Ugljevik mine union warns of coal shortage and winter power risks in RS

RiTE Ugljevik produces one-third of the electricity in the Republika Srpska power system (ERS), making it a vital part of the region’s energy infrastructure.

“Despite repeated promises from top officials, the concession for ‘Ugljevik East 2’ still hasn’t been granted. This deposit is critical for the survival of our company,” the union stated.

Risk of winter shutdown

The union recalled that earlier this year, the power plant was temporarily offline due to coal shortages, an incident they say was predicted and warned about in advance. They now fear a similar situation could occur this winter unless action is taken immediately.

They argue that coal from the Ugljevik East 2 deposit is better suited for the plant’s current infrastructure and can be accessed more efficiently than existing reserves. They also stressed the need for accompanying investments in mining equipment and machinery.

“To prevent another crisis, we urge authorities to urgently grant this concession. Our plant, and by extension, the stability of the entire energy system, depends on it,” the statement said.

Arbitration with Slovenia

The union also rejected any suggestion that RiTE Ugljevik should bear the financial burden of an international arbitration with Slovenia’s Elektrogospodarstvo Slovenije (EGS-RI). The Slovenian company is demanding €750 million in damages from Bosnia and Herzegovina at the International Centre for Settlement of Investment Disputes (ICSID), citing unfulfilled energy deliveries from pre-war investments in the plant.

In a separate case, an arbitration tribunal in Belgrade ruled in 2023 that EGS-RI is owed €67 million and a third of the plant’s electricity output.

RiTE Ugljevik insists it bears no responsibility: “We have consistently produced electricity and delivered it to our parent company, which managed distribution. We didn’t benefit from the proceeds, and we cannot be held accountable for any arbitration outcome.”

ICSID has paused the case while EGS-RI and the Republika Srpska government attempt to settle disputes over interest and legal fees.

Workers’ rights and financial struggles

The union also highlighted internal financial problems, citing violations of the collective agreement and delays in worker benefit payments. Specifically, they demand immediate payment of outstanding vacation bonuses and warn that poor financial management is undermining employee rights.

They called on authorities in Republika Srpska to take urgent steps to stabilise the company and protect workers.

“Given the scale of the crisis, we are ready to take all legally permitted actions, including radical union measures, to protect our livelihoods and the future of this company,” the union warned.

The message concludes with a call for immediate institutional intervention to secure the plant’s operations, preserve workers' rights, and maintain energy security across the region.