RB Kolubara (full legal name: ''Privredno društvo za proizvodnju, preradu i transport uglja Rudarski basen ''Kolubara'' d.o.o. Lazarevac''; ''Company for the production, processing and transport of coal mine basin Kolubara Ltd. Lazarevac'') is a Serbian

coal Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal is formed when ...

mining and

smelting Smelting is a process of applying heat to ore, to extract a base metal. It is a form of extractive metallurgy. It is used to extract many metals from their ores, including silver, iron, copper, and other base metals. Smelting uses heat and a c ...

complex with headquarters in Lazarevac,

Kolubara District The Kolubara District ( sr, / , ) is one of eight administrative districts of Šumadija and Western Serbia. It occupies the central part of western Serbia. According to the 2011 census results, it has a population of 174,513 inhabitants. The a ...

. The mine has coal reserves amounting to 2.2 billion tonnes of

lignite Lignite, often referred to as brown coal, is a soft, brown, combustible, sedimentary rock formed from naturally compressed peat. It has a carbon content around 25–35%, and is considered the lowest rank of coal due to its relatively low heat ...

, one of the largest lignite reserves in

Europe Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a Continent#Subcontinents, subcontinent of Eurasia ...

, and it produces 22.6 million tonnes of coal per year. Since Kolubara mining basin is the largest

supplier for Elektroprivreda Srbije it plays a vital role in the country's

energy independence Energy independence is independence or autarky regarding energy resources, energy supply and/or energy generation by the energy industry. Energy dependence, in general, refers to mankind's general dependence on either primary or secondary ene ...

. About 52% of the

electricity Electricity is the set of physical phenomena associated with the presence and motion of matter that has a property of electric charge. Electricity is related to magnetism, both being part of the phenomenon of electromagnetism, as describ ...

Serbia Serbia (, ; Serbian: , , ), officially the Republic of Serbia (Serbian: , , ), is a landlocked country in Southeastern and Central Europe, situated at the crossroads of the Pannonian Basin and the Balkans. It shares land borders with Hungar ...

is produced based on the

from Kolubara,Rudarski basen Kolubara. Proizvodnja. Retrieved 11. 6. 2014
/ref> that is about 20 billion kW hours of

per year. Most of the

(about 90%) is used for

electricity production Electricity generation is the process of generating electric power from sources of primary energy. For utilities in the electric power industry, it is the stage prior to its delivery (transmission, distribution, etc.) to end users or its storag ...

in TPP Nikola Tesla in

Obrenovac Obrenovac ( sr-cyr, Обреновац, ) is a municipality of the city of Belgrade. According to the 2011 census results, the municipality has a population of 71,419 inhabitants, while the urban area has 24,568 inhabitants. The largest Serbian th ...

, in thermal power plant Kolubara in Veliki Crljeni and in thermal power plant Morava in

Svilajnac Svilajnac ( sr-cyr, Свилајнац, ) is a town and municipality located in the Pomoravlje District of central Serbia. The population of the town is 9,131 inhabitants, while the municipality has 23,391 inhabitants. It is located south-east o ...

.Serbia Energy. Serbia mining:The importance of “Kolubara mine basin” in the Serbian energy system. Retrieved 11. 6. 2014
/ref>

History

The beginnings of

mining Mining is the extraction of valuable minerals or other geological materials from the Earth, usually from an ore body, lode, vein, seam, reef, or placer deposit. The exploitation of these deposits for raw material is based on the economic ...

in the region of Kolubara basin are associated with the year 1896 when the first pit Zvizdar was opened. In the eastern and western part of the basin coal has been successively extracted from the 14 pits Zvizdar, Sokolovac, Skobalj, Radljevo, Prkosava, Veliki Crljeni, Kolubara 1, Veliki Crljeni - Kolubara 2, Kosmaj - Kolubara 3, Baroševac, Šopić, Junkovac and others. A turning point in coal production came in 1952 with the opening of the first open pit (Fields A) which started mass surface mining of

. Opening of new mines and processing facilities fallowed.Rudarski basen Kolubara. Rudarstvo staro 117 godina. Retrieved 9. 6. 2014
/ref> The mining projects' original intention was to secure a stable, constant supply of energy and electricity for the country, which is why the Serbian federal government considers these projects of national interest.

Environmental Improvement project

In 2011 Kolubara started the Environmental Improvement project in order to improve the mining conditions and effects on the environment as well as the local communities involved. The estimated cost of this project is approximately EUR 165.2; the initiative is financed by the European Bank of Reconstruction and Development

EBRD The European Bank for Reconstruction and Development (EBRD) is an international financial institution founded in 1991. As a multilateral developmental investment bank, the EBRD uses investment as a tool to build market economies. Initially foc ...

(EUR 80 million ), the German state development bank

KfW The KfW, which together with its subsidiaries DEG, KfW IPEX-Bank and FuB forms the KfW Bankengruppe ("banking group"), is a German state-owned investment and development bank, based in Frankfurt. As of 2014, it is the world's largest national d ...

