Bulgaria’s Maritsa Iztok Mines will invest BGN 64.2 million in machines and equipment in 2006. As much as BGN 43 million will come from depreciation costs, the remainder will be provided as a bank credit, CEO Ivan Markov said. The country's biggest coal mining company expects to post BGN 3.6-4.0 million accounting profit for 2005. In the past four months of the year it managed to double daily production to 20.937 million tonnes. Compared with 2004, production last year declined by 1.3 million tonnes. This trend will persist until 2009, due to the delayed rehabilitation of the Maritsa Iztok 3 thermal power plant (TPP) and the repairs on the territory of the Maritsa Iztok 2 TPP, Markov explained.
Source: Pari (16.01.2006)

Mines Maritsa Iztok SPJSC - Radnevo forecast a drop in the coal output. The manager Mr. Ivan Markov reported that 230,000 tons of brown coal less than 2005 were set in the company's plan. Normalization of the production of the three mines of the company is expected not until 2009. Then the production will increase by over 50 per cent because the modernization of Thermo-electric power plant Maritsa-iztok-2 SPJSC and Maritsa-Iztok 3 Exploitation Company JSC is expected to be finished and the new production capacities of AES-3C Maritsa Iztok 1 Ltd to be started.
Source: Standart (16.01.2006)

Representatives of EADS are expected to arrive in Bulgaria within a few days to start work on the offset programme that is part of the army modernisation project. This emerged after a meeting of minister of energy and economy Rumen Ovcharov, who is on an official visit to Germany. A week ago the Bulgarian government signed a contract with EADS's division Eurocopter for supply of 18 helicopters to the total amount of EUR 358 million. As part of the deal, the aviation consortium committed to invest EUR 360 million in Bulgaria over the next ten years. RWE wants to build a power plant with a 400 to 600 mW capacity on the territory of Maritsa Iztok in Bulgaria, minister Ovcharov learned at a meeting with RWE's representatives. Commerzbank is ready to finance part of the construction of the Belene nuclear power plant.
Source: Pari (19.01.2006)

National Electricity Transmission Company most probably will restructure the company in Holding with subsidiaries for the transfer and trade activity. In the parent company will stay the debts. This is one of the variants, which was presented by part of the company’s management during the meeting with the minister of economy and energy, Mr. Roumen Ovcharov and European Bank for Reconstruction and Development’s representatives, at the end of last week.
Source: Dnevnik (23.01.2006)

The production of mineral ore during the past year exceeded BGN 1.5 bln, which is 13 per cent more than the value realized during 2004. This is said in information from the Bulgarian Mining Chamber. As main reasons for the increase are pointed the high prices of the metals on the foreign markets, the growing interest of the investors in the branch and the stable economic situation. The reasons for the negative results in the coal extraction are explained with few negative trends – weak sales, shortening of the production, the processes of privatization and liquidation, and the lack of technical resources. Only 2 from 15 mines for coal are state-owned. These are the mines in Bobov dol and Maritza-iztok. Today the Bulgarian Mining Chamber will execute general meeting, on which will be accepted changes in the management because of the expiration of the mandate of the old management.
Source: Dnevnik (09.02.2006)

We will ask the energy commission to allow us higher electricity prices, said Mr. Atanas Dimitrov, the Director of Thermo-electric power plant Maritsa-iztok-2. The reason is that Mines Maritsa Iztok increased the price of brown coals. The biggest thermo-electric plant on the Balkans produces 6 billions kwh yearly. For the previous year the number is 6,4 billions kwh. The Director of Mines Maritsa Iztok said that it is true that they have asked 5 per cent increase of the price of one ton basic fuel. The Board of Managers has already signed a contract with Mines Maritsa Iztok-3 and is just waiting the agreement with Thermo-electric power plant Maritsa-iztok-2.
Source: Standart (16.02.2006)

Greek company PPC, which in 2005 was picked out as buyer of Thermal Power Plant (TPP) Bobov Dol, has declared before the Ministry of Economy and Energy its intention to acquire Mines Bobov Dol too. The Greek company wanted to use the mine as its main supplier. The decision for the mining company will be taken after the court passes its judgment on the privatization of the TPP. The Mining Chamber reported decrease in coal production last year on growth in production of electricity from hydroelectric power plants and the increase in fuel prices. The annual output is 23 mln tons, with 20 mln tons coming from Mines Maritsa Iztok. The company expects production and consumption to fall until 2008 because of the rehabilitation of the first and second units of TPP Maritsa Iztok 2 and the construction of new capacities by U.S. AES at the site of TPP Maritsa Iztok 1.
Source: Dnevnik (21.02.2006)

