CEZ hits snag in talks on new Czech plant - paper

...30 billion crown ($1.41 billion) power station, daily Hospodarske Noviny said on Monday.

It quoted Deputy Industry and Trade Minister Tomas Huener as saying it seemed the two parties would not reach a deal by the June 30 deadline for exclusive talks.

"I do not think that an agreement with Mostecka will be reached by June 30," Huener, who is also deputy chairman of CEZ's supervisory board, told the daily.

"This raises the risk that the miners will agree coal supplies with another partner. This could mean death to the Pocerady (power station) project," he said.

CEZ, majority state-owned, is planning to replace several ageing lignite-fuelled power stations in north-western Czech Republic in the coming years.

Hospodarske Noviny said Mostecka may hook up with E.ON or Enel to build the plant if it does not reach a deal with CEZ.