Bosnian Coal Mine Banovici Sees Record High Output, Halved Profit in 2008 - Media

The company said earlier its 2007 net profit was almost 8.0 million marka, while output that year reached 1.42 million tonnes.

No company officials were immediately available for comment.

Banovici has invested 40 million marka in modernising its equipment over the last years, helping it generate combined profits of 20 million marka, daily newspaper Dnevni Avaz quoted the mine’s director, Munever Cergic, as saying.

Rudnik Mrkog Uglja (RMU) Banovici is one of the biggest coal mines in the Muslim-Croat Federation, which together with the Serb Republic forms war-divided Bosnia. It is located in the central part of the country and employs 2,700. The Federation government owns 69% of Banovici, while the remaining shares are traded on the Sarajevo Stock Exchange (SASE).

Banovici stock was last traded on SASE on December 5, when they closed at 45.00 marka, down from 46.00 marka at the previous close on November 14, bourse data showed.

Cergic has said the mine plans to raise its annual output to two million tonnes by 2010.

Banovici sells 60% of its output to the Tuzla coal-fired power plant located nearby and also supplies coal to Bosnian households and exports to Croatia and Serbia.

(1 euro = 1.95583 Bosnian marka)