Sat, Nov 21 2009

Minyor mine faces liquidation over dwindling demand

Mon, Jan 05 2009 18:16 CET byNick Iliev 247 Views
Minyor mine faces liquidation over dwindling demand

More than 250 miners from the Minyor coal mine, west of Sofia, have gone on a 30-day unpaid leave as of January 5. Moreover, the Pernik-based quarry company will go into administration and ultimately close, as there has been a severe decline in demand, according to company manager, Ventsislav Aleksov, as reported by the Bulgarian Telegraph Agency, the BTA.

The Pernik mine is the prominent supplier of the power plant in Bobov Dol. The company's situation worsened dramatically when Bobov Dol decided to quota their demand and subsequently refuse the purchase of coal altogether, having stated that they have a surplus of coal of their own in October 2008. Thereafter coal shipments from Pernik Minyor to Bobov Dol shrank from 4000-5000 tonnes per month to less than 100 tonnes and have since ceased ordering coal from the mine altogether.

According to reports from Pernik Minyor, the mine has accumulated well over two million tonnes of first grade coal reserves, which have an operating life-span of 15 years. This is a new grim chapter for the mining establishment, as Minyor faced liquidation back in 2005, after it was purchased by the Sofia-based company Fundamental.

In June 2008 Consortium Energia MK, controlled by businessman Hristo Kovachki, placed a 100-million leva winning bid for 100 per cent ownership in Bobov Dol TPP. He then declared that he would invest 35 million euro over the next five years in the company, reports Investor.bg

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