 23.885 19.541 15.160 12.919 10.721 8.230 8.005 0 0 0

Supply loan 0 6.261 12.727 20.805 16.590 13.542 8.271 8.302 10.269 14.522 14.000 16.584 14.807 14.303 15.066 15.796 10.709 6.851

Total equity and liabilities 41.565 122.522 211.169 243.442 259.757 248.210 223.267 202.378 188.321 172.029 150.929 136.011 116.814 98.493 84.698 75.146 71.233 53.651


date: 10.04.06

Equity and Project: Sibovc SW - Variant 1 - Coal Price 7.0 EURO/t, 2 % Escalation, 6 % Cost of debt

Borrowings in 1,000 EURO

YEAR Sum 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Equity payment 74.386 12.469 24.287 26.927 9.467 938 297 0 0 0 0 0 0 0 0 0 0 0 0

Equity repayment 27.586 0 0 0 0 0 0 3.061 3.441 1.978 3.340 3.356 2.439 2.420 2.546 1.575 3.431 0 0

Dividend 137.239 0 0 0 0 2.038 5.123 4.242 4.932 7.561 8.042 6.950 7.356 6.154 9.273 13.395 17.763 21.479 22.931

Total repayment to the shareholder 164.825 0 0 0 0 2.038 5.123 7.302 8.373 9.539 11.383 10.306 9.794 8.575 11.819 14.970 21.193 21.479 22.931

Resettlement (without farmland)

Loans 1.457 3.545 5.455 5.455 5.455 4.909 4.364 3.818 3.273 2.727 2.182 1.636 1.091 545 0 0 0 0

Interest 2.918 87 213 327 327 327 311 278 245 213 180 147 115 82 49 16 0 0 0

Repayments 5.455 0 0 0 0 0 545 545 545 545 545 545 545 545 545 545 0 0 0

Main equipment

Loans 20.843 54.621 90.839 100.043 112.806 101.526 90.245 78.964 67.684 56.403 45.123 33.842 22.561 11.281 0 0 0 0

Interest 56.591 1.251 3.277 5.450 6.003 6.768 6.430 5.753 5.076 4.399 3.723 3.046 2.369 1.692 1.015 338 0 0 0

Repayments 112.806 0 0 0 0 0 11.281 11.281 11.281 11.281 11.281 11.281 11.281 11.281 11.281 11.281 0 0 0

Other

Loans 5.691 14.309 18.505 20.658 20.658 18.592 16.526 14.461 12.395 10.329 8.263 6.197 4.132 2.066 0 0 0 0

Interest 10.367 171 600 984 1.175 1.239 1.178 1.054 930 806 682 558 434 310 186 62 0 0 0

Repayments 20.658 0 0 0 0 0 2.066 2.066 2.066 2.066 2.066 2.066 2.066 2.066 2.066 2.066 0 0 0

Total long-term Borrowings

Loans 27.992 72.475 114.798 126.156 138.919 125.027 111.135 97.243 83.351 69.459 55.567 41.676 27.784 13.892 0 0 0 0

Interest 69.876 1.509 4.090 6.762 7.505 8.335 7.918 7.085 6.251 5.418 4.584 3.751 2.917 2.084 1.250 417 0 0 0

Repayments 138.919 0 0 0 0 0 13.892 13.892 13.892 13.892 13.892 13.892 13.892 13.892 13.892 13.892 0 0 0

Supply loan

Loans 0 6.261 12.727 20.805 16.590 13.542 8.271 8.302 10.269 14.522 14.000 16.584 14.807 14.303 15.066 15.796 10.709 6.851

Interest 12.753 0 0 376 764 1.248 995 813 496 498 616 871 840 995 888 858 904 948 643

Repayments 65.083 0 0 1.111 2.521 4.553 4.886 5.505 4.391 3.640 2.337 3.566 3.884 5.208 5.080 4.865 4.591 5.088 3.858

Short-term liabilities

Loans 1.104 7.030 19.959 23.542 29.181 33.323 29.631 25.051 23.885 19.541 15.160 12.919 10.721 8.230 8.005 0 0 0

Interest 8.018 33 211 599 706 875 1.000 889 752 717 586 455 388 322 247 240 0 0 0

Repayments 33.323 0 0 0 0 0 0 3.692 4.579 1.166 4.344 4.381 2.241 2.198 2.491 225 8.005 0 0

Total borrowings

Loans 29.095 85.765 147.485 170.503 184.690 171.892 149.036 130.596 117.505 103.523 84.728 71.179 53.311 36.425 23.071 15.796 10.709 6.851

Interest 90.648 1.542 4.301 7.736 8.975 10.459 9.913 8.786 7.499 6.632 5.787 5.077 4.145 3.400 2.386 1.515 904 948 643

Repayments 237.325 0 0 1.111 2.521 4.553 18.778 23.090 22.862 18.698 20.573 21.839 20.017 21.298 21.462 18.982 12.596 5.088 3.858


Var1_7.0_EURO-2 perc Esc_6 perc Debt-110406.xls / f14_profit & loss

0

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20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

100.000

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

Year

T€



Revenue

Var. 1

-300

-250

-200

-150

-100

-50

0

50

100

150

200

250

300

2006 2008 2010 2012 2014 2016 2018 2020 2022 2024ME

UR

O


Assets


Var. 1

Variant 2



Escalation: 2%

Cost of Debt: 8%

Cost of Equity: 20%

Var2_7.5_EURO-2perc Esc_8 perc Debt-110406.xls

Expenditures Project: Sibovc SW - Variant 2 - Coal price 7.5 EURO/t, 2 % Escalation, 8 % Cost of debt date: 10.04.06

in 1,000 EURO

ITEM Description Expenditure escalated cost

Year Total 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Production (mt) 123,40 3,40 6,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 6,00

1. Energy 91.605 283 1.268 3.106 4.771 5.243 5.738 5.943 6.081 6.358 6.549 6.872 7.020 7.239 7.355 7.342 7.580 2.856

thereof fuel 31.177 127 502 1.050 1.626 1.905 2.102 2.127 2.147 2.211 2.248 2.347 2.369 2.417 2.427 2.389 2.437 742

thereof power 60.428 156 766 2.056 3.145 3.338 3.636 3.815 3.934 4.147 4.301 4.525 4.652 4.822 4.928 4.952 5.143 2.114

2. Maintenance 143.625 258 1.775 4.591 7.382 7.643 8.305 8.858 9.215 9.781 10.222 10.807 11.206 11.687 12.011 12.132 12.679 5.075

3. Labour cost 152.945 38 1.833 3.450 6.212 7.125 7.873 8.692 9.589 9.874 10.167 10.469 10.780 11.100 11.430 11.770 12.120 12.480 7.944

4. Overburden (mobil) 27.273 1.401 1.299 221 225 345 895 2.105 2.225 3.483 3.553 3.514 3.949 3.999 58

5. Other Cost 151.930 398 1.570 4.220 6.771 8.538 9.206 9.337 9.453 9.708 9.880 10.245 10.371 10.697 10.788 10.729 10.943 19.077

thereof recultivation 458 115 114 112 114 3

thereof royalties 39.477 938 1.689 2.585 2.636 2.689 2.743 2.798 2.854 2.911 2.969 3.028 3.089 3.151 3.214 2.185

thereof other internal costs 38.971 159 628 1.313 2.033 2.381 2.628 2.659 2.684 2.764 2.810 2.934 2.961 3.021 3.034 2.987 3.046 928

thereof other opex 58.456 239 942 1.969 3.049 3.572 3.942 3.989 4.026 4.146 4.216 4.401 4.441 4.532 4.551 4.480 4.570 1.392

thereof mine closure 14.568

Subtotal opex 567.379 38 4.173 9.362 18.350 26.275 29.642 31.942 33.726 34.623 36.909 39.225 40.930 43.182 44.606 45.438 46.270 47.681 35.009

