Bulgaria's Mini Maritsa Iztok should cut coal output to avoid risk of landslides Bulgarian coal mining complex Mini Maritsa Iztok should cut its output to 27 million tonnes of coal annually in the next three years to avoid landslides, local media reported, quoted the company's head. In 2015, the company was forced to produce over 32 million tonnes of coal which it supplied to the two thermal power plants operated by U.S. companies AES and ContourGlobal, said Mini Maritsa Iztok CEO Andon Andonov. According to Andonov, if the company maintains these output levels, it risks triggering a landslide in some of the pits, which would lead to a halt in production, which in turn would cause a disruption of power supplies. Mini Maritsa Iztok is a 100% state-owned sole-proprietor joint-stock company.
Source: 3e-news (04.01.2016)

Bulgaria's BEH to discuss 650 mln euro loan with 12 banks in mid-Jan Bulgaria's National Electricity Company plans to start discussions on January 14 with 12 banks which have shown interest to provide it with a loan of 650 million euro ($699 million), the country's energy minister said, as quoted by local media. In August, US companies AES and ContourGlobal signed agreements with the National Electricity Company, NEK, a unit of BEH, on a decrease in the prices at which it buys electricity produced by the two companies' thermal power plants. For its part, NEK pledged to pay back its overdue liabilities to the two plants. Also in August, energy minister Temenuzhka Petkova said that NEK owes the two plants around 900 million levs ($494 million/459.6 million euro) in total. In November, BEH sent to 25 international banks letters inviting them to provide it with a 650 million euro loan.
Source: Dnevnik (07.01.2016)

Tsvetan Vasilev made cessions in CCB for BGN 81 million. The majority owner of bankrupt Corporate Commercial Bank - Tsvetan Vasilev, made cessions, through which he is trying to save BGN 81 mln of his money in the CCB. This is clear from the list of cessions and interceptions made by individuals and companies with money in the bank after it was placed under the special supervision on June 20th, 2014. The company Bromak of Tsvetan Vasilev has asked five cessions totaling EUR 41.41 mln, or nearly BGN 81 million. Other companies associated with Tsvetan Vassilev, also arranged offsetting receivables. Among them are Sana Space Hotel Hissar, Health and Wellness, Corsi Mountain Resort, Kostenets HHI, Infrastructure Company, Partner Leasing, Planasat, Gypsum, Rousse Shipyard West, Telish. Military Factory Dunarit made interceptions for BGN 13.35 mln, EUR 33.25 mln and USD 7.7 mln. Grisha Ganchev firm Elite Petrol has made several interceptions for BGN 40 mln, EUR 2.7 mln and USD 12.7 mln. Another company of the businessman - Litex Motors, has made deals with BGN 47 million and EUR 15.5 mln.
Source: Standart (07.01.2016)

American AES Maritsa Iztok ² waits for BGN 600 million from NEC Unpaid obligations of National Electricity Company to the American AES Maritsa Iztok ² has grown to BGN 600 million. Negotiations of Bulgarian energy holding with several banks for granting of an emergency loan of EUR 600 million are expected to be over in a matter of weeks. Money is needed for payment with American AES and Contour Global Maritsa East 3. Concern is the request of the state Mini Maritsa Iztok EAD-Radnevo coal production from open coal mines to be reduced. For 2016 the thermal plant has declared 5.2 million tons of coal which provide normal rhythm of operation at 60 percent loads of the equipment. In recent months, the plant operates with 70 percent load on its two blocks.
Source: Monitor (12.01.2016)

Bulgaria's Mini Maritsa Iztok mines invest 4.7 mln euro in equipment Bulgaria's energy ministry said on Monday that state-owned coal mining complex Mini Maritsa Iztok has invested BGN 9.2 million in new equipment. The new rotary excavator will reduce maintenance and operation costs, deputy energy minister Zhecho Stankov was quoted as saying in a press release. The funding was provided by the Kozloduy International Decommissioning Support Fund (KIDSF).
Source: Darik Radio (19.01.2016)