Mines Maritsa Iztok SPJSC looks for suppliers of working shoes and toilet soaps. The maximum value of the two orders amounts to about BGN 385 000. The company's requirement for the candidates is to have at least BGN 200 000 annual turnover for each of the last three years. The producer of the shoes supplied should have the capacity to make at least 25 000 pairs per year. The participants may buy the documents at the price of BGN 100 until March 22 and to put in the offer until March 30. The chosen supplier would have 4 months to carry out the order. With the second order Mines Maritsa Iztok wants over 382 000 toilet soaps. The participants should pay a guarantee of BGN 1200 and put in their offers until March 29. The supplier would have 3 months to fulfill the order.
Source: Dnevnik (01.03.2006)

Pair of producers seek to hike electricity prices over expensive coal Citing a jump in coal prices, thermal power plants (TPPs) Maritsa Iztok 2 and Bobov Dol have demanded a tariff hike for the electricity they sell to the national power grid operator NETC, the State Energy and Water Regulatory Commission said on Monday, March 6. The 2 TPPs have submitted their requests with the regulator. A working group will come up with a decision within 3 months. There will be no revision of the tariff for the time being as it would affect end-consumer prices, the regulator commented. The new prices may be introduced in April for TPP Bobov Dol, which is undergoing privatisation, and in the summer for Maritsa Iztok 2. Approached for comment Vladimir Vladimirov, executive director of TPP Bobov Dol, would not quote the size of the requested increase. Experts estimated that the power generated by the TPP will go up by 10-12%. Maritsa Iztok 2 executive director Atanas Dmitrov refused to comment. The TPP said the price of coal extracted by the Maritsa Iztok mining company had gone up by 5% since the beginning of the year. Currently TPP Maritsa Iztok 2 sells power to the licensed electricity trader EFT Bulgaria and KCM S.A. (Combine for Non-ferrous Metals) in Plovdiv. The State Commission for Energy and Water Regulation fixed a quota of 850 million kWh that the power plant may sell on the free market by July this year. Last year the TPP was selling to the Maritsa Iztok mines, Polimeri – Devnia, KCM – Plovdiv, EFT Bulgaria, Stomana Industry and Agropolychim – Devnia. The restraint of the company’s participation on the market was prompted by the stopping of the plant’s first two units for rehabilitation by Japan’s Mitsui. In 2005 TPP Maritsa Iztok 2 produced 6.4 billion kWh of electricity or 94 percent of the plan. The company reported pretax profit of over BGN 20 million for 2005.
Source: Dnevnik (07.03.2006)

Bulgarian company ProWave OOD said the nation's first TETRA network will be operational until June. The first clients of the network are the Kozloduy nuclear power plant, the Sofia International Airport, the Varna airport and the electricity distribution companies operating in Sofia and the Sofia region, said ProWave executive director Krasimir Ganchev. The client base should reach 1,500 by end-June and 10,000 by the end of the year. ProWave plans to spend 30 mln euro on the development of the network in the next 3 years, said Ganchev. Some of the necessary financing will be solicited from banks, including the EBRD and 2 of the biggest banks operating in Bulgaria, and from 2 unnamed U.S. investment funds. EADS and Selex have so far been contracted to supply equipment for ProWave's TETRA network. The network currently covers Sofia and the Sofia region and Kozloduy, on the Danube, and should reach Stara Zagora, Plovdiv and the whole of North-eastern Bulgaria by the end of 2006. ProWave is in talks to plug into the network the Maritsa Iztok coal mining company. Other potential clients include the ministries of interior, defence and disaster and emergency response, the civil defence and national power grid operator NETC. The TETRA network will not compete with the cellular grid operators GloBul, MobilTel and vivatel but will seek to phase out the analogue radio networks.
Source: Dnevnik (28.04.2006)

Miners produce 11 million T of coal A record amount of coal, 2 million tonnes, was produced in the three pits of Maritsa Iztok Mines in July. Since the beginning of the year the company has mined 11 million tonnes of coal, compared with an annual target of 20.7 million tonnes. As much as 45 million cu. m of earth was dug and transported in the first half of the year, the company's management said. On the eve of miners' holiday, August 18, Maritsa Iztok Mines workers established a civil association, St Ivan Rilski, to raise funds for the construction of an architectural and sculptural complex near Radnevo.
Source: Pari (10.08.2006)

