Mibrag reports 176 million euro loss amid coal phase-out

Lignite mining company Mibrag reported a loss of approximately 176 million euros in its 2024 annual financial statements. The company attributed the deficit to declining extraction volumes and high provisions set aside for future land reclamation tasks.

These provisions are intended to fund the restoration of remaining pits at the Profen and Vereinigtes Schleenhain open-cast mines in Saxony and Saxony-Anhalt following the planned coal phase-out in 2038. The losses were fully covered by Mibrag’s parent company, the Prague-based EPH Group, which reported 225 million euros in provisions for reclamation tasks related to Mibrag companies.

Economic pressures include shrinking margins for coal-generated electricity due to the increasing scarcity and rising cost of CO2 certificates within the EU Emissions Trading System. Additionally, Mibrag’s extraction volumes fell by nearly 40 percent between 2021 and 2024 as part of a mid-load concept.