Average opex cost 4,60 5,40 4,38 3,29 3,55 3,75 3,85 4,10 4,36 4,55 4,80 4,96 5,05 5,14 5,30 5,83

(Euro/t)

6. Investment 328.273 39.805 72.330 71.287 31.367 23.090 13.850 1.806 6.021 11.021 8.262 4.759 11.241 8.565 6.776 7.861 7.581 1.876 775

Total 895.652 39.842 76.503 80.649 49.717 49.364 43.492 33.748 39.747 45.645 45.171 43.984 52.171 51.747 51.382 53.299 53.851 49.557 35.784


7. Interest 119.978 2.056 5.704 10.207 11.848 13.794 13.029 11.563 9.886 8.732 7.638 6.735 5.514 4.542 3.211 2.047 1.292 1.278 904

8. Taxes 44.545 671 1.623 1.491 1.763 2.499 2.691 2.479 2.661 2.429 3.296 4.410 5.553 6.508 6.470

9. Net profit 178.179 2.684 6.492 5.965 7.052 9.997 10.764 9.917 10.644 9.718 13.185 17.638 22.213 26.032 25.878




Profit and Loss Project: Sibovc SW - Variant 2 - Coal price 7.5 EURO/t, 2 % Escalation, 8 % Cost of debt date: 10.04.06

in 1,000 EURO

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


A. Sales revenues 1.184.311 28.154 50.677 77.536 79.087 80.669 82.282 83.928 85.606 87.318 89.065 90.846 92.663 94.516 96.407 65.557

E Mine development & pre-op. exp. 65.282 2.090 10.684 23.362 14.941 14.205

Total income 1.249.594 2.090 10.684 23.362 43.095 64.882 77.536 79.087 80.669 82.282 83.928 85.606 87.318 89.065 90.846 92.663 94.516 96.407 65.557


B. Power expenses 60.428 156 766 2.056 3.145 3.338 3.636 3.815 3.934 4.147 4.301 4.525 4.652 4.822 4.928 4.952 5.143 2.114

C Fuel expenses 31.177 127 502 1.050 1.626 1.905 2.102 2.127 2.147 2.211 2.248 2.347 2.369 2.417 2.427 2.389 2.437 742

D Overburden (mobil) 27.273 1.401 1.299 221 225 345 895 2.105 2.225 3.483 3.553 3.514 3.949 3.999 58

E Maintenance 143.625 258 1.775 4.591 7.382 7.643 8.305 8.858 9.215 9.781 10.222 10.807 11.206 11.687 12.011 12.132 12.679 5.075

F Recultivation 458 115 114 112 114 3

G Royalties 39.477 938 1.689 2.585 2.636 2.689 2.743 2.798 2.854 2.911 2.969 3.028 3.089 3.151 3.214 2.185

H Depreciation 292.975 815 3.808 13.143 20.277 22.194 23.554 23.653 21.823 21.299 22.606 22.905 24.510 21.845 18.406 14.444 10.211 7.482

I Amortisation 47.148 3.627 3.627 3.627 3.627 3.627 3.627 3.627 3.627 3.627 3.627 3.627 3.627 3.627

J Other internal costs 38.971 159 628 1.313 2.033 2.381 2.628 2.659 2.684 2.764 2.810 2.934 2.961 3.021 3.034 2.987 3.046 928

K Other opex 58.456 239 942 1.969 3.049 3.572 3.942 3.989 4.026 4.146 4.216 4.401 4.441 4.532 4.551 4.480 4.570 1.392

L Provisions 14.568 350 627 955 973 992 1.011 1.031 1.051 1.071 1.091 1.112 1.132 1.154 1.175 843

Total expenses 907.502 38 4.987 13.170 31.843 47.179 56.417 60.095 61.998 61.084 62.865 66.508 68.532 72.409 71.190 68.604 65.495 62.694 32.393


II. Extraordinary income from tangible assets

III. Net income from affiliated companies

IV. Net interest -119.368 -2.053 -5.696 -10.192 -11.828 -13.771 -13.004 -11.535 -9.856 -8.702 -7.607 -6.703 -5.481 -4.508 -3.176 -2.011 -1.255 -1.172 -815

V. Special net income

Net income from ordinary activities 222.724 -577 3.932 8.115 7.457 8.814 12.496 13.455 12.396 13.305 12.147 16.481 22.048 27.766 32.540 32.348

Income tax -44.545 -671 -1.623 -1.491 -1.763 -2.499 -2.691 -2.479 -2.661 -2.429 -3.296 -4.410 -5.553 -6.508 -6.470

Net income for the year 178.179 -577 3.261 6.492 5.965 7.052 9.997 10.764 9.917 10.644 9.718 13.185 17.638 22.213 26.032 25.878


Loss carryback / retaines profits brought forward 671 -577 3.932 -2.684

Accumulated losses brought forward / revenue reserve -577 2.684

Balance-sheet net income 180.863 2.684 9.176 5.965 7.052 9.997 10.764 9.917 10.644 9.718 13.185 17.638 22.213 26.032 25.878NPV based 31.12.2024

NPV to 31.12.2035 197.214

NPV to end 345.313

Total lignite production mt/year 123 3,40 6,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 6,00


Payment Plan Project: Sibovc SW - Variant 2 - Coal price 7.5 EURO/t, 2 % Escalation, 8 % Cost of debt date: 10.04.06

in 1,000 EURO

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

InpaymentsSales revenues 1.184.311 28.154 50.677 77.536 79.087 80.669 82.282 83.928 85.606 87.318 89.065 90.846 92.663 94.516 96.407 65.557

Interest income 610 3 8 14 20 22 25 27 29 30 31 32 33 34 35 36 37 106 89

Equity contribution 45.425 12.624 24.708 27.655 9.635 1.028 79 -3.254 -3.625 -2.172 -3.564 -3.582 -2.659 -2.632 -2.751 -1.780 -3.705 -1.049 470

Change in liabilities 249.483 29.455 57.653 64.529 26.291 19.307 5.830 234 4.422 5.607 6.590 3.044 6.468 3.431 4.576 5.628 5.321 1.097



Energy expenses 60.428 156 766 2.056 3.145 3.338 3.636 3.815 3.934 4.147 4.301 4.525 4.652 4.822 4.928 4.952 5.143 2.114

Fuel expenses 31.177 127 502 1.050 1.626 1.905 2.102 2.127 2.147 2.211 2.248 2.347 2.369 2.417 2.427 2.389 2.437 742

Overburden (mobil) 27.273 1.401 1.299 221 225 345 895 2.105 2.225 3.483 3.553 3.514 3.949 3.999 58

Maintenance 143.625 258 1.775 4.591 7.382 7.643 8.305 8.858 9.215 9.781 10.222 10.807 11.206 11.687 12.011 12.132 12.679 5.075

Recultivation 458 115 114 112 114 3

Royalties 39.477 938 1.689 2.585 2.636 2.689 2.743 2.798 2.854 2.911 2.969 3.028 3.089 3.151 3.214 2.185


Plant and construction

Other internal costs 38.971 159 628 1.313 2.033 2.381 2.628 2.659 2.684 2.764 2.810 2.934 2.961 3.021 3.034 2.987 3.046 928

Other opex 58.456 239 942 1.969 3.049 3.572 3.942 3.989 4.026 4.146 4.216 4.401 4.441 4.532 4.551 4.480 4.570 1.392

Mine closure 14.568 14.568

Total expenses 895.652 39.842 76.503 80.649 49.717 49.364 43.492 33.748 39.747 45.645 45.171 43.984 52.171 51.747 51.382 53.299 53.851 49.557 35.784