(EUR 75 million) and state electricity company Elektroprivreda Srbije (EUR 80 million). According to information provided by

, the investment will generate benefits resulting in an environmental improvement of the Kolubara complex. The main benefits being more efficient and cleaner extraction of

natural resource Natural resources are resources that are drawn from nature and used with few modifications. This includes the sources of valued characteristics such as commercial and industrial use, aesthetic value, scientific interest and cultural value. ...

s, supplying the existing

power plant A power station, also referred to as a power plant and sometimes generating station or generating plant, is an industrial facility for the electricity generation, generation of electric power. Power stations are generally connected to an el ...

s with

of a uniform quality (that will lead to more stable and efficient operations and controlled uniform emissions which will result in lower levels of

CO2 Carbon dioxide (chemical formula ) is a chemical compound made up of molecules that each have one carbon atom covalently double bonded to two oxygen atoms. It is found in the gas state at room temperature. In the air, carbon dioxide is transpar ...

and other pollutants as well as reduced wear and tear and maintenance costs) and helping

to achieve emission limits set by the recently introduced EU Directive 2010/75 on Industrial Emissions.Information about the project on EBRD webpage.
The Environmental Improvement project's goal is to also introduce new equipment, strategies and techniques to the workers and planners of Elektroprivreda Srbije (EPS). The purpose of introducing the new technologies and methods is to increase efficiency both economically speaking and environmentally speaking.

Controversial issues

Social impact

For the last 10 years the Kolubara mine basin has been expanding towards the settlements causing conflicts between inhabitants and mines. This problem affects around 6000 families. During the last decade, Elektroprivreda Srbije has moved hundreds of

household A household consists of two or more persons who live in the same dwelling. It may be of a single family or another type of person group. The household is the basic unit of analysis in many social, microeconomic and government models, and is i ...

s, two complete

village A village is a clustered human settlement or community, larger than a hamlet but smaller than a town (although the word is often used to describe both hamlets and smaller towns), with a population typically ranging from a few hundred ...

s and partially 10 villages. One of the main villages impacted was Vreoci, which resides in central Serbia. The project required a new mine pit on the location of the Vreoci graveyard as well as the relocation of more than 1,000 households. Underneath the graveyard lies approximately 50 million tons of coal, a requirement to get to the 600 million tons of lignite which would help the project but damage the local community's burial grounds and cultural landmark. Despite the heavy protests from the villagers, the EBRD loan was approved and the excavation of the graves continued. These protests have been met with police intervention and a series of blockades preventing the villages into the graveyard. The villagers asked for their houses to be relocated first so that shelter was secured, yet that process has not been as successful as promised. The lack of progress in the resettlement phase of the project has caused villagers to live in sub-par conditions and in locations with high air and ground pollution. Further protests ensued, such as street protests and hunger strikes. Resettlement caused by the Tamnava West expansion in 2003 was not done according to good standards either, the main reason being shortage of funds which led to slowing down of the land acquisition and development of the proposed infrastructure. In the end, they were never conducted, which diminished credibility of Elektroprivreda Srbije in the eyes of inhabitants. With continued expansion of the mine, the relocation of households became urgent and residents were under enormous pressure to accept

financial compensation Financial compensation refers to the act of providing a person with money or other things of economic value in exchange for their goods, labor, or to provide for the costs of injuries that they have incurred. Kinds of financial compensation inclu ...

and leave the territory designated for

excavation. The value of their property was often underestimated.CEKOR Complaint to the EBRD Project Complaint Mechanism submitted on 1. 10. 2013.
/ref>

Environmental Impact

In spite of the Environmental improvement project carried out in 2011, there are still various environmental consequences of the mining work in Kolubara complex such as gas releases (

carbon monoxide Carbon monoxide (chemical formula CO) is a colorless, poisonous, odorless, tasteless, flammable gas that is slightly less dense than air. Carbon monoxide consists of one carbon atom and one oxygen atom connected by a triple bond. It is the simple ...

, sulfur dioxide,

ozone Ozone (), or trioxygen, is an inorganic molecule with the chemical formula . It is a pale blue gas with a distinctively pungent smell. It is an allotrope of oxygen that is much less stable than the diatomic allotrope , breaking down in the lo ...

etc.), pollution of

water supply Water supply is the provision of water by public utilities, commercial organisations, community endeavors or by individuals, usually via a system of pumps and pipes. Public water supply systems are crucial to properly functioning societies. Thes ...

and deterioration of the ground.

