1. Kosovo Energy System

2. Energy Situation Production of electricity is monopoly of “Kosovo Energy Company” (KEK) Main energy sources Coal fired power stations Coal fired power stations Kosovo A 1960s Kosovo B 1980s Hydroelectric Stations Hydroelectric StationsGazivoda

3. KEK production capability 2003 UnitsProduction Capacity (MW) Remarks Kosovo A130 Kosovo A2100Out of service since November 2002 Kosovo A3100 Kosovo A5100 Kosovo B1250Damaged by lightning strike July 2002 expected return 2003 Kosovo B2250Damaged by lightning strike July 2002- expected to return to service 2003 Gazivoda (2 units) 35 Out of service

4. Energy Reserves Coal/Lignite reserves Bardh mine Bardh mine Mirash mine Mirash mine Drenica, Dukagjin and Anamorava Drenica, Dukagjin and Anamorava Uranium Reserves Gjilan (Stublovaqë) Gjilan (Stublovaqë) Thermal water reserve Kllokot, Kllokot, Banjë e Pejës Banjë e Pejës

5. Lignite Mining Operation Key Sections Mine Mirash (East and West) Mine Bardh Transportation systems in mines Transportation systems from mines to power plants Separation plants Kosovo ‘A’ Separation plants Kosovo ‘B’ Transportation system to neighboring countries

6. Coal Reserves Mirash mine Good Good East – West side mines working surface area of around 30 km2 1500 employees Main supplier to Kosovo A power plant Present reserve of 4 million tones/expandable to 35 mil tones once rehabilitated Main machines in good condition Needs Needs Unstable due to lack of preservation Ancillary plant to cover numerous support operations Machines & belts need to be repositioned (time consuming) Machines req. bulldozers, pipe layers, side cranes, front loaders and small excavators bulldozers, pipe layers, side cranes, front loaders and small excavators

7. Coal Reserves Mine Bardh Good Good working surface area of 4.5 km2 working surface area of 4.5 km2 2512 employees 2512 employees main supplier to Kosovo B plant main supplier to Kosovo B plant new equipment from Holland and Germany arrived new equipment from Holland and Germany arrived Present reserve of 35 mil tones Needs Needs neglect over last 10 years has caused loss of conveyor belts due to slippage neglect over last 10 years has caused loss of conveyor belts due to slippage angle of mining needs to be changed (time consuming) angle of mining needs to be changed (time consuming) more new machinery and parts for the old ones Ancillary plant to cover numerous support operations new access routes

8. Coal Production Improvement of overburden removal process at both mines Install better conveyor belts Better machinery Together have around 70 million tons current capability Overall there is around 11 billion tons of coal varying quality

9. Ancillary Plants Need because Need because support main excavators support main excavators Ground preparation Ground preparation Positioning of conveyors Positioning of conveyors Preparing roads Preparing roads New 8 ancillary machines have been delivered to both mines New 8 ancillary machines have been delivered to both mines Still need more machines at aprox. cost of € 7 million Still need more machines at aprox. cost of € 7 million

10. Overland Transport Use of rubber conveyor belts Needs fixing up

11. Coal Quality Low quality lignite Quality ranges from 6500 kg/kJ - 8500 kg/kJ Ash content is 25% Moisture content is 50% Sulfur Content under 1% Overburden to coal ratio vary 1 to 1 - 3 to 1 (3 cubic meters of overburden to 1 ton of lignite) (3 cubic meters of overburden to 1 ton of lignite) Heat base cost for Kosovo lignite is $ 1.3/GJ compare to $2/ton of coal that Western Europe pays to import

12. Energy Sector Money Needs Total costs estimated by KEK Director Mr A. Mazreku in 2000 Mine Bardh Mine Bardh 25,000,000 EURO Mine Mirash Mine Mirash 40,000,000 EURO 40,000,000 EURO Seperation and Drying Plant Seperation and Drying Plant 35,000,000 EURO Total spending of 100,000,000 EURO on mine repair Total estimated cost for all damages to the KES 311,000,000 EURO 311,000,000 EURO

13. Transportation Roads Mirash mine road is 68,10 km Mirash mine road is 68,10 km Bardh mine road is 59,50 km Bardh mine road is 59,50 km Reconstruction of mine roads started in 2001 Reconstruction of mine roads started in 2001 Overall roads need improvement if export is to be made this way Overall roads need improvement if export is to be made this wayRailroads Good shape Good shape Would need access to the mines Would need access to the mines Connected to the neighborhood countries Connected to the neighborhood countries

14. Export Possibilities Good EU imported approx 154-mil mt of coal in 2000 (80% of its fuel) EU imported approx 154-mil mt of coal in 2000 (80% of its fuel) Higher oil prices Higher oil prices Italy, Greece, Bulgaria, Romania … depend on import for their energy needs Italy, Greece, Bulgaria, Romania … depend on import for their energy needs Consumption at 243-mil MT last year Consumption at 243-mil MT last year Gasification GasificationBad Europe sees coal as dirty inefficient energy source Europe sees coal as dirty inefficient energy source Green revolution Green revolution