Income tax 44.545 671 1.623 1.491 1.763 2.499 2.691 2.479 2.661 2.429 3.296 4.410 5.553 6.508 6.470

Loan interest 119.978 2.056 5.704 10.207 11.848 13.794 13.029 11.563 9.886 8.732 7.638 6.735 5.514 4.542 3.211 2.047 1.292 1.278 904

Loan repayment 241.376 1.067 2.444 4.446 18.752 23.238 23.020 18.845 20.690 21.954 20.138 21.428 21.599 19.117 13.224 7.536 3.877

Distribution of dividend 178.179 2.684 6.492 5.965 7.052 9.997 10.764 9.917 10.644 9.718 13.185 17.638 22.213 26.032 25.878

Total expenses 1.479.730 41.898 82.207 91.923 64.009 70.960 83.388 76.005 81.467 85.718 86.954 85.069 91.128 89.864 92.672 96.512 96.133 90.912 72.912

Change in pool of liquidity 100 183 162 276 91 75 82 90 28 29 30 31 32 33 34 35 36 4.552 -5.700

Pool of liquidity 183 345 621 713 787 869 959 987 1.017 1.047 1.078 1.110 1.143 1.177 1.212 1.248 5.800 100


Balance Sheet Project: Sibovc SW - Variant 2 - Coal price 7.5 EURO/t, 2 % Escalation, 8 % Cost of debt date: 10.04.06

in 1,000 EURO


31.12.07 31.12.08 31.12.09 31.12.10 31.12.11 31.12.12 31.12.13 31.12.14 31.12.15 31.12.16 31.12.17 31.12.18 31.12.19 31.12.20 31.12.21 31.12.22 31.12.23 31.12.24


1 Land 1.265 1.772 2.533 3.309 3.897 4.497 5.544 6.611 7.280 8.390 9.523 10.715 11.915 13.475 15.066 16.689 17.198 17.786


3 Technical plants and equipment 38.540 109.548 176.266 193.714 195.938 186.994 164.201 145.501 134.031 119.884 100.905 88.049 70.904 54.275 42.139 33.652 24.808 17.512


B Current assetsIV Liquid funds 183 345 621 713 787 869 959 987 1.017 1.047 1.078 1.110 1.143 1.177 1.212 1.248 5.800 100

Total current assets 183 345 621 713 787 869 959 987 1.017 1.047 1.078 1.110 1.143 1.177 1.212 1.248 5.800 100

C Financial assets

Total assets 42.078 124.439 215.557 248.812 265.905 254.016 228.732 207.502 193.103 176.469 155.027 139.769 120.230 101.567 87.431 76.976 69.567 53.532





Profit/Loss brought forward 0 0 0 -577 0 0 0 0 0 0 0 0 0 0 0 0 0 0

III Revenue reserve


VI Distribution of dividend 0 0 0 0 -2.684 -6.492 -5.965 -7.052 -9.997 -10.764 -9.917 -10.644 -9.718 -13.185 -17.638 -22.213 -26.032 -25.878

Total equity 12.624 37.332 64.987 74.046 75.650 75.729 72.475 68.851 66.678 63.114 59.532 56.873 54.240 51.489 49.709 46.004 44.955 45.425

C Provisions 0 0 0 350 978 1.932 2.906 3.898 4.909 5.940 6.991 8.061 9.152 10.264 11.396 12.550 13.725 0



Other 5.691 14.309 18.505 20.658 20.658 18.592 16.526 14.461 12.395 10.329 8.263 6.197 4.132 2.066 0 0 0 0

Main equipment 20.843 54.621 90.839 100.043 112.806 101.526 90.245 78.964 67.684 56.403 45.123 33.842 22.561 11.281 0 0 0 0



Short-term liabilities 1.463 8.372 23.000 27.334 33.541 37.533 33.748 29.099 27.838 23.329 18.779 16.383 14.049 11.438 11.092 2.447 0 1.097

Supply loan 0 6.261 12.771 20.926 16.817 13.796 8.468 8.411 10.326 14.626 14.159 16.776 15.004 14.484 15.233 15.976 10.886 7.009



date: 10/04/2006

Equity and Project: Sibovc SW - Variant 2 - Coal price 7.5 EURO/t, 2 % Escalation, 8 % Cost of debt


YEAR Sum 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Equity payment 76.199 12.624 24.708 27.655 9.635 1.028 79 0 0 0 0 0 0 0 0 0 0 0 470

Equity repayment 30.774 0 0 0 0 0 0 3.254 3.625 2.172 3.564 3.582 2.659 2.632 2.751 1.780 3.705 1.049 0

Dividend 178.179 0 0 0 0 2.684 6.492 5.965 7.052 9.997 10.764 9.917 10.644 9.718 13.185 17.638 22.213 26.032 25.878



Loans 1.457 3.545 5.455 5.455 5.455 4.909 4.364 3.818 3.273 2.727 2.182 1.636 1.091 545 0 0 0 0

Interest 3.891 117 284 436 436 436 415 371 327 284 240 196 153 109 65 22 0 0 0

Repayments 5.455 0 0 0 0 0 545 545 545 545 545 545 545 545 545 545 0 0 0

Main Equipment

Loans 20.843 54.621 90.839 100.043 112.806 101.526 90.245 78.964 67.684 56.403 45.123 33.842 22.561 11.281 0 0 0 0

Interest 75.455 1.667 4.370 7.267 8.003 9.025 8.573 7.671 6.768 5.866 4.963 4.061 3.159 2.256 1.354 451 0 0 0

Repayments 112.806 0 0 0 0 0 11.281 11.281 11.281 11.281 11.281 11.281 11.281 11.281 11.281 11.281 0 0 0

Other

Loans 5.691 14.309 18.505 20.658 20.658 18.592 16.526 14.461 12.395 10.329 8.263 6.197 4.132 2.066 0 0 0 0

Interest 13.823 228 800 1.313 1.567 1.653 1.570 1.405 1.239 1.074 909 744 578 413 248 83 0 0 0

Repayments 20.658 0 0 0 0 0 2.066 2.066 2.066 2.066 2.066 2.066 2.066 2.066 2.066 2.066 0 0 0


Loans 27.992 72.475 114.798 126.156 138.919 125.027 111.135 97.243 83.351 69.459 55.567 41.676 27.784 13.892 0 0 0 0

Interest 93.168 2.012 5.453 9.016 10.006 11.113 10.558 9.446 8.335 7.224 6.112 5.001 3.890 2.778 1.667 556 0 0 0

Repayments 138.919 0 0 0 0 0 13.892 13.892 13.892 13.892 13.892 13.892 13.892 13.892 13.892 13.892 0 0 0

Supply loan

Loans 0 6.261 12.771 20.926 16.817 13.796 8.468 8.411 10.326 14.626 14.159 16.776 15.004 14.484 15.233 15.976 10.886 7.009

Interest 17.194 0 0 501 1.022 1.674 1.345 1.104 677 673 826 1.170 1.133 1.342 1.200 1.159 1.219 1.278 871

Repayments 64.925 0 0 1.067 2.444 4.446 4.860 5.562 4.479 3.693 2.289 3.511 3.851 5.203 5.096 4.879 4.579 5.090 3.877


Loans 1.463 8.372 23.000 27.334 33.541 37.533 33.748 29.099 27.838 23.329 18.779 16.383 14.049 11.438 11.092 2.447 0 1.097

Interest 9.616 44 251 690 820 1.006 1.126 1.012 873 835 700 563 491 421 343 333 73 0 33

Repayments 37.533 0 0 0 0 0 0 3.784 4.649 1.261 4.509 4.551 2.396 2.334 2.611 346 8.645 2.447 0

