Energy sector in Bosnia and Herzegovina faces coal shortages and industrial transition

The mining and energy sectors in the Federation of Bosnia and Herzegovina are facing significant challenges due to declining coal production and industrial restructuring. At the Breza mine, workers have received their wages, but production has fallen by over 30% due to the relocation of mechanized equipment. This shortage has contributed to a deficit of one million tons of coal for Elektroprivreda BiH (EPBiH), forcing the utility to import electricity at higher market prices, which Vedran Lakić, the Minister of Energy, Mining, and Industry, noted results in significant financial expenditures.

To address these issues, the government is focusing on increasing investments in the mining sector to stabilize the energy system. Approximately 212 million KM has already been invested in new equipment and mine preparation. Additionally, a 'just transition' process is underway, supported by a 79.9 million euro project with the World Bank, aimed at managing the shift for mining communities, including the planned closure of the Zenica mine.

Regarding the steel industry, the government is seeking solutions for the Zenica Steelworks to protect approximately 1,900 direct jobs and thousands of related positions. While a court rejected the introduction of extraordinary administration, the Ministry is pursuing options to acquire full ownership and is engaging with economic and social councils to institutionalize support for displaced workers.