The income of Mines Maritsa Iztok for the first half of the year is BGN 11 mln, reported the executive officer of the company Mr. Ivan Markov. The coal production from the beginning of the year is 46,67 mln tons or 4,5 mln tons more from the same period last year.
Source: Monitor (14.08.2006)

German utility company RWE is ready to invest EUR 700-800 mln in the construction of a new 600MW capacity in the Maritsa Iztok coal basin in Southern Bulgaria, said RWE board member Mathias Hartung. The investor has already communicated the proposal to the Bulgarian government. RWE is ready to invest both in the new power generation capacity and in the Maritsa Iztok mines as well, said Hartung. The Maritsa Iztok coal basin generates 30% of Bulgaria's power output. RWE has suggested to build the new capacity on the site of the Maritsa Iztok 2 thermal power plant (TPP) which currently has 8 units with a combined capacity of 1,460MW. The German company plans to sell the output from the new capacity on the local market. Bulgaria will retire units 3 and 4 of the Kozloduy nuclear power plant by the end of 2006. That capacity gap is expected to be filled by a new 670MW replacement capacity commissioned to U.S. company AES, by the upgrade of the Maritsa Iztok 2 and 3 TPPs and the construction of the Tsankov Kamak hydro power complex. RWE's offer competes with that of Italian utility company Enel which is seeking to build a new 600-700MW capacity on the site of Maritsa Iztok 3. The cost of two new 300MW reactors is seen at over 1 bln euro but that could be brought down to EUR 800-900 mln with the use of the existing infrastructure, said Enel. The review of the rival offers should take into account RWE's expertise and the company's desire to solve the social problems of the coal-dependent region, said Hartung. The Maritsa Iztok basin could be overwhelmed by so many projects for new power facilities, said energy minister Rumen Ovcharov. These proposals should be checked against the output capacity of the coal mines, said the government official.
Source: Dnevnik (21.08.2006)

Three Bulgarian companies are willing to build capacities for processing of the raw gypsum generated as a by-product at the Maritsa Iztok electricity complex, the local authorities told the Pari daily. Balkanstroy has already worked out a concrete project and has won an auction for 7.5 ha of agricultural land. The deal amounts to more than BGN 150,000 and is expected to be finalised by the end of September. Interest in gypsum production at Maritsa Iztok has been also shown by Rigips and Knauf Gips KG.
Source: Pari (05.09.2006)

Maritsa Iztok Mines' coal output since the beginning of 2006 reached a record high 14.08 million tonnes in the middle of September, Ivan Markov, executive director of the company, said. This year's target is set at 20.7 million tonnes. Maritsa Iztok Mines will have to produce 34.6 million tonnes of coal annually by 2009 in order to keep up with demand, estimates made by Bulgaria's Minproekt and ordered by Italy's ENEL show. The company will have to invest at least BGN 70 million annually in technological upgrade over the next 3-4 years in order to achieve this target, according to Markov.
Source: Pari (19.09.2006)

The Maritsa Iztok coal mining company will invest an additional 5.2 mln levs in substations and power lines by the end of 2006, said executive director Ivan Markov. The company's board of directors decided Friday that investment spending could exceed 70 mln levs. The mines will finance 70% of the spend and will borrow the remainder. Maritsa Iztok has so far outperformed y/y by 0.099 mln tons of coal and should end the year with an output of 20 mln tons.
Source: Dnevnik (25.09.2006)

France's Alstom and US AES signed yesterday a contract for the construction of a 670 mW replacing capacity at Maritsa-Iztok 1 thermal power plant (TPP) in Bulgaria. The two companies have reached an agreement that the bulk of the rehabilitation and upgrade works will be carried out by Alstom. The value of the project is estimated at over EUR 700 million. The Bulgarian government will not participate in the selection of subcontractors for the project as the contract was signed only by the two companies. Alstom's participation in the project will extend by 18 years the lifetime of the TPP and will improve considerably its efficiency. AES have also signed a 15-year contract with the National Electric Company (NEK) for the purchase of electricity from the TPP. The US company also has a 15-year coal supply contract with the Maritsa Iztok Mines.
Source: Pari (26.09.2006)

