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The Government of the Republic of Serbia

In the service of citizens

World Bank welcomes Serbian government's efforts to revive RTB Bor

Bor, 25 October 2005

Serbian Minister of Economy Predrag Bubalo voiced hope today that a tender for the sale of the Bor mining and metallurgical complex (RTB Bor) will be called in the first quarter of 2006 and that the financial advisor will complete the report on the situation in that company by the end of this year.

The Bor mining and metallurgical complex

During the visit to RTB Bor, Bubalo said that the situation in the company is better than he expected and that employees have more work following the successfully completed reconstruction works, which cost the company €4.5 million.

The minister said that one of the current investors in RTB Bor, the oil industry of Serbia "Jugopetrol", will not become RTB Bor's strategic partner and that at the moment there are a great number of companies interested in purchasing the entire metallurgical and mining basin.

According to Bubalo, the bids have already been placed by some of the leading firms in this field, such as multinational companies Rio Tinto and Dandy, as well as companies from Australia and Italy.

He said that the state has to continue to provide subsidies to RTB Bor because of large debts from the past, but voiced hope that the increase in production and the high price of copper in the metals market will reduce the need for subsidies.

Bubalo said that the government's aim is for the privatisation to be carried out without social tensions. He added that the state will pay €100 per year of service to each worker of RTB Bor who will become jobless after the process of restructuring.

Director of World Bank’s office for Serbia-Montenegro Carolyn Jungr said today that the World Bank supports the Serbian government in its efforts to revive RTB Bor.

Jungr said that the World Bank believes in the future of Bor and the entire eastern region of Serbia. However it is very important that the process of reconstruction and privatisation of the basin remain open and transparent and that a good buyer is found.

According to Jungr, the World Bank strongly supports the Serbian government’s plan to carry out a “market test” of the complex and has therefore decided to finance the financial advisors for the revival of this industrial basin.

She said that together with the Serbian government, the World Bank is working on financing the survey on environmental protection, labour market, social policy and a study on copper smelting.

Jungr voiced hope that the World Bank will be able to finance the improvement of environmental conditions in the Bor area and clean-up of mining by-products, especially those of a toxic nature, which in case of leakage could affect the entire region as far as the Black Sea.