Novi Kovin Coal Mine

Background

Exploration work on the Kovin mine site began in 1976, and coal mining began in 1995. The coal is extracted from the bottom of a lake connected to the Danube, and represents the only underwater coal exploitation in the world. Current operations are carried out by Rundik Kovin AD.

In November 2023, based on the Conclusion of the Government of the Republic of Serbia from June 2023, the shares of the Kovin Mine were transferred from the Register of Securities and Shares to the Republic of Serbia, and the Ministry of Economy adopted a Decision to suspend the privatization process. According to the Energy Strategy document published in the second half of 2024, current production from the underwater mine at Kovin is 200,000 tonnes.

Expansion

The Novi Kovin underground exploitation project was announced over a decade ago, according to 2022 media sources. The project is developed by a company Energetski Kompleks doo Beograd that has filed the request to decide on the necessity of the environmental impact assessment. The project entails an expansion of the (existing) coal excavation site in the municipality of Kovin, using the method of underwater exploitation, which is unique in the world. It appeared that the entity developing the expansion project is different from Rudnik Kovin AD who is managing the existing operations of the underwater exploitation. Morevover, it appeared that in early 2024 Rudnik Kovin AD planned to contest the planned activity of Energetski Kompleks doo Beograd.

The Novi Kovin project was mentioned in the 'Energy Strategy of Serbia up to 2040' document adopted in the second half of 2024, stating that "there is also the possibility of coal production from the Novi Kovin mine, whose exploitation capacity is 3 million tons per year."

National Coal Plans

In July 2024, Serbia adopted the final National Energy and Climate Plan highlighting that with the exception of some units, generally coal power plant capacities will be maintained and will not be dismantled until 2045. The national Energy Strategy of Serbia up to 2040 (with projections up to 2050) indicated that coal production shall be gradually lowered. It is estimated that the demand for brown coal and dry lignite will be halved by 2040, in relation to the reference year 2021. Therefore, it is necessary to optimize and rationalize production in underground coal mining, close non-viable mines with almost depleted reserves and invest in viable and profitable mines. Remaining coal reserves should acquire strategic character and it is necessary to make investment in overburden excavation and slope stabilization.