Lignite producer Mibrag reports losses

Declining production volumes and provisions for upcoming remediation projects have led to losses at Mibrag. According to the most recent figures available in its 2024 annual financial statements, the company reported a loss of approximately 176 million euros. According to Mibrag spokesperson Sebastian Exner, the main reason is the provisions set aside for the reclamation of the remaining pits at the still-active Profen and Vereinigtes Schleenhain open-pit mines in Saxony-Anhalt and Saxony following the planned coal phase-out in 2038. The “Mitteldeutsche Zeitung” had previously reported on this.

Margins for coal-fired electricity are falling

The loss was fully offset by Mibrag’s parent company, the Czech EPH Group. In its annual report, the group reported provisions of 225 million euros for remediation tasks at Mibrag-related companies. The Prague-based group also holds stakes in the Schkopau and Lippendorf power plants, where electricity is generated primarily from Mibrag’s lignite.

The share of renewable energy in the electricity market is increasing. At the same time, margins for coal-fired power are declining due to the continuing scarcity—and resulting rise in price—of CO2 allowances in the EU Emissions Trading System, which is mandatory for companies such as Mibrag. As a result, coal-fired power generation is declining across Europe, the report adds. Mibrag’s production volume fell by just under 40 percent to approximately ten million metric tons of lignite between 2021 and 2024 as part of a “medium-load concept.” In 2025, production volume returned to eleven million metric tons. Future developments depend primarily on trends in electricity demand and future policy decisions.