Serbian firm Elektroprivreda Srbije (EPS) will receive a loan of €80m from the European Bank for Reconstruction and Development (EBRD) to enhance its coal mines.

EPS will use the loan, along with an expected €74m from German bank KFW, to purchase new equipment for the open pits at Kolubara mining basin in Serbia.

The coal from Kolubara mining basin will be fed to EPS’s four thermal plants, which together produce more than 3,000MW, reports Bloomberg .

EBRD said in a statement that the new machinery will improve the quality of the lignite it relies upon, reducing fuel wastage and saving around 250,000t of coal in electricity generation.