Total Borrowings

Loans 29.455 87.107 150.569 174.416 189.277 176.355 153.351 134.753 121.515 107.415 88.505 74.835 56.837 39.814 26.325 18.422 10.886 8.106

Interest 119.978 2.056 5.704 10.207 11.848 13.794 13.029 11.563 9.886 8.732 7.638 6.735 5.514 4.542 3.211 2.047 1.292 1.278 904

Repayments 241.376 0 0 1.067 2.444 4.446 18.752 23.238 23.020 18.845 20.690 21.954 20.138 21.428 21.599 19.117 13.224 7.536 3.877


Var2_7.5_EURO-2perc Esc_8 perc Debt-110406.xls / f14_profit & loss

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

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100.000

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

Year

T€



Revenue

Var.2

-300

-250

-200

-150

-100

-50

0

50

100

150

200

250

300

2006 2008 2010 2012 2014 2016 2018 2020 2022 2024ME

UR

O

Land Mine Development & Pre-Op. Exp. Technical plants and equipment

equity Provisions liabilities

Liquid funds Total assets Total equity and liabilities

Assets


Var. 2

Variant 3



Escalation: 4%

Cost of Debt: 8%

Cost of Equity: 20%

Var3_7.0_EURO-4perc Esc_8percDebt-110406.xls


in 1,000 EURO


Year Sum 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Production (mt) 123,40 0,00 0,00 0,00 3,40 6,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 6,00

1. Energy 116.640 0 300 1.370 3.423 5.360 6.007 6.703 7.077 7.384 7.872 8.267 8.846 9.214 9.687 10.035 10.213 10.751 4.131

thereof fuel 39.548 0 135 543 1.157 1.827 2.182 2.456 2.533 2.608 2.738 2.838 3.021 3.109 3.234 3.311 3.324 3.457 1.074

thereof power 77.093 0 165 828 2.265 3.533 3.825 4.247 4.544 4.777 5.135 5.429 5.824 6.105 6.452 6.724 6.889 7.294 3.057

2. Maintenance 183.596 0 273 1.919 5.059 8.295 8.756 9.701 10.549 11.190 12.110 12.904 13.911 14.707 15.638 16.387 16.877 17.983 7.339

3. Labour cost 194.794 39 1.943 3.729 6.846 8.006 9.019 10.153 11.420 11.990 12.588 13.216 13.875 14.568 15.295 16.058 16.860 17.701 11.488

4. Overburden (mobil) 35.780 0 1.485 1.404 243 253 395 0 0 0 1.108 2.658 2.864 4.572 4.754 4.795 5.493 5.672 84

5. Other cost 195.868 0 422 1.696 4.651 7.608 9.781 10.754 11.120 11.479 12.019 12.472 13.187 13.611 14.314 14.719 14.925 15.522 27.589

therof recultivation 632 0 0 0 0 0 0 0 0 0 0 0 0 0 154 156 155 161 5

thereof royalties 50.582 0 0 0 1.034 1.898 2.961 3.079 3.202 3.331 3.464 3.602 3.746 3.896 4.052 4.214 4.383 4.558 3.160

thereof other internal costs 49.435 0 169 679 1.447 2.284 2.728 3.070 3.167 3.259 3.422 3.548 3.776 3.886 4.043 4.139 4.155 4.321 1.342

thereof other opex 74.152 0 253 1.018 2.170 3.426 4.092 4.605 4.750 4.889 5.133 5.322 5.665 5.829 6.065 6.209 6.232 6.482 2.013

thereof mine closure 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 21.068

Subtotal opex 726.680 39 4.423 10.118 20.221 29.521 33.957 37.310 40.166 42.044 45.698 49.517 52.683 56.671 59.689 61.994 64.367 67.630 50.631

Average opex cost (EURO/t) 5,89 0,00 0,00 0,00 5,95 4,92 3,77 4,15 4,46 4,67 5,08 5,50 5,85 6,30 6,63 6,89 7,15 7,51 8,44

6. Investment 328.273 39.805 72.330 71.287 31.367 23.090 13.850 1.806 6.021 11.021 8.262 4.759 11.241 8.565 6.776 7.861 7.581 1.876 775

Total 1.054.953 39.844 76.753 81.405 51.588 52.611 47.808 39.116 46.187 53.065 53.960 54.277 63.924 65.236 66.464 69.856 71.948 69.506 51.405

Average cost (EURO/t) 8,55 0,00 0,00 0,00 15,17 8,77 5,31 4,35 5,13 5,90 6,00 6,03 7,10 7,25 7,38 7,76 7,99 7,72 8,57

7. Interest 141.931 2.155 6.215 11.746 14.293 16.860 16.209 14.495 12.244 10.645 9.104 7.673 5.894 4.602 3.190 2.061 1.622 1.733 1.190

8. Taxes 49.234 0 0 0 0 0 98 717 1.258 2.284 2.682 2.649 3.089 2.974 4.090 5.485 6.922 8.177 8.808

9. Net profit 196.937 0 0 0 0 0 393 2.869 5.031 9.136 10.727 10.598 12.357 11.896 16.360 21.941 27.688 32.708 35.232





in 1,000 EURO

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


A. Sales revenues 1.416.282 0 0 0 28.956 53.143 82.904 86.220 89.669 93.255 96.986 100.865 104.900 109.096 113.459 117.998 122.718 127.626 88.488


Total income 1.488.666 2.191 11.542 25.834 45.696 69.221 82.904 86.220 89.669 93.255 96.986 100.865 104.900 109.096 113.459 117.998 122.718 127.626 88.488


B. Power expenses 77.093 0 165 828 2.265 3.533 3.825 4.247 4.544 4.777 5.135 5.429 5.824 6.105 6.452 6.724 6.889 7.294 3.057

C Fuel expenses 39.548 0 135 543 1.157 1.827 2.182 2.456 2.533 2.608 2.738 2.838 3.021 3.109 3.234 3.311 3.324 3.457 1.074

D Overburden (mobil) 35.780 0 1.485 1.404 243 253 395 0 0 0 1.108 2.658 2.864 4.572 4.754 4.795 5.493 5.672 84

E Maintenance 183.596 0 273 1.919 5.059 8.295 8.756 9.701 10.549 11.190 12.110 12.904 13.911 14.707 15.638 16.387 16.877 17.983 7.339

F Recultivation 632 0 0 0 0 0 0 0 0 0 0 0 0 0 154 156 155 161 5

G Royalties 50.582 0 0 0 1.034 1.898 2.961 3.079 3.202 3.331 3.464 3.602 3.746 3.896 4.052 4.214 4.383 4.558 3.160

H Depreciation 325.493 0 913 3.986 13.932 21.721 23.875 25.432 25.549 23.700 23.302 24.928 25.349 27.420 24.706 21.247 17.141 12.766 9.527

I Amortisation 52.277 0 0 0 0 0 4.021 4.021 4.021 4.021 4.021 4.021 4.021 4.021 4.021 4.021 4.021 4.021 4.021

J Other internal costs 49.435 0 169 679 1.447 2.284 2.728 3.070 3.167 3.259 3.422 3.548 3.776 3.886 4.043 4.139 4.155 4.321 1.342

K Other opex 74.152 0 253 1.018 2.170 3.426 4.092 4.605 4.750 4.889 5.133 5.322 5.665 5.829 6.065 6.209 6.232 6.482 2.013

L Provisions 21.068 0 0 0 506 907 1.381 1.408 1.435 1.463 1.491 1.519 1.548 1.578 1.608 1.638 1.668 1.700 1.219

Total expenses 1.104.450 39 5.336 14.104 34.660 52.150 63.234 68.171 71.171 71.228 74.512 79.986 83.601 89.690 90.023 88.901 87.198 86.117 44.329