By the end of the year Maritsa Iztok Mines will have produced 20 million tons of coal. The company plans an investment programme at the total cost of 70 million levs (1euro = 1.95 levs). This year again representatives of the company took part in all the work commissions of EUROCOAL - the European Association for Coal and Lignite as Maritsa Iztok is a member of the association. These are three of the number of indices that define Maritsa - Iztok Mines as the European face of Bulgarian coal mining. The investment in the first seven months of the year is over 35 million levs that over-fulfills the initial business programme by 55%. The board of directors amended the investment plan for 2006 from 64.2 million levs to 69.4 million levs. Putting into operation the fourth most powerful rotor excavator in the world - Rs 4000, has been also an unquestionable success for the company.
Source: Standart (03.10.2006)

Bulgaria may merge into a holding structure national power grid operator NEK, gas distributor Bulgargaz, thermal power plant Maritsa Iztok 2, nuclear power plant Kozloduy and the Maritsa Iztok mines after the gas and electricity companies complete their corporate restructuring, said economy minister Rumen Ovcharov. Shares in NEK and Bulgargaz could then be floated on the local or international bourses. The energy ministry should be ready with the concept for the large-scale restructuring - which will have to be cleared by the creditors of the affected companies, within 3 months. If the full-scale consolidation is ultimately ruled out, the merger could involve only the electricity production, NEK and Bulgargaz, said Ovcharov. Four companies, including owners of electricity distribution utilities in Bulgaria, have shown interest in swapping shares in the mentioned energy firms, said the government official. The CEOs of Bulgargaz and NEK said the corporate restructuring of their companies will wrap by the end of 2006.
Source: Dnevnik (09.10.2006)

German utility company RWE, which is mulling the construction of a new 600MW capacity in the Maritsa Iztok coal basin in Southern Bulgaria, is viewing the project as one with the development of the Maritsa Iztok mines, said Holger Bitz, the project chief for Bulgaria., after a series of meeting of company reps at the Bulgarian energy ministry. The German company intends to invest some 1 bln euro in the development of the mines. The energy ministry said it will not be able to comment on RWE’s plans before the country’s new energy strategy is ready. RWE is ready to finance on its own the new power capacity which is estimated to cost 900 mln euro, said Bitz. A site for the new power plant is yet to be picked. The German company said it will request a letter of government support for the project similar to the one granted for a 650MW capacity to AES of the U.S.. That investment is also based in the Maritsa Iztok complex. Italian utility Enel has also stated plans for the construction of a new power capacity in the Maritsa Iztok complex. Bitz confirmed that RWE was in talks on possible co-operation with the other investors in the coal basin.
Source: Dnevnik (14.11.2006)

The Maritsa Iztok mining company has applied to be issued a 35-year permit to operate as an electricity trader. At the moment, the mines buy electricity directly from the Kozloduy nuclear power plant and were one of the first local corporations to enter the deregulated segment of the Bulgarian power market. The mines have a 110kV network that connects to several industrial power consumers which do not have access to the infrastructure of national power grid operator NEK, said executive director Ivan Markov. On Friday, the local power regulator will review an application for a 10-year power trading permit submitted by Stadkraft South East Europe, a subsidiary of Stadkraft Europe which is in turn owned by Norway's Stadkraft. Bulgaria has so far licensed 15 power traders, including EFT Bulgaria, Energy Partners, PPC, CEZ Trade, E.ON Bulgaria Trading, Enemona Utilities and Transeuro Energy.
Source: Dnevnik (15.11.2006)

Bulgaria to integrate mines, power and gas utilities into holding structure The Maritsa Iztok mines, thermal power stations Maritsa Iztok 1, 2 and 3 and the company that will design the future Belene nuclear power plant will form a unit within the holding structure of national power grid operator NEK. The restructuring is the first stage in a plan to consolidated power production presented Wednesday by Bulgarian energy minister Rumen Ovcharov. The consolidation process should get underway in 2007. Bulgartal, the telecom division of gas distributor Bulgargaz, and NEK's telecom operations will be integrated into the holding structure at the second stage of the project. The third stage will entail the consolidation of electricity production and transmission and gas transmission. The idea is to establish a separate company in charge of power and gas system management and transmission. The consolidation concept also envisages the creation of a financial outfit involving only the power stations which could be listed on the local or a foreign stock exchange. Bulgaria may list 5 per cent to 15 per cent on the Bulgarian bourse and add a further 10-15 per cent in 12-14 months; a second option is to offer 10 per cent to 30 per cent in the company to select investors in the U.S. and UK; a third option is to list 5-19 per cent on the Bulgarian bourse and 20-30 per cent abroad.
Source: Dnevnik (16.11.2006)

