The first geological data on coal in the Stanari basin dates from the early 20th century (F. Katzer). Coal excavation in Stanari began in 1948 in the Raškovac open-cast pit. Underground exploitation began in 1955 and lasted until 1975 in the northern part of the basin (pits 1, 2, 3 and 4). In the southern part of the basin excavation was carried out between 1974 and 1980 (Ostružnja pit). Starting from 1974, coal excavation was mainly focussed on open-cast pit activities, when the OP Raškovac was opened in the north-western part of the basin. The designed annual production capacity of 600 000 tons was achieved only in 1989 and 1990.

The Stanari mine is the biggest employer in the Krnjin mountain region, where it is located. Since the mid 1980’s the mine had faced serious financial difficulties and concomitant worker unrest. The problems were further exasperated by the events of the 1990’s and the sharp economic decline which followed.

Due to the lack of funds and investment into the revitalization and purchase of new equipment and machinery, the production levels fell progressively each year. In 2004 the production of coal at the Stanari mine almost ceased and the mine was unable to meet the demand of its clients. This had inevitably resulted in loss of client confidence, who en masse started turning to new suppliers. The negative circle was completed with accumulated liabilities towards the mine suppliers.

By 2004, the Stanari coal mine faced a realistic danger of liquidation. At this point it employed 284 people. The morale of the workforce was at an all time low owing to accumulated wage arrears.

Faced with the prospect of liquidating the mine and the subsequent social fall-out, in September 2004 the authorities of Republika Srpska called an international tender to find a private partner for the Stanari mine.