MARKETS

Foreigners and CEZ barred

FOREIGN companies and Czech power company CEZ have been expelled from the race to acquire two Cze...

Angie Tomlinson
Foreigners and CEZ barred

The Czech government recently made the decision to ban the companies from the tenders, which WMRC reported will be challenged by UK firm International Power and CEZ.

The European Commission has also raised concerns, demanding an explanation from the Czech government. The EC stated the exclusion discriminated against European Union member countries.

The plan to privatise Sokolovska uhelna (SU) and Severoceske doly (SD) cannot be derailed by the EC.

Companies that had shown interest in the SD sale included CEZ, the Appian Group, which already holds interests in another Czech mining company, and Switzerland's Triada Holding. Interest in SU has come from the mine's management and trading company Metalimex, Interfax said.

SU, located near the German border, mined 10.4 million tons of coal last year and operates two power plants, which sold 2.6 terawatt-hours last year.

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