Slovenia's Velenje coal mine operator seeks extension of concession deal

The application does not include a change in the scope of the mineral raw materials exploration permit and the size of the mining area and had to be submitted at least six months before the end of the concession period, which expires on July 21, 2023, Premogovnik Velenje said in a statement on Monday.

Premogovnik Velenje signed a 20-year concession agreement with the Slovenian government on January 21, 2002, which later was extended by six months, the coal miner said.

Premogovnik Velenje operates the only lignite mine in Slovenia, supplying coal mainly to the Sostanj coal-fired power plant in the country.

In January 2022, Slovenia's government adopted a strategic plan to stop using coal for electricity production by 2033. The strategy envisages the closure of the Velenje coal mine, as well as a comprehensive social and economic restructuring of the Zasavje and Savinjska-Saleska coal mining regions.

Under the strategy, the 884 MW TES and the 123 MW Ljubljana coal-fired heat and power station which delivers 90% of the remotely generated heat in Slovenia's capital, will be closed by 2033. However, as the facilities of TES are designed to burn lignite coal with the characteristics of the coal produced at the Velenje mine, parent Holding Slovenske Elektrarne (HSE) is unable to entirely replace local output with imports.