Trade Unions Urge State to Facilitate at Least Partial Payment of Debts to Maritsa East Mines The Confederation of Independent Trade Unions in Bulgaria (CITUB) and the Podkrepa Confederation of Labour will insist that the State help the Maritsa East Mines out of its dire financial straits, CITUB President Plamen Dimitrov told a news conference here on Monday. Dimitrov specified that the two confederations will write to the Government, suggesting an option in which the Bulgarian Energy Holding (BEH) would be furnished with sovereign guarantees for a loan ensuring at least a partial payment of the Mines' 515 million leva-plus receivables. In the CITUB leader's words, a number of repairs at the Mines have not been carried out or have been done using makeshift materials, and the repair crews are forced to buy screwdrivers, hammers and other tools on their own money. The BEH is negotiating a 650 million euro loan with foreign banks, the proceeds of which are supposed to pay the amounts that the National Electric Company (NEK) owes the two US-owned power plants in the Maritsa East Complex: AES 3C Maritza East 1 EOOD and ContourGlobal Maritsa East 3 AD. This is a condition on which the two TPPs will pay the nearly 350 million leva that they owe the Maritsa East Mines for lignite. The Brikel TPP owes the Mines nearly 50 million leva, and the Maritsa East 2 TPP almost 60 million leva. "At the end of last year it emerged that foreign banks distrust the Bulgarian Energy Holding (BEH) and refuse to lend it 650 million euro without sovereign guarantees. No sovereign guarantees for the BEH are envisaged in the 2016 budget. Energy Minister Temenouzhka Petkova says the negotiations with the banks continue," the "Sega" daily wrote on January 20.
Source: offnews.bg (26.01.2016)

Bulgaria’s BEH Ranks First Lending Offer of Banca IMI-Bank of China-J.P. Morgan Tie-up State-owned Bulgarian Energy Holding (BEH) group has said that it will invite a consortium of Âànñà IMI, Bank of China and J.P. Morgan Securities for talks on extending bridge financing of up to EUR 650 M to its indebted subsidiary NEK. The consortium comprising Âànñà IMI S.p.A. - London Branch, Bank of China Limited - Luxembourg Branch and J.P. Morgan Securities has been ranked first in the evaluation of the binding offers submitted by two candidates last month. “BEH EAD reserves its right at any time to invite the consortium ranked second for negotiations for concluding a contract,” BEH said in a statement on Wednesday. The maturity of the bridge financing is up to 12 months, with no collateral. The bridge loan will be refinanced through a subsequent placement of a bond issue. The proceeds from the bridge loan will be used to repay the accumulated debt of the National Electricity Company (NEK) to coal-fired power plants AES Galabovo and ContourGlobal Maritsa East 3 in order for the decrease in prices under the long-term power purchase agreements to take effect and to cover debt owed by the two power plants to Maritsa East coal mines. As of late February, NEK owed an estimated total of BGN 950 M (EUR 485 M) to the two power plants, while the palnts' outstanding debt to Maritsa East coal mines was estimated at BGN 340 M (EUR 174 M). AES Galabovo and ContourGlobal Maritsa East 3 are owned by U.S.-based AES Corporation and ContourGlobal, respectively.
Source: Capital (10.03.2016)

NEK Gets Deadline Extension for Paying Its Dues to Maritsa East 1 and 3 Thermal Power Plants The deadline until which the National Electricity Company (NEK) has to pay its dues to the Maritza East 1 and Maritsa East 3 thermal power plants has been extended, Energy Minister Temenouzhka Petkova told journalists on Tuesday. Petkova did not specify the length of the extension. She expressed her optimism that NEK will be able to obtain the loan it needs to pay its liabilities to the two US-owned plants. "I think the whole procedure for securing a loan for NEK will be successful," she said. The Bulgarian Energy Holding (BEH), of which NEK is a subsidiary, has reached agreement on an up to 650 million euro bridge-to-bond loan with a consortium of Banca IMI S.p.A. - London Branch, Bank of China Limited - Luxembourg Branch and J.P. Morgan Securities. The proceeds of the loan will settle NEK's one billion leva debts to the Maritza East 1 and Maritsa East 3 thermal power plants which, in turn, will pay the 350 million leva they owe to the state-owned Maritsa East Mines. Subsequently, NEK will be able to pay a lower availability price to the two coal-fired plants. Petkova said: "The two plants have seen that the loan procedure is unfolding positively and there are banks willing to provide the money. The fact that eight global banks, forming two consortiums, participated in the bidding procedure was a test passed successfully by the Bulgarian energy sector." She said negotiations are now underway with the consortium which was selected to secure the funding sought by BEH. "I believe the parameters offered are within the normal limits," she said, expressing hope that the negotiations will be completed in about 10 days and then the sides will sign an agreement
Source: Dnevnik (16.03.2016)

