CEZ: Debate over breaking mining limits in SD’s Bilina mine

Martin Riman, Minister of Trade and Industry said that mining limits in Severoceske Doly’s (SD) Bilina mine could be broken. He sees possibility to consider mines case by case and take into consideration if these are threat for current dwellings. Bilina’s mine could provide additional 120m tons of lignite.

Our view:
We see the effort to break the mining limits in general as positive for CEZ, however retrofit of CEZ power plants already counts with this additional 120m tons of lignite. This additional 120m tons represent 12-13 years of production in Bilina mine. On top of this there is some 264m tons of lignite in Mostecka uhelna’s CSA mine which could be usable at the moment if the limits are broken. There is also 134m tons in SD’s Nastup mine beyond the limits, however these are not taken into accounts in connection with CEZ retrofits as it has low fuel efficiency. For the moment this issue is still matter of discussion as current government previously commited not to break these limits.