Mining coal without permit earned them €13.5 million

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rudnikMANS Investigation Centre reveals that last year Rudnik uglja illegally mined ore from the mine Potrlica

In 2015, Pljevlja-based Rudnik uglja was mining coal from the mine Potrlica for almost three months without the required permission from the Ministry of Economy and invoiced at least €13.5 million, which is one more indicator that the mining company “does not give heed” to the country’s laws, whereas, on the other hand, the state institutions facilitate such activities of the company, reveals MANS Investigation Centre.

Rudnik uglja has a concession to mine coal in Pljevlja, but the Mining Law clearly stipulates that exploiting coal resources must be in accordance with mining projects, which are approved by the Ministry of Economy. In addition, Environmental Impact Assessment Study, which must be authorized by the Environmental Protection Agency, is to be developed for each mining project.

According to the data in possession of MANS Investigation Centre, the company’s permit for coal mining operations at the site Potrlica expired at the beginning of 2015 (it was valid for the period 2010-2014), so in March the Ministry of Economy issued the decision on extending the deadline for mining activities to 30 June of the same year. During this time, a mining project should have been approved to Rudnik uglja for the next four years of mining operations at the mine site Potrlica and the Environmental Impact Assessment Study.

The official data show that in early August 2015 the Environmental Protection Agency delivered a positive opinion to Rudnik uglja on the Environmental Impact Assessment Study. A month and a half later, on 18 September, the Ministry of Economy issued a certificate, giving the company its consent for mining operations at Potrlica, in accordance with the mining project, covering the period from 2015 to 2019.

This means that from 1 July to 18 September last year, the mining company illegally mined coal from the Pljevlja basin, because it had no permit to do such activity. For less than three months Rudnik uglja delivered 419 thousand tons of coal to Elektroprivreda Crne Gore (EPCG) for the needs of the existing thermal power plant, and on that basis invoiced €13.5 million (including VAT).

MANS Investigation Centre documents show that in July 2015 Rudnik uglja delivered 153 thousand tons of coal to EPCG and invoiced five million, in August it delivered 159 thousand tons and invoiced 5.1 million, while in the first 20 days of September it delivered 106 thousand tons of coal and invoiced €3.3 million invoiced.

The Ministry of Economy, headed by the minister Vladimir Kavaric, should have had the insight into the whole situation, but it is not known whether the Ministry or competent inspection bodies took any steps, or if the management of Rudnik uglja bore any responsibility.

In relation to this case MANS submitted an initiative to the Mining Inspection last week, while at the same time the complete documents were forwarded to the competent public prosecutor’s office so as to determine whether there had been any abuse of the position in business operations by the management of Rudnik uglja.

In recent days MANS has revealed that the Pljevlja-based company was obliged to invest €8.8 million in the rehabilitation of land due to mining ore from the mines Potrlica and Cementara during the five-year period, but is trying to avoid the legal obligation by letting EPCG build a new ash and slag landfill.

All these examples raise a reasonable suspicion that Rudnik uglja from Pljevlja keeps violating the country’s laws with the silent approval of the highest government officials.

This text is created with the support of the European Union within the project “Zero Tolerance to Corruption”. Network for Affirmation of Non-Governmental Sector – MANS is solely responsible for the contents of this article, and the views taken herein shall not in any case be considered as those of the European Union.

Prosecution claims Rudnik uglja is “clean”

A recent criminal charge filed by MANS against the executive director of Rudnik uglja Slavoljub Popadic, who, as a person in charge, has been suspected of series of criminal offences from the field of environmental protection, shows to which extent this company is “untouchable”.

The deputy basic public prosecutor Bozidarka Gacevic rejected the criminal charge lodged by MANS, while during the interrogation process she interrogated the chief environmental inspector and several managers from Rudnik uglja, without obtaining other pieces of evidence.

Deputy Basic State Prosecutor entirely relied on the statements of managers from Rudnik uglja, taking them for granted. Thus, they claimed that the mining company had been investing in rehabilitation of the mined land, while Gacevic did not even consider gathering relevant financial documents to support what they had said, which is probably what a law student would do, let alone a state prosecutor.

Furthermore, the competent inspector informed Gacevic that Rudnik uglja had not conducted regular measurements so as to provide the assessment on the quality of water and air in the vicinity of the mine and that there had been official reports acknowledging evidence that Rudnik discharged mine water in the Cehotina river, which did not meet the requirements on discharge of waste waters set in the Rulebook on Sanitary and Technical Conditions for Discharge of Wastewater.

Finally, it is particularly unbelievable that Gacevic assessed that “the work of Rudnik uglja certainly affects the environment, but without a broader and more comprehensive research the degree cannot be accurately determined, since the pollution in the Municipality of Pljevlja is the result of a large number of pollutants”, thereby indirectly confirming that Rudnik uglja has not been undertaking the necessary measures in accordance with a set of environmental laws, but nevertheless rejected the application.

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