In May 2005 EFT signed a concession for the exploitation of the Stanari mine for the period of 30 years, with an option of a 15 year extension. EFT’s winning bid package in the international tender for a private partner for the Stanari mine stipulated an investment of over EUR 10 million in refurbishment of the mine and procurement of new mining equipment.

The second part of the bid included a substantial social program, including payment of all wage and contribution arrears, restructuring of the workforce with 55 new jobs to be created, open negotiations on all issues with the Trade Union, a five-year provision for agreed upon redundancies and a yearly social program investment of KM 3 542 808 over the next two years towards worker training, scholarships, wage increase, meal subsidence and health treatment costs.

The first phase of the development of the Stanari mine was completed in 2006, when annual output of coal reached 600 000 tonnes. The second phase of the development of the mine envisages increase in output of the mine to 3 200 000 tonnes of coal annually, which will provide stable fuel supply to the TPP Stanari.

EFT has so far invested over EUR 40 million in the development of the Stanari mine. New equipment has been bought at the mine, including: trucks, dumpers, bulldozers, excavators, vans for transport of employees, firefighting equipment and vehicles. A service workshop has been built and the continuous excavating system for overburden has been fully refurbished.

Over 100 new jobs have been created at the mine so far. At present there are 400 full time employees at Stanari coal-mine. All wage arrears have been settled and worker salaries have more than doubled so far. Average salary at the Stanari mine is now over KM 1000, substantially above the national average.

In addition to the social program obligations from the concession agreement, EFT has undertaken to provide a voluntary education program (including English language lessons) and has developed a brand new IT center for the local primary school in Stanari. EFT also provides generous scholarship programs for the Stanari schoolchildren, as well as children of EFT-Stanari employees. For more information on these and similar activities, please see Social Responsibility