If the deal with the state-run National Electricity Company (NEK) fails, we will be forced to take the matters to court, Olivier Marquette, CEO of energy company AES Bulgaria said. Marquette referenced the agreement that AES signed with the state-owned company a year ago, which would guarantee that NEK would pay the BGN 600 mln it owes. In exchange AES Galabovo TPP will introduce a discount to its availability price. The power plant will also be able to pay the state-owned Maritsa East Mines. Marquette stated that the loan negotiation process of NEK’s parent structure – the Bulgarian Energy Holding (BEH) – were in their final phase. He said he expected the deal to be finalised in April. Recently AES Bulgaria, together with a number of major energy producers and electricity distribution companies, created the National Energy Chamber (NEC), which in Marquette’s words will be working towards legal representation of energy producers in Bulgaria.
Source: Novinar (29.03.2016)

Miners want a new price of coal Mini Maritsa Iztok EAD - Radnevo wants a new price of mined coal higher by about BGN 9 per ton oil equivalent. The management of the state company has developed a new business programs for the next three years, which provides a yield of 27.35 million tons. This will allow them to catch up in the stripping and to implement the program for modernization and rehabilitation of heavy equipment. The program was returned by the Ministry of Energy for additional details. In recent years, opening of new stripping lags off dramatically behind the extraction. The reason is the loading of the two US power plants by ESO, admitted the president of CITUB Plamen Dimitrov. He expects the agreement between BEH and the bank consortium to be signed, which would bring a loan of BGN 1 billion. BGN 900 million will settle the debts to the two US plants, which in turn will finally pay back the mines.
Source: Monitor (18.04.2016)

Bulgarian Energy Holding swings to BGN 29.5 mln cons net profit in 2015 Bulgarian Energy Holding (BEH), which pools all state-owned energy assets, turned to a consolidated net profit of BGN 29.5 million in 2015 from a loss of BGN 277.4 million in 2014. Among BEH's nine subsidiaries, gas transmission operator Bulgartransgaz recorded the highest profit of BGN 93.2 million, up 23.1% from 2014, followed by nuclear power plant (NPP) Kozloduy with BGN 82.4 million, up 6.1%. The slight improvement in Kozloduy's results came on the back of an increase of its output for the non-regulated market, energy minister Temenuzhka Petkova told a news conference. The net profit of the Electricity System Operator (ESO) more than tripled to a record high of BGN 63.1 million in 2015 from 19.6 million levs in 2014 mainly due to a 10% cut in administrative expenses, which contributed BGN 42 million to the company's profit. Monopoly gas supplier Bulgargaz managed to quadruple its profit to BGN 20.4 million in 2015. Troubled NEK, which acts as a link between electricity producers and distributors, slashed its net loss by 66.5% to BGN 196.7 million in 2015. It recorded a profit of BGN 39 million for the first quarter of 2016. On the negative side, the net loss of thermal power plant Maritsa Iztok 2 more than doubled to BGN 72 million in 2015 from BGN 35 million in 2014, as costs rose faster than revenues. The profit of coal miner Mini Maritsa Iztok dropped 39.4% to 2.6 million levs despite a record high output of 32 million tonnes of coal in 2015. The Independent Bulgarian Energy Exchange (IBEX), which launched operations in January 2016, accumulated a loss of BGN 214,000 in 2015, but recovered to a net profit of BGN 600,000 in the first quarter of 2016.
Source: Monitor (26.04.2016)

2 US power plants settle debts to Bulgaria’s Mini Maritsa Iztok The two American power plants - TPP AES Galabovo and ContourGlobal Maritsa East 3 TPP, have fully settled their debts to Mini Maritsa Iztok EAD until the Easter holidays. The sum, amounting at BGN 356 million, was received by the National Electricity Company (NEK). Andon Andonov, executive director of the mining company, announced the news speaking for the Bulgarian National Radio (BNR). The payment covers the entire sum amassed over the years. The Maritsa Iztok Mines, on the other hand, paid off its due debts, including the interests and VAT, to the state, the banks and the companies. The mines now provide coal to the power plants according to the filed orders.
Source: 24 chasa (03.05.2016)

Bulgarian miner Mini Maritsa Iztok invests EUR 26 mln in equipment Bulgaria's economy ministry said on Thursday that state-owned coal mining complex Mini Maritsa Iztok plans to invest EUR 26 million in two rotary excavators. The contract, which will be signed on Friday, includes the design, manufacturing, delivery and installation of the new equipment. Funding for the investment has been provided by the Kozloduy International Decommissioning Support Fund (KIDSF), administrated by the European Bank for Reconstruction and Development (EBRD). In January, Mini Maritsa Iztok spent BGN 9.2 million provided by KIDSF on a in new rotary excavator in order to reduce its maintenance and operating costs.
Source: Monitor (25.05.2016)