Germany RWE has expressed interest in setting up a new 640-MW power generating capacity at the site of the Maritsa Iztok 3 thermal power plant (TPP). If the project is implemented, RWE will cut its 67-percent stake in the mining company Maritsa Iztok Mines. The equity participation will be discussed at a general shareholders' meeting on November 17, as well as by the management and supervisory boards of the mining company. Italy's Enel also showed interest in building a new power plant at the site of Maritsa Iztok 3 recently.
Source: Pari (16.11.2006)

Maritsa Iztok Mines has achieved huge progress in the implementation of new technologies and in environmental preservation, the president of the European Association for Coal and Lignite (Euracoal), Nigel Yaxley, said. Bulgaria's biggest state-owned company in open-pit mining is a founding member of Euracoal and has representatives in the association's five working committees. Yaxley recommended that Bulgaria should boost the integration of energy producers with coal mining companies.
Source: Pari (24.11.2006)

Austria's EVN, which owns the regional electricity distribution utilities in Bulgarian cities Plovdiv and Stara Zagora, is interested in the acquisition of shares in the holding company that will be formed with the merger of the state-owned mines, power and gas utilities, said EVN board member Peter Layr. Bulgarian energy minister Rumen Ovcharov recently said equity from the new holding company could be swapped with power majors like E.ON, EVN or Enel. Two weeks ago, Ovcharov presented to the parliamentary energy policy committee the energy holding concept. The Maritsa Iztok mines, thermal power stations Maritsa Iztok 1, 2 and 3 and the company that will design the future Belene nuclear power plant will form a unit within the holding structure of national power grid operator NEK. Bulgartal, the telecom division of gas distributor Bulgargaz, and NEK's telecom operations will be integrated into the holding structure at the second stage of the project. The third stage will entail the spin-off of electricity production and the consolidation of power and gas transmission operators. During the fourth stage, a financial outfit will be created with that could be listed on the local or a foreign stock exchange. EVN, which is in talks to buy the Plovdiv district heating company, continues to be interested in the construction of a waste recycling plant in Bulgaria, said Layr.
Source: Dnevnik (27.11.2006)

Sandvik awarded major materials-handling contract in Bulgaria Sandvik Mining and Construction has received an order for materials-handling system for an Alstom engineering project in Bulgaria, the Swedish company said on its corporate website. The order, valued at about EUR 44.3 mln, comprises a turnkey lignite and limestone handling system at the Maritsa Iztok 1 power station in Southeast Sofia, Bulgaria. The advanced system has a capacity exceeding 32,000 tons per day. The Sandvik delivery will include a train unloading station, stacker/reclaimers, belt conveyors, crushers and a limestone handling system. The coal-fired power plant is scheduled to start operations in 2009. Earlier this year, Sandvik completed the delivery of a materials-handling system for coal and iron ore for the port of Burgas in Bulgaria. The Maritsa Iztok 1 project is strategically important for Sandvik in establishing close cooperation pending Alstom’s continued expansion plans in the power sector. French power and transport engineering group Alstom has won a contract worth more than EUR 700 mln with U.S. company AES Corp. that covers engineering, procurement, construction and in-house manufacturing of the main equipment for the Maritsa Iztok 1 lignite-fired power plant.
Source: Dnevnik (11.12.2006)

Bulgaria's InvestBulgaria Agency, the local investment promotion authority, Tuesday named 8 corporations and municipalities as the top investors of 2006. The investment tally of the recognised projects is BGN 1.2 bln. They will create 14,000 jobs. The year's top investment is the BGN 100 mln multi-purpose hospital project of Japan's Tokushukai. Second place went to mining company Mini Maritsa Iztok which earmarked BGN 70 mln for investment. Belgian semiconductor maker Melexis was cited for its EUR 30 mln project for a plant for automotive systems for the automotive industry. Another of the prizes went to Bulgarian company Gradus which this year opened the biggest poultry slaughterhouse in the Balkans. The other award-winners were Preciz Inter Holding, Optics, Prista Oil and the municipality of Blagoevgrad.
Source: Dnevnik (13.12.2006)

Prista Oil is the Bulgaria company, that has made most investments abroad during the last year, said from the Bulgarian investment agency. Other local company – Gradus 1 LTD, was chosen for number 1 investor in the sphere of food industry. Owners of Gradus 1 are brothers Ivan and Luka Angelovi. The award in the sphere of metallurgy was taken by Precise inter holding, Ivanovo village, and in the high technologies OPTICS, Panagyurishte.
Source: Monitor (13.12.2006)