IV. Net interest -138.045 -2.152 -6.206 -11.730 -14.271 -16.835 -16.180 -14.463 -12.209 -10.608 -9.065 -7.633 -5.852 -4.536 -2.987 -1.670 -909 -624 -118


Net income from ordinary activities 246.171 0 0 0 -3.234 236 3.489 3.586 6.289 11.420 13.409 13.247 15.447 14.870 20.450 27.427 34.610 40.885 44.040

Income tax -49.234 0 0 0 0 0 -98 -717 -1.258 -2.284 -2.682 -2.649 -3.089 -2.974 -4.090 -5.485 -6.922 -8.177 -8.808

Net income for the year 196.937 0 0 0 -3.234 236 3.391 2.869 5.031 9.136 10.727 10.598 12.357 11.896 16.360 21.941 27.688 32.708 35.232


Loss carryback / retaines profits brought forward 0 -3.234 236 2.998

Accumulated losses brought forward / revenue reserve 0 0 0 -3.234 -2.998 393 0 0 0 0 0 0 0 0 0 0 0 0

Balance-sheet net income 197.330 0 0 0 0 0 393 3.262 5.031 9.136 10.727 10.598 12.357 11.896 16.360 21.941 27.688 32.708 35.232NPV based 31.12.2024

NPV to 31.12.2035 156.348

NPV to end 330.396




in 1,000 EURO

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

InpaymentsSales revenues 1.416.282 0 0 0 28.956 53.143 82.904 86.220 89.669 93.255 96.986 100.865 104.900 109.096 113.459 117.998 122.718 127.626 88.488

Interest income 3.886 3 9 16 22 26 29 32 35 37 39 41 43 67 204 391 713 1.110 1.072

Equity contribution 42.833 12.657 24.941 28.373 10.624 684 -1.658 -4.059 -4.696 -3.340 -4.890 -4.687 -4.082 -3.414 -1.810 -1.810 0 0 0

Change in liabilities 264.326 29.533 58.197 66.204 29.012 20.538 2.460 274 5.266 6.809 8.159 3.842 8.325 4.502 6.123 7.679 7.402 0 0



Energy expenses 77.093 0 165 828 2.265 3.533 3.825 4.247 4.544 4.777 5.135 5.429 5.824 6.105 6.452 6.724 6.889 7.294 3.057

Fuel expenses 39.548 0 135 543 1.157 1.827 2.182 2.456 2.533 2.608 2.738 2.838 3.021 3.109 3.234 3.311 3.324 3.457 1.074

Overburden mobil 35.780 0 1.485 1.404 243 253 395 0 0 0 1.108 2.658 2.864 4.572 4.754 4.795 5.493 5.672 84

Maintenance 183.596 0 273 1.919 5.059 8.295 8.756 9.701 10.549 11.190 12.110 12.904 13.911 14.707 15.638 16.387 16.877 17.983 7.339

Recultivation 632 0 0 0 0 0 0 0 0 0 0 0 0 0 154 156 155 161 5

Royalties 50.582 0 0 0 1.034 1.898 2.961 3.079 3.202 3.331 3.464 3.602 3.746 3.896 4.052 4.214 4.383 4.558 3.160


Plant and construction 0

Other internal costs 49.435 0 169 679 1.447 2.284 2.728 3.070 3.167 3.259 3.422 3.548 3.776 3.886 4.043 4.139 4.155 4.321 1.342

Other opex 74.152 0 253 1.018 2.170 3.426 4.092 4.605 4.750 4.889 5.133 5.322 5.665 5.829 6.065 6.209 6.232 6.482 2.013

mine closure 21.068 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 21.068

Total expenses 1.054.953 39.844 76.753 81.405 51.588 52.611 47.808 39.116 46.187 53.065 53.960 54.277 63.924 65.236 66.464 69.856 71.948 69.506 51.405

Income tax 49.234 0 0 0 0 0 98 717 1.258 2.284 2.682 2.649 3.089 2.974 4.090 5.485 6.922 8.177 8.808

Loan interest 141.931 2.155 6.215 11.746 14.293 16.860 16.209 14.495 12.244 10.645 9.104 7.673 5.894 4.602 3.190 2.061 1.622 1.733 1.190

Loan repayment 254.699 0 0 1.131 2.618 4.818 19.113 25.143 25.497 21.572 23.758 24.798 23.851 24.021 20.240 20.090 6.010 6.790 5.248

Distribution of dividend 196.937 0 0 0 0 0 393 2.869 5.031 9.136 10.727 10.598 12.357 11.896 16.360 21.941 27.688 32.708 35.232

Total expenses 1.697.753 41.998 82.968 94.282 68.499 74.289 83.621 82.340 90.217 96.702 100.230 99.995 109.117 108.730 110.344 119.433 114.191 118.915 101.884

Change in pool of liquidity 29.574 194 179 312 116 101 113 127 57 60 63 66 69 1.521 7.633 4.825 16.642 9.821 -12.324

Pool of liquidity 194 373 685 801 902 1.015 1.142 1.199 1.259 1.322 1.388 1.457 2.977 10.610 15.435 32.077 41.898 29.574



in 1,000 EURO


31.12.07 31.12.08 31.12.09 31.12.10 31.12.11 31.12.12 31.12.13 31.12.14 31.12.15 31.12.16 31.12.17 31.12.18 31.12.19 31.12.20 31.12.21 31.12.22 31.12.23 31.12.24


1 Land 1.315 1.852 2.675 3.530 4.191 4.879 6.101 7.372 8.184 9.559 10.988 12.523 14.098 16.185 18.356 20.614 21.335 22.186


3 Technical plants and equipment 38.489 109.370 175.848 192.428 193.135 182.423 157.575 136.776 123.285 106.871 85.273 69.631 49.201 29.184 13.627 1.809 -9.803 -19.406


B Current assetsIV Liquid funds 194 373 685 801 902 1.015 1.142 1.199 1.259 1.322 1.388 1.457 2.977 10.610 15.435 32.077 41.898 29.574

Total current assets 194 373 685 801 902 1.015 1.142 1.199 1.259 1.322 1.388 1.457 2.977 10.610 15.435 32.077 41.898 29.574

C Financial assets

Total assets 42.190 125.328 218.774 253.065 270.612 256.680 229.159 205.667 189.027 170.028 145.905 127.845 106.490 92.171 79.589 82.649 77.558 52.461




II Capital reserve

Profit/Loss brought forward -3.234 -2.998

III Revenue reserve

V Balance-sheet net income 393 2.869 5.031 9.136 10.727 10.598 12.357 11.896 16.360 21.941 27.688 32.708 35.232

VI Distribution of dividend -393 -2.869 -5.031 -9.136 -10.727 -10.598 -12.357 -11.896 -16.360 -21.941 -27.688 -32.708 -35.232

Total equity 12.657 37.598 65.972 73.362 74.282 75.622 71.562 66.866 63.526 58.636 53.948 49.867 46.452 44.643 42.833 42.833 42.833 42.833

C Provisions 506 1.414 2.794 4.202 5.637 7.100 8.591 10.110 11.658 13.236 14.844 16.481 18.150 19.849


1 Long-term liabilities 27.999 72.119 113.830 124.107 138.447 124.602 110.758 96.913 83.068 69.224 55.379 41.534 27.689 13.845 0

Other 4.816 10.918 11.423 11.557 11.557 10.401 9.245 8.090 6.934 5.778 4.623 3.467 2.311 1.156

Main equipment 21.669 57.472 96.616 106.759 121.099 108.989 96.879 84.769 72.659 60.549 48.439 36.330 24.220 12.110

Resettlement (without farmland) 1.515 3.728 5.792 5.792 5.792 5.213 4.633 4.054 3.475 2.896 2.317 1.738 1.158 579 0


