Energy sector represents a key industrial branch for national, environmental and economic success. With its exclusive access to domestic deposits, lignite industry represents a guarantor of reliable raw materials, offering long-term supply security based on verified reserves. Currently operated coalmines in Serbia (Kolubara and Kostolac) have production around 36 million tons of lignite, and over 108 million m3 of overburden. Consequently, sustainability of lignite production requires cost reduction and environmental protection, as well as capacity increase. In order to rationalise, and increase efficiency of Serbian lignite mines, it is necessary to focus the activities on major issues shown within the triangle of energy policy objectives (security of supply, competi- tive prices and environmental protection). Production process optimisation singled out several special programs. Equipment revi- talization and modernization is necessary taking into account that majority of the currently operated machinery has a life up to 25 years. Production process automation would enable high level of technical operation in the field of open cast mines management. Lack of coal quality uniformity is the permanent problem resulting by great amounts of coal reserves to be used uneconomically. Planning and training at all levels and finally cooperative software for business procedures and work order management. The measures suggested are a key precondition for maintaining competitive position of lignite production on international level. Energy sector represents a key industrial branch for national, environmental and economic success. With its exclusive access to domestic deposits, lignite industry represents a guarantor of reliable raw materials, offering long-term supply security based on verified reserves. Currently operated coalmines in Serbia ( Kolubara and Kostolac) have production around 36 million tons of lignite, and over 108 million m3 of overburden. Therefore, sustainability of lignite production requires cost reduction and environmental protection, as well as capacity increase. In order to rationalize, and increase efficiency of Serbian lignite mines, it is necessary to focus the activities on major issues shown within the triangle of energy policy objectives (security of supply, competi- tive prices and environmental protection). Production process optimization singled out several special programs. Equipment revi- talization and modernization is necessary taking into account that majority of the currentl y operated machinery has a life up to 25 years. Production process automation would enable high level of technical operation in the field of open cast mines management. Lack of coal quality uniformity is the permanent problem resulting by great amounts of coal reserves to be used uneconomically Planning and training at all levels and finally cooperative software for business procedures and work order management. The measures suggested are a key precondition for maintaining competitive position of lignite production on international level.