E.ON and MIBRAG sign contracts for the sale of the Helmstedt coalfield
Acquisition by MIBRAG secures jobs and continued operation of the power plant
E.ON SE and Mitteldeutsche Braunkohlengesellschaft mbH (MIBRAG) signed a contract for the sale of the Helmstedt coalfield on September 18, 2013. MIBRAG is taking over the company in Helmstedt, created through its hive-off from E.ON Kraftwerke GmbH, Hanover, as a wholly owned subsidiary. The new subsidiary will largely comprise the Buschhaus power plant and the open-cast mine at Schöningen. The new company will be called Helmstedter Revier GmbH. Furthermore, as part of the transaction, the central German mining company is assuming the restoration and recultivation obligations relating to the Helmstedt coalfield.
The lignite-fired power plant has a brutto capacity of around 390 MW and was commissioned in 1985. According to the previous plans of E.ON, operation of the Buschhaus power plant was to be discontinued when the deposits in the adjoining Schöninger open-cast mine were exhausted, probably in 2017. MIBRAG will continue to operate the power plant, supplying it with lignite from the central German coalfield.
Dr Joachim Geisler, CEO of MIBRAG, explained: "The acquisition of the Helmstedt coalfield is an important investment in the future for MIBRAG. We have experience in coal mining, recultivation and power plant operation. Buschhaus is a modern power plant site and our high-quality coal will also ensure the economic operation of the power plant in future. As a result, jobs and apprenticeships requiring high qualifications will be secured in the Helmstedt district."
Dr Ingo Luge, CEO of E.ON Deutschland, stresses: "E.ON is delighted to have found in MIBRAG a buyer for the Helmstedt coalfield with experience in mining and power generation. We are confident that we are putting our employees and plants into responsible and competent hands with this contract."
Andreas Schneider, Chairman of the Works Council of Helmstedter Revier, adds: "We very much welcome the fact that E.ON and MIBRAG have together found a solution in a difficult environment which benefits our employees and safeguards jobs beyond the date previously assumed."
The companies are expecting the transaction to be completed by the end of 2013. The contracting parties have agreed not to disclose the purchase price.
This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group management and other information currently available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.