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In February 2010 EPS and China Machinery Engineering Corporation (CMEC) signed an $US1.25 preliminary contract for the redevelopment of the Kostolac Power Plant. Under the terms of the preliminary contract CMEC will contribute 85% of the cost of the refurbishment of the plant and the installation of sulphur controls. Xinhua News Agency also reported that the project would also include expanding the capacity of the Drmno mine to 12 million tons of lignite per year and "the construction of the new block B3, by the turnkey system."
EPS has another coal mining subsidiary, MB Kolubara, which operates the the Polje B mine, the Polje D mine, the Tamnava Istok mine and the Tamnava Zapad mine. Between them the four mines produce approximately three-quarters of the lignite in Serbia and supply EPS's TPP Kolubara Power Plant, TPP Nikola Tesla Power Plant and the TPP Morava Power Plant.
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