Short-term liabilities 1.534 8.974 25.278 32.333 38.151 38.505 33.256 26.520 22.950 15.761 9.046 3.745

Supply loan 6.637 13.694 22.757 18.318 15.156 9.381 9.730 12.383 17.817 17.421 21.042 19.112 18.840 20.274 21.666 14.876 9.627



Equity and Project: Sibovc SW - Variant 3 - Coal price 7.0 EURO/t, 4 % Escalation, 8 % Cost of debt date: 10/04/06


YEAR Sum 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Equity payment 77.280 12.657 24.941 28.373 10.624 684

Equity repayment 34.446 1.658 4.059 4.696 3.340 4.890 4.687 4.082 3.414 1.810 1.810

Dividend 196.937 393 2.869 5.031 9.136 10.727 10.598 12.357 11.896 16.360 21.941 27.688 32.708 35.232

Total repayment to the shareholder 231.383 2.051 6.928 9.727 12.476 15.618 15.285 16.439 15.310 18.169 23.751 27.688 32.708 35.232


Loans 1.515 3.728 5.792 5.792 5.792 5.213 4.633 4.054 3.475 2.896 2.317 1.738 1.158 579 0

Interest 4.126 121 298 463 463 463 440 394 348 301 255 209 162 116 70 23 0

Repayments 5.792 579 579 579 579 579 579 579 579 579 579 0

Main equipment

Loans 21.669 57.472 96.616 106.759 121.099 108.989 96.879 84.769 72.659 60.549 48.439 36.330 24.220 12.110

Interest 80.729 1.734 4.598 7.729 8.541 9.688 9.203 8.235 7.266 6.297 5.328 4.360 3.391 2.422 1.453 484

Repayments 121.099 12.110 12.110 12.110 12.110 12.110 12.110 12.110 12.110 12.110 12.110

Other

Loans 4.816 10.918 11.423 11.557 11.557 10.401 9.245 8.090 6.934 5.778 4.623 3.467 2.311 1.156

Interest 8.182 193 629 894 919 925 878 786 693 601 508 416 324 231 139 46

Repayments 11.557 1.156 1.156 1.156 1.156 1.156 1.156 1.156 1.156 1.156 1.156


Loans 27.999 72.119 113.830 124.107 138.447 124.602 110.758 96.913 83.068 69.224 55.379 41.534 27.689 13.845 0

Interest 93.037 2.047 5.525 9.086 9.923 11.076 10.522 9.414 8.307 7.199 6.092 4.984 3.877 2.769 1.661 554 0

Repayments 138.447 13.845 13.845 13.845 13.845 13.845 13.845 13.845 13.845 13.845 13.845 0

Supply loan

Loans 6.637 13.694 22.757 18.318 15.156 9.381 9.730 12.383 17.817 17.421 21.042 19.112 18.840 20.274 21.666 14.876 9.627

Interest 20.728 531 1.096 1.821 1.465 1.212 750 778 991 1.425 1.394 1.683 1.529 1.507 1.622 1.733 1.190

Repayments 77.746 1.131 2.618 4.818 5.268 6.048 4.917 4.157 2.725 4.238 4.705 6.432 6.395 6.245 6.010 6.790 5.248


Loans 1.534 8.974 25.278 32.333 38.151 38.505 33.256 26.520 22.950 15.761 9.046 3.745

Interest 7.682 46 269 758 970 1.145 1.155 998 796 688 473 271 112

Repayments 38.505 5.250 6.736 3.571 7.189 6.715 5.302 3.745

Total Borrowings

Loans 29.533 87.729 152.802 179.197 194.917 178.263 153.394 133.164 118.401 102.802 81.846 66.320 46.801 32.685 20.274 21.666 14.876 9.627

Interest 121.447 2.093 5.795 10.376 11.989 14.041 13.143 11.625 9.853 8.666 7.555 6.681 5.383 4.452 3.190 2.061 1.622 1.733 1.190

Repayments 254.699 1.131 2.618 4.818 19.113 25.143 25.497 21.572 23.758 24.798 23.851 24.021 20.240 20.090 6.010 6.790 5.248


Var3_7.0_EURO-4perc Esc_8percDebt-110406.xls / f14_profit & loss

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

100.000

110.000

120.000

130.000

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

Year

T€



Revenue

Var. 3

-300

-250

-200

-150

-100

-50

0

50

100

150

200

250

300

2006 2008 2010 2012 2014 2016 2018 2020 2022 2024ME

UR

O


Assets


Var.3

Variant 4



Escalation: 4%

Cost of Debt: 8%

Cost of Equity: 20%

Var4_7.5_EURO-4perc Esc_8perc Debt-110406.xls


in 1,000 EURO


Year Sum 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Production (mt) 123,40 0,00 0,00 0,00 3,40 6,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 6,00

1. Energy 116.640 0 300 1.370 3.423 5.360 6.007 6.703 7.077 7.384 7.872 8.267 8.846 9.214 9.687 10.035 10.213 10.751 4.131

thereof fuel 39.548 0 135 543 1.157 1.827 2.182 2.456 2.533 2.608 2.738 2.838 3.021 3.109 3.234 3.311 3.324 3.457 1.074

thereof power 77.093 0 165 828 2.265 3.533 3.825 4.247 4.544 4.777 5.135 5.429 5.824 6.105 6.452 6.724 6.889 7.294 3.057

2. Maintenance 183.596 0 273 1.919 5.059 8.295 8.756 9.701 10.549 11.190 12.110 12.904 13.911 14.707 15.638 16.387 16.877 17.983 7.339

3. Labour cost 194.794 39 1.943 3.729 6.846 8.006 9.019 10.153 11.420 11.990 12.588 13.216 13.875 14.568 15.295 16.058 16.860 17.701 11.488

4. Overburden (mobil) 35.780 0 1.485 1.404 243 253 395 0 0 0 1.108 2.658 2.864 4.572 4.754 4.795 5.493 5.672 84

5. Other cost 195.868 0 422 1.696 4.651 7.608 9.781 10.754 11.120 11.479 12.019 12.472 13.187 13.611 14.314 14.719 14.925 15.522 27.589

thereof recultivation 632 0 0 0 0 0 0 0 0 0 0 0 0 0 154 156 155 161 5

thereof royalties 50.582 0 0 0 1.034 1.898 2.961 3.079 3.202 3.331 3.464 3.602 3.746 3.896 4.052 4.214 4.383 4.558 3.160

thereof other internal costs 49.435 0 169 679 1.447 2.284 2.728 3.070 3.167 3.259 3.422 3.548 3.776 3.886 4.043 4.139 4.155 4.321 1.342

thereof other opex 74.152 0 253 1.018 2.170 3.426 4.092 4.605 4.750 4.889 5.133 5.322 5.665 5.829 6.065 6.209 6.232 6.482 2.013

thereof mine closure 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 21.068

Subtotal opex 726.680 39 4.423 10.118 20.221 29.521 33.957 37.310 40.166 42.044 45.698 49.517 52.683 56.671 59.689 61.994 64.367 67.630 50.631

Average opex cost (EURO/t) 5,89 0,00 0,00 0,00 5,95 4,92 3,77 4,15 4,46 4,67 5,08 5,50 5,85 6,30 6,63 6,89 7,15 7,51 8,44

6. Investment 328.273 39.805 72.330 71.287 31.367 23.090 13.850 1.806 6.021 11.021 8.262 4.759 11.241 8.565 6.776 7.861 7.581 1.876 775

Total 1.054.953 39.844 76.753 81.405 51.588 52.611 47.808 39.116 46.187 53.065 53.960 54.277 63.924 65.236 66.464 69.856 71.948 69.506 51.405