Coal production remains most risky for miners An average of one accident per 115 workers was registered last year in companies extracting coal in Bulgaria. Although incidents in ore mines are more common, consequences are significantly lighter. Far down in the negative rating are the coal mines, according to calculation of Ñapital Daily based on data provided by the General Labour Inspectorate (GLI). With the exception of the state-owned Ìini Ìaritsa Iztok, almost all other companies for coal are owned by Hristo Êovachki. The extraction of coal and ores are generally considered risky and therefore subject to periodic review. Companies that extract coal underground, where the risk is greatest, are inspected once every three months, while checks in ore mining companies are every six months. Control in open coal mines and ores is annual, GLI said. Realistically, however, companies are inspected more often. Last year the total number of inspections was 199, operating companies – 22. Of them coal is mined in 12 (4 underground and 8 open-pit) and metallic minerals are mined by 10 companies (only tw2o open-pit). The data of the inspection show that accidents in coal mining are fewer, but more severe.
Source: Capital (03.06.2016)

The State saves about BGN 300 million from the amended contracts with the two US-owned thermo-electric power plants in Bulgaria, AES Maritsa East 1 and ContourGlobal Maritsa East 3, Energy Minister Temenouzhka Petkova said. Following the repayment of the outstanding debts of the National Electricity Company (NEK) to the two plants in April, they agreed to lower with immediate effect the capacity price that they charge NEK: by 14% for AES and 15% for ContourGlobal. Petkova was asked about the amount of the interest due on a syndicated loan of EUR 535 million that NEK had to take out to pay up to the two power plants until it issue bonds. The precise interest rate of the loan is a trade secret but its average size is 3.8%. The penalty interest is about one percent above the base interest rate, Petkova said. She said that the effect from the amended contracts exceeds BGN 96 million per year, or nearly BGN 1,000 million until the expiry of the long-term agreements with the plants.
Source: Capital (18.07.2016)

Mines Maritsa Iztok looking for two loans of about BGN 52.3 m Despite the fact that only three months ago the state-owned Mines Maritsa Iztok had received arrears of BGN 356 m from two US power stations AES Maritsa East 1 and TPP ContourGlobal Maritsa East 3, the company is looking for more financial resources. This became clear from the two announced competitions for banks to lend overdraft and an investment loan totaling in BGN 52.3 m. The search overdraft limit is BGN 28 m, of which BGN 8 m will be used for current payments and obligations to suppliers, and the remaining BGN 20 m payment of wages, taxes, insurance and other operating needs. The company is currently using 3 lines of credit in the form of overdraft facilities totaling in BGN 40 m. These lines of credit, however, expire on 30th September this year, which is one reason to seek the signing of a new contract. Due to the seasonality of their work and lower yields in spring and fall, the use of working capital funding to provide payments during those periods is required. At the same time the company reported a minimum profit of BGN 2.6 m for 2015, which is nearly 40% lower compared to that of 2014. The loan aims to finance the two multi-bucket wheel excavators. This is the first contract for the upgrading of heavy equipment to the mines for 26 years. The cost for design, manufacture, supply, installation and commissioning of two rotary excavators is EUR 25.8 m.
Source: Capital (28.07.2016)

Mines Maritsa Iztok waits for BGN 110 million BGN 110.4 million is the sum that Mines Maritsa Iztok expects to get by the four major companies in the energy complex. The biggest claims of the mines are for produced and sold lignite coals from the state TPP Maritsa Iztok 2- BGN 69.168 million as BGN 24.154 million is what private briquette factory Brickell has to pay for coal. After receiving claims from NEC, the two American thermal power plants in the energy complex - ContourGlobal MI-3 and AES MI-1 melted their obligations to the company respectively to BGN 11.46 million and BGN 5.62 million. Besides its huge debts to the mines, TPP Maritsa Iztok 2 has a debt of BGN 84 million to other group companies of BEH. Their total amount is assessed to BGN204.64 million. The ultimate loss before tax of the TPP is BGN 51 million, which is more by BGN 18.3 million compared to the same period of 2015. Due to falling prices of electricity and natural gas in the first half of the year and revenues of NPP Kozloduy dramatically decreased as well as those of Bulgargaz by BGN 31 mln and BGN 235.22 mln respectively. Bulgargaz reported profit of BGN 35.424 million for the first half of the year.
Source: Standart (02.08.2016)

