Source - RNS
RNS Number : 8250H
Public Power Corporation S.A.
12 June 2017
 

Announcement

 

Further to a relevant request by the Capital Market Committee, regarding the landslide of a significant part of the Amyntaio Mine in the Lignite Center of Western Macedonia, PPC announces the following:

 

·     The financial figures that have been reported in the press do not correspond to reality.

 

·     The financial impact on the Company is both of a short-term and long-term nature.

 

·     The short-term impact relates to the damage of the equipment, whose value has been to a large extent depreciated. In any case, the replacement cost is in the order of 30 to 40 million euros, but such replacement is not necessary given that equipment from other PPC mines can be utilized.

 

·     The long term impact refers to the part of the lignite reserves which could potentially be not fully exploitable and whose value will be defined after a certain period and once it is made possible to carry out the necessary works.   In any case, the 28 million tons reserve which exists in the Mine relates to the extension of the operation of the Amyntaion Units, after the required environmental upgrade, for the decade of 2021-2030. For the "as is" operation of the Units, under the known opt out period of limited operation of 17,000 hours, there is an adequate part of the lignite reserve that has not been damaged from the landslide and will start being extracted before the beginning of the winter season. It is noted that the reseve of the Amyntaion Mine before the landslide corresponded to 5-7% of the total lignite reserves of PPC.

 

·     Finally, with respect to the expropriation and relocation of the village of Anargiron, the exact cost calculation will be done after the necessary actions and procedures as provided by law.  In any case, the cost will be a small fraction of the expropriation cost of Pontokomi village.

 

 

Athens, June 12, 2017


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