2013 Landslide

In May 2013 the overburden of field B of the Kolubara

mine collapsed and caused a landslide that destroyed seven houses and one road in the town of Junkovac. On 28 March 2014 Serbian nongovernmental organization CEKOR (Centre for Ecology and Sustainable Development) pressed charges against Kolubara company for endangering

public safety Public security or public safety is the prevention of and protection from events that could endanger the safety and security of the public from significant danger, injury, or property damage. It is often conducted by a state government to ensur ...

in Junkovac. The case was made after the statement by the Department for Mining Inspection in the Ministry of Natural Resources, Mining and Spatial planning that confirmed the Kolubara company has overloaded the dump field that caused the landslide.Bankwatch. Serbian NGO presses criminal charges against Kolubara mining company over landslide. Retrieved 6. 6. 2014
/ref>

Corruption

In October 2011 authorities arrested 17 people, including two former directors of the Kolubara mine Dragan Tomic and Vladan Jovicic, eight executive managers and seven owners of

private firm The private sector is the part of the economy, sometimes referred to as the citizen sector, which is owned by private groups, usually as a means of establishment for profit or non profit, rather than being owned by the government. Employment T ...

s with which Kolubara conducted business. The executive managers are suspected of abusing their positions to illegally appropriate up to 2.9 million Euros, while enabling

private companies A privately held company (or simply a private company) is a company whose shares and related rights or obligations are not offered for public subscription or publicly negotiated in the respective listed markets, but rather the company's stock is ...

to illegally profit 9.2 million Euros. Pre-trial proceedings were initiated because of

suspicion Suspicion is a feeling of mistrust. Suspicion(s), The Suspicion, or Suspicious may also refer to: Film and television Film * ''Suspicion'' (1918 film), an American silent film directed by John M. Stahl * ''Suspicion'' (1941 film), an American ...

that Kolubara's

asset In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that can ...

s were used illegally through the leasing of construction machinery from

privately owned companies A privately held company (or simply a private company) is a company whose shares and related rights or obligations are not offered for public subscription or publicly negotiated in the respective listed markets, but rather the company's stock is ...

, and by enabling other corporations and persons material gain.Regional anti-corruption initiative. INVESTIGATING SERBIA'S FRAUD OF THE CENTURY. Retrieved 9. 6. 2014
/ref> The first of two corruption

trial In law, a trial is a coming together of parties to a dispute, to present information (in the form of evidence) in a tribunal, a formal setting with the authority to adjudicate claims or disputes. One form of tribunal is a court. The tribunal ...

s against Dragan Tomic started on 25 May 2012. Tomic and four others were

indicted An indictment ( ) is a formal accusation that a person has committed a crime. In jurisdictions that use the concept of felonies, the most serious criminal offence is a felony; jurisdictions that do not use the felonies concept often use that of ...

in January on charges of

abuse of power Abuse is the improper usage or treatment of a thing, often to unfairly or improperly gain benefit. Abuse can come in many forms, such as: physical or verbal maltreatment, injury, assault, violation, rape, unjust practices, crimes, or other t ...

and of damaging the Kolubara budget for US$650,000 between 2004 and 2008. They face up to 12 years in

prison A prison, also known as a jail, gaol (dated, standard English, Australian, and historically in Canada), penitentiary (American English and Canadian English), detention center (or detention centre outside the US), correction center, corre ...

. In January 2013

Energy Minister An energy minister is a position in many governments responsible for energy production and regulation, developing governmental energy policy, scientific research, and natural resources conservation. In some countries, environmental responsibilities ...

Zorana Mihajlović in her address, announced that Kolubara's business dealings are now a subject of an investigation, on suspicion of financial abuses.

Allegation In law, an allegation is a claim of an unproven fact by a party in a pleading, charge, or defense. Until they can be proved, allegations remain merely assertions.

s include paying high

salaries A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. ...

to non-existent employees, buying over-priced equipment, and using resettlement compensation to pass bloated amounts of money to people close to the management."Millions" syphoned off from coal mine, minister charges. Retrieved 9. 6. 2014
/ref> There have also been allegations of corruption within the EPS board members. Radoslav Savatijević, member of the Managing Board of EPS was given a huge compensation of EUR 1.2 million for his house in Vreoci; however, his house was not near the location of the mining and may not even have been eligible for expropriation compensation as the house was not registered as his residence address. Similar cases have risen throughout this project, causing anger and distrust amongst the locals of affected villages.

Events

2014 Floods

Due to heavy floods which devastated the area in May 2014, there has been a week-long interruption in

transport from Kolubara. Water two meters high covered all the machines and the railway on which the

is being transported.B92. Coal transport from Kolubara to Nikola Tesla power plant resumes. Retrieved 6. 6. 2014
/ref> The Belgrade

media Media may refer to: Communication * Media (communication), tools used to deliver information or data ** Advertising media, various media, content, buying and placement for advertising ** Broadcast media, communications delivered over mass e ...

have written about the damage and repayment of it since the machinery and equipment were not ensured against flooding.B92. RB Kolubara: Netačne izjave iz EPS. Retrieved 6. 6. 2014
/ref> Damage is estimated to be at least 100 million Euros.
/ref> The flood’s impacts were much worse for those living near the mine, especially where the waters and mud mixed with pollution from the mine.Bankwatch. When water mixes with coal - The impacts of the floods in Serbia on people living next to lignite mines. Retrieved 6. 6. 2014
/ref>

References

External links

Serbia Mining Energy News
{{DEFAULTSORT:RB Kolubara Companies based in Lazarevac Non-renewable resource companies established in 1992 Coal mines in Serbia Electric power companies of Serbia Elektroprivreda Srbije Government-owned companies of Serbia Open-pit mines Energy companies established in 1992 Serbian companies established in 1992