BGN 71 mln concession revenues received by energy ministry in 2014 By 31.12.2014 there were a total of 498 concessions on ores and minerals extraction administrated by the Ministry of Energy on the territory of the country, the press office of the Bulgarian Government announced. The revenues received from the concession payments for 2014 amount at BGN 70,975,707. The Council of Ministers approved today the reports of the commissions on control on the concessions ores and minerals extraction for 2014. The main reason for the decline is delayed payments of Mini Maritsa Iztok. The most serious decline in revenues in 2014 was registered in the concessions of energy mineral resources – by nearly BGN 7 million or 31%. The decrease in metals was by BGN 5.4 million or by 18%, as and non-metallic minerals (including construction and stone materials) it is by BGN 1.1 million or by 6%. The concessionaire, who pays most to the state for mining, continues to be Dundee Precious Metals Chelopech with imported BGN 11.4 million, which is BGN 35,721 less compared to 2013. For the period 2011 - 2013 Dundee submitted to the treasury BGN 34 million under the form of concession payments. The second largest concessionaire in terms of payments to the Treasury with BGN 10 million is Elatsite med. Petroceltic that produces natural gas from the field Galata in the Black Sea, contributed BGN 5.5 million. The fourth position is held by Asarel with BGN 4.7 million revenues and the fifth position is taken by Oil and Gas Exploration and Production with BGN 2.2 million
Source: mediapool.bg (04.08.2016)

Mini Maritsa Iztok already buys electricity from the power exchange State-owned Mini Maritsa Iztok already buys electricity from the open market by Independent Bulgarian Energy Exchange (IBEX), the executive director of the company Ivan Andonov announced. Its first purchase on the exchange happened early last week. Transactions are currently for minimum quantities of 35 megawatts, but the achieved price of BGN 44 is BGN 33 lower than the one Mini Maritsa Iztok paid until now. According to the report of the company, in six months for electricity were spent BGN 42.2 million, an increase of 21.8% compared to the same period last year. This is due both to the larger quantities purchased and to the higher costs for ‘commitment to society’, which in the middle of last year was increased by 94.5%, says the report of the company. Thus, the average price at which the company bought, was BGN 140 per megawatt hour including taxes.
Source: Monitor (22.08.2016)

Bulgaria’s Maritsa East Mines Seek BGN 28 Million Loan Bulgaria’s Maritsa East Mines have re-launched a call for a loan through overdraft totaling BGN 28 m (about EUR 14 m), the Bulgarian Energy Holding – parent structure of the mines, said in an announcement on its website. BGN 8 m will be needed for paying debts towards suppliers, while BGN 20 m would be put towards salaries and taxes. The deadline for applications submission expires at 15.00EET on Aug 24, 2016. (publics.bg)
Source: Other (24.08.2016)

United Bulgarian Bank and SG Expressbank granted BGN 28 million working credit to "Mini Maritsa Iztok" Mini Maritsa Iztok managed to find banks to grant it credit amounting to BGN 28 million. For the working capital credit the mining company ranked first the two banks - UBB and Societe Generale Expressbank, which will provide a total of BGN 28 million of overdraft credit. The major loan of BGN 20 million will be granted by Societe Generale Expressbank and will cover obligations to employees, taxes and insurance. The remaining BGN 8 million, which will be provided by UBB, are current payments and obligations to suppliers. The contracts with both banks are still not signed. Under the terms of the announced contest the repayment period is 12 months. The procedure for an investment loan of BGN 24.3 million is still pending for the approval of the Bulgarian Energy Holding.
Source: Capital (20.09.2016)

Profit of TPP AES Galabovo fell by nearly 30% in nine months TPP AES Galabovo’s net profit for nine months have decreased by 29.3%, to BGN 77.7 million. The main reason for the decrease was lower operating income, which shrank by 15.4 % for the period. This led to a decrease in the operating profit of 15.21%. The headquarters recorded a decrease of 5% in productivity, compared to the previous year. The decrease in revenues of AES will be compensated in 2018, as besides the price reduction, the company has contracts with NEC to increase the hours. The greatest achievement of the company this year is that NEC payed its debt to it amounting to BGN 309 million, allowing AES to clear their debts to the state Mini Maritsa Iztok in the amount of BGN 51 million.
Source: Capital (08.12.2016)