Montenegro to produce coal until 2050
The Pljevlja coal mine has been granted a concession for coal production for 24.5 years, extending the extraction of the solid fossil fuel until 2050.
Admir Šahmanović, Minister of Energy and Mining, and Nemanja Laković, CEO of coal mine operator Rudnik uglja Pljevlja (RUP), exchanged concession agreements for the period up to 2050.
They spoke at a ceremony in Pljevlja marking Miner’s Day, September 24, and the 73rd anniversary of the mine’s operation.
The signing of the concession agreement enables the long-term use of significant coal reserves in the Pljevlja municipality, which is one of the key steps in further valorizing the mining potential of northern Montenegro, according to the Ministry of Mining and Energy.
The coal extraction concession is granted for 24.5 years
“Our joint mission is for mining in Montenegro to continue developing responsibly, and in line with the highest standards. Our special focus will be on the development and future of this sector, having in mind the changes introduced by a just transition,” Šahmanović stated.
In late June, the Government of Montenegro decided to grant the concession to the mine for the excavation of lignite deposits at the sites Potrlica, Kalušići, Grevo, and Rabitlje in the Pljevlja coal basin.
The duration of the contract is 24.5 years, the government said. The mine is obliged to produce at least 1.65 million tons of lignite annually.
The Pljevlja coal power plant is planned for closing in 2041
The concession fee amounts to 4% of the market value of the excavation reserves.
Of note, almost the entire production of the mine is for the Pljevlja thermal power plant – the country’s only coal plant and the largest electricity producer.
The draft National Energy and Climate Plan (NECP) of Montenegro proposes 2041 as the provisional date for closing the Pljevlja coal plant.
The timeline primarily depends on the success of the just transition process and maintaining the security of the electricity supply, the document reads.
