Rmu Banovići Industrial Org.

Topics: Coal, Nuclear power, Bosnia and Herzegovina Pages: 6 (2233 words) Published: May 7, 2013
International university of Sarajevo
Faculty of business administration
Eco311 industrial organization

RMU Banovići Investment options

Denijal Ikanović
Decembar 2012, Sarajevo

Company Info
One of the main economic resources available to municipality Banovići is high in calories quality brown coal, which was and remains a fundamental prerequisite for economic and social development of the municipality. Brown Coal Mines "Banovići" in Banovići, Inc. began work in 1946, when the war-torn country needed coal as an energy source in the industry, and for whose exploitation is built railroad Brcko - Banovići in 1946. Today RMU Banovići has about 2700 employees, produces over 1,500,000 tons of deboned coal in the range: cube, nuts, beans, and tiny, tiny II. About 70% of coal is sold to power plants of the needs and the rest is put industry and consumption. Lower heating value of coal deboned ranges of 16000 kJ/kg to 20,000 kJ/kg RMU Banovići today a joint stock company with a joint state (ca. 69%) and private (approx. 31%) capital. RMU Banovići is composed of the following units: 1 Underground mining, 2 Surface mining, 3 Separation, 4 Rail transport, 5 Social standard, 6 Directorate. Management of company make significant investments in updates of the production, tools for working in the mines, improving the protection of employees, ensures a stable production and market competitive product, which customers are already recognized for their quality. Long-term development of coal based on the construction of thermal power plants that need to provide certain coal sales, increased consumption of coal, electricity and thermal energy, more jobs, raise standards of employees, as well as encouraging other industry facilities construction such as cement plants and other utility to manufacturing facilities. Through the implementation of European directives on the protection of the environment to reduce the emission of harmful substances in the elimination of the individual combustion chamber, and through the use of by-products such as SOX and NOX emissions for cement, gypsum, etc. Since RMU Banovići is socially responsible company, its goal is, in the municipality in which it exists in, finding best way to exploit coal and selling it as a secondary product that is sold in MWh, and to respect the European standards in the construction of thermal power plants, whose activities were in an advanced stage of construction to create more pleasant living conditions. In addition to high quality coal, with recognizable name, RMU Banovići offers to market a place for relaxation and rest Zlača Hotel, which is located near Banovici in nature on the mountain slopes Konjuh. RMU Banovići is a member of the European Association of Mine "EURAKOAL" since 2005.

Brown Coal Market structure
Bosnia and Herzegovina produced approximately 4 297 068 million tones of coal ( sold for 335 850 000 KM by Agencija za statistiku BiH “Tematski Bilten 05” 2011, pg.17) in 2011 which is overwhelmingly used to fuel the four existing major coal-fired power stations. With the reconstruction of the country following the civil war in the early 1990's, the coal industry is expanding. New coal-fired power stations or new units at existing power stations have been proposed to supply electricity to the regional and broader European market. However, only a very minor amount of brown coal produced is currently exported. One review of the Bosnia Herzegovina energy sector stated that "all [coal] mines are facing numerous particular problems, but what they suffer in common is a time lag of funding required primarily for land remediation, infrastructure and equipment maintenance and replacement.

Existing coal mines
The Bosnia and Herzegovina Foreign Investment Promotion Agency identifies the existing coal mines operating in brown coal market as being:
Banovici coal mine is a brown coal mine working three open-cut deposits -- Čubrić, Turija and Grivice -- as well...
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