7. Interest 120.662 2.092 5.784 10.336 11.862 13.902 13.069 11.553 9.784 8.599 7.491 6.619 5.322 4.452 3.190 2.061 1.622 1.733 1.190

8. Taxes 73.611 0 0 0 87 1.260 2.548 2.575 3.069 4.063 4.428 4.339 4.740 4.609 5.765 7.225 8.728 10.052 10.123

9. Net profit 294.445 0 0 0 347 5.041 10.193 10.301 12.275 16.253 17.712 17.357 18.961 18.435 23.060 28.899 34.912 40.208 40.491





in 1,000 EURO

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


A. Sales revenues 1.517.445 0 0 0 31.025 56.939 88.825 92.378 96.074 99.916 103.913 108.070 112.392 116.888 121.564 126.426 131.483 136.743 94.808


Total income 1.586.405 2.128 11.112 24.423 46.933 72.327 88.825 92.378 96.074 99.916 103.913 108.070 112.392 116.888 121.564 126.426 131.483 136.743 94.808


B. Power expenses 77.093 0 165 828 2.265 3.533 3.825 4.247 4.544 4.777 5.135 5.429 5.824 6.105 6.452 6.724 6.889 7.294 3.057

C Fuel expenses 39.548 0 135 543 1.157 1.827 2.182 2.456 2.533 2.608 2.738 2.838 3.021 3.109 3.234 3.311 3.324 3.457 1.074

D Overburden (mobil) 35.780 0 1.485 1.404 243 253 395 0 0 0 1.108 2.658 2.864 4.572 4.754 4.795 5.493 5.672 84

E Maintenance 183.596 0 273 1.919 5.059 8.295 8.756 9.701 10.549 11.190 12.110 12.904 13.911 14.707 15.638 16.387 16.877 17.983 7.339

F Recultivation 632 0 0 0 0 0 0 0 0 0 0 0 0 0 154 156 155 161 5

G Royalties 50.582 0 0 0 1.034 1.898 2.961 3.079 3.202 3.331 3.464 3.602 3.746 3.896 4.052 4.214 4.383 4.558 3.160

H Depreciation 325.493 0 913 3.986 13.932 21.721 23.875 25.432 25.549 23.700 23.302 24.928 25.349 27.420 24.706 21.247 17.141 12.766 9.527

I Amortisation 49.804 0 0 0 0 0 3.831 3.831 3.831 3.831 3.831 3.831 3.831 3.831 3.831 3.831 3.831 3.831 3.831

J Other internal costs 49.435 0 169 679 1.447 2.284 2.728 3.070 3.167 3.259 3.422 3.548 3.776 3.886 4.043 4.139 4.155 4.321 1.342

K Other opex 74.152 0 253 1.018 2.170 3.426 4.092 4.605 4.750 4.889 5.133 5.322 5.665 5.829 6.065 6.209 6.232 6.482 2.013

L Provisions 21.068 0 0 0 506 907 1.381 1.408 1.435 1.463 1.491 1.519 1.548 1.578 1.608 1.638 1.668 1.700 1.219

Total expenses 1.101.977 39 5.336 14.104 34.660 52.150 63.044 67.981 70.981 71.037 74.322 79.795 83.411 89.500 89.833 88.710 87.008 85.927 44.139




IV. Net interest -116.372 -2.089 -5.776 -10.320 -11.839 -13.877 -13.041 -11.521 -9.749 -8.563 -7.452 -6.578 -5.280 -4.344 -2.905 -1.592 -836 -556 -56


Net income from ordinary activities 368.056 0 0 0 434 6.301 12.741 12.876 15.344 20.317 22.140 21.697 23.702 23.044 28.825 36.124 43.640 50.260 50.613

Income tax -73.611 0 0 0 -87 -1.260 -2.548 -2.575 -3.069 -4.063 -4.428 -4.339 -4.740 -4.609 -5.765 -7.225 -8.728 -10.052 -10.123

Net income for the year 294.445 0 0 0 347 5.041 10.193 10.301 12.275 16.253 17.712 17.357 18.961 18.435 23.060 28.899 34.912 40.208 40.491


Loss carryback / retaines profits brought forward 6.735 434 6.301 0

Accumulated losses brought forward / revenue reserve 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Balance-sheet net income 294.445 0 0 0 347 5.041 10.193 10.301 12.275 16.253 17.712 17.357 18.961 18.435 23.060 28.899 34.912 40.208 40.491NPV based 31.12.2024

NPV to 31.12.2035 212.854 0

NPV to end 449.807 0




in 1,000 EURO

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

InpaymentsSales revenues 1.517.445 0 0 0 31.025 56.939 88.825 92.378 96.074 99.916 103.913 108.070 112.392 116.888 121.564 126.426 131.483 136.743 94.808

Interest income 4.290 3 9 16 22 26 29 32 35 37 39 41 43 108 285 469 786 1.178 1.134

Equity contribution 43.861 12.638 24.812 27.950 9.464 608 -641 -3.942 -4.579 -3.223 -4.773 -4.570 -3.965 -2.470 -1.724 -1.724 0 0 0

Change in liabilities 261.882 29.489 57.895 65.217 26.106 20.161 4.631 274 5.266 6.809 8.159 3.842 8.325 4.502 6.123 7.679 7.402 0 0



Energy expenses 77.093 0 165 828 2.265 3.533 3.825 4.247 4.544 4.777 5.135 5.429 5.824 6.105 6.452 6.724 6.889 7.294 3.057

Fuel expenses 39.548 0 135 543 1.157 1.827 2.182 2.456 2.533 2.608 2.738 2.838 3.021 3.109 3.234 3.311 3.324 3.457 1.074

Overburden (mobil) 35.780 0 1.485 1.404 243 253 395 0 0 0 1.108 2.658 2.864 4.572 4.754 4.795 5.493 5.672 84

Maintenance 183.596 0 273 1.919 5.059 8.295 8.756 9.701 10.549 11.190 12.110 12.904 13.911 14.707 15.638 16.387 16.877 17.983 7.339

Recultivation 632 0 0 0 0 0 0 0 0 0 0 0 0 0 154 156 155 161 5

Royalties 50.582 0 0 0 1.034 1.898 2.961 3.079 3.202 3.331 3.464 3.602 3.746 3.896 4.052 4.214 4.383 4.558 3.160


Plant and construction 0

Other internal costs 49.435 0 169 679 1.447 2.284 2.728 3.070 3.167 3.259 3.422 3.548 3.776 3.886 4.043 4.139 4.155 4.321 1.342

Other opex 74.152 0 253 1.018 2.170 3.426 4.092 4.605 4.750 4.889 5.133 5.322 5.665 5.829 6.065 6.209 6.232 6.482 2.013

Mine closure 21.068 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 21.068

Total expenses 1.054.953 39.844 76.753 81.405 51.588 52.611 47.808 39.116 46.187 53.065 53.960 54.277 63.924 65.236 66.464 69.856 71.948 69.506 51.405

Income tax 73.611 0 0 0 87 1.260 2.548 2.575 3.069 4.063 4.428 4.339 4.740 4.609 5.765 7.225 8.728 10.052 10.123

Loan interest 120.662 2.092 5.784 10.336 11.862 13.902 13.069 11.553 9.784 8.599 7.491 6.619 5.322 4.452 3.190 2.061 1.622 1.733 1.190

Loan repayment 252.255 0 0 1.131 2.618 4.818 19.113 25.069 25.424 21.499 23.685 24.725 23.778 22.017 20.240 20.090 6.010 6.790 5.248

Distribution of dividend 294.445 0 0 0 347 5.041 10.193 10.301 12.275 16.253 17.712 17.357 18.961 18.435 23.060 28.899 34.912 40.208 40.491

