The Federal Minister of Energy, Mining and Industry, Vedran Lakic, has announced the closure of the Zenica coal mine due to significant losses. The decision comes as part of a broader strategy to ensure the energy independence of the Federation of Bosnia and Herzegovina (FBiH) through new energy projects.
The financial losses of the Zenica coal mine have been a major factor, with the parent company, power utility EPBiH, facing mounting debt. The Zenica mine alone has been responsible for nearly 10 million euros in annual losses. Unprofitable management and inefficiencies in the operation of the coal mines contributed significantly to the company’s financial difficulties.
Minister Lakic explained that, in collaboration with the federal union and the mine’s management, it was decided to close the mine. The closure comes as EPBiH has been forced to import electricity in 2023 due to insufficient coal production. This marks a shift for FBiH, which had previously been an exporter of electricity to other markets. Since 2009, the Federal Government has invested over 250 million euros in the coal mines, but an audit revealed that almost 60 million euros of these investments were unjustified, adding to the debt of EPBiH, which now stands at over 160 million euros.
The government is now focused on alternative projects to maintain energy independence and improve the efficiency of the region’s energy sector.
