Kosovo Lignite Exploitation Opportunities Commercialization Development Plan

Kosovo Lignite Coal Reserves  Current reserves bill tons of coal or 2.3 bill tons petroleum  Quality MJ/kg Ash content 9.84–21.32 % Moisture content of 38–48 % Sulphur 0.64–1.51 %  Overburden to coal ratio vary 1 to 1 – 1.7 to 1 (1.7 cubic meters of overburden to 1 ton of lignite)  Current mining operations (type of mines) Two main mines (Bardh and Mirash mine)  50 million tons/year total current capability

Kosovo Electricity Production Coal fired power stations  Kosovo A 1960s Max. 330MW  Kosovo B 1980s Max. 500MW UnitsProduction Capacity (MW) Working Condition Kosovo A130Yes Kosovo A2100No Kosovo A3100Yes Kosovo A5100Yes Kosovo B1250No Kosovo B2250No

Market Summary Domestic Target Market  Country needs MW  Currently if countries power plant is working at full capacity it can produce at best 500MW  Still need of MW International Target Market  Countries that depend on import of their energy and are in proximity of Kosovo Greece will need extra 500MW per year by 2015 Italy needs extra 1.2TW

Costs Repair and Running costs € 1.014bil Coal prices (2002-EU) € 67/metric tone The Opportunity Electricity Production Exporting Coal Building a new Power Plant (Double Cycle) 830GWh/year Using existent power plant 500 MW/year Power Plant (Kosovo B)  Costs  Repair and Running costs  € 39.72mil  Electricity prices ( EU)  € 5.45/100kW/h ROI = 4.45% After first year of full production Railway option ROI =.0013% After first year of full production and export  Costs  Building Cost  € 93.83mil  Running Cost  € bill  Electricity Prices  €5.45/100kW/h ROI =.014% After first year of full production

Risks Kosovo’s political instability Plant building and maintenance resource allocation/imports constraints Inability to reach enough investors Competition outbids/outperforms us

Goals & Objectives Further research into electricity production options for Kosovo Arouse interest in Kosovo electricity production potential Create and improve Kosovo-Europe countries business relationships through electricity business propositions

Conclusion Electricity best opportunity for Kosovo lignite reserves Long term investment into building new power plant with double cycle technology best option Privatization of KEK in the future crucial to project success