Total expenses 1.795.926 41.936 82.537 92.872 66.501 77.632 92.731 88.615 96.739 103.480 107.275 107.316 116.727 114.749 118.720 128.130 123.220 128.289 108.457

Change in pool of liquidity 31.552 194 179 312 116 101 113 127 57 60 63 66 69 4.279 7.528 4.720 16.452 9.631 -12.515

Pool of liquidity 194 373 685 801 902 1.015 1.142 1.199 1.259 1.322 1.388 1.457 5.736 13.264 17.985 34.436 44.067 31.552



in 1,000 EURO


31.12.07 31.12.08 31.12.09 31.12.10 31.12.11 31.12.12 31.12.13 31.12.14 31.12.15 31.12.16 31.12.17 31.12.18 31.12.19 31.12.20 31.12.21 31.12.22 31.12.23 31.12.24


1 Land 1.315 1.852 2.675 3.530 4.191 4.879 6.101 7.372 8.184 9.559 10.988 12.523 14.098 16.185 18.356 20.614 21.335 22.186


3 Technical plants and equipment 38.489 109.370 175.848 192.428 193.135 182.423 157.575 136.776 123.285 106.871 85.273 69.631 49.201 29.184 13.627 1.809 -9.803 -19.406


B Current assetsIV Liquid funds 194 373 685 801 902 1.015 1.142 1.199 1.259 1.322 1.388 1.457 5.736 13.264 17.985 34.436 44.067 31.552

Total current assets 194 373 685 801 902 1.015 1.142 1.199 1.259 1.322 1.388 1.457 5.736 13.264 17.985 34.436 44.067 31.552

C Financial assets

Total assets 42.127 124.834 216.871 250.329 267.187 253.445 226.115 202.813 186.363 167.555 143.622 125.752 107.346 93.113 80.616 83.676 78.586 53.488





Profit/Loss brought forward 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

III Revenue reserve


VI Distribution of dividend 0 0 0 -347 -5.041 -10.193 -10.301 -12.275 -16.253 -17.712 -17.357 -18.961 -18.435 -23.060 -28.899 -34.912 -40.208 -40.491

Total equity 12.638 37.450 65.401 74.865 75.473 74.831 70.889 66.310 63.087 58.313 53.743 49.778 47.308 45.585 43.861 43.861 43.861 43.861

C Provisions 0 0 0 506 1.414 2.794 4.202 5.637 7.100 8.591 10.110 11.658 13.236 14.844 16.481 18.150 19.849 0



Other 4.816 10.918 11.423 11.557 11.557 10.401 9.245 8.090 6.934 5.778 4.623 3.467 2.311 1.156 0 0 0 0

Main equipment 21.669 57.472 96.616 106.759 121.099 108.989 96.879 84.769 72.659 60.549 48.439 36.330 24.220 12.110 0 0 0 0



Short-term liabilities 1.490 8.629 23.945 28.094 33.536 36.062 30.885 24.223 20.726 13.610 6.969 1.740 0 0 0 0 0 0

Supply loan 0 6.637 13.694 22.757 18.318 15.156 9.381 9.730 12.383 17.817 17.421 21.042 19.112 18.840 20.274 21.666 14.876 9.627



Equity and Project: Sibovc SW - Variant 4 - Coal price 7.5 EURO/t, 4 % Escalation, 8 % Cost of debt date: 10/04/06


Year Sum 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Equity payment 75.473 12.638 24.812 27.950 9.464 608 0 0 0 0 0 0 0 0 0 0 0 0 0

Equity repayment 31.612 0 0 0 0 0 641 3.942 4.579 3.223 4.773 4.570 3.965 2.470 1.724 1.724 0 0 0

Dividend 294.445 0 0 0 347 5.041 10.193 10.301 12.275 16.253 17.712 17.357 18.961 18.435 23.060 28.899 34.912 40.208 40.491



Loans 1.515 3.728 5.792 5.792 5.792 5.213 4.633 4.054 3.475 2.896 2.317 1.738 1.158 579 0 0 0 0

Interest 4.126 121 298 463 463 463 440 394 348 301 255 209 162 116 70 23 0 0 0

Repayments 5.792 0 0 0 0 0 579 579 579 579 579 579 579 579 579 579 0 0 0

Main equipment

Loans 21.669 57.472 96.616 106.759 121.099 108.989 96.879 84.769 72.659 60.549 48.439 36.330 24.220 12.110 0 0 0 0

Interest 80.729 1.734 4.598 7.729 8.541 9.688 9.203 8.235 7.266 6.297 5.328 4.360 3.391 2.422 1.453 484 0 0 0

Repayments 121.099 0 0 0 0 0 12.110 12.110 12.110 12.110 12.110 12.110 12.110 12.110 12.110 12.110 0 0 0

Other

Loans 4.816 10.918 11.423 11.557 11.557 10.401 9.245 8.090 6.934 5.778 4.623 3.467 2.311 1.156 0 0 0 0

Interest 8.182 193 629 894 919 925 878 786 693 601 508 416 324 231 139 46 0 0 0

Repayments 11.557 0 0 0 0 0 1.156 1.156 1.156 1.156 1.156 1.156 1.156 1.156 1.156 1.156 0 0 0


Loans 27.999 72.119 113.830 124.107 138.447 124.602 110.758 96.913 83.068 69.224 55.379 41.534 27.689 13.845 0 0 0 0

Interest 93.037 2.047 5.525 9.086 9.923 11.076 10.522 9.414 8.307 7.199 6.092 4.984 3.877 2.769 1.661 554 0 0 0

Repayments 138.447 0 0 0 0 0 13.845 13.845 13.845 13.845 13.845 13.845 13.845 13.845 13.845 13.845 0 0 0

Supply loan

Loans 0 6.637 13.694 22.757 18.318 15.156 9.381 9.730 12.383 17.817 17.421 21.042 19.112 18.840 20.274 21.666 14.876 9.627

Interest 20.728 0 0 531 1.096 1.821 1.465 1.212 750 778 991 1.425 1.394 1.683 1.529 1.507 1.622 1.733 1.190

Repayments 77.746 0 0 1.131 2.618 4.818 5.268 6.048 4.917 4.157 2.725 4.238 4.705 6.432 6.395 6.245 6.010 6.790 5.248


Loans 1.490 8.629 23.945 28.094 33.536 36.062 30.885 24.223 20.726 13.610 6.969 1.740 0 0 0 0 0 0

Interest 6.897 45 259 718 843 1.006 1.082 927 727 622 408 209 52 0 0 0 0 0 0

Repayments 36.062 0 0 0 0 0 0 5.176 6.662 3.497 7.115 6.642 5.228 1.740 0 0 0 0 0

Total Borrowings

Loans 29.489 87.384 151.470 174.958 190.301 175.820 151.024 130.866 116.177 100.651 79.769 64.316 46.801 32.685 20.274 21.666 14.876 9.627

Interest 120.662 2.092 5.784 10.336 11.862 13.902 13.069 11.553 9.784 8.599 7.491 6.619 5.322 4.452 3.190 2.061 1.622 1.733 1.190

Repayments 252.255 0 0 1.131 2.618 4.818 19.113 25.069 25.424 21.499 23.685 24.725 23.778 22.017 20.240 20.090 6.010 6.790 5.248


Var4_7.5_EURO-4perc Esc_8perc Debt-110406.xls / f14_profit & loss

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

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Revenue

Var.4

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2006 2008 2010 2012 2014 2016 2018 2020 2022 2024ME

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Var.4

Development of the earning-capacity value in 2024 as a function of the liftime

opencast mine

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2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050

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complementary mining plan for sibovc sw

Documents

main mining equipment

f t f i n

electrical equipment

auxiliary equipment

sibovc south west lignite

contract 02kos0110021

technical planning

environmental impact