West Kostolac Coal Mine

Background

West Kostolac or Kostolac Zapad coal mine was proposed in 2022 (and possibly earlier). The research of Elektroprivreda has shown that the western part of the Kostolac coal basin has respectable exploitable amounts of lignite. As production of Kostolac Zapad mine increases, production of Drmno Coal Mine will decrease.

The national energy strategy of Serbia adopted in the second half of 2024 stated that "depending on the selected exploitation scenario and new limitations on the Drmno coal mine, it is possible to open West Kostolac mine as a replacement mine for Drmno." The document estimated investments into the mine of EUR 453 million and referred to completed feasibility study on the exploitation of West Kostolac deposit.

According to the corporate newspaper of EPS from July 2024, spatial planning documentation was being prepared for the mine. Geological exploration works were expected to be carried out in the second half of 2024.

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.