Sun, Nov 08 2009

Minyor mine faces liquidation over dwindling demand

Mon, Jan 05 2009 18:16 CET byNick Iliev 240 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

Write comment

Name:Comment:

Generate new code
Send your comment
Last underground coal pit in Pernik closes down

Exports to Greece have been halted and Bobov Dol heating utility company has also slashed demand, thus spelling the end for the last Pernik coal pit.

More in this category

Influenza update: Sofia schools suspend classes

Kindergartens to be dealt with on a case-by-case basis and universities to decide for themselves whether to suspend classes.

Sliven police capture illegal immigrants bound for Greece

Five illegal immigrants from Iran and Iraq caught by Bulgarian police in Sliven.

Deputy head of veterinary service arrested on bribery charge

Leonid Lavchev sent an intermediary to collect 1000 leva from a dairy farm in Haskovo, investigators say

Former cabinet minister investigated for alleged embezzlement, malfeasance

Former labour minister Emilia Maslarova follows the example of Socialist party leader and former prime minister, Sergei Stanishev, in requesting that her MP immunity is lifted

Influenza update: sixth death in Bulgaria, Sofia schools face suspended classes

Health Minister: Influenza strain is not seasonal flu, it is swine flu. More than 100 000 Bulgarians are down with the H1N1 strain.

© 2000-2009, Sofia Echo Media Ltd.

Web Design by RIZN

Sofia Echo Media is part of the Economedia Group.
The news and information content on this website is provided by our editorial team and is copyrighted. Any unauthorised reproduction or use of it is strictly forbidden. Reproduction of this website's content is permitted only with prior written permission from the Editor-in-Chief, should be propertly acredited and provide an active link back to our site. Comments posted by the website's visitors are independent of the editorial materials and do not represent the views of sofiaecho.com. Sofia Echo Media cannot be held responsible for the statements contained in visitor comments. The percentаge change in the shares' prices are based on the price of the last transaction of the current session compared to the price of the last transaction of the previous session. Bulgarian Stock Exchange data is not real-time, but updated every 15 minutes, and should not be used as a basis for decisions about buying or selling stock options.