The Supreme Court of Montenegro has accepted the request for a revision of the Appellate Court’s ruling, which ordered the country’s largest coal mine in Pljevlja, to pay 2.37 million EUR to the municipality of Pljevlja due to breach of a contract signed two decades ago concerning compensation for land development.
The long-standing dispute, which has been ongoing for almost 12 years, will continue with a hearing scheduled for December 18 at the Appellate Court.
The case stems from a contract signed between Pljevlja Municipality and the coal mine in August 2004, under which the mine was required to pay compensation for the development of land related to the multi-million euro project of relocating the Ćehotina River and opening the Cementara mine. The contract specified that the mine would finance part of the planning and design work and invest in construction of certain facilities.
However, after failing to meet its financial obligations within the specified timeframe, the municipality filed a lawsuit. Over the course of the 12-year trial, several rulings were issued, some in favor of the coal mine.
In the Appellate Court’s ruling, it was stated that the mine was required to pay the amount within eight days of receiving the judgment, with late payment penalties accumulating from the ruling date (March 18, 2024) until full payment is made.
The nearly 2.4 million EUR (including interest) covers the value of works related to the wastewater treatment plant project in Židovići, water treatment systems at the Pliješi facility, and other environmental and infrastructure projects, including works on a sewage collector, water distribution systems, and riverbed regulation in the area.
The ruling also obligates the coal mine to finance further works related to riverbed regulation, deepening of the Ćehotina River, and completion of the remaining infrastructure projects in the Pliješi area within two years from the decision’s receipt.
The court stressed that the mine, as the project investor, was fully aware of its obligations at the time the contract was signed and, despite attempts to declare the contract invalid, failed in its appeal, solidifying the legal obligation.
