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assessment, we reduced the amount of the provisioning to EUR 450,000. In the following
years, we implemented the necessary measures. As a result, at the end of 2021, the value
of the unspent assets amounted to EUR 373,300. The surveys carried out in 2022 and the
periodic technical observation showed that two additional measures were needed: drainage
on the eastern side of the barrier and drainage reinforcement on the western side of the
barrier. Therefore, based on a rough estimate of the cost of the necessary works, the
provision was increased by EUR 579,782. As a result, the balance of the provision on 31
December 2022 was EUR 888,133. In 2023, a landslide occurred during heavy rainfall at the
beginning of August directly below the barrier body. At the end of 2023, an additional
provision was made based on the resources needed to remediate the landslide and taking
into account discount factors based on the expected timeframe for the completion of all
planned remediation works at the NOOZ ZT. The total amount of the resources reserved as
at 31 December 2023 was therefore EUR 1,637,234. In 2024, due to complications in the
administrative procedures for the relocation of the electricity cable crossing the landslide
area, we did not carry out the planned landslide rehabilitation operation, but only the
installation of additional drainage reefs on the E part of the barrier body. In the absence of
the planned rehabilitation works, the landslide area was enlarged in 2024. Due to the
additional consequences of the landslide (Report 'Proposal for the completion of drainage and
replacement of the existing drainage on the W side of the Za Travnikom barrier from profile
Pr4 to PO1' by the Faculty of Civil Engineering and Geodesy), the recalculation of the works
with inflation and discount factors, the estimated amount of the works is EUR 513,254. Taking
into account the rehabilitation work already carried out in 2024 (EUR 213,040), the provision
was increased by EUR 300,215. Taking this into account, the balance of the provision as at
31 December 2024 is EUR 1,937,448 (end of 2023: EUR 1,637,234). In order to get a better
idea of the reason for the periodic restatement of the long-term provision, the following
explanations are given. It is a fact that the barriers at Za Travnikom and Bukovžlak are
constructed as earthen barriers, built of different materials in their composition, which partly
represent old burdens. They hold back and contain millions of tonnes of material, making
removal physically impossible. The barriers are exposed to natural phenomena (precipitation,
drainage, underground water flows, etc.) and are constantly tending towards entropy. As a
diligent and legally obliged operator, we carry out regular technical observation and all the
required monitoring. We react to the findings by taking the measures deemed necessary by
the experts to prevent the risk of harmful emissions or damage from materialising. In addition
to its own employees, Cinkarna Celje, d. d., has set up a permanent project team, which
includes experts from the Department of Geotechnics (KGT) at the Faculty of Civil
Engineering and Geodesy of the University of Ljubljana and the design company Hydrosvet
d.o.o. The project team meets on a regular basis to review the agreed work and to discuss
any new developments. The expert findings form the basis for assessing the adequacy of the
provisions made.
III. For the rehabilitation of the Bukovžlak non-hazardous waste landfill (ONOB), a long-term
provision of EUR 5 million was originally made in 2011 on the basis of a rough estimate. In
2017, at the time of the project preparation, the need for an additional provision of EUR 1
million became apparent. At that time, the specific implementation technique required was
already known, as were the installation materials. The balance at the end of 2019, after
partial utilisation, was EUR 4.5 million. Investigations into the impact of contamination due
to embedded old burdens (CDM Smith, KGT) showed the need for a sealing curtain on the
north-east side of the ONOB barrier and the rehabilitation of the C1 drainage under the high
embankment of the Bukovžlak barrier. In 2023, the designer was asked to revise the estimate
as at 31 December 2022, covering the necessary additions and subtractions to the
implemented facility, design supervision, geodetic monitoring, necessary measurements and
quality control of the installed materials. At the same time, the designer estimated the
timeframe for completion of all the works, and a correction for expected inflation was taken
