The Serbian government has reallocated 168 million dinars from the 2025 IPA Energy Efficiency and Air Quality project to cover salaries at the state-owned underground coal mining company, JP PEU Resavica. Originally, the funds were intended for environmental initiatives, but they will now support the company’s workforce.
In 2025, the total budget for the energy efficiency project was 860.2 million dinars. The redirected amount will come from the current budget reserve and be allocated to the Ministry of Mining to consolidate Resavica’s operations. The government has earmarked 5.52 billion dinars this year for Resavica’s financial consolidation.
Resavica operates eight mines, including anthracite and lignite facilities, producing nearly all of Serbia’s underground coal. The company generated 9.2 billion dinars in revenue in 2024, with expenses exceeding 9.9 billion dinars, resulting in a net loss of 1.6 billion dinars. Subsidies and grants accounted for 5.5 billion dinars of revenue, while domestic sales contributed 2.98 billion dinars. The company employs 3,360 workers, with 5.84 billion dinars spent on salaries and contributions.
In March 2025, Resavica miners received a salary increase and meal allowance following a revised collective agreement. The company has been in financial blockades for 1,827 days over the last five years, with total blocked accounts amounting to 401.5 million dinars.
The government and the IMF have committed to providing sufficient budget support to prevent further arrears and ensure transparency in Resavica’s operations. Privatization remains under consideration, but the government currently holds a 67.14% stake, with the remainder owned by the Republic